Scribd
Upload
17 views10 pages

2 Organisational Design and Structure Pres Odd

The document discusses organizational design and structure. It defines organizational design as the process of deciding how organizations should be structured and function. The aims of organizational design are to clarify organizational purposes and goals, define how work should be organized to achieve these goals, and group activities logically to avoid duplication. Key processes in organizational design include differentiation, which divides work, and integration, which coordinates different parts of an organization. The document also examines factors that affect organizational design such as organizational size, life cycle, strategy, and external environment. Finally, it discusses different organizational structures and the relationship between design and structure.

Uploaded by

Matthew Saila
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
17 views10 pages

2 Organisational Design and Structure Pres Odd

The document discusses organizational design and structure. It defines organizational design as the process of deciding how organizations should be structured and function. The aims of organizational design are to clarify organizational purposes and goals, define how work should be organized to achieve these goals, and group activities logically to avoid duplication. Key processes in organizational design include differentiation, which divides work, and integration, which coordinates different parts of an organization. The document also examines factors that affect organizational design such as organizational size, life cycle, strategy, and external environment. Finally, it discusses different organizational structures and the relationship between design and structure.

Uploaded by

Matthew Saila
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 10

ORGANISATIONAL

DESIGN AND STRUCTURE


 Organisational Design is the process of
deciding how organisations should be
structured and function, Armstrong
(2009:404.”
 Aims of Organisational Design
 Clarify the overall purposes of the organisation –
the strategic goals that govern what it does and
how it functions.
 Define how work should be organised to achieve
that purpose, including the use of technology and
other work processes.
 Define as precisely as possible the key activities
involved in carrying out the work.
 Group these activities logically together to avoid
unnecessary overlap or duplication.
 Provide for the rapid communication of
information throughout the organisation.
 Armstrong (2009:405)
 KEY ORGANIZATIONAL DESIGN PROCESSES
 Differentiation
 Differentiation is the process of deciding how

to divide the work in an organization.


Differentiation is a check to ensure that all
aspects of the tasks are assigned and will be
accomplished.
 Integration
 Integration is the process of coordinating the

different parts of an organization.


The basic design dimensions include the following:
 Formalization: is the degree to which the organization has official rules,

regulations, and procedures. An organization may have a formal structure,


but may operate informally.
 Centralization: is the degree to which decisions are made at the top of the

organization. The quality movement and programs that stress delegating


responsibility and decision making to lower levels result in decentralization.
At the same time, reductions in organizations have altered the middle
management tier of the organization by eliminating part of the central
reporting structure. Typically, the larger and longer the organization has
been in existence, the more centralized will be its structure.
 Specialization is the degree to which jobs are narrowly defined and depend

on unique expertise.
 Standardization is the extent to which work activities are described and

performed routinely in the same way.


 Complexity refers to the number of different types of activities that occur in

the organization.
 The hierarchy of authority is the degree of vertical differentiation across

levels of management.
 The basic design dimensions include the following:
FACTORS AFFECTING ORGANIZATIONAL DESIGN

 Organizational size is a factor. A large organization has more employees and tends to have
multiple levels of formal authority. By design, employees have less input in decision-making.
There is also less social interaction between employees in a large company. A smaller
company, have fewer management levels and manage in a more personal way. Fewer
employees mean everyone in the organization is responsible for meeting goals.
 Organizational life cycle refers to one of five stages of an organization's life, including

introduction, growth, maturity, decline and death, and each stage affects the organizational
design and culture. A company in its birth stage will have people and technology in place but it
will not be as sophisticated as a company in maturity. A mature company is generally running
smoothly, with little change to systems needed.
 A new company may have systems in place, but as they grow and expand, it will be necessary

for them to make changes. It may not be feasible for a sales manager and a production
manager to text message and video chat. As more orders are placed, it may be difficult to
simply change a design or function. A new system of decision-making will have to be
developed to accommodate mass production. In turn, this may change the relaxed culture. This
may also end lunchtime surfing.
 Strategy involves the actions performed to meet organizational goals. The larger the

organization, the more likely it is that strategies are in place and employees are comfortable
with the status quo. In order to remain competitive, they need to be innovative with not only
their product but their action plans.
 Environment refers to external factors that affect the internal organization, like political,

economic, sociocultural and competitive forces. As things change in the environment, changes
need to be made internally, and these changes could be product design, pricing and even
customer service.
ORGANIZATIONAL STRUCTURE

 Organizational structure is the formal lines of


authority and power, as well as the roles
employees assume.
FIVE STRUCTURAL CONFIGURATIONS

 Mintzberg provides five structural configurations for organizations.


Simple Structure
 The simple structure is a centralized form of organization that emphasizes the upper

echelon and direct supervision.


Machine Bureaucracy
 The machine bureaucracy is a moderately decentralized form of organization that

emphasizes the technical staff and standardization of work processes.


Professional Bureaucracy
 The professional bureaucracy is a decentralized form of organization that

emphasizes the operating level and standardization of skills. One of the difficulties
that hospitals face is the professional bureaucracy. Physicians typically are loyal to
their profession rather than to the hospitals in which they practice.
Divisionalized Form
 The divisionalized form is a moderately decentralized form of organization that

emphasizes the middle level and standardization of outputs.


Adhocracy
 The adhocracy is a selectively decentralized form of organization that emphasizes

the support staff and mutual adjustment among people.


The Relationship Between
Organizational Design and Structure

 The relationship between organizational


design and structure is that each department
works together. They share communication
and work collaboratively. As a result, each
department is always aware of what other
department is doing.
Difference between the
organisational structure and
organisational design

 Organisational structure shows how tasks should be


allocated and it also indicates lines of responsibility and
co-ordinating mechanisms.
 The thrust of Organisational Design is to construct and
change the organisational structure so that the goals and
objectives of the organisation can be achieved in the best
possible way. The concept of organisational design
therefore implies conscious and pro-active management
actions to create and maintain the optimal structure of
tasks and task relationships.

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy