Organizational Structure

Organizational Structure

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Organizational Structure

Authority & Power

It is not the strongest species that survive, nor the most intelligent, but the ones most responsive to change.

Charles Darwin

Purposes of Organizing

President

VP Operations

VP Marketing

VP Finance

Mgr Purchasing

Mgr Warehouse

Mgr Customer Serv.

Mgr Planning

Mgr Market Research

Director Sales

Mgr Accounting

Sales Mgr Europe

Sales Mgr America

Superv Accounts Payable

Superv Accounts Receivables

Functional Organizational Structure

President

VP Consumer Products

VP Small Business Accounts

VP Major Business Accounts

Human Resources

Manufacturing

Marketing

Human Resources

Human Resources

Marketing

Manufacturing

Marketing

Manufacturing

Customer/Markets Organizational Structure

Chief Financial Officer

Accounting

Planning

Project Manager

Product 1 Manager

Design Engineering

Manufacturing

Purchasing

Designer

Designer

Manufacturing

Employee

Purchasing

Employee

Manufacturing Employee

Purchasing

Employee

Matrix Organizational Structure

Accounting

Accountant

Accountant

Human Resources

HR Employee

HR Employee

President

VP Europe

VP North America

VP Latin America

Human Resources

Manufacturing

Marketing

Human Resources

Human Resources

Marketing

Manufacturing

Marketing

Manufacturing

Products/Services/Geographical Organization

Marketing

Marketing

Marketing

Modular or Network Organizational Structure

Core Company

Logistics Company

Design Company

Payroll

Company

Home Office

(Owner and Secretary)

Temporary Telecommuter

Temporary Independent Contractor

Overseas Programmer

Virtual Organizational Structure

Overseas Web Design Team

Sales

HR

Finance

Holacracy Organizational Structure

General Company Circle

Board Circle

Development Department Circle

Mike

Paul

Mike and Paul are part

of a pool of employees

Goal 1

Goal 2

Based on skills, these employees

are in circles with different goals.

Each circle has subcircles.

Mike is leader of one circle.

Paul is leader of a circle within that.

If Paul removes Mike from the subcircle,

Mike is still his leader in the larger circle.

Communities

Or

Temporary Groups

Holacracy

Benefits & Drawbacks of Collaborative Work

Structural Options

Mechanistic vs. Organic

Mechanistic organization -an organizational design that’s rigid and tightly controlled

• Organic organization -an organizational design that’s highly adaptive and flexible

Mechanistic Structure = Formal

Rigid relationships

Fixed duties

Many rules

Formalized communication channel

Centralized decision making

Formalized Communication Channels Centralized Decision Authority Taller Structures

Emphasis on completing tasks as opposed to achieving company goals

Belief upper management is better capable of making decision

Fixed Duties Many Rules

Rigid Hierarchical Relationships

Formalization (Mechanistic)

Formalization-the degree to which jobs within the organization are standardized and the extent to which employee behavior is guided by rules and procedures.

–Highly formalized jobs offer little discretion over what is to be done.

–Low formalization means fewer constraints on how employees do their work.

Organic Structure = Informal

Collaboration

Adaptable duties

Few rules

Informal communications

Decentralized authority

Flatter structure

Few Rules

Informal Communication

Decentralized Decision Authority

Flatter Structure

Employee Empowerment

Collaboration Vertical and Horizontal

Adaptable Duties

Networks

Internal Collaboration

Communities of practice -groups of people who share a concern, a set of problems, or a passion about a topic, and who deepen their knowledge and expertise in that area by interacting on an ongoing basis.

Task force

Group

Team

Ad hoc Committee

Group Think

Making Communities of Practice Work

How does technology affect structure?

Telecommuting -a work arrangement in which employees work at home and are linked to the workplace by computer.

• Compressed workweek-a workweek where employees work longer hours per day but fewer days per week
• Keeping Employees Connected -mobile computing and communication technology have given organizations and employees ways to stay connected and to be more productive

–e-mail, calendars, wireless networks, corporate databases, social media, video conferences and web cams.

Today’s Challenges

Managing Global Structural Issues

–When designing or changing structure, managers may need to think about the cultural implications of certain design elements

–Formalization may be more important in less economically developed countries and less important in more economically developed countries where employees may have higher levels of professional education and skills

Power vs. Authority Chain of Command = position on the food chain (hierarchical) Span of Control = span of influence/how many employees report to each manager

Span of Control -the number of employees who can be effectively and efficiently supervised by a manager. Chain of Command -the continuous line of authority that extends from upper levels of an organization to the lowest levels of the organization—clarifies who reports to whom

Authority

Authority -the rights inherent in a managerial position to tell people what to do and to expect them to do it.

• Acceptance theory of authority -the view that authority comes from the willingness of subordinates to accept it.

Line authority -authority that entitles a manager to direct the work of an employee

• Staff authority -positions with some authority that have been created to support, assist, and advise those holding line authority

Authority vs. Power

Which is which?

-Legitimacy is based on a leader’s position in the organization

-An individual’s capacity to influence decisions

Types of Leadership Power

Power Type Power Description

Coercive Power – Based on Fear

Connection Power – Based on Links with important people

Expert Power – Based on the leader’s skills & knowledge

Information Power – Based on access to information

Legitimate Power – Based on position

Referent Power – Based on personal traits

Reward Power – Based on rewards, pay, promotion, recognition

Adapted from Amacom(2005) Ethical Decision-Making. Retrieved from www.amacombooks.org/leadershipact

Improving Your Power

Identify someone –a boss, coworker, friend, roommate, teammate, parent, sibling, significant other –with whom you would like to improve/increase your power. Determine what tactics might work

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Excellent Quality 95-100%	Introduction 45-41 points The background and significance of the problem and a clear statement of the research purpose is provided. The search history is mentioned.		Literature Support 91-84  points The background and significance of the problem and a clear statement of the research purpose is provided. The search history is mentioned.			Methodology 58-53 points Content is well-organized with headings for each slide and bulleted lists to group related material as needed. Use of font, color, graphics, effects, etc. to enhance readability and presentation content is excellent. Length requirements of 10 slides/pages or less is met.
Average Score 50-85%	40-38 points More depth/detail for the background and significance is needed, or the research detail is not clear. No search history information is provided.		83-76  points Review of relevant theoretical literature is evident, but there is little integration of studies into concepts related to problem. Review is partially focused and organized. Supporting and opposing research are included. Summary of information presented is included. Conclusion may not contain a biblical integration.			52-49  points Content is somewhat organized, but no structure is apparent. The use of font, color, graphics, effects, etc. is occasionally detracting to the presentation content. Length requirements may not be met.
Poor Quality 0-45%	37-1 points The background and/or significance are missing. No search history information is provided.		75-1 points Review of relevant theoretical literature is evident, but there is no integration of studies into concepts related to problem. Review is partially focused and organized. Supporting and opposing research are not included in the summary of information presented. Conclusion does not contain a biblical integration.			48-1 points There is no clear or logical organizational structure. No logical sequence is apparent. The use of font, color, graphics, effects etc. is often detracting to the presentation content. Length requirements may not be met
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