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Org Des (s1)

The document discusses organizational design and effectiveness, defining an organization as a consciously coordinated social entity with specialized divisions of labor. It examines organizational theory and how an organization's structure, culture, and design impact its ability to transform inputs and create value. The dimensions of organizational structure - complexity, formalization, and centralization - influence an organization's efficiency and ability to achieve its goals.

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Mudassar Nazar
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39 views21 pages

Org Des (s1)

The document discusses organizational design and effectiveness, defining an organization as a consciously coordinated social entity with specialized divisions of labor. It examines organizational theory and how an organization's structure, culture, and design impact its ability to transform inputs and create value. The dimensions of organizational structure - complexity, formalization, and centralization - influence an organization's efficiency and ability to achieve its goals.

Uploaded by

Mudassar Nazar
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Organization Design

Understanding Organizations
&
Effectiveness

Session 1

1
Setting the context…..
 Describe the Organization in which you were placed
for summers & the nature of your project.
 List five characteristics you observed in the
organization.

2
What Is an Organization?
 Consciously coordinated, social entity
 Identifiable boundary- membership
 Continuous bonding
 Goal oriented
 Increase specialization and division of labor
 Use large-scale technology:
economies of scale &economies of scope
3
Characteristics of an Open System
 Environmental awareness
 Feedback
 Cyclic character
 Negative entropy (microscopic disorder) & steady
state
 Movement towards growth & expansion
 Balance between maintenance & adaptive functions.
 Equifinality (similar goals can be achieved via
different routes)
4
How an Organization’s Inputs Organization's Conversion Process

Organization Organization obtains inputs Organization transforms

t
Creates
Value
from its environment
• Raw materials
inputs and adds value to
them
• Machinery
• Money and capital
• Computers
• Human resources
• Human skills and abilities
• Information and knowledge
• Customers of service
organizations

Organization’s Environment Organization’s Outputs

Sales of outputs allow Organization releases


organization to obtain new outputs to its environment
supplies of inputs
• Finished goods
• Customers
• Services
• Shareholders
• Suppliers • Dividends
• Distributors • Salaries
• Government • Value for stakeholders
• Competitors
5
What is Organization Design ?

 It is the process of CONSTRUCTING and


CHANGING an organization’s structure to
help it achieve its goals.

6
Why is organizational design so
Important ?
 Affects a company’s ability to deal with
contingencies (events that might occur)

 Used to manage diversity

 Can influence an organization’s ability to be


efficient and innovative
7
The consequence of ignoring
Organization Design…
 Talented people leave the organization

 Resources are harder to acquire

 Value creation process slows down

8
What Is Organizational Theory?
 It is the study of how organizations function
and their relationships with their environment.
 It involves components of design, structure,
and culture.
 The process of organizational design is used
to diagnose and manage the structure and
culture of organizations

9
What Is Organizational Theory?
The Relationship among Organizational Theory and
Organizational Structure, Culture, and Design
Organizational Theory
The study of how organizations function and how they affect and
are affected by the environment in which they operate.

Organizational Structure Organizational Design Organizational Culture


The formal system of task and The process by which The set of shared values
authority relationships that managers select and manage and norms that control
controls how people are to various dimensions and organizational members’
cooperate and use resources components of organizational interactions with each other
to achieve the organization's structure and culture so that and with people outside the
goals. an organization can control organization.
the activities necessary to
achieve its goals.

10

1-8
Dimensions of Organization structure
1. Complexity- degree of differentiation that
exists within the organization.

2. Formalization-degree to which jobs are


standardized.

3. Centralization- degree to which decision


making is concentrated at a single point in an
organization. 11
Complexity

12
Horizontal Differentiation
 Specialization

 Functional specialization (division of labor)

 Social specialization

13
Vertical Differentiation
 Depth of structure

 Results from increased departmentalization

 Tall & flat organization structures


(span of control)

14
Spatial Differentiation
 Degree of geographical dispersion
 All functions duplicated at many locations
SBI
 Spatial spread horizontal when different
functions operate out of different locations.
ONGC

15
Integration
 Communication- ( formal /intranet, informal/
“water-cooler”

 Coordination- ( teams & task forces)

 Control- ( rules & procedures)

 Culture- ( norms & customs)


16
Formalization

17
What is it?
 Degree to which jobs are standardized in an
organization.
 Enforced through rules, procedures ,
instructions & communications.
 Measurement ?
 Socialization Vs Professionalization
 Techniques- selection, training, role
requirements, rituals.
18
Centralization

19
How is it achieved?
 Does it depend on authority?
 Can policies override decentralization?
 Does Information processing systems aid
decentralization?
 Can filtering of info by lower levels
‘decentralize’ decision making ?

20
Case 1
Information systems at Mrs. Fields Cookies.

 Case analysis to be written in a paragraph.


 All the questions to be answered as required.
 Submission : 25th Wednesday.

All assignments must be in Times New Roman, font -12 with 1 spacing.

21

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