1. o r g a n i z a t i o n a l b e h a v i o r e l e v e n t h e d i t i o n

2. ORGANIZATIONAL BEHAVIOR S T E P H E N P. R O B B I N S E L E V E N T H E D I T I O N W W W. P R E N H A L L. C O M / R O B B I N S © 2005 Prentice Hall Inc. All rights reserved. PowerPoint Presentation by Charlie Cook LECTURE NO 20 Foundations of Organization Structure

3. SUMMARY OF THE PREVIOUS LECTURE NO. 19  Factors Influencing the Choice and Effectiveness of Power Tactics  Sequencing of tactics  Skillful use of a tactic  Relative power of the tactic user  The type of request attaching to the tactic  How the request is perceived  The culture of the organization  Country-specific cultural factors  Power in Groups: Coalitions  Political Behavior ( Activities that are not required as part of one’s formal role in the organization, but that influence, or attempt to influence, the distribution of advantages or disadvantages within the organization.) © 2005 Prentice Hall Inc. All rights reserved.15–3

4. Summary of the Previous Lecture Contn…d  Legitimate Political Behavior Normal everyday politics.  Illegitimate Political Behavior Extreme political behavior that violates the implied rules of the game  Politics Is in the Eye of the Beholder  “ Political” Label “Effective Management” Label  1. Blaming others vs. Fixing responsibility  2. “Kissing up” vs. Developing working relationships  3. Apple polishing vs. Demonstrating loyalty  4. Passing the buck vs. Delegating authority  5. Covering your rear vs. Documenting decisions  6. Creating conflict vs. Encouraging change and innovation © 2005 Prentice Hall Inc. All rights reserved.14–4

5. PREVIOUS LECTURE SUMMARY 19  7. Forming coalitions vs. Facilitating teamwork  8. Whistleblowing vs. Improving efficiency  9. Scheming vs. Planning ahead  10. Overachieving vs. Competent and capable  11. Ambitious vs. Career-minded  12. Opportunistic vs. Astute  13. Cunning vs. Practical-minded  14. Arrogant vs. Confident  15. Perfectionist vs. Attentive to detail © 2005 Prentice Hall Inc. All rights reserved.15–5

6. ORGANIZATIONAL BEHAVIOR S T E P H E N P. R O B B I N S E L E V E N T H E D I T I O N W W W. P R E N H A L L. C O M / R O B B I N S © 2005 Prentice Hall Inc. All rights reserved. PowerPoint Presentation by Charlie Cook LECTURE NO 20 Foundations of Organization Structure

7. After studying this chapter, you should be able to:  Organizational Structure  Work Specification  Departmentalization  Organizational Structure (Authority, Chain of Command, Unity of Command, Span of Control, Centralization, Decentralization, Formalization)  Common Organizational Design (Simple Design, Bureaucracy (Strength/Weakness) Mixture Structure, Team Structure. © 2005 Prentice Hall Inc. All rights reserved.15–7

8. © 2005 Prentice Hall Inc. All rights reserved.15–8 What Is Organizational Structure? Key Elements: Work specialization Departmentalization Chain of command Span of control Centralization and decentralization Formalization Key Elements: Work specialization Departmentalization Chain of command Span of control Centralization and decentralization Formalization Organizational Structure How job tasks are formally divided, grouped, and coordinated.

9. © 2005 Prentice Hall Inc. All rights reserved.15–9 What Is Organizational Structure? (cont’d) Division of labor: Makes efficient use of employee skills Increases employee skills through repetition Less between-job downtime increases productivity Specialized training is more efficient. Allows use of specialized equipment. Division of labor: Makes efficient use of employee skills Increases employee skills through repetition Less between-job downtime increases productivity Specialized training is more efficient. Allows use of specialized equipment. Work Specialization The degree to which tasks in the organization are subdivided into separate jobs.

10. © 2005 Prentice Hall Inc. All rights reserved.15–10 What Is Organizational Structure? (cont’d) Grouping Activities By: Function Product Geography Process Customer Grouping Activities By: Function Product Geography Process Customer Departmentalization The basis by which jobs are grouped together.

11. © 2005 Prentice Hall Inc. All rights reserved.15–11 What Is Organizational Structure? (cont’d) Chain of Command The unbroken line of authority that extends from the top of the organization to the lowest echelon and clarifies who reports to whom. Authority The rights inherent in a managerial position to give orders and to expect the orders to be obeyed. Unity of Command A subordinate should have only one superior to whom he or she is directly responsible.

12. © 2005 Prentice Hall Inc. All rights reserved.15–12 What Is Organizational Structure? (cont’d) Narrow Span Drawbacks: Expense of additional layers of management. Increased complexity of vertical communication. Encouragement of overly tight supervision and discouragement of employee autonomy. Narrow Span Drawbacks: Expense of additional layers of management. Increased complexity of vertical communication. Encouragement of overly tight supervision and discouragement of employee autonomy. Concept: Wider spans of management increase organizational efficiency. Concept: Span of Control The number of subordinates a manager can efficiently and effectively direct.

13. © 2005 Prentice Hall Inc. All rights reserved.15–13 What Is Organizational Structure? (cont’d) Centralization The degree to which decision making is concentrated at a single point in the organization. Formalization The degree to which jobs within the organization are standardized. Decentralization The degree to which decision making is spread throughout the organization.

14. © 2005 Prentice Hall Inc. All rights reserved.15–14 Common Organization Designs Simple Structure A structure characterized by a low degree of departmentalization, wide spans of control, authority centralized in a single person, and little formalization.

15. © 2005 Prentice Hall Inc. All rights reserved.15–15 Common Organization Designs (cont’d) Bureaucracy A structure of highly operating routine tasks achieved through specialization, very formalized rules and regulations, tasks that are grouped into functional departments, centralized authority, narrow spans of control, and decision making that follows the chain of command.

16. © 2005 Prentice Hall Inc. All rights reserved.15–16 The Bureaucracy  Strengths –Functional economies of scale –Minimum duplication of personnel and equipment –Enhanced communication –Centralized decision making  Weaknesses –Subunit conflicts with organizational goals –Obsessive concern with rules and regulations –Lack of employee discretion to deal with problems

17. SUMMARY THE CURRENT LECTURE 20  Organizational Structure  Work Specification  Departmentalization  Organizational Structure (Authority, Chain of Command, Unity of Command, Span of Control, Centralization, Decentralization, Formalization)  Common Organizational Design (Simple Design, Bureaucracy (Strength/Weakness) Mixture Structure, Team Structure.  Strengths –Functional economies of scale –Minimum duplication of personnel and equipment –Enhanced communication –Centralized decision making © 2005 Prentice Hall Inc. All rights reserved.15–17

18.  Weaknesses –Subunit conflicts with organizational goals –Obsessive concern with rules and regulations –Lack of employee discretion to deal with problems © 2005 Prentice Hall Inc. All rights reserved.15–18

19. © 2005 Prentice Hall Inc. All rights reserved.15–19