Topic
9
Managing
Organizational
Structure
Prof. James J. Barkocy
Bus100
The Organizing Function
• Organizing
 The process by which managers establish working
relationships among employees to achieve goals.
 One of the four
management
functions
9–2
Organizational Organizational
Structure
Design
The framework
Developments in
for dividing,
or changes to
assigning, and
the structure of
coordinating work
an organization
9–3
Contingency Approach to Organizational
Design
9–4
Key Elements
of Organization Structure
Job Design
Departmentalization
Chain
of Command
Span
of Control
Centralization and
Decentalization
Formalization
9–5
Designing Motivating Jobs
Job
Enlargement
Job
Enrichment
Scope
Depth
Number of Tasks
Employee Control
Frequency of Tasks
Feedback
9–6
Job Characteristics Model
9–7
Job Characteristics Model Guidelines for Job
Redesign
9–8
Functional Structure (Departmentalization)
• Advantages
• Efficiencies from putting together similar specialties and
people with common skills, knowledge, and orientations
• Coordination within functional area
• In-depth specialization
• Disadvantages
• Poor communication across functional areas
• Limited view of organizational goals
9–9
Product Structure (Departmentalization)
+
+
+
–
–
Allows specialization in particular products and services
Managers can become experts in their industry
Closer to customers
Duplication of functions
Limited view of organizational goals
9–10
Geographical Structure (Departmentalization)
• Advantages
• More effective and efficient handling of specific
regional issues that arise
• Serve needs of unique geographic markets better
• Disadvantages
• Duplication of functions
• Can feel isolated from other organizational areas
9–11
Market Structure (Departmentalization)
+ Customers’ needs and problems can be met by specialists
- Duplication of functions
- Limited view of organizational goals
9–12
Matrix Structure (Departmentalization)
9–13
Product Team Structure (Departmentalization)
9–14
Chain of Command
 The continuous line of authority that extends from
upper levels of an organization to the lowest levels of
the organization and clarifies who reports to who.
9–15
Span of Control
9–16
Span of Control
9–17
Span of Control
9–18
Factors That Influence the Amount of Centralization and
Decentralization
9–19
Mechanistic versus Organic
Organization
9–20
Few
Departments
Wide Spans
of Control
The Simple
Structure
Little
Formalization
Centralized
Authority
9–21