(Technology = Job Design) (Structure =
The design that links the parts of organisation for coordination)
Contingencies that influence structural design * Environment * Organisation size * Worldwide operations * Technology * Organisation goals
An organisation’ effectiveness depends on the extent to which organisation structures are responsive to these contingencies.
Functional Structure * Basic hierarchical structure, and is most widely used organisational structure in the world today * A standard pyramid structure with senior management at the top * Middle and lower managers spread out directly below * and workers at the bottom * organisation is usually subdivided into different functional units, such as: 1. engineering 2. research 3. operations 4. human resources 5. finance
Advantages * Promote specialisation of skills and resources * People who perform similar work and face similar problems are grouped together * Faciliates communication within departments and allows specialists to share their expertise * Also enhances career development within the specialty * Reduces duplication of services because it makes best use of the people and resources
Disadvantages * Tend to promote routine tasks with limited orientation * Department members focuses on their own tasks, rather than organisation’s tasks * Can lead to conflict across functional departments when each group attempts to maximise its own performance without considering other units’ performances * Coordination and scheduling among departments can be difficult when each emphasises its own perspective
Downsizing
* Refers to the interventions that are aimed at reducing the size of the organisation * Clarifies organisation’s strategy * Assess downsizing options and make relevant choices * Implement the changes * Address the needs of saviours and