organizational design -- the process by which managers select and manage various dimensions and components of organizational structure and culture so that an organization can achieve its goals
contingency theory -- organizational structure should be designed to match the set of contingencies -- factors or conditions -- that cause an organization the most uncertainty
technology -- a combination of skills, knowledge, tools, machines, computers, and equipment used in the design, production, and distribution of goods and services
small batch technology -- a method used to produce small quantities of customized, one-of-a-kind products based on the skills of people who work together in small groups
Mass production technology -- a method of production using automated machines that are programmed to perform the same operations time and time again
continuous process technology -- a method of production involving the use of automated machines working in sequence and controlled through computers from a central monitoring station
organic structure -- an organizational structure designed to promote flexibility so that employees can initiate change and adapt quickly to changing conditions
machanistic structure -- an organizational structure designed to induce employees to behave in predictable, accountable ways
function -- a set of people who perform the same types of tasks err hold similar positions in an organization
functional structure -- an organizational structure that groups together people who hold similar positions, perform a similar set of tasks, or use the same kinds of skills
division -- a group of functions created to allow an organization to produce and dispose of its goods and services to customers
product structure -- a divisional organizational structure that groups functions by types of product so that each division contains the functions it needs to service the products it produces
market structure -- a divisional organizational structure that groups functions by types of customers so that each division contains the functions it needs to service a specific segment of the market
geographic structure -- a divisional organizational structure that groups functions by region said that each division contains the functions it needs to service customers and a specific geographic area
corporate management -- the set of managers whose responsibility is to supervise and oversee the divisional managers
matrix structure -- an organizational structure that simultaneously groups people by function and by product team
Authority -- the power that enables one person to hold another person accountable for his or her actions
hierarchy of authority -- an organization's chain of command that defines the relative authority of each level of management
span of control -- the number of employees who report to a manager
mutual adjustment -- the ongoing informal communication among different people and functions that is necessary for an organization to achieve its goals
integrating mechanisms -- organizing tools used to increase communication and coordination among functions and divisions
standardization -- the development of routine responses to reoccurring problems or opportunities
formalization -- they use of rules and standard operating procedures to control an organization's activities
virtual organization -- a company that operates largely using new information technology in which people in functions are linked through company intranets and databases
network structure -- a structural arrangement whereby companies outsource one or more of their functional activities to other specialist companies
Summary
Organizational structure affects how people and groups behave in an organization by providing a framework that shapes employee attitudes and behavior. Organizations need to create a structure that allows them to corny and motivate people, functions, and divisions affectedly.
Organizational structure is the formal system of task and job reporting relationships that determines how employees use resources to achieve organizational goals. Organizational design is the process of making the specific choices about tasks and job relationships that result in the construction of a particular organizational structure.
Contingency theory argues that an organization structure needs to be designed to fit or match the set of contingencies (factors or conditions) been affected the most and cause it the most uncertainty.
Three important contingency factors are:
- the organizational environment
- advances in technology
- organization human resources
The main structures the organizations used to differentiate their activities and to group people into functions or divisions are functional, product, market, geographic, and matrix structures. Each of these is suited to a particular purpose and has specific coronation and motivation advantages and disadvantages associated with it.
As organizations grow, problems of coordinating activities between functions and divisions arise.
Three methods organizations can use to solve coronation problems are:
- use the hierarchy of authority
- mutual adjustment
- and standardization.
To coordinate their activities, organizations develop mechanisms for promoting mutual adjustment (the ongoing informal communication and interaction among people and functions). Mechanisms that facilitate mutual adjustment included: direct contact, liaison roles, teams and task forces, and cross functional teams.
Organizations that use standardization to coordinate their cavities developed programmed responses and written roles that specify how people in functions are to coordinate their actions to accomplish organizational objectives. Organizations can standardize their input, throughput, and output activities.
