1. © 2005 Prentice-Hall 13-1 Foundations of Organization Structure Chapter 13 Essentials of Organizational Behavior, 8/e Stephen P. Robbins

2. © 2005 Prentice-Hall 13-2 1)Identify the six key elements that define an organization’s structure 2)Describe a simple structure 3)Explain the characteristics of a bureaucracy 4)Describe a matrix organization After reading this chapter, you should be able to:

3. © 2005 Prentice-Hall 13-3 After reading this chapter, you should be able to: 5)Explain the characteristics of a “virtual” organization 6)Summarize why managers want to create boundaryless organizations 7)List the factors that favor different organization structures 8)Explain the behavioral implications of different organization structures

4. © 2005 Prentice-Hall 13-4 Organization Structure Organization Structure defines how job tasks are formally divided, grouped, and coordinated

5. © 2005 Prentice-Hall 13-5 Elements to Address Work specialization Departmentalization Chain of command Span of control Centralization Decentralization Formalization

6. © 2005 Prentice-Hall 13-6 Work Specialization Division of labor Describes the degree to which activities in the organization are subdivided into separate jobs

7. © 2005 Prentice-Hall 13-7 Departmentalization Basis by which jobs are grouped together Function Product Geography Process Customer

8. © 2005 Prentice-Hall 13-8 Chain of Command Unbroken line of authority that extends from the top of the organization to the lowest echelon and clarifies who reports to whom

9. © 2005 Prentice-Hall 13-9 Chain of Command Authority Unity of Command principle

10. © 2005 Prentice-Hall 13-10 Span of control - determines the number of levels and managers an organization has

11. © 2005 Prentice-Hall 13-11 Contrasting Spans of Control

12. © 2005 Prentice-Hall 13-12 Trend in recent years has been toward larger spans of control Wide spans are consistent with efforts by companies to reduce costs, cut overhead, speed up decision making, increase flexibility, get closer to customers, and empower employees

13. © 2005 Prentice-Hall 13-13 Centralization -Centralization - degree to which decision making is concentrated at a single point in the organization Decentralization -Decentralization - lower-level personnel provide input or are actually given the discretion to make decisions

14. © 2005 Prentice-Hall 13-14 Formalization Degree to which jobs within the organization are standardized

15. © 2005 Prentice-Hall 13-15 Common Organizational Designs Simple structureSimple structure BureaucracyBureaucracy Matrix structureMatrix structure

16. © 2005 Prentice-Hall 13-16 Simple Structure Low degree of departmentalization Wide spans of control Little formalization Difficult to maintain in anything other than small organizations

17. © 2005 Prentice-Hall 13-17 Bureaucracy Highly routine operating tasks achieved through specialization Formalized rules and regulations Tasks that are grouped into functional departments

18. © 2005 Prentice-Hall 13-18 Bureaucracy Centralized authority Narrow spans of control Decision making that follows the chain of command

19. © 2005 Prentice-Hall 13-19 Matrix Structure Combines two forms of departmentalization—functional and product

20. © 2005 Prentice-Hall 13-20 Matrix Structure for a College of Business Administration

21. © 2005 Prentice-Hall 13-21 New Options The Team StructureThe Team Structure The Virtual OrganizationThe Virtual Organization The Boundaryless OrganizationThe Boundaryless Organization

22. © 2005 Prentice-Hall 13-22 Mechanistic versus Organic Structures

23. © 2005 Prentice-Hall 13-23 Strategy and Structure Innovation StrategyInnovation Strategy Cost-Minimization StrategyCost-Minimization Strategy Imitation StrategyImitation Strategy

24. © 2005 Prentice-Hall 13-24 Why do Structures Differ? Organization Size Technology Environmental Uncertainty

25. © 2005 Prentice-Hall 13-25 Organizational Structure and Employee Behavior Work Specialization Span of Control Centralization

26. © 2005 Prentice-Hall 13-26 1)Identified the six key elements that define an organization’s structure 2)Described a simple structure 3)Explained the characteristics of a bureaucracy 4)Described a matrix organization Summary

27. © 2005 Prentice-Hall 13-27 5)Explained the characteristics of a “virtual” organization 6)Summarized why managers want to create boundaryless organizations 7)Listed the factors that favor different organization structures 8)Explained the behavioral implications of different organization structures Summary