1. Organizational Structure Creating an Organizational Structure

2. Journal Entry  List leadership roles and /or committee appointments you have had  Describe those roles and / or appointments  Identify the positive and negative experiences you had in those roles and / or appointments

3. Factors Affecting Organizational Structure  Size  Type of Product or Service

4. Organizational Life Cycle

5. Size  Phase 1 – Imagine and Inspire  “Can the dream be realized”  Phase 2 – Found and Frame  “How are we going to pull this off”  Phase 3 – Ground and Grow  “How can we build this to be viable”  Phase 4 – Produce and Sustain  “How can the momentum be sustained”  Phase 5 – Review and Renew  “How do we need to redesign”

6. Size

7. Phase 1  Evolutionary Stage: Growth Through Creativity  Revolutionary Stage: Crisis of Leadership

8. Phase 1  Evolutionary Stage: Growth Through Creativity - This stage is dominated by the founders of the organization, and the emphasis is on creating both a market and product. These founders are usually technically or entrepreneurially oriented. Management activities are avoided. But as the organization grows, management problems cannot be handled through informal communication. This leads to

9. Phase 1  Revolutionary Stage: Crisis of Leadership The question of who is going to lead the organization out of its state of confusion and solve management problems? The solution is to find a strong manager. This crisis leads to the next evolutionary period:

10. Phase 2  Evolutionary Stage: Growth Through Direction  Revolutionary Stage: Crisis of Autonomy

11. Phase 2  Evolutionary Stage: Growth Through Direction During this stage, the new manager and key staff take the responsibility for establishing direction, while lower level supervisors are treated as functional specialists than autonomous decision- makers. The demands of lower-level managers for more autonomy eventually leads to the next revolutionary period.

12. Phase 2  Revolutionary Stage: Crisis of Autonomy The solution to this crisis is usually greater delegation.

13. Phase 3  Evolutionary Stage: Growth Through Delegation  Revolutionary Stage: Crisis of Control

14. Phase 3  Evolutionary Stage: Growth Through Delegation When an organization gets to the growth stage of delegation, it usually begins to develop a decentralized organizational structure, which heightens motivation at lower levels of the organization. Eventually top managers sense they are losing control over a diversified field operation. This leads to:

15. Phase 3  Revolutionary Stage: Crisis of Control The crisis of control leads to a return to centralization. This creates resentment among those individuals who feel that their organizational freedoms are being constrained. Searching for an alternative usually leads to:

16. Phase 4  Evolutionary Stage: Growth Through Coordination  Revolutionary Stage: Crisis of Red Tape

17. Phase 4  Evolutionary Stage: Growth Through Coordination This period is characterized by the use of formal systems for achieving greater coordination with top management as the organizational watchdogs. Most coordination systems get carried away and it leads to:

18. Phase 4  Revolutionary Stage: Crisis of Red Tape This crisis most often occurs when the organization has become too large and complex to be managed through formal programs and rigid systems. To overcome the Red Tape mentality, the organization moves to the next stage:

19. Phase 5  Evolutionary Stage: Growth Through Collaboration  Revolutionary Stage: Crisis of ?

20. Phase 5  Evolutionary Stage: Growth Through Collaboration This stage emphasizes greater spontaneity in management action through teams and the skillful confrontation of interpersonal differences. Social control and self- discipline take over from formal control. The next “revolutionary stage” was not identified by Griener:

21. Phase 5  Revolutionary Stage: Crisis of ? Griener suggests that the next crisis will center on the psychological saturation of employees who have grown emotionally and physically exhausted by the intensity of teamwork and the heavy pressure for innovative solutions.

22. Organizational Life Cycles Evolving Culture

23. Birth Stage  Size small  Bureaucraticnonbureaucratic  Division of Laboroverlapping tasks  Centralizationone-person rule  Formalizationno written rules  Administrative intensityno professional staff  Internal Systemsnonexistent  Lateral teams, task forcesnone for coordination

24. Youth Stage  Size medium  Bureaucraticprebureaucratic  Division of Laborsome departments  Centralizationtwo leaders rule  Formalizationfew rules  Administrative intensityincreasing clerical & maintenance  Internal Systemscrude budget & information  Lateral teams, task forcestop leaders only for coordination

25. Midlife Stage  Size large  Bureaucraticbureaucratic  Division of Labormany departments  Centralizationtwo department heads  Formalizationpolicy & procedures  Administrative intensityincreasing professional & staff support  Internal Systemscontrol systems in place, budget, performance reports  Lateral teams, task forcessome use of integrators and for coordination task forces

26. Maturity Stage  Size very large  Bureaucraticvery bureaucratic  Division of Laborextensive, with small jobs and many descriptions  Centralizationtop management heavy  Formalizationextensive  Administrative intensitylarge-multiple departments  Internal Systemsextensive planning, financial and personnel added  Lateral teams, task forcesfrequent at lower levels to for coordination break down bureaucracy

27. Preventing Premature Organizational Death

28. Risk Factors  Board and staff stagnation  Reliance on a single funding source  Failure to pay attention to the external environment

29. Taking Action  Avoid the “we always did it this way” syndrome  Frequently ask: “Is there a better way to do this?”  Add new Board members

30. Taking Action  Pay attention to staff morale  Pay attention to financial trends revenues, expenses available fund raising dollars.  Have a strategic plan and monitor it daily.

31. Taking Action  Ask yourself whether you may be a problem for the organization. Are you challenged, are you having fun? Do you enjoy your co-workers?  Fight stress by exercising, taking vacations getting involved in non-work activities.

32. Organizational Structure Creating an Organizational Structure

33. Type of Product or Service  The type of product or service a company produces is an important factor affecting organizational structure  The more sophisticated the product or service the more likely the organization is to have more levels of management

34. Organizing a Company into Departments  Organizing Departments by Work Function  Organizing Departments by Product  Organizing Departments in Other Ways

35. Organizing Departments by Work Functions  Production  Marketing  Finance  HR  Creating the goods or services  Product, Placement, Pricing, and Promotion  Financial Statements, obtaining credit, and collecting receivables  Hiring Employees and job placement

36. Organizing Departments by Work Functions Advantages  Specialization  Efficiency Disadvantage  Conflicts over differing goals  Relatively narrow scope of management

37. Organizing Departments by Product  Allows employees to identify with the product rather than a job function  Develops a sense of common purpose  Identifies which products are profitable  Allows employees/trainees to experience a broad range of functional activities Advantages

38. Organizing Departments by Product  Departments can become overly competitive  Activities are duplicated across departments Disadvantages

39. Organizing Departments in Other Ways  Geographic Region  Type of Customer

40. Organizational Structure Understanding the Roles of Company Leadership

41.  Committees  Chief Executive Officer  Board of Directors

42. Committees  An organized group of people appointed to consider or decide upon certain matters  Guidelines to choosing and managing a committee  Clearly define the committee’s function  Establish authority figures within the committee  Set clear goals for members to attain  Decide on the limits of a committee’s power

43. Chief Executive Officer (CEO)  The most important executive in the company  Sets the company’s objectives  Makes decisions about meeting the company’s objectives  Determines who fills senior management positions  Develops the company’s long-term strategy  Attends the company’s annual shareholder meeting and answers questions about the company’s activities  Takes charge of the company in crisis  Works with the board of directors

44. Board of Directors  Approve all major management decisions and important decisions of the CEO, if owned by stockholders  Legal representative of a company’s stockholders  Headed by a chairperson  Board members include people from both inside and outside the company  Inside Board Members are senior company managers who serve on the board of diretors  Usually meet 4 – 6 times per year  Focus on the company’s major decisions, leaving day to day operations to the company’s managers

45. Sources  Organizational Life Cycles  Griener’s Five Stages of Growth  (From Harvard Business Review, July-August, 1972.)  www.smartdraw.com www.smartdraw.com  From Start Up to Shut Down: The Rise and Fall of an Organization  Glencoe Business Management, pages 306 - 317