MGMT CH 11

Advantages Bureaucratic Model

1- efficiency in function 2-prevention of favoritism 3- recognition of and requirment for experise

Disadvantages Bureaucratic

1-organizational inflexibility and rigidity 2-neglect of social and human processes 3- belief in "one best way"

team organization

relies on project-type teams, with little or no underlying functional hierarchy.

Organic organization

-A very flexible and informal model, most often found in unstable environments. -Constant change dictates a high level of flexibility.

Mechanistic organization

-Similar to a System 1 model, most frequently found in stable environments. -Structured in predictable ways.

Emerging Organization Design Issues

1-team organization 2-virtual organization 3-learning organization 4- international/global organization

Hybrid designs

A hybrid design occurs when two or more of the common forms of design are combined. -Few companies use a design in its pure form. -Most firms have one basic design as a foundation but maintain flexibility needed to facilitate modifications.

Organizational life cycle

Birth, Youth, Midlife, Maturity

Basic Forms of Organization Design

Functional (u-form), conglomerate (h-form), Divisional (M-form), Matrix, Hybrid

Strength Behavioral Model

It emphasizes human behavior by stressing the value of an organization's employees. -This led to a more humanistic approach to designing organizations

Issues in international organization design

It is important that a firm's organization design allows it to deal effectively in global markets. -Managers can reap important advantages when they approach design from a strategic perspective.

Bureaucratic Model (Max Weber)

1-distinct division of labor 2-consistent rules and uniform task performance 3-a chain of command from top to bottom 4-impersonal managers 5- employment based on expertise

Woodwards Basic forms of technology

unit or small-batch, large/mass- batch, continuous-process

Conglomerate (H-Form)

used by an organization made up of a set of unrelated businesses. -Essentially a holding company results from unrelated diversification. (H for holding.) -A general manager oversees each business. -Responsible for profit/loss, acts independently. -Corporate staff evaluate, allocate, and decide. -Basic shortcomings are complexity

Behavioral Model (Renesis Likert)

Organizations that pay attention to work groups and interpersonal processes are more effective than bureaucratic organizations.

Weakness Behavioral Model

The approach again argues there is one best way to design an organization - as a System 4. -Evidence is strong there is no one best approach.

Integration

The degree to which the various subunits must work together in a coordinated fashion.

Differentiation

The extent to which the organization is broken down into subunits.

bureaucracy

an organization based on the legitimate and formal system of authority

Situational view of organization design

assumes the optimal design depends on a set of relevant situational factors.

learning organization

facilitates lifelong learning and personal development of all employees while continually transforming itself to respond to changing demands and needs.

Functional (U-Form)

is based on the functional approach to departmentalization. (U for unitary.) -Units are grouped into functional departments. -Considerable coordination is needed. -Shares same advantages/disadvantages as functional departmentalization. +Staffed by experts, facilitates coordination, but promotes a functional focus and centralization.

Matrix Design

is based on two overlapping bases of departmentalization. -Project managers head a project group composed of representatives from functional departments. -A multiple-command structure results when an individual reports to a functional superior and to one or more project managers.

Technology

is the conversion processes used to transform inputs into outputs. -Multiple technologies may be used but the most important one is called the core technology.

Organization design

is the overall set of structural elements and the relationships among those elements used to manage the total organization. -Organizations are not designed and left intact, most change continuously. -Organization design for larger organizations is extremely complex

Organizational size

is the total number of full-time or full-time-equivalent employees.

Virtual organization

little to no formal structure

Divisional (M-Form)

multiple businesses in related areas operating within a larger organizational framework. (M-form for multidivisional.) -Some activities are decentralized, some are centralized at the corporate level. -The biggest advantage is the opportunity for coordination and shared resources. -If kept in balance, outperforms U- or H-forms.