...Chapter 10 Organizational Structure and Design |ANNOTATED OUTLINE | | 1. INTRODUCTION Designing organizational structure involves the process of organizing (the second management function) and plays an important role in the success of a company. 2. DEFINING ORGANIZATIONAL STRUCTURE Managers need to establish structural designs that will best support and allow employees to do their work effectively and efficiently. A. Several important terms must be defined in order to understand the elements of organizational structure and design: 1. Organizing is arranging and structuring work to accomplish the organization’s goals. This process has several purposes, as shown in Exhibit 10-1 and PowerPoint slide 10-6. 2. Organizational structure is the formal arrangement of jobs within an organization. 3. Organizational design is developing or changing an organization’s structure. This process involves decisions about six key elements: work specialization, departmentalization, chain of command, span of control, centralization/ decentralization, and formalization. Chapter Ten examines each of these structural elements. B. Work specialization is dividing work activities into separate job tasks. Most of today’s managers regard work specialization as an important organizing mechanism, but not as a source of ever-increasing...
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...Statement of Purpose Organizational Design and Structure The target of our presentation will be to comply with the main objectives listed on the first page of chapter 16 from the course’s recommended book, regarding “Organizational Design and Structure”. Consequently, our goals are to be able to properly explain the following topics: I. The relationship between organizational design and an organization's structure. II. The main contingencies that affect the process of organizational design and the differentiation between mechanistic and organic structures. III. The pros and cons of the main forms of organizational structures from which any organization can choose. IV. Why coordination and communication becomes a more present problem with the growth of the organizations and provide tools to overcome this situation. V. The impact IT has had on organizational design and structure. In order to achieve the above mentioned objectives, our strategy is to schematically explain every concept, illustrating them with contrasting, fresh and real examples. The topics to be treated are to be presented in the following order: A. Introduction. A.1 What is Organizational Structure? A.2 What is Organizational Design? A.3 Brief reference to contingency theory’s concept and its approach on organizational design and structure. A.3.1 Contingencies affecting Organizational Design: A.3.1.1 Environment. A.3.1.2 Technology. A.3.1.3 Human Resources...
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...Ch.1: Why is shared information so important in a learning organization as compared to an efficient performance organization? Discuss how an organization’s approach to information-sharing might be related to other elements of organization design, such as structure, tasks, strategy, and culture. An efficient performance organization is based on a vertical organizational structure, where all the strategy formulation and decision-making is done by top executives and handed down the vertical hierarchical chain to be completed by workers (Daft, 2010). Based on this type of structure, the upper management has the control over all information needed in order to complete all tasks necessary to obtain the company’s goals. There is a big difference in top-down (vertical) management and horizontal management. Information-sharing is very important in both but the means are different. In a horizontal structure, information can more easily and quickly be disbursed to all employees. This information is important to how the tasks will be completed and the time in which it will take to complete it. Ch. 1: What are some differences one might expect among stakeholder expectations for a nonprofit organization versus a for-profit business? Do you think nonprofit managers have to pay more attention to stakeholders than do business managers? Discuss. A stakeholder can be defined as anyone that has any invested interest or influence on an organization. Stakeholder’s interest can vary from...
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...•Ch. 4: How do you think planning in today’s organizations compares to planning twenty-five years ago? Do you think planning becomes more important or less important in a world where everything is changing fast and crises are a regular part of organizational life? Why? The planning process is not very different however the steps involved have likely increased from twenty-five years ago. Problems that occur in today’s organizations are much more complex and require complex solutions and complex risk assessments. This is evident in the increased number of departments needed within an organization to handle the vast amount of work such as marketing, procurement, legal and E-business departments. Planning is much more important in a world that is constantly changing and crises are a regular occurrence. It is imperative that organizations select managers that are as diverse as the departments within the company. In a fast paced, changing world there are so many more levels of uncertainty and planning is a huge factor in the success of a business. “Frequent changes require more information processing to achieve horizontal coordination.” (Daft, 2010, p. 153) •Ch. 4: Is changing the organization's domain a feasible strategy for coping with a threatening environment? Can you think of an organization in the recent news that has changed its domain? Explain. Changing an organization’s domain is probably not the best idea. This is especially true for an organization that operates in...
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...Organizational Structure Management - set of administrative units, arranged in strict subordination and providing linkages between different parts of the organization, as well as the distribution between the rights and responsibilities. It manifests itself through the division of labor, the creation of specialized units and the hierarchy of positions is a necessary element of an effective organization because gives it the internal stability and allows for some order to the use of resources. Depending on the nature of relationships between different parts of the organization are following types of organizational structures: a linear function, linear function (or staff) who belong to the category of so-called "hard", defined fixity of borders, a set of incoming items, fixed links, the matrix, design, and fragmented adhokraticheskuyu categorized as flexible or adaptive structures that have the ability to easily change and adapt to new tasks and objectives. Lenaynaya management structure - system, which has a higher and some lower courts. With this control system, the principle of unity of command, subordinate only to fulfill orders of one leader, edinonachalnika, which are concentrated in the hands of all management functions. This management structure is logically more coherent, but less flexible. Advantages: the unity and clarity of management, coordination of actions of performers, ease of management, efficiency in decision making, personal responsibility of the head....
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...1. Organizational Design and Structure (Advantages and Disadvantages) Each person assumes a role within the organization, and the organizational structure determines the reporting relationship between the individuals. The organization's strategy determines the organizational structure that will work best for a business at a particular point in time. For example, a small business that hires only experienced personnel, who require limited supervision, will likely adopt a different organizational structure than will a business that hires a number of recent college graduates, who require extensive supervision. (McShane and Steen, p. 362). In this assignment I would like to offer to your attention an ABC Ltd. IT company, it’s organizational structure, job design and other segments of corporate system. All organizational structures include two fundamental requirements: the division of labour and the coordination of that labour so that employees are able to accomplish common goals. (McShane and Steen, p. 364). ABC Ltd. is a large IT company with divisional organizational design. ABC’s design is organized around products, projects, and markets. Each division includes its own functional specialists typically organized into departments. A company has North American division, exploration division, marketing division, production divisions and others. Divisions are relatively autonomous and consist of products and services and are different from those of other divisions. Divisions...
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...Key Concepts of Organizational Design Rosalind Patterson MMPBL550 August 30, 2010 Professor Josey Crisostomo Key Concepts of Organizational Design Given the importance of organizational design, why is it so often the blame for inefficiency and ineffectiveness? The reason is because good organizational design helps communications, productivity, and innovation. Organizational design is the process of aligning an organization’s structure with its mission. This means looking at the relationship between tasks, workflow, responsibility and authority, and making sure all these support the objectives of the business (www.mindtools.com). In this paper we will explore the importance of organizational design choices, the advantages and disadvantages of various organizational structures, assess the relationship between strategy, structure, and process in organizations, and analyze the relationship between organizational design and decision-making processes. Importance of Organizational Design Choices Hiring talented people is not enough to ensure the success of an organization. The best and brightest employees will not be able to do their best work in a poorly designed workplace. Consequently, poor organizational design is one of the leading causes of low employee morale and productivity (www.leadership-and-motivation-training.com). Effective organizational design creates a culture of commitment. The employees fully understand their accountabilities...
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...Concepts of Organizational Design Shelley Witt MMPBL/550 May 9, 2011 William Gillis Key Concepts of Organizational Design Organizational design is an important part of organizational theory. Organizational design changes with a company as its growth and goals are determined. Some important aspects that control organizational design are structure, strategy, and processes. Each individual organization needs to determine its own design based on its needs and mission. Every plan has its own advantages and disadvantages which are weighed carefully in making the corporate design decision. Importance of Organizational Design Choices In order for an organization to remain effective throughout changes and growth it must continuously evaluate the organizations design. “Organizational design involves difficult choices about how to control—that is, coordinate organizational tasks and motivate the people who perform them—to maximize an organization’s ability to create value” (Jones,2004, p. 4). Organizational design involves the process of aligning the organizational structure with its mission. Organizational design looks at the complex relationships between workflow, tasks, authority, and responsibility. Organizational design makes sure they all support the organizations objectives. Companies with good organizational design tend to have effective communication, increased productivity, and substantial innovation. Companies with poor organizational design...
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...Key Concepts of Organizational Design Marques Barnes MMPBL/550 2/3/11 Kenneth Hadzinski Key Concepts of Organizational Design Organizational design in comparison is similar to a blueprint to a construction worker. A blueprint to a construction worker includes the layout of a project, the materials needs, and instruction on how to build and where to build. Organizational design provides a blueprint for an organization just as a blueprint provides a guide for a construction worker. Organizational design provides a blueprint or process for integration the people, information and technology of an organization. Organizational design is extremely important to any organization. An organizational design must be able to function alongside the organization’s goals and strategy. Many business and organizations have changed their organizational design over the years to adjust to their respective industries and meet consumer needs. When companies go through restructuring and downsizing they are general altering the organizational design. Organizational design is important because it determines the specific roles, job functions, and job duties. The organizational design of a company represents its efforts to respond to changes, implement new ideas, ensure collaboration, and allow flexibility. Importance of Organizational Design Choices It is very difficult to choose an organizational design that meets the need of the organization. Every choice has a response or an action...
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...Key Concepts of Organizational Design Nadine Mends MMPBL/550 November 29, 2010 Maria Marin Key Concepts of Organizational Design The object of this paper is to discuss at least structures in Organization Design and Organization Design Choices. The paper will explain the importance of design choices as well as describing the characteristics, advantages, and disadvantages of various organizational structures. Next, the paper will assess the relationship between strategy, structure and process in organizations. Finally the paper will analyze the relationship between organization design and the decision making process. This will be based off the scenario of BestSnacks Inc and the opportunities facing BestSnacks in the area of Organizational Design. This paper will provide key concepts of organization design. It will describe the five best design choices and also will provide information regarding some common organizational structures. An organization will have to continuously look at the design and structure it uses to ensure that it is going to establish its goals and vision. Importance of Organizational Design Choices Organizational design choices are important for several reasons. First organizational design choices provide the firm with a choice of designs that are appropriate for achieving different purposes. Every design seeks to pattern the activities of organization towards a common outcome. From the perspective of Best Snacks Inc. it has...
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...Key Concepts of Organizational Design Allison Battles University of Phoenix / MMPBL 550 November 1, 2010 Professor Frederick Janson Key Concepts of Organizational Design Organizational design is an important aspect of organizational theory that designates many of the processes and the structure within an organization. It can shape the organization’s culture and help the organization to achieve its goals. Organizational design is also important to change management within the organization. The most important factor, though, is that it supports the company’s strategy for success. As many organizations are experiencing growth, the concepts of organizational design become more complex. The organizational designs and structures discussed here will simplify the terms in order for a clearer understanding of the concepts. Importance of Organizational Design Choices Organizational design is vital to an organization’s success. Part of developing a strategy for a company to achieve its goals is to create a dynamic organizational design that fits the company’s purpose, culture, and processes. “To optimize effectiveness, the form of organization must be matched to the purpose it seeks to achieve” (Autry, 1996, para. 7). In the most basic terms, the organizational design should be aligned with the organization’s strategies-the goals, the objectives, and the mission-and support the desired outcome. It is important that the organizational design of a company work...
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...and Organizational Design- A Literature Review Abstract This literature review observes the views of organizational design and business ethics as they relate to one another in business. The first portion of this paper defines organizational design and business ethics to establish their importance and also examines managerial ethics and corporate social responsibility, sources of ethical principles. The second portion pursues to explain the relationship between business ethics and organizational design and how managers shape ethics through use of value-based leadership and formal structure systems. The third portion pursues to review the importance of ethics to organizational design and the structures that support or enforce ethical behavior in organizations. The fourth portion links literature reviewed and published over the past few years together based on their reference to ethics and organizational design. The literatures are linked together based on commonalities found in the opinions of the authors relating to a spiritual perspective, ethics and corporate structure, organizational and ethical theories, and ethical strategy. Last but not least, the review concludes with a summary of the important role that ethics plays in the organizational design and structure of a business and how it applies to members of management. Keywords: business ethics, organizational design, corporate social responsibility Outline INTRODUCTION I. Organizational Design/Business...
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...BUSI610: Organization Design and Business Ethics Mitzi N. Harvey Liberty University Abstract This literature review examines the concepts of business ethics and how it is related to the organizational design of a corporation. The first section of this review defines the concepts of business ethics and organizational design to establish their meaning and use throughout this paper. The second aspect of understanding the relationship between business ethics and organizational design comes from understanding how and/or why ethics is important to organizational design. This will illustrate any underlying influences ethics has on business structure and design. The third section of this paper reviews and groups the literature found linking ethics and organizational design. Literature is grouped together based on the similarities found in authors’ opinions, research and/or results. The next section discusses the ideas of micro and macro ethics; first defining them, illustrating the differences and then explaining how they come into play when examining the link between ethics and design. The following sections of the review, provides examples of formal organizational structures, ethical programs, and the ethical decisions that impacted them. Finally, in the conclusion of the review it summarizes the relationship between business ethics and organizational design, how this relationship impacts business, and what this means for business managers. Introduction To sustain...
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...Convergys Origination Amie Rainbolt University of Phoenix MGT/230 February 07, 2012 Thomas Baine Convergys Origination Even though if a company has no organizational structure, function, or design it will fail. Convergys organizational structure is unique when compared and contrasted with two different organizational structures because; organizational functions influence and determine the organizational structure, and organizational design helps determine which structure best suits the organization’s needs. Because of the below process and procedures Convergys continues year after year to be the leader in customer service and a fortune 500 company. Convergys has 75,000 employees and clients in more than 70 countries, speaking more than 35 languages, and their annual income is $2.5 billion. The company developed from Cincinnati Bell Information Systems and MATRIXX, both subsidiaries of Cincinnati Bell, and AT&T Solutions Customer Care, which was sold to Cincinnati Bell in 1998; an IPO in 1998 made it a fully independent company. Since then, Convergys' headquarters in Cincinnati, Ohio, has acquired numerous companies. (Netrashetty, 2011, para. 4) Convergys organizational structure is unique when compared and contrasted with two different organizational structures because it is grouped into four separate self-sufficient organizations that include Billing Services, Human Resources Services, Professional Consulting Services, and Customer Management Group. Each origination...
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... An organizational design specifies and describes the formal and the informal structures and processes within an organization through which the organization pursues its mission and objectives. An organizational design, thus, is the framework within which an organization functions. Both internal forces and external forces influence the character of an organization’s design. An organizational design tends to be defined in terms of structure, processes, and size (Chatain & Zemsky, 2007; Knoll, 2007; Zismer, 2011). The findings of a description and an assessment of organizational design of a group practice family medicine clinic are presented in this paper. The description and assessment include the identification of the internal forces and the external forces that have influenced the nature of the organizational design of the clinic. The effects of these forces on organizational structure, organizational processes, and organizational size are addressed in the paper. Specific consideration is given in the discussion to the effects of accountability mandates on the organizational design of the clinic. The Internal Forces and the External Forces Affecting the Organizational Design of the Clinic The external forces that act on the organization in this case, a group practice family medical clinic, exerted a greater effect on reshaping the organizational design of the practice than has been true of the internal forces that also drive changes in organizational design...
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