Organizational Structure
CHAPTER 13 - FOUNDATIONS OF ORGANIZATION STRUCTURE
CHAPTER OBJECTIVES
After reading this chapter, students should be able to:
1. Identify the six key elements that define an organization’s structure.
2. Describe a simple structure.
3. Explain the characteristics of a bureaucracy.
4. Describe a matrix organization.
5. Explain the characteristics of a “virtual” organization.
6. Summarize why managers want to create boundaryless organizations.
7. List the factors that favor different organization structures.
8. Explain the behavioral implications of different organization structures.
LECTURE OUTLINE
I. WHAT IS ORGANIZATION STRUCTURE? A. Defined (ppt 4) 1. An organization structure defines how job tasks are formally divided, grouped, and coordinated. 2. Six key elements—work specialization, departmentalization, chain of command, span of control, centralization and decentralization, and formalization. a) See Exhibit 13-1. (ppt 5)
B. Work Specialization (ppt 6) 1. Early in the twentieth century, Henry Ford became rich and famous by building automobiles on an assembly line. a) By breaking jobs up into small standardized tasks, which could be performed over and over again, Ford was able to produce cars at the rate of one every ten seconds, while using employees who had relatively limited skills. 2. The term work specialization or division of labor describes the degree to which tasks in the organization are subdivided into separate jobs. 3. By the late 1940s most manufacturing jobs in industrialized countries were being done with high work specialization. a) Management saw this as a means to make the most efficient use of employees’ skills. b) Employee skills at performing a task successfully increase through repetition. c) Training for specialization is more efficient from the organization’s perspective. It is easier and less costly to find
CHAPTER OBJECTIVES
After reading this chapter, students should be able to:
1. Identify the six key elements that define an organization’s structure.
2. Describe a simple structure.
3. Explain the characteristics of a bureaucracy.
4. Describe a matrix organization.
5. Explain the characteristics of a “virtual” organization.
6. Summarize why managers want to create boundaryless organizations.
7. List the factors that favor different organization structures.
8. Explain the behavioral implications of different organization structures.
LECTURE OUTLINE
I. WHAT IS ORGANIZATION STRUCTURE? A. Defined (ppt 4) 1. An organization structure defines how job tasks are formally divided, grouped, and coordinated. 2. Six key elements—work specialization, departmentalization, chain of command, span of control, centralization and decentralization, and formalization. a) See Exhibit 13-1. (ppt 5)
B. Work Specialization (ppt 6) 1. Early in the twentieth century, Henry Ford became rich and famous by building automobiles on an assembly line. a) By breaking jobs up into small standardized tasks, which could be performed over and over again, Ford was able to produce cars at the rate of one every ten seconds, while using employees who had relatively limited skills. 2. The term work specialization or division of labor describes the degree to which tasks in the organization are subdivided into separate jobs. 3. By the late 1940s most manufacturing jobs in industrialized countries were being done with high work specialization. a) Management saw this as a means to make the most efficient use of employees’ skills. b) Employee skills at performing a task successfully increase through repetition. c) Training for specialization is more efficient from the organization’s perspective. It is easier and less costly to find