Organizational Structure and Design

Structure and Design
Chapter 9
Management


Stephen P. Robbins Mary Coulter


tenth

Outcomes Follow this Learning Outline as you read and study this

9.1 Defining Organizational Structure
Discuss the traditional and contemporary views of work specialization, chain of command, and span of control.
Describe each of the five forms of departmentalization.
Differentiate, authority, responsibility, and unity of command.
Explain how centralization – decentralization and formalization are used in organizational design.

Outcomes
9.2 Mechanistic and Organic Structures
Contrast mechanistic and organic organizations.
Explain the

Organizational Structure
Organizing
Arranging and structuring work to accomplish an organization’s goals.
Organizational

9–1 Purposes of Organizing
Divides work to be done into specific jobs

Structure
Work Specialization
The degree to which tasks in the organization are

by Type
Functional
Grouping jobs by functions performed
Product
Grouping jobs by product

Process
Grouping jobs on the basis of product or customer flow
Customer
Grouping jobs by type of customer and needs

9–2 The Five Common Forms of Departmentalization

9–2 (cont’d) Geographical Departmentalization

9–2 (cont’d) Product Departmentalization

9–2 (cont’d) Process Departmentalization
+ More efficient flow of work activities
– Can only

9–2 (cont’d) Customer Departmentalization
+ Customers’ needs and problems can be

Structure (cont’d)
Chain of Command
The continuous line of authority that extends

Structure (cont’d)
Authority
The rights inherent in a managerial position to tell

Structure (cont’d)
Span of Control
The number of employees who can be

9–3 Contrasting Spans of Control

Structure (cont’d)
Centralization
The degree to which decision making is concentrated at

9–4 Factors that Influence the Amount of Centralization

More Centralization
Environment is stable.
Lower-level managers are not as capable or experienced at making decisions as upper-level managers.
Lower-level managers do not want to have a say in decisions.
Decisions are relatively minor.
Organization is facing a crisis or the risk of company failure.
Company is large.
Effective implementation of company strategies depends on managers retaining say over what happens.

9–4 (cont’d) Factors that Influence the Amount

More Decentralization
Environment is complex, uncertain.
Lower-level managers are capable and experienced at making decisions.
Lower-level managers want a voice in decisions.
Decisions are significant.
Corporate culture is open to allowing managers to have a say in what happens.
Company is geographically dispersed.
Effective implementation of company strategies depends on managers having involvement and flexibility to make decisions.

Structure (cont’d)
Formalization
The degree to which jobs within the organization are

9–5 Mechanistic Versus Organic Organization
• High specialization
• Rigid departmentalization
• Clear chain

• Cross-functional teams
• Cross-hierarchical teams
• Free flow of information
• Wide spans of control
• Decentralization
• Low formalization

Factors
Structural decisions are influenced by:
Overall strategy of the organization
Organizational structure

Factors (cont’d)
Strategy Frameworks:

Innovation
Pursuing competitive advantage through meaningful and unique innovations

Factors (cont’d)
Strategy and Structure
Achievement of strategic goals is facilitated by

Factors (cont’d)
Technology and Structure
Organizations adapt their structures to their technology.
Woodward’s

9–6 Woodward’s Findings on Technology, Structure, and Effectiveness

Factors (cont’d)
Environmental Uncertainty and Structure
Mechanistic organizational structures tend to be

Organizational Designs
Traditional Designs
Simple structure
Low departmentalization, wide spans of control, centralized

9–7 Strengths and Weaknesses of Traditional Organizational Designs

9–8 Contemporary Organizational Designs

9–8 (cont’d ) Contemporary Organizational

Organizational Designs (cont’d)
Contemporary Organizational Designs
Team structures
The entire organization is made

Designs (cont’d)
Contemporary Organizational Designs (cont’d)
Boundaryless Organization
An flexible and unstructured organizational

External Boundaries
Virtual Organization
An organization that consists of a small core

Organizational Design Challenges
Keeping Employees Connected
Widely dispersed and mobile employees
Building a

Designs (cont’d)
The Learning Organization
An organization that has developed the capacity

to Know
organizing
organizational structure
organizational chart
organizational design
work specialization
departmentalization
cross-functional teams
chain of command
authority
responsibility
unity of

mechanistic organization
organic organization
unit production
mass production
process production
simple structure
functional structure
divisional structure
team structure
matrix structure
project structure
boundaryless organization
virtual organization
network organization
learning organization

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