Chapter 10
ORGANIZATION STRUCTURE
For use with Organizational Behaviour and Management
by John Martin and Martin Fellenz
1408018128© 2010 Cengage Learning
Organization structure
• Organization structure - the formal
arrangement of task, communication and
authority relationships that influence and control
how people coordinate and conduct their work
For use with Organizational Behaviour and Management
by John Martin and Martin Fellenz
1408018128© 2010 Cengage Learning
The duality of structure
Figure 10.1
For use with Organizational Behaviour and Management
by John Martin and Martin Fellenz
1408018128© 2010 Cengage Learning
Organizational environments
Figure 10.2
For use with Organizational Behaviour and Management
by John Martin and Martin Fellenz
1408018128© 2010 Cengage Learning
Classic form of management
Table 10.1
For use with Organizational Behaviour and Management
by John Martin and Martin Fellenz
1408018128© 2010 Cengage Learning
Organization design
• Organization design - the process by which managers
select and manage aspects of an organization’s
structure and culture so that the organization can control
the activities necessary to achieve organizational goals
For use with Organizational Behaviour and Management
by John Martin and Martin Fellenz
1408018128© 2010 Cengage Learning
The challenges of organization design
Three categories:
• Appropriate horizontal and vertical division of labour
through differentiating the tasks that various
individuals and groups need to perform
• Structurally integrating the actors and their activities
and implementing mechanisms to enable
constructive coordination and control
• Determining the degree of centralization or
decentralization of decision making
For use with Organizational Behaviour and Management
by John Martin and Martin Fellenz
1408018128© 2010 Cengage Learning
Organization design
Guidance has traditionally taken one of three forms:
• Universalistic theories - scientific management and
other classical management approaches
• Contingency theories of organization - consider the
impact of environmental, situational, or organizational
factors
• Configurational theories - more complex than
contingency theories because they incorporate complex
arrangements and equifinality
For use with Organizational Behaviour and Management
by John Martin and Martin Fellenz
1408018128© 2010 Cengage Learning
Organizational height
Figure 10.3
For use with Organizational Behaviour and Management
by John Martin and Martin Fellenz
1408018128© 2010 Cengage Learning
Elements and principles of organizational
structure and structuring
• Horizontal differentiation
• Vertical differentiation
• Centralization and treatment of non-routine
decisions
• Communication, co-ordination and integration
• Formalization and standardization
• Job design
For use with Organizational Behaviour and Management
by John Martin and Martin Fellenz
1408018128© 2010 Cengage Learning
Functional organization
structure
Figure 10.4
For use with Organizational Behaviour and Management
by John Martin and Martin Fellenz
1408018128© 2010 Cengage Learning
Divisional organization structure
Figure 10.5
For use with Organizational Behaviour and Management
by John Martin and Martin Fellenz
1408018128© 2010 Cengage Learning
Process-oriented structure
Figure 10.6
For use with Organizational Behaviour and Management
by John Martin and Martin Fellenz
1408018128© 2010 Cengage Learning
Matrix structure
Figure 10.7
For use with Organizational Behaviour and Management
by John Martin and Martin Fellenz
1408018128© 2010 Cengage Learning
Project structure
Figure 10.8
For use with Organizational Behaviour and Management
by John Martin and Martin Fellenz
1408018128© 2010 Cengage Learning
Contingency model of organization
design
Figure 10.9
For use with Organizational Behaviour and Management
by John Martin and Martin Fellenz
1408018128© 2010 Cengage Learning
Multiple perspectives of an object
Figure 10.10
For use with Organizational Behaviour and Management
by John Martin and Martin Fellenz
1408018128© 2010 Cengage Learning
Weber and bureaucracy
Charismatic - authority is based around the personal qualities of the leader
Traditional - relies on accepted precedent as the dominant form of authority
Rational-legal - bureaucratic form of organization is termed rational because
of the (rational) objectives and legal because of its rule- and procedurebased approach to authority
Table 10.3
For use with Organizational Behaviour and Management
by John Martin and Martin Fellenz
1408018128© 2010 Cengage Learning
Gouldner and bureaucracy
:
Gouldner (1954) suggested three types of bureaucracy:
• Mock - The rules and procedures are largely ignored by all inside
having been imposed on them by an outside agency
• Punishment - a variant on the mock bureaucracy in that the rules
are imposed on the workers by management
• Representative - the rules and procedures are generally supported
by those inside the organization having been developed by
managers with the involvement of worker and stakeholder groups
For use with Organizational Behaviour and Management
by John Martin and Martin Fellenz
1408018128© 2010 Cengage Learning
Mechanistic and organic
organizations
Table 10.4
For use with Organizational Behaviour and Management
by John Martin and Martin Fellenz
1408018128© 2010 Cengage Learning
Reinforcing cycle for mechanistic
and organic configurations
Figure 10.11
For use with Organizational Behaviour and Management
by John Martin and Martin Fellenz
1408018128© 2010 Cengage Learning
Metaphors of organizations
Table 10.5
For use with Organizational Behaviour and Management
by John Martin and Martin Fellenz
1408018128© 2010 Cengage Learning
Mintzberg’s organizational parts
Figure 10.12
For use with Organizational Behaviour and Management
by John Martin and Martin Fellenz
1408018128© 2010 Cengage Learning
Mintzberg’s coordinating
mechanisms used in organizations
Table 10.6
For use with Organizational Behaviour and Management
by John Martin and Martin Fellenz
1408018128© 2010 Cengage Learning
Mintzberg’s coordinating
mechanisms
Figure 10.13
For use with Organizational Behaviour and Management
by John Martin and Martin Fellenz
1408018128© 2010 Cengage Learning
Mintzbergs common organizational
forms
Figure 10.14
For use with Organizational Behaviour and Management
by John Martin and Martin Fellenz
1408018128© 2010 Cengage Learning
Mintzberg’s organizational parts
• Strategic apex - reflects the top echelon of the
hierarchy
• Middle line - intermediate levels of management
• Operating core - those involved in operations
• Technostructure - specialist functions
• Support staff - functions such as HR,
maintenance, or facilities management
• Ideology - the force for cooperation between the
above parts
For use with Organizational Behaviour and Management
by John Martin and Martin Fellenz
1408018128© 2010 Cengage Learning
Mintzberg’s common forms
•
•
•
•
•
•
Entrepreneurial form (simple form) - central role for the strategic apex which directly
controls activities in the operating core with little in terms of middle line,
technostructure or support functions
Machine form - the force for efficiency dominates with a large middle line as well as
sizeable support staff and technostructure that create extensive standardization and
formalization through rules and regulations
Professional form - the force for proficiency leads and is often found in professional
service organizations
Adhocracy form - the force for creating novelty and innovation in in research
organizations, political think tanks, advertising agencies and boutique consulting firms
Heterarchy - meaning that different people and subunits are not ordered according to
predetermined differences in formal authority (hierarchy) but rather all have the
potential to be deployed as is seen fit and in accordance to the requirements of the
particular tasks
Diversified form - the force for concentration creates structure wich first diversifies
across different domains (such as markets or products) and then divisionalizes by
concentrating activities within the unit dealing with a particular domain
For use with Organizational Behaviour and Management
by John Martin and Martin Fellenz
1408018128© 2010 Cengage Learning
The Ambidextrous Organization
• The challenge of successfully dealing with
simultaneous different forces or needs
such as for stability and change, efficiency
and innovation, and control and
responsiveness has long been a central
concern of organization designers and
theorists
For use with Organizational Behaviour and Management
by John Martin and Martin Fellenz
1408018128© 2010 Cengage Learning
The Ambidextrous Organization
• Ambidextrous organizations are able to
combine alignment and adaptability
• Traditional structural solutions were based
on structural ambidexterity but now also
tend to incorporate contextual
ambidexterity and leadership dimensions
For use with Organizational Behaviour and Management
by John Martin and Martin Fellenz
1408018128© 2010 Cengage Learning
Comparing structural and contextual
ambidexterity
Table 10.7
For use with Organizational Behaviour and Management
by John Martin and Martin Fellenz
1408018128© 2010 Cengage Learning
Organizational lifecycle
Quinn and Cameron (1983)
• Entrepreneurial phase
• Collectivity phase
• Formalization phase
• Elaboration phase
Katz and Kahn, and Cameron et al
• Organizational decline
Whetten (1980) identified four response options to decline
• Generating
• Reacting
• Defending
• Preventing
For use with Organizational Behaviour and Management
by John Martin and Martin Fellenz
1408018128© 2010 Cengage Learning
The growing pains of an
organization
Figure 10.15
For use with Organizational Behaviour and Management
by John Martin and Martin Fellenz
1408018128© 2010 Cengage Learning