Textbook Notes (280,000)
CA (170,000)
Dal (400)
MGMT (10)
Chapter 10

MGMT 1000 Chapter Notes - Chapter 10: Railways Act 1921, Departmentalization, Organizational Structure


Department
Management
Course Code
MGMT 1000
Professor
David Stuewe
Chapter
10

This preview shows pages 1-2. to view the full 8 pages of the document.
!"#$%&'"()*"(+(,"-("."/"0)#(12(1%340&54)&104.(6"#&30
78
910)%4#)(/"$*40&#)&$(406(1%340&$(#)%:$):%"#
;8
!&#$:##()*"($10)&03"0$-(24$)1%#()*4)(24<1:%("&)*"%()*"(
/"$*40&#)&$(/16".(1%()*"(1%340&$(/16".(12(1%340&54)&104.(6"#&30
=8
!"#$%&'"()%46&)&104.(1%340&54)&104.(6"#&30#
>8
!"#$%&'"($10)"/?1%4%-(1%340&54)&104.(6"#&30#
@8
!"#&30&03(A%340&54)&104.(B)%:$):%"
C11,&03()1(4$*&"<"(6"#&30#()*4)(4%"("22&$&"0)(-")(4.#1(2."D&'."
-
Organizational+Structure:*1F(G1'()4#,#(4%"(21%/4..-(6&<&6"6H(3%1:?"6(
406($11%6&04)"6(F&)*&0(40(1%340&54)&10
A%340&54)&104.($*4%)E((()*"(<&#:4.(%"?%"#"0)4)&10(12(40(
1%340&54)&10#(#)%:$):%"
-
I0<1.<"#(#&D(,"-("."/"0)#E
J1%,(#?"$&4.&54)&10
!"?4%)/"0)4.&54)&10
9*4&0(12($1//406
B?40(12($10)%1.
9"0)%4.&54)&10
!"$"0)%4.&54)&10
K1%/4.&54)&10
-
J1%,(B?"$&4.&54)&10
78
Work+specialization:((L*"(6"3%""()1(F*&$*(4$)&<&)&"#(&0(40(1%340&54)&10(
4%"(#:'6&<&6"6(&0)1(#"?4%4)"(G1'()4#,#M(4.#1(,01F0(4#(division'of'labour
L%46&)&104..-H(F4#(:#"6(4#(4(F4-()1(6&<&6"(F1%,(4$)&<&)&"#(&0)1(
#"?4%4)"(G1'#
N)(#1/"(?1&0)()*" human+diseconomies+from+division+of+labour
"D$""6()*"("$101/&$(46<40)43"#
O1%"61/
K4)&3:"
B)%"##
C1F(?%16:$)&<&)-
P&3*():%01<"%
I0$%"4#"6(4'#"0)""&#/
L164-Q#(<&"FE
R4043"%#(#""(&)(&#(40(&/?1%)40)(1%340&5&03(/"$*40&#/(01)(4#(4(#1:%$"(
12("<"%S&0$%"4#&03(?%16:$)&<&)-8((L*"-(%"$130&5"()*"("$101/&"#(&)(
?%1<&6"#(&0($"%)4&0(G1'#(':)(4.#1()*"(?%1'."/#(&)($%"4)"#8(
R$!104.6#(:#"#(*&3*(F1%,(#?"$&4.&54)&10
-
P1$,"-()"4/#(#?"$&4.&5"(&0(?1#&)&10#
-
K1%(N:#)%4.&4(*4#(#:$$"##2:..-(&0$%"4#"6(G1'('%"4)*(406(%"6:$"6(
F1%,(#?"$&4.&54)&10
-
!"?4%)/"0)4.&54)&10;8
Departmentalization:++L*"('4#&#(10(F*&$*(G1'#(4%"(3%1:?"6()13")*"%
T<"%-(1%340&54)&10(F&..(*4<"(&)#(1F0(F4-(12($.4##&2-&03(406(
3%1:?&03(F1%,(4$)&<&)&"#
U
@(91//10(K1%/#(12(!"?4%)/"0)4.&54)&10
Functional+Departmentalization:+
V%1:?#(G1'#('-(2:0$)&10#(?"%21%/"6
§
Geographical+Departmentalization
V%1:?#(G1'#('-(3"13%4?*&$4.(.1$4)&10
§
Product+Departmentalization
V%1:?#(G1'#('-(?%16:$)(.&0"#
§
Process+Departmentalization
V%1:?&03(G1'#(10()*"('4#&#(12(?%16:$)(1%($:#)1/"%(
2.1F
§
Customer+Departmentalization
V%1:?#(G1'#(10(#?"$&2&$(406(:0&W:"($:#)1/"%(3%1:?#
§
U
L164-Q#(<&"FE
LF1(?1?:.4%()%"06#(&0(6"?4%)/"0)4.&54)&10(4%"()*"(&0$%"4#&03(:#"(12(
$:#)1/"%(6"?4%)/"0)4.&54)&10(406($%1##S2:0$)&104.()"4/#8((
9:#)1/"%(6"?4%)/"0)4.&54)&10(&#('"&03(:#"6()1(/10&)1%(
$:#)1/"%Q#(0""6#(406(%"#?106()1($*403"#(&0()*1#"(0""6#8
-
Cross-functional+teams:F1%,#()"4/#(/46"(:?(12(&06&<&6:4.#(F*1(4%"(
"D?"%)#(&0(<4%&1:#(2:0$)&104.(#?"$&4.)&"#( )13")*"%8
X#"6()1(&0$%"4#"6(,01F."63"(406(:06"%#)406&03(12(#1/"(
1%340&54)&104.()4#,#
-
9*4&0(12(91//406=8
Chain+of+Command:((L*"($10)&0:1:#(.&0"(12(4:)*1%&)-()*4)("D)"06#(2%1/(
)*"()1?(12()*"(1%340&54)&10()1()*"(.1F"#)(."<".( 406($.4%&2&"#(F*1(%"?1%)#(
)1(F*1/8
Authority:++L*"(%&3*)#(&0*"%"0)(&0(4(/4043"%&4.(?1#&)&10()1()"..(
?"1?."(F*4)()1(61(406()1("D?"$)()*"/()1(61(&)
Acceptance+theory+of+authority:+ )*"(<&"F()*4)(4:)*1%&)-(
$1/"#(2%1/()*"(F&..&030"##(12(#:'1%6&04)"#()1(4$$"?)(&)8((
L*"-(F&..(4$$"?)(1%6"%#(&2()*"(21..1F&03($106&)&10#(4%"(
#4)&#2&"6E
L*"-(:06"%#)406()*"(1%6"%
§
L*"-(2"".()*"(1%6"%(&#($10#&#)"0)(F&)*()*"(
1%340&54)&10Q#(?:%?1#"
§
L*"(1%6"%(61"#(01)($102.&$)(F&)*()*"&%(?"%#104.('".&"2#
§
L*"-(4%"(4'."()1(?"%21%/()*"()4#,(4#(6&%"$)"6
§
Line+authorityE((4:)*1%&)-()*4)("0)&)."#(4(/4043"%()1(6&%"$)(
)*"(F1%,(12(40("/?.1-""
Staff+authority:((?1#&)&10#(F&)*(#1/"(4:)*1%&)-()*4)(*4<"(
'""0($%"4)"6()1(#:??1%)H(4##&#)H(406(46<&#"()*1#"(*1.6&03(
.&0"(4:)*1%&)-
-
Responsibility
L*"(1'.&34)&10(1%("D?"$)4)&10()1(?"%21%/(40-(4##&30"6(
6:)&"#
-
Unity+of+Command
L*"(/4043"/"0)(?%&0$&?."()*4)("4$*(?"%#10(#*1:.6(%"?1%)(
)1(10.-(10"(/4043"%
-
L164-#(<&"FE
L*"#"(Y"##"0)&4.#Y(4%"(#1/"F*4)(1:)64)"6(406(/40-(1%340&54)&10Q#(:#"(
6&22"%"0)(/")*16#(12(1?"%4)&03(F&)*1:)()*"($*4&0(12($1//406(
4??%14$*8((I021%/4)&10(&#(01F(4<4&.4'."()1("<"%-10"H(01)(10.-(
/4043"%#8((T/?.1-""#($40(01F($1//:0&$4)"(F&)*(40-'16-(&0()*"(
1%340&54)&10(F&)*1:)(31&03()*%1:3*()*"($*4&0(12($1//4068
B?40(12(910)%1.>8
Span+of+control:(()*"(0:/'"%(12("/?.1-""#(4(/4043"%($40("22&$&"0).-(
406("22"$)&<".-(/4043"
J&6"%(#?40#(4%"(/1%"("22&$&"0)(&0()"%/#(12($1#)
-
J&6"%(#?40#(%"6:$"("22"$)&<"0"##
-
L164-#(<&"FE
L%"06(&0(%"$"0)(-"4%#(*4#('""0()1F4%6(.4%3"%(#?40#(12($10)%1.H(F*&$*(&#(
$10#&#)"0)(F&)*(/4043"%#Q("221%)#()1(#?""6(:?(6"$&#&10(/4,&03H(
&0$%"4#"(2."D&'&.&)-H(3")($.1#"%()1($:#)1/"%#H("/?1F"%("/?.1-""#H(406(
%"6:$"($1#)#8
9"0)%4.&54)&10(406(!"$"0)%4.&54)&10@8
CentralizationE(()*"(6"3%""()1(F*&$*(6"$&#&10(/4,&03(&#($10$"0)%4)"6(4)(
:??"%(."<".#(12()*"(1%340&54)&10
R1%"($"0)%4.&54)&10(F*"0Z
T0<&%10/"0)(&#(#)4'."
C1F"%S."<".(/4043"%#(4%"(01)(4#($4?4'."(1%("D?"%&"0$"6(4)(
/4,&03(6"$&#&10#
C1F"%S."<".(/4043"%#(61(01)(F40)()1(*4<"(4(#4-(&0(
6"$&#&10#
!"$&#&10#(4%"(#&30&2&$40)
A%340&54)&10(&#(24$&03(4($%&#&#(1%()*"(%&#,(12($1/?40-(24&.:%"
91/?40-(&#(.4%3"
T22"$)&<"(&/?."/"0)4)&10(12($1/?40-(#)%4)"3&"#(6"?"06#(
10(managers+retaining+say+over+what+happens
U
DecentralizationE(()*"(6"3%""()1(F*&$*(.1F"%S."<".("/?.1-""#(?%1<&6"(
&0?:)(1%(4$):4..-(/4,"(6"$&#&10#
R1%"(6"$"0)%4.&54)&10(F*"0Z
T0<&%10/"0)(&#($1/?."D[:0$"%)4&0
C1F"%S."<".(/4043"%#(4%"($4?4'."(406("D?"%&"0$"6(4)(
/4,&03(6"$&#&10#
C1F"%S."<".(/4043"%#(F40)(4(<1&$"(&0(6"$&#&10#
!"$&#&10#(4%"(%".4)&<".-(/&01%
91%?1%4)"($:.):%"(&#(1?"0()1(4..1F&03(/4043"%#(*4<"(4(#4-(
&0(F*4)(*4??"0#
91/?40-(&#(3"13%4?*&$4..-(6&#?"%#"6
T22"$)&<"(&/?."/"0)4)&10(12($1/?40-(#)%4)"3&"#(6"?"06#(
10(managers+having+involvement+and+flexibility+to+make+
decisions
U
L164-Q#(<&"FE
N#(1%340&54)&10#('"$1/"(/1%"(2."D&'."(406(%"#?10#&<"H()*"%"(&#(4(
6&#)&0$)()%"06()1F4%6(6"$"0)%4.&5&03(6"$&#&10(/4,&038((L*&#()%"06H(4.#1(
,01F0(4#(employee+empowermentH(3&<"#("/?.1-""#(/1%"(4:)*1%&)-(
\?1F"%]()1(/4,"(6"$&#&10#8((T/?.1-""#(4%"($.1#"%()1()*"(4$)&10(406(
)*"%"21%"()-?&$4..-(,01F(/1%"(6")4&.#(4'1:)(?%1'."/#(406(*1F('"#)()1(
#1.<"()*"/8
K1%/4.&54)&10+8
FormalizationE(()*"(6"3%""()1(F*&$*(G1'#(F&)*&0()*"(1%340&54)&10(4%"(
#)4064%6&5"6(406()*"("D)"0)()1(F*&$*("/?.1-""('"*4<&1:%(&#(3:&6"6('-(
%:."#(406(?%1$"6:%"#8
P&3*.-(21%/4.&5"6 ^("D?.&$&)( G1'(6"#$%&?)&10#H(0:/"%1:#(
1%340&54)&104.(%:."#H($."4%.-(6"2&0"6(?%1$"6:%"#($1<"%&03(F1%,(
?%1$"##"#
T/?.1-""#(*4<"(.&))."(6&#$%")&10(1<"%(F*4)Q#(610"H(F*"0(
&)Q#(610"(406(*1F(&)Q#(610"
-
C"##(21%/4.&5"6 ^(/1%"(6&#$%")&10(&0(*1F()*"-(61()*"&%(F1%,
-
L164-Q#(<&"FE
B1/"(21%/4.&54)&10(&#(&/?1%)40)(406(0"$"##4%-(21%($10#&#)"0$-(406(
$10)%1.H(/40-(12()164-Q#(1%340&54)&10#(#""/()1('"(."##(%".&40)(10(#)%&$)(
%:."#(406(#)4064%6&54)&10()1(3:&6"(406(%"3:.4)"("/?.1-""('"*4<&1:%8((
T/?.1-""#(4%"(3&<"0(/1%"(.""F4-(&0(4??.&$4)&108
R"$*40&#)&$(<#8(A%340&$(B)%:$):%"#
Mechanistic+Organizations:(( %&3&6(
406()&3*).-($10)%1.."6
Organic+organization:((*&3*.-(
464?)&<"(406(2."D&'."
P&3*(#?"$&4.&54)&10
-9%1##S2:0$)&104.()"4/#
-
_&3&6(6"?4%)/"0)4.&54)&10
-9%1##S*&"%4%$*&$4.()"4/#
-
9."4%($*4&0(12($1//406
-K%""(2.1F(12(&021%/4)&10
-
`4%%1F(#?40#(12($10)%1.
-J&6"(#?40#(12($10)%1.
-
9"0)%4.&54)&10
-!"$"0)%4.&54)&10
-
P&3*(21%/4.&54)&10
-C1F(21%/4.&54)&10
-
C&/&)"6(&021%/4)&10(0")F1%,
-C&))."(6&%"$)(#:?"%<&#&10
-
C1F(6"$&#&10(?4%)&$&?4)&10('-(
.1F"%S."<".("/?.1-""#
-T/?1F"%"6("/?.1-""#
-
910)&03"0$-(K4$)1%#(N22"$)&03( B)%:$):%4.(9*1&$"
Strategy+-KA_R(KACCAJB(KX`9LIA`(S#)%:$):%"(21..1F#(#)%4)"3-
Size+-2&%/#($*403"(2%1/(1%340&$()1(/"$*40&#)&$(4#()*"-(3%1F
Technology++-2&%/#(464?)()*"&%(#)%:$):%"()1()*"()"$*01.13-()*"-(:#"(
\/"$*40&#)&$(^(/4##(?%168()"$*01.13-(F*&."(1%340&$(^(:0&)(406(?%1$"##(
?%168()"$*01.13-]
Environmental+uncertainty+-6-04/&$("0<&%10/"0)#(%"W:&%"(1%340&$(
#)%:$):%"#M(/"$*40&#)&$(0""6(#)4'."("0<&%10/"0)#
L%46&)&104.( A%340&54)&104.( !"#&30#
Simple+StructureE((.1F(6"?4%)/"0)4.&54)&10H(F&6"(#?40#(12($10)%1.H(
4:)*1%&)-($"0)%4.&5"6(&0(4(#&03."(?"%#10(406(.&))."( 21%/4.&54)&108
(small'business,'owner'and'manager'are'one'and'the'same)
-
Functional+Structure:((3%1:?#(#&/&.4%(1%(%".4)"6(1$$:?4)&104.(#?"$&4.)&"#(
)13")*"%8
(departmentalization'applied'to'entire'organization)
-
Divisional+Structure: $10#&#)#(12(#"?4%4)"(':#&0"##(:0&)#(1%(6&<&#&10#
(larger'corporations)
-
Structure Strengths Weaknesses
Simple K4#)M(2."D&'."M
-
&0"D?"0#&<"()1(/4&0)4&0M(
-
$."4%(4$$1:0)4'&.&)-
-
`1)(4??%1?%&4)"(4#(1%38(
3%1F#M(
-
%".&40$"( 10(10"(?"%#10(&#(
%&#,-
-
Functional 91#)S#4<&03(46<40)43"#(
2%1/(#?"$&4.&54)&10M
-
"/?.1-""#(4%"(3%1:?"6(
F&)*(1)*"%#(F*1(*4<"(
#&/&.4%()4#,#
-
a:%#:&)(12(2:0$)&104.(314.#(
$40($4#"(/4043"%#()1(.1#"(
#&3*)(12(1<"%4..(314.#M(
-
#?"$&4.&#)#('"$1/"(
&0#:.4)"6(406(*4<"(.&))."(
:06"%#)406&03(12(1)*"%(
:0&)#
-
Divisional K1$:#"#(10(%"#:.)#
-
!&<&#&10(/4043"%#(4%"(
%"#?10#&'."(21%(F*4)(
*4??"0#()1()*"&%(?%16:$)#(
406(#"%<&$"#
-
!:?.&$4)&10(12(4$)&<&)&"#(
406(%"#1:%$"#(&0$%"4#"#(
$1#)#(406(%"6:$"#(
"22&$&"0$-
-
910)"/?1%4%-( A%340&54)&104.( !"#&30#
L"4/(B)%:$):%"
What+it+is: N(#)%:$):%"(&0(F*&$*()*"("0)&%"(1%340&54)&10(&#(/46"(
:?(12(F1%,(3%1:?#(1%()"4/#8
Advantages T/?.1-""#(4%"(/1%"(&0<1.<"6(406("/?1F"%"6
-
_"6:$"6('4%%&"%#(4/103(2:0$)&104.(4%"4#
-
Disadvantages `1($."4%($*4&0(12($1//406
-
a%"##:%"(10()"4/#()1(?"%21%/
-
R4)%&DSa%1G"$)(B)%:$):%"
What+it+is: B?"$&4.&#)#(2%1/(6&22"%"0)(2:0$)&104.(4%"4#(4%"(
4##&30"6()1(F1%,(10(?%1G"$)#(406()*"0(%"):%0()1()*"&%(
4%"4#(F*"0(F1%,(&#($1/?.")"68(
T/?.1-""#($10)&0:1:#.-(F1%,(10(?%1G"$)#8(N#(10"(&#(
$1/?.")"6H()*"-(/1<"(10()1()*"(0"D)8
Advantages K.:&6(406(2."D&'."(6"#&30()*4)($40(%"#?106()1(
"0<&%10/"0)4.($*403"#
-
K4#)"%(6"$&#&10(/4,&03
-
Disadvantages 91/?."D&)-(12(4##&30&03(?"1?."()1(?%1G"$)#
-
L4#,(406(?"%#104.&)-($102.&$)#
-
O1:064%-."##(B)%:$):%"
What+it+is: N(#)%:$):%"(01)(6"2&0"6('-(1%(.&/&)"6()1(4%)&2&$&4.(
*1%&510)4.H(<"%)&$4.H(1%("D)"%04.('1:064%&"#M(&0$.:6"#(
virtual 406(network )-?"#(12(1%340&54)&10#8
Advantages P&3*.-(2."D&'."( 406(%"#?10#&<"
-
X)&.&5"#()4."0)(F*"%"<"%(&)#(21:06
-
Disadvantages C4$,(12($10)%1.
-
91//:0&$4)&10(6&22&$:.)&"#
-
Virtual+organization: $10#&#)#(12(4(#/4..($1%"(12(2:..S)&/"("/?.1-""#(
406(1:)#&6"(#?"$&4.&#)#()"/?1%4%&.-(*&%"6(4#(0""6"6()1(F1%,(10(
?%1G"$)#8
Network+organization: :#"#(&)#(1F0("/?.1-""#()1(61(#1/"(F1%,(
4$)&<&)&"#(406(0")F1%,#(12(1:)#&6"(#:??.&"%#()1(?%1<&6"(1)*"%(0""6"6(
?%16:$)($1/?10"0)#(1%(F1%,(?%1$"##"#
C"4%0&03(B)%:$):%"
What+it+is: N0(1%340&54)&10()*4)(*4#(6"<".1?"6()*"($4?4$&)-()1(
$10)&0:1:#.-(."4%0H(464?)(406($*403"
Advantages B*4%&03(12(,01F."63"()*%1:3*1:)(1%340&54)&10
-
B:#)4&04'."(#1:%$"(12($1/?")&)&<"(46<40)43"
-
Disadvantages _".:$)40)(10(?4%)(12("/?.1-""#()1(#*4%"(,01F."63"(
21%(2"4%(12(.1#&03()*"&%(?1F"%
-
C4%3"(0:/'"%#(12("D?"%&"0$"6("/?.1-""#(10()*"(
<"%3"(12(%")&%&03
-
Ch.10&-Organizational&Design
R1064-H(A$)1'"%(7+H(;b7c
dEb;(aR

Only pages 1-2 are available for preview. Some parts have been intentionally blurred.

!"#$%&'"()*"(+(,"-("."/"0)#(12(1%340&54)&104.(6"#&3078
910)%4#)(/"$*40&#)&$(406(1%340&$(#)%:$):%"#;8
!&#$:##()*"($10)&03"0$-(24$)1%#()*4)(24<1:%("&)*"%()*"(
/"$*40&#)&$(/16".(1%()*"(1%340&$(/16".(12(1%340&54)&104.(6"#&30
=8
!"#$%&'"()%46&)&104.(1%340&54)&104.(6"#&30#>8
!"#$%&'"($10)"/?1%4%-(1%340&54)&104.(6"#&30#@8
!"#&30&03(A%340&54)&104.(B)%:$):%"
C11,&03()1(4$*&"<"(6"#&30#()*4)(4%"("22&$&"0)(-")(4.#1(2."D&'."
-
OrganizingE(4%%403&03(406(#)%:$):%&03(F1%,()1(4$$1/?.&#*(40(
1%340&54)&10#(314.#
Organizational+Structure:*1F(G1'()4#,#(4%"(21%/4..-(6&<&6"6H(3%1:?"6(
406($11%6&04)"6(F&)*&0(40(1%340&54)&10
A%340&54)&104.($*4%)E((()*"(<&#:4.(%"?%"#"0)4)&10(12(40(
1%340&54)&10#(#)%:$):%"
-
Organizational+design:+(()*"(?%1$"##(12(6"<".1?&03(1%($*403&03(40(
1%340&54)&10#(#)%:$):%"
I0<1.<"#(#&D(,"-("."/"0)#E
J1%,(#?"$&4.&54)&10
!"?4%)/"0)4.&54)&10
9*4&0(12($1//406
B?40(12($10)%1.
9"0)%4.&54)&10
!"$"0)%4.&54)&10
K1%/4.&54)&10
-
J1%,(B?"$&4.&54)&1078
Work+specialization:((L*"(6"3%""()1(F*&$*(4$)&<&)&"#(&0(40(1%340&54)&10(
4%"(#:'6&<&6"6(&0)1(#"?4%4)"(G1'()4#,#M(4.#1(,01F0(4#(division'of'labour
L%46&)&104..-H(F4#(:#"6(4#(4(F4-()1(6&<&6"(F1%,(4$)&<&)&"#(&0)1(
#"?4%4)"(G1'#
N)(#1/"(?1&0)()*" human+diseconomies+from+division+of+labour
"D$""6()*"("$101/&$(46<40)43"#
O1%"61/
K4)&3:"
B)%"##
C1F(?%16:$)&<&)-
P&3*():%01<"%
I0$%"4#"6(4'#"0)""&#/
L164-Q#(<&"FE
R4043"%#(#""(&)(&#(40(&/?1%)40)(1%340&5&03(/"$*40&#/(01)(4#(4(#1:%$"(
12("<"%S&0$%"4#&03(?%16:$)&<&)-8((L*"-(%"$130&5"()*"("$101/&"#(&)(
?%1<&6"#(&0($"%)4&0(G1'#(':)(4.#1()*"(?%1'."/#(&)($%"4)"#8(
R$!104.6#(:#"#(*&3*(F1%,(#?"$&4.&54)&10
-
P1$,"-()"4/#(#?"$&4.&5"(&0(?1#&)&10#
-
K1%(N:#)%4.&4(*4#(#:$$"##2:..-(&0$%"4#"6(G1'('%"4)*(406(%"6:$"6(
F1%,(#?"$&4.&54)&10
-
!"?4%)/"0)4.&54)&10
;8
T<"%-(1%340&54)&10(F&..(*4<"(&)#(1F0(F4-(12($.4##&2-&03(406(
3%1:?&03(F1%,(4$)&<&)&"#
U
@(91//10(K1%/#(12(!"?4%)/"0)4.&54)&10
Functional+Departmentalization:+
V%1:?#(G1'#('-(2:0$)&10#(?"%21%/"6
§
Geographical+Departmentalization
V%1:?#(G1'#('-(3"13%4?*&$4.(.1$4)&10
§
Product+Departmentalization
V%1:?#(G1'#('-(?%16:$)(.&0"#
§
Process+Departmentalization
V%1:?&03(G1'#(10()*"('4#&#(12(?%16:$)(1%($:#)1/"%(
2.1F
§
Customer+Departmentalization
V%1:?#(G1'#(10(#?"$&2&$(406(:0&W:"($:#)1/"%(3%1:?#
§
U
L164-Q#(<&"FE
LF1(?1?:.4%()%"06#(&0(6"?4%)/"0)4.&54)&10(4%"()*"(&0$%"4#&03(:#"(12(
$:#)1/"%(6"?4%)/"0)4.&54)&10(406($%1##S2:0$)&104.()"4/#8((
9:#)1/"%(6"?4%)/"0)4.&54)&10(&#('"&03(:#"6()1(/10&)1%(
$:#)1/"%Q#(0""6#(406(%"#?106()1($*403"#(&0()*1#"(0""6#8
-
Cross-functional+teams:F1%,#()"4/#(/46"(:?(12(&06&<&6:4.#(F*1(4%"(
"D?"%)#(&0(<4%&1:#(2:0$)&104.(#?"$&4.)&"#( )13")*"%8
X#"6()1(&0$%"4#"6(,01F."63"(406(:06"%#)406&03(12(#1/"(
1%340&54)&104.()4#,#
-
9*4&0(12(91//406=8
Chain+of+Command:((L*"($10)&0:1:#(.&0"(12(4:)*1%&)-()*4)("D)"06#(2%1/(
)*"()1?(12()*"(1%340&54)&10()1()*"(.1F"#)(."<".( 406($.4%&2&"#(F*1(%"?1%)#(
)1(F*1/8
Authority:++L*"(%&3*)#(&0*"%"0)(&0(4(/4043"%&4.(?1#&)&10()1()"..(
?"1?."(F*4)()1(61(406()1("D?"$)()*"/()1(61(&)
Acceptance+theory+of+authority:+ )*"(<&"F()*4)(4:)*1%&)-(
$1/"#(2%1/()*"(F&..&030"##(12(#:'1%6&04)"#()1(4$$"?)(&)8((
L*"-(F&..(4$$"?)(1%6"%#(&2()*"(21..1F&03($106&)&10#(4%"(
#4)&#2&"6E
L*"-(:06"%#)406()*"(1%6"%
§
L*"-(2"".()*"(1%6"%(&#($10#&#)"0)(F&)*()*"(
1%340&54)&10Q#(?:%?1#"
§
L*"(1%6"%(61"#(01)($102.&$)(F&)*()*"&%(?"%#104.('".&"2#
§
L*"-(4%"(4'."()1(?"%21%/()*"()4#,(4#(6&%"$)"6
§
Line+authorityE((4:)*1%&)-()*4)("0)&)."#(4(/4043"%()1(6&%"$)(
)*"(F1%,(12(40("/?.1-""
Staff+authority:((?1#&)&10#(F&)*(#1/"(4:)*1%&)-()*4)(*4<"(
'""0($%"4)"6()1(#:??1%)H(4##&#)H(406(46<&#"()*1#"(*1.6&03(
.&0"(4:)*1%&)-
-
Responsibility
L*"(1'.&34)&10(1%("D?"$)4)&10()1(?"%21%/(40-(4##&30"6(
6:)&"#
-
Unity+of+Command
L*"(/4043"/"0)(?%&0$&?."()*4)("4$*(?"%#10(#*1:.6(%"?1%)(
)1(10.-(10"(/4043"%
-
L164-#(<&"FE
L*"#"(Y"##"0)&4.#Y(4%"(#1/"F*4)(1:)64)"6(406(/40-(1%340&54)&10Q#(:#"(
6&22"%"0)(/")*16#(12(1?"%4)&03(F&)*1:)()*"($*4&0(12($1//406(
4??%14$*8((I021%/4)&10(&#(01F(4<4&.4'."()1("<"%-10"H(01)(10.-(
/4043"%#8((T/?.1-""#($40(01F($1//:0&$4)"(F&)*(40-'16-(&0()*"(
1%340&54)&10(F&)*1:)(31&03()*%1:3*()*"($*4&0(12($1//4068
B?40(12(910)%1.>8
Span+of+control:(()*"(0:/'"%(12("/?.1-""#(4(/4043"%($40("22&$&"0).-(
406("22"$)&<".-(/4043"
J&6"%(#?40#(4%"(/1%"("22&$&"0)(&0()"%/#(12($1#)
-
J&6"%(#?40#(%"6:$"("22"$)&<"0"##
-
L164-#(<&"FE
L%"06(&0(%"$"0)(-"4%#(*4#('""0()1F4%6(.4%3"%(#?40#(12($10)%1.H(F*&$*(&#(
$10#&#)"0)(F&)*(/4043"%#Q("221%)#()1(#?""6(:?(6"$&#&10(/4,&03H(
&0$%"4#"(2."D&'&.&)-H(3")($.1#"%()1($:#)1/"%#H("/?1F"%("/?.1-""#H(406(
%"6:$"($1#)#8
9"0)%4.&54)&10(406(!"$"0)%4.&54)&10@8
CentralizationE(()*"(6"3%""()1(F*&$*(6"$&#&10(/4,&03(&#($10$"0)%4)"6(4)(
:??"%(."<".#(12()*"(1%340&54)&10
R1%"($"0)%4.&54)&10(F*"0Z
T0<&%10/"0)(&#(#)4'."
C1F"%S."<".(/4043"%#(4%"(01)(4#($4?4'."(1%("D?"%&"0$"6(4)(
/4,&03(6"$&#&10#
C1F"%S."<".(/4043"%#(61(01)(F40)()1(*4<"(4(#4-(&0(
6"$&#&10#
!"$&#&10#(4%"(#&30&2&$40)
A%340&54)&10(&#(24$&03(4($%&#&#(1%()*"(%&#,(12($1/?40-(24&.:%"
91/?40-(&#(.4%3"
T22"$)&<"(&/?."/"0)4)&10(12($1/?40-(#)%4)"3&"#(6"?"06#(
10(managers+retaining+say+over+what+happens
U
DecentralizationE(()*"(6"3%""()1(F*&$*(.1F"%S."<".("/?.1-""#(?%1<&6"(
&0?:)(1%(4$):4..-(/4,"(6"$&#&10#
R1%"(6"$"0)%4.&54)&10(F*"0Z
T0<&%10/"0)(&#($1/?."D[:0$"%)4&0
C1F"%S."<".(/4043"%#(4%"($4?4'."(406("D?"%&"0$"6(4)(
/4,&03(6"$&#&10#
C1F"%S."<".(/4043"%#(F40)(4(<1&$"(&0(6"$&#&10#
!"$&#&10#(4%"(%".4)&<".-(/&01%
91%?1%4)"($:.):%"(&#(1?"0()1(4..1F&03(/4043"%#(*4<"(4(#4-(
&0(F*4)(*4??"0#
91/?40-(&#(3"13%4?*&$4..-(6&#?"%#"6
T22"$)&<"(&/?."/"0)4)&10(12($1/?40-(#)%4)"3&"#(6"?"06#(
10(managers+having+involvement+and+flexibility+to+make+
decisions
U
L164-Q#(<&"FE
N#(1%340&54)&10#('"$1/"(/1%"(2."D&'."(406(%"#?10#&<"H()*"%"(&#(4(
6&#)&0$)()%"06()1F4%6(6"$"0)%4.&5&03(6"$&#&10(/4,&038((L*&#()%"06H(4.#1(
,01F0(4#(employee+empowermentH(3&<"#("/?.1-""#(/1%"(4:)*1%&)-(
\?1F"%]()1(/4,"(6"$&#&10#8((T/?.1-""#(4%"($.1#"%()1()*"(4$)&10(406(
)*"%"21%"()-?&$4..-(,01F(/1%"(6")4&.#(4'1:)(?%1'."/#(406(*1F('"#)()1(
#1.<"()*"/8
K1%/4.&54)&10+8
FormalizationE(()*"(6"3%""()1(F*&$*(G1'#(F&)*&0()*"(1%340&54)&10(4%"(
#)4064%6&5"6(406()*"("D)"0)()1(F*&$*("/?.1-""('"*4<&1:%(&#(3:&6"6('-(
%:."#(406(?%1$"6:%"#8
P&3*.-(21%/4.&5"6 ^("D?.&$&)( G1'(6"#$%&?)&10#H(0:/"%1:#(
1%340&54)&104.(%:."#H($."4%.-(6"2&0"6(?%1$"6:%"#($1<"%&03(F1%,(
?%1$"##"#
T/?.1-""#(*4<"(.&))."(6&#$%")&10(1<"%(F*4)Q#(610"H(F*"0(
&)Q#(610"(406(*1F(&)Q#(610"
-
C"##(21%/4.&5"6 ^(/1%"(6&#$%")&10(&0(*1F()*"-(61()*"&%(F1%,
-
L164-Q#(<&"FE
B1/"(21%/4.&54)&10(&#(&/?1%)40)(406(0"$"##4%-(21%($10#&#)"0$-(406(
$10)%1.H(/40-(12()164-Q#(1%340&54)&10#(#""/()1('"(."##(%".&40)(10(#)%&$)(
%:."#(406(#)4064%6&54)&10()1(3:&6"(406(%"3:.4)"("/?.1-""('"*4<&1:%8((
T/?.1-""#(4%"(3&<"0(/1%"(.""F4-(&0(4??.&$4)&108
R"$*40&#)&$(<#8(A%340&$(B)%:$):%"#
Mechanistic+Organizations:(( %&3&6(
406()&3*).-($10)%1.."6
Organic+organization:((*&3*.-(
464?)&<"(406(2."D&'."
P&3*(#?"$&4.&54)&10
-9%1##S2:0$)&104.()"4/#
-
_&3&6(6"?4%)/"0)4.&54)&10
-9%1##S*&"%4%$*&$4.()"4/#
-
9."4%($*4&0(12($1//406
-K%""(2.1F(12(&021%/4)&10
-
`4%%1F(#?40#(12($10)%1.
-J&6"(#?40#(12($10)%1.
-
9"0)%4.&54)&10
-!"$"0)%4.&54)&10
-
P&3*(21%/4.&54)&10
-C1F(21%/4.&54)&10
-
C&/&)"6(&021%/4)&10(0")F1%,
-C&))."(6&%"$)(#:?"%<&#&10
-
C1F(6"$&#&10(?4%)&$&?4)&10('-(
.1F"%S."<".("/?.1-""#
-T/?1F"%"6("/?.1-""#
-
910)&03"0$-(K4$)1%#(N22"$)&03( B)%:$):%4.(9*1&$"
Strategy+-KA_R(KACCAJB(KX`9LIA`(S#)%:$):%"(21..1F#(#)%4)"3-
Size+-2&%/#($*403"(2%1/(1%340&$()1(/"$*40&#)&$(4#()*"-(3%1F
Technology++-2&%/#(464?)()*"&%(#)%:$):%"()1()*"()"$*01.13-()*"-(:#"(
\/"$*40&#)&$(^(/4##(?%168()"$*01.13-(F*&."(1%340&$(^(:0&)(406(?%1$"##(
?%168()"$*01.13-]
Environmental+uncertainty+-6-04/&$("0<&%10/"0)#(%"W:&%"(1%340&$(
#)%:$):%"#M(/"$*40&#)&$(0""6(#)4'."("0<&%10/"0)#
L%46&)&104.( A%340&54)&104.( !"#&30#
Simple+StructureE((.1F(6"?4%)/"0)4.&54)&10H(F&6"(#?40#(12($10)%1.H(
4:)*1%&)-($"0)%4.&5"6(&0(4(#&03."(?"%#10(406(.&))."( 21%/4.&54)&108
(small'business,'owner'and'manager'are'one'and'the'same)
-
Functional+Structure:((3%1:?#(#&/&.4%(1%(%".4)"6(1$$:?4)&104.(#?"$&4.)&"#(
)13")*"%8
(departmentalization'applied'to'entire'organization)
-
Divisional+Structure: $10#&#)#(12(#"?4%4)"(':#&0"##(:0&)#(1%(6&<&#&10#
(larger'corporations)
-
Structure Strengths Weaknesses
Simple K4#)M(2."D&'."M
-
&0"D?"0#&<"()1(/4&0)4&0M(
-
$."4%(4$$1:0)4'&.&)-
-
`1)(4??%1?%&4)"(4#(1%38(
3%1F#M(
-
%".&40$"( 10(10"(?"%#10(&#(
%&#,-
-
Functional 91#)S#4<&03(46<40)43"#(
2%1/(#?"$&4.&54)&10M
-
"/?.1-""#(4%"(3%1:?"6(
F&)*(1)*"%#(F*1(*4<"(
#&/&.4%()4#,#
-
a:%#:&)(12(2:0$)&104.(314.#(
$40($4#"(/4043"%#()1(.1#"(
#&3*)(12(1<"%4..(314.#M(
-
#?"$&4.&#)#('"$1/"(
&0#:.4)"6(406(*4<"(.&))."(
:06"%#)406&03(12(1)*"%(
:0&)#
-
Divisional K1$:#"#(10(%"#:.)#
-
!&<&#&10(/4043"%#(4%"(
%"#?10#&'."(21%(F*4)(
*4??"0#()1()*"&%(?%16:$)#(
406(#"%<&$"#
-
!:?.&$4)&10(12(4$)&<&)&"#(
406(%"#1:%$"#(&0$%"4#"#(
$1#)#(406(%"6:$"#(
"22&$&"0$-
-
910)"/?1%4%-( A%340&54)&104.( !"#&30#
L"4/(B)%:$):%"
What+it+is: N(#)%:$):%"(&0(F*&$*()*"("0)&%"(1%340&54)&10(&#(/46"(
:?(12(F1%,(3%1:?#(1%()"4/#8
Advantages T/?.1-""#(4%"(/1%"(&0<1.<"6(406("/?1F"%"6
-
_"6:$"6('4%%&"%#(4/103(2:0$)&104.(4%"4#
-
Disadvantages `1($."4%($*4&0(12($1//406
-
a%"##:%"(10()"4/#()1(?"%21%/
-
R4)%&DSa%1G"$)(B)%:$):%"
What+it+is: B?"$&4.&#)#(2%1/(6&22"%"0)(2:0$)&104.(4%"4#(4%"(
4##&30"6()1(F1%,(10(?%1G"$)#(406()*"0(%"):%0()1()*"&%(
4%"4#(F*"0(F1%,(&#($1/?.")"68(
T/?.1-""#($10)&0:1:#.-(F1%,(10(?%1G"$)#8(N#(10"(&#(
$1/?.")"6H()*"-(/1<"(10()1()*"(0"D)8
Advantages K.:&6(406(2."D&'."(6"#&30()*4)($40(%"#?106()1(
"0<&%10/"0)4.($*403"#
-
K4#)"%(6"$&#&10(/4,&03
-
Disadvantages 91/?."D&)-(12(4##&30&03(?"1?."()1(?%1G"$)#
-
L4#,(406(?"%#104.&)-($102.&$)#
-
O1:064%-."##(B)%:$):%"
What+it+is: N(#)%:$):%"(01)(6"2&0"6('-(1%(.&/&)"6()1(4%)&2&$&4.(
*1%&510)4.H(<"%)&$4.H(1%("D)"%04.('1:064%&"#M(&0$.:6"#(
virtual 406(network )-?"#(12(1%340&54)&10#8
Advantages P&3*.-(2."D&'."( 406(%"#?10#&<"
-
X)&.&5"#()4."0)(F*"%"<"%(&)#(21:06
-
Disadvantages C4$,(12($10)%1.
-
91//:0&$4)&10(6&22&$:.)&"#
-
Virtual+organization: $10#&#)#(12(4(#/4..($1%"(12(2:..S)&/"("/?.1-""#(
406(1:)#&6"(#?"$&4.&#)#()"/?1%4%&.-(*&%"6(4#(0""6"6()1(F1%,(10(
?%1G"$)#8
Network+organization: :#"#(&)#(1F0("/?.1-""#()1(61(#1/"(F1%,(
4$)&<&)&"#(406(0")F1%,#(12(1:)#&6"(#:??.&"%#()1(?%1<&6"(1)*"%(0""6"6(
?%16:$)($1/?10"0)#(1%(F1%,(?%1$"##"#
C"4%0&03(B)%:$):%"
What+it+is: N0(1%340&54)&10()*4)(*4#(6"<".1?"6()*"($4?4$&)-()1(
$10)&0:1:#.-(."4%0H(464?)(406($*403"
Advantages B*4%&03(12(,01F."63"()*%1:3*1:)(1%340&54)&10
-
B:#)4&04'."(#1:%$"(12($1/?")&)&<"(46<40)43"
-
Disadvantages _".:$)40)(10(?4%)(12("/?.1-""#()1(#*4%"(,01F."63"(
21%(2"4%(12(.1#&03()*"&%(?1F"%
-
C4%3"(0:/'"%#(12("D?"%&"0$"6("/?.1-""#(10()*"(
<"%3"(12(%")&%&03
-
Ch.10&-Organizational&Design
R1064-H(A$)1'"%(7+H(;b7c dEb;(aR
You're Reading a Preview

Unlock to view full version

Only pages 1-2 are available for preview. Some parts have been intentionally blurred.

!"#$%&'"()*"(+(,"-("."/"0)#(12(1%340&54)&104.(6"#&3078
910)%4#)(/"$*40&#)&$(406(1%340&$(#)%:$):%"#;8
!&#$:##()*"($10)&03"0$-(24$)1%#()*4)(24<1:%("&)*"%()*"(
/"$*40&#)&$(/16".(1%()*"(1%340&$(/16".(12(1%340&54)&104.(6"#&30
=8
!"#$%&'"()%46&)&104.(1%340&54)&104.(6"#&30#>8
!"#$%&'"($10)"/?1%4%-(1%340&54)&104.(6"#&30#@8
!"#&30&03(A%340&54)&104.(B)%:$):%"
C11,&03()1(4$*&"<"(6"#&30#()*4)(4%"("22&$&"0)(-")(4.#1(2."D&'."
-
OrganizingE(4%%403&03(406(#)%:$):%&03(F1%,()1(4$$1/?.&#*(40(
1%340&54)&10#(314.#
Organizational+Structure:*1F(G1'()4#,#(4%"(21%/4..-(6&<&6"6H(3%1:?"6(
406($11%6&04)"6(F&)*&0(40(1%340&54)&10
A%340&54)&104.($*4%)E((()*"(<&#:4.(%"?%"#"0)4)&10(12(40(
1%340&54)&10#(#)%:$):%"
-
Organizational+design:+(()*"(?%1$"##(12(6"<".1?&03(1%($*403&03(40(
1%340&54)&10#(#)%:$):%"
I0<1.<"#(#&D(,"-("."/"0)#E
J1%,(#?"$&4.&54)&10
!"?4%)/"0)4.&54)&10
9*4&0(12($1//406
B?40(12($10)%1.
9"0)%4.&54)&10
!"$"0)%4.&54)&10
K1%/4.&54)&10
-
J1%,(B?"$&4.&54)&1078
Work+specialization:((L*"(6"3%""()1(F*&$*(4$)&<&)&"#(&0(40(1%340&54)&10(
4%"(#:'6&<&6"6(&0)1(#"?4%4)"(G1'()4#,#M(4.#1(,01F0(4#(division'of'labour
L%46&)&104..-H(F4#(:#"6(4#(4(F4-()1(6&<&6"(F1%,(4$)&<&)&"#(&0)1(
#"?4%4)"(G1'#
N)(#1/"(?1&0)()*" human+diseconomies+from+division+of+labour
"D$""6()*"("$101/&$(46<40)43"#
O1%"61/
K4)&3:"
B)%"##
C1F(?%16:$)&<&)-
P&3*():%01<"%
I0$%"4#"6(4'#"0)""&#/
L164-Q#(<&"FE
R4043"%#(#""(&)(&#(40(&/?1%)40)(1%340&5&03(/"$*40&#/(01)(4#(4(#1:%$"(
12("<"%S&0$%"4#&03(?%16:$)&<&)-8((L*"-(%"$130&5"()*"("$101/&"#(&)(
?%1<&6"#(&0($"%)4&0(G1'#(':)(4.#1()*"(?%1'."/#(&)($%"4)"#8(
R$!104.6#(:#"#(*&3*(F1%,(#?"$&4.&54)&10
-
P1$,"-()"4/#(#?"$&4.&5"(&0(?1#&)&10#
-
K1%(N:#)%4.&4(*4#(#:$$"##2:..-(&0$%"4#"6(G1'('%"4)*(406(%"6:$"6(
F1%,(#?"$&4.&54)&10
-
!"?4%)/"0)4.&54)&10;8
Departmentalization:++L*"('4#&#(10(F*&$*(G1'#(4%"(3%1:?"6()13")*"%
T<"%-(1%340&54)&10(F&..(*4<"(&)#(1F0(F4-(12($.4##&2-&03(406(
3%1:?&03(F1%,(4$)&<&)&"#
U
@(91//10(K1%/#(12(!"?4%)/"0)4.&54)&10
Functional+Departmentalization:+
V%1:?#(G1'#('-(2:0$)&10#(?"%21%/"6
§
Geographical+Departmentalization
V%1:?#(G1'#('-(3"13%4?*&$4.(.1$4)&10
§
Product+Departmentalization
V%1:?#(G1'#('-(?%16:$)(.&0"#
§
Process+Departmentalization
V%1:?&03(G1'#(10()*"('4#&#(12(?%16:$)(1%($:#)1/"%(
2.1F
§
Customer+Departmentalization
V%1:?#(G1'#(10(#?"$&2&$(406(:0&W:"($:#)1/"%(3%1:?#
§
U
L164-Q#(<&"FE
9:#)1/"%(6"?4%)/"0)4.&54)&10(&#('"&03(:#"6()1(/10&)1%(
$:#)1/"%Q#(0""6#(406(%"#?106()1($*403"#(&0()*1#"(0""6#8
-
X#"6()1(&0$%"4#"6(,01F."63"(406(:06"%#)406&03(12(#1/"(
1%340&54)&104.()4#,#
-
9*4&0(12(91//406
=8
Chain+of+Command:((L*"($10)&0:1:#(.&0"(12(4:)*1%&)-()*4)("D)"06#(2%1/(
)*"()1?(12()*"(1%340&54)&10()1()*"(.1F"#)(."<".( 406($.4%&2&"#(F*1(%"?1%)#(
)1(F*1/8
Authority:++L*"(%&3*)#(&0*"%"0)(&0(4(/4043"%&4.(?1#&)&10()1()"..(
?"1?."(F*4)()1(61(406()1("D?"$)()*"/()1(61(&)
Acceptance+theory+of+authority:+ )*"(<&"F()*4)(4:)*1%&)-(
$1/"#(2%1/()*"(F&..&030"##(12(#:'1%6&04)"#()1(4$$"?)(&)8((
L*"-(F&..(4$$"?)(1%6"%#(&2()*"(21..1F&03($106&)&10#(4%"(
#4)&#2&"6E
L*"-(:06"%#)406()*"(1%6"%
§
L*"-(2"".()*"(1%6"%(&#($10#&#)"0)(F&)*()*"(
1%340&54)&10Q#(?:%?1#"
§
L*"(1%6"%(61"#(01)($102.&$)(F&)*()*"&%(?"%#104.('".&"2#
§
L*"-(4%"(4'."()1(?"%21%/()*"()4#,(4#(6&%"$)"6
§
Line+authorityE((4:)*1%&)-()*4)("0)&)."#(4(/4043"%()1(6&%"$)(
)*"(F1%,(12(40("/?.1-""
Staff+authority:((?1#&)&10#(F&)*(#1/"(4:)*1%&)-()*4)(*4<"(
'""0($%"4)"6()1(#:??1%)H(4##&#)H(406(46<&#"()*1#"(*1.6&03(
.&0"(4:)*1%&)-
-
Responsibility
L*"(1'.&34)&10(1%("D?"$)4)&10()1(?"%21%/(40-(4##&30"6(
6:)&"#
-
Unity+of+Command
L*"(/4043"/"0)(?%&0$&?."()*4)("4$*(?"%#10(#*1:.6(%"?1%)(
)1(10.-(10"(/4043"%
-
L164-#(<&"FE
L*"#"(Y"##"0)&4.#Y(4%"(#1/"F*4)(1:)64)"6(406(/40-(1%340&54)&10Q#(:#"(
6&22"%"0)(/")*16#(12(1?"%4)&03(F&)*1:)()*"($*4&0(12($1//406(
4??%14$*8((I021%/4)&10(&#(01F(4<4&.4'."()1("<"%-10"H(01)(10.-(
/4043"%#8((T/?.1-""#($40(01F($1//:0&$4)"(F&)*(40-'16-(&0()*"(
1%340&54)&10(F&)*1:)(31&03()*%1:3*()*"($*4&0(12($1//4068
B?40(12(910)%1.>8
Span+of+control:(()*"(0:/'"%(12("/?.1-""#(4(/4043"%($40("22&$&"0).-(
406("22"$)&<".-(/4043"
J&6"%(#?40#(4%"(/1%"("22&$&"0)(&0()"%/#(12($1#)
-
J&6"%(#?40#(%"6:$"("22"$)&<"0"##
-
L164-#(<&"FE
L%"06(&0(%"$"0)(-"4%#(*4#('""0()1F4%6(.4%3"%(#?40#(12($10)%1.H(F*&$*(&#(
$10#&#)"0)(F&)*(/4043"%#Q("221%)#()1(#?""6(:?(6"$&#&10(/4,&03H(
&0$%"4#"(2."D&'&.&)-H(3")($.1#"%()1($:#)1/"%#H("/?1F"%("/?.1-""#H(406(
%"6:$"($1#)#8
9"0)%4.&54)&10(406(!"$"0)%4.&54)&10@8
CentralizationE(()*"(6"3%""()1(F*&$*(6"$&#&10(/4,&03(&#($10$"0)%4)"6(4)(
:??"%(."<".#(12()*"(1%340&54)&10
R1%"($"0)%4.&54)&10(F*"0Z
T0<&%10/"0)(&#(#)4'."
C1F"%S."<".(/4043"%#(4%"(01)(4#($4?4'."(1%("D?"%&"0$"6(4)(
/4,&03(6"$&#&10#
C1F"%S."<".(/4043"%#(61(01)(F40)()1(*4<"(4(#4-(&0(
6"$&#&10#
!"$&#&10#(4%"(#&30&2&$40)
A%340&54)&10(&#(24$&03(4($%&#&#(1%()*"(%&#,(12($1/?40-(24&.:%"
91/?40-(&#(.4%3"
T22"$)&<"(&/?."/"0)4)&10(12($1/?40-(#)%4)"3&"#(6"?"06#(
10(managers+retaining+say+over+what+happens
U
DecentralizationE(()*"(6"3%""()1(F*&$*(.1F"%S."<".("/?.1-""#(?%1<&6"(
&0?:)(1%(4$):4..-(/4,"(6"$&#&10#
R1%"(6"$"0)%4.&54)&10(F*"0Z
T0<&%10/"0)(&#($1/?."D[:0$"%)4&0
C1F"%S."<".(/4043"%#(4%"($4?4'."(406("D?"%&"0$"6(4)(
/4,&03(6"$&#&10#
C1F"%S."<".(/4043"%#(F40)(4(<1&$"(&0(6"$&#&10#
!"$&#&10#(4%"(%".4)&<".-(/&01%
91%?1%4)"($:.):%"(&#(1?"0()1(4..1F&03(/4043"%#(*4<"(4(#4-(
&0(F*4)(*4??"0#
91/?40-(&#(3"13%4?*&$4..-(6&#?"%#"6
T22"$)&<"(&/?."/"0)4)&10(12($1/?40-(#)%4)"3&"#(6"?"06#(
10(managers+having+involvement+and+flexibility+to+make+
decisions
U
L164-Q#(<&"FE
N#(1%340&54)&10#('"$1/"(/1%"(2."D&'."(406(%"#?10#&<"H()*"%"(&#(4(
6&#)&0$)()%"06()1F4%6(6"$"0)%4.&5&03(6"$&#&10(/4,&038((L*&#()%"06H(4.#1(
,01F0(4#(employee+empowermentH(3&<"#("/?.1-""#(/1%"(4:)*1%&)-(
\?1F"%]()1(/4,"(6"$&#&10#8((T/?.1-""#(4%"($.1#"%()1()*"(4$)&10(406(
)*"%"21%"()-?&$4..-(,01F(/1%"(6")4&.#(4'1:)(?%1'."/#(406(*1F('"#)()1(
#1.<"()*"/8
K1%/4.&54)&10+8
FormalizationE(()*"(6"3%""()1(F*&$*(G1'#(F&)*&0()*"(1%340&54)&10(4%"(
#)4064%6&5"6(406()*"("D)"0)()1(F*&$*("/?.1-""('"*4<&1:%(&#(3:&6"6('-(
%:."#(406(?%1$"6:%"#8
P&3*.-(21%/4.&5"6 ^("D?.&$&)( G1'(6"#$%&?)&10#H(0:/"%1:#(
1%340&54)&104.(%:."#H($."4%.-(6"2&0"6(?%1$"6:%"#($1<"%&03(F1%,(
?%1$"##"#
T/?.1-""#(*4<"(.&))."(6&#$%")&10(1<"%(F*4)Q#(610"H(F*"0(
&)Q#(610"(406(*1F(&)Q#(610"
-
C"##(21%/4.&5"6 ^(/1%"(6&#$%")&10(&0(*1F()*"-(61()*"&%(F1%,
-
L164-Q#(<&"FE
B1/"(21%/4.&54)&10(&#(&/?1%)40)(406(0"$"##4%-(21%($10#&#)"0$-(406(
$10)%1.H(/40-(12()164-Q#(1%340&54)&10#(#""/()1('"(."##(%".&40)(10(#)%&$)(
%:."#(406(#)4064%6&54)&10()1(3:&6"(406(%"3:.4)"("/?.1-""('"*4<&1:%8((
T/?.1-""#(4%"(3&<"0(/1%"(.""F4-(&0(4??.&$4)&108
R"$*40&#)&$(<#8(A%340&$(B)%:$):%"#
Mechanistic+Organizations:(( %&3&6(
406()&3*).-($10)%1.."6
Organic+organization:((*&3*.-(
464?)&<"(406(2."D&'."
P&3*(#?"$&4.&54)&10
-9%1##S2:0$)&104.()"4/#
-
_&3&6(6"?4%)/"0)4.&54)&10
-9%1##S*&"%4%$*&$4.()"4/#
-
9."4%($*4&0(12($1//406
-K%""(2.1F(12(&021%/4)&10
-
`4%%1F(#?40#(12($10)%1.
-J&6"(#?40#(12($10)%1.
-
9"0)%4.&54)&10
-!"$"0)%4.&54)&10
-
P&3*(21%/4.&54)&10
-C1F(21%/4.&54)&10
-
C&/&)"6(&021%/4)&10(0")F1%,
-C&))."(6&%"$)(#:?"%<&#&10
-
C1F(6"$&#&10(?4%)&$&?4)&10('-(
.1F"%S."<".("/?.1-""#
-T/?1F"%"6("/?.1-""#
-
910)&03"0$-(K4$)1%#(N22"$)&03( B)%:$):%4.(9*1&$"
Strategy+-KA_R(KACCAJB(KX`9LIA`(S#)%:$):%"(21..1F#(#)%4)"3-
Size+-2&%/#($*403"(2%1/(1%340&$()1(/"$*40&#)&$(4#()*"-(3%1F
Technology++-2&%/#(464?)()*"&%(#)%:$):%"()1()*"()"$*01.13-()*"-(:#"(
\/"$*40&#)&$(^(/4##(?%168()"$*01.13-(F*&."(1%340&$(^(:0&)(406(?%1$"##(
?%168()"$*01.13-]
Environmental+uncertainty+-6-04/&$("0<&%10/"0)#(%"W:&%"(1%340&$(
#)%:$):%"#M(/"$*40&#)&$(0""6(#)4'."("0<&%10/"0)#
L%46&)&104.( A%340&54)&104.( !"#&30#
Simple+StructureE((.1F(6"?4%)/"0)4.&54)&10H(F&6"(#?40#(12($10)%1.H(
4:)*1%&)-($"0)%4.&5"6(&0(4(#&03."(?"%#10(406(.&))."( 21%/4.&54)&108
(small'business,'owner'and'manager'are'one'and'the'same)
-
Functional+Structure:((3%1:?#(#&/&.4%(1%(%".4)"6(1$$:?4)&104.(#?"$&4.)&"#(
)13")*"%8
(departmentalization'applied'to'entire'organization)
-
Divisional+Structure: $10#&#)#(12(#"?4%4)"(':#&0"##(:0&)#(1%(6&<&#&10#
(larger'corporations)
-
Structure Strengths Weaknesses
Simple K4#)M(2."D&'."M
-
&0"D?"0#&<"()1(/4&0)4&0M(
-
$."4%(4$$1:0)4'&.&)-
-
`1)(4??%1?%&4)"(4#(1%38(
3%1F#M(
-
%".&40$"( 10(10"(?"%#10(&#(
%&#,-
-
Functional 91#)S#4<&03(46<40)43"#(
2%1/(#?"$&4.&54)&10M
-
"/?.1-""#(4%"(3%1:?"6(
F&)*(1)*"%#(F*1(*4<"(
#&/&.4%()4#,#
-
a:%#:&)(12(2:0$)&104.(314.#(
$40($4#"(/4043"%#()1(.1#"(
#&3*)(12(1<"%4..(314.#M(
-
#?"$&4.&#)#('"$1/"(
&0#:.4)"6(406(*4<"(.&))."(
:06"%#)406&03(12(1)*"%(
:0&)#
-
Divisional K1$:#"#(10(%"#:.)#
-
!&<&#&10(/4043"%#(4%"(
%"#?10#&'."(21%(F*4)(
*4??"0#()1()*"&%(?%16:$)#(
406(#"%<&$"#
-
!:?.&$4)&10(12(4$)&<&)&"#(
406(%"#1:%$"#(&0$%"4#"#(
$1#)#(406(%"6:$"#(
"22&$&"0$-
-
910)"/?1%4%-( A%340&54)&104.( !"#&30#
L"4/(B)%:$):%"
What+it+is: N(#)%:$):%"(&0(F*&$*()*"("0)&%"(1%340&54)&10(&#(/46"(
:?(12(F1%,(3%1:?#(1%()"4/#8
Advantages T/?.1-""#(4%"(/1%"(&0<1.<"6(406("/?1F"%"6
-
_"6:$"6('4%%&"%#(4/103(2:0$)&104.(4%"4#
-
Disadvantages `1($."4%($*4&0(12($1//406
-
a%"##:%"(10()"4/#()1(?"%21%/
-
R4)%&DSa%1G"$)(B)%:$):%"
What+it+is: B?"$&4.&#)#(2%1/(6&22"%"0)(2:0$)&104.(4%"4#(4%"(
4##&30"6()1(F1%,(10(?%1G"$)#(406()*"0(%"):%0()1()*"&%(
4%"4#(F*"0(F1%,(&#($1/?.")"68(
T/?.1-""#($10)&0:1:#.-(F1%,(10(?%1G"$)#8(N#(10"(&#(
$1/?.")"6H()*"-(/1<"(10()1()*"(0"D)8
Advantages K.:&6(406(2."D&'."(6"#&30()*4)($40(%"#?106()1(
"0<&%10/"0)4.($*403"#
-
K4#)"%(6"$&#&10(/4,&03
-
Disadvantages 91/?."D&)-(12(4##&30&03(?"1?."()1(?%1G"$)#
-
L4#,(406(?"%#104.&)-($102.&$)#
-
O1:064%-."##(B)%:$):%"
What+it+is: N(#)%:$):%"(01)(6"2&0"6('-(1%(.&/&)"6()1(4%)&2&$&4.(
*1%&510)4.H(<"%)&$4.H(1%("D)"%04.('1:064%&"#M(&0$.:6"#(
virtual 406(network )-?"#(12(1%340&54)&10#8
Advantages P&3*.-(2."D&'."( 406(%"#?10#&<"
-
X)&.&5"#()4."0)(F*"%"<"%(&)#(21:06
-
Disadvantages C4$,(12($10)%1.
-
91//:0&$4)&10(6&22&$:.)&"#
-
Virtual+organization: $10#&#)#(12(4(#/4..($1%"(12(2:..S)&/"("/?.1-""#(
406(1:)#&6"(#?"$&4.&#)#()"/?1%4%&.-(*&%"6(4#(0""6"6()1(F1%,(10(
?%1G"$)#8
Network+organization: :#"#(&)#(1F0("/?.1-""#()1(61(#1/"(F1%,(
4$)&<&)&"#(406(0")F1%,#(12(1:)#&6"(#:??.&"%#()1(?%1<&6"(1)*"%(0""6"6(
?%16:$)($1/?10"0)#(1%(F1%,(?%1$"##"#
C"4%0&03(B)%:$):%"
What+it+is: N0(1%340&54)&10()*4)(*4#(6"<".1?"6()*"($4?4$&)-()1(
$10)&0:1:#.-(."4%0H(464?)(406($*403"
Advantages B*4%&03(12(,01F."63"()*%1:3*1:)(1%340&54)&10
-
B:#)4&04'."(#1:%$"(12($1/?")&)&<"(46<40)43"
-
Disadvantages _".:$)40)(10(?4%)(12("/?.1-""#()1(#*4%"(,01F."63"(
21%(2"4%(12(.1#&03()*"&%(?1F"%
-
C4%3"(0:/'"%#(12("D?"%&"0$"6("/?.1-""#(10()*"(
<"%3"(12(%")&%&03
-
Ch.10&-Organizational&Design
R1064-H(A$)1'"%(7+H(;b7c dEb;(aR
You're Reading a Preview

Unlock to view full version