Six Mechanisms for Coordinating and Controlling Work Activities

1
Six Mechanisms for Coordinating and Controlling
Work Activities
2
ORGANIZATIONAL STRUCTURE SIX DIMENSIONS

• WORK SPECIALIZATION (Division of Labor)
• To what degree are activities subdivided into
  separate jobs?
• DEPARTMENTALIZATION
• On what basis are jobs grouped together?
• CHAIN OF COMMAND (Hierarchy of Authority)
• To whom do individuals and groups report?
• SPAN OF CONTROL
• How many workers can a manager efficiently
  effectively direct?
• CENTRALIZATION / DECENTRALIZATION
• Where does discretionary (exceptional) decision
  making authority lie?
• FORMALIZATION
• To what degree are written rules, regulations and
  procedures established?

3
WEBERS BUREAUCRACY

• DIVISION OF LABOR
• HORIZONTAL SPECIALIZATION
• HIRARCHY OF AUTHORITY
• VERTICAL SPECIALIZATION
• RULES PROCEDURES
• ESTABLISHED ENFORCED
• TECHNICAL COMPETENCE
• SELECTION PROMOTION CRITERIA
• IMPERSONAL TREATMENT
• NO FAVORITISM
• CENTRALIZED DECISION-MAKING
• UNIFORM CONTROL
• FORMALIZATION

4
PRINCIPLES BASED ON AUTHORITY(FAYOL)

• PARITY PRINCIPLE
• Authority and responsibility must coincide
• UNITY OF COMMAND
• Workers should have only one immediate
  supervisor to report to
• SCALAR PRINCIPLE (Chain of Command)
• When exceptions are encountered, one should
  communicate through the chain of command, one
  link (level) at a time
• SPAN OF CONTROL
• The number of subordinates a manager can
  effectively supervise
• FACTORS WHICH AFFECT THE SPAN OF CONTROL
• JOB COMPLEXITY NARROWS SPAN
• VARIETY OF TASKS NARROWS SPAN
• PROXIMITY WIDENS SPAN
• QUALITY OF SUBORDINATES WIDENS SPAN
• ABILITY OF THE MANAGER WIDENS SPAN

5
WORK DESIGN DECISIONS

• WHAT ARE THE TASKS TO BE PERFORMED?
• HOW SHOULD THEY BE COMBINED INTO JOBS?
• HOW SHOULD THE JOBS BE PERFORMED?
• ANALYSIS DESIGN OF WORK METHODS
• STANDARDS OF PERFORMANCE
• HOW SHOULD PEOPLE RESPOND TO THE JOB?
• ATTITUDES
• JOB SATISFACTION
• MOTIVATION
• HOW SHOULD THE JOBS BE STRUCTURED TO BE EFFICIENT
  SATISFYING?

6
JOB REDESIGN POSSIBILITIES

• Making The Work Less Boring and More
  Interesting
• Job Design Job Scope Job Depth
• Approach (Variety) (Autonomy)
• Job Specialization Low Low
• Job Rotation Increases Low
• Job Enlargement Increases Low
• Automatio Low Increases
• Job Enrichment Increases Increases
• - - - - - - - - - - - - - - - - - - - - - - - - -
  - - - - - - - - - - - - - - - - - - - - - - - - -
  - - - - - - -
• Walker Guest (52) Satisfaction On The
  Assembly Line
• Satisfied With Dissatisfied With
• Pay Mechanical Pacing Of The Line
• Working Conditions Repetitive Nature Of The Work
• Quality Of Supervision Low Skill Reqmts
  Demands
• Limited Social Interaction
• No Control Over Tools, Etc

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SPECIALIZATION (Division of Labor)

• Advantages
• Fewer Skills Required Per Person
• Easier To Staff Positions Train Workers
• Jobs Can Be Mastered In Less Time
• Productivity Work Outcomes Can Be Increased
• Products Services Are More Uniform
• Managers Can Supervise A Larger Number Of
  Workers
• Disadvantages
• Oversimplified Jobs Are Repetitive, Boring,
  Stressful, Frustrating
• Skill Development Is Not Enhanced --- No
  Challenges
• Leads To Productivity Declines, Absenteeism,
  Poor Quality Work

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ALTERNATIVES TO JOB SPECIALIZATION

• Job Rotation
• Systematically moving employees from one job to
  another. Most frequent use today is as a training
  device for skills and flexibility.
• Job Enlargement
• An increase in the total number of tasks
  performed.
• Increases training costs, unions want workers
  paid more pay for doing more tasks, and work may
  still be dull and routine.
• Job Enrichment
• Increasing both the number of tasks the worker
  does and the control the worker has over the job.

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ALTERNATIVES TO SPECIALIZATION - 2

• Job Characteristics Approach (HACKMAN OLDHAM,
  76)
• Core Dimensions
• Skill varietythe number of tasks a person does
  in a job.
• Task identitythe extent to which the worker does
  a complete or identifiable portion of the total
  job.
• Task significancethe perceived importance of the
  task.
• Autonomythe degree of control the worker has
  over how the work is performed.
• Feedback the extent to which the worker knows
  how well the job is being performed.
• Growth-Need Strength
• The desire of some people to grow, develop, and
  expand their capabilities that is their response
  to the core dimensions.
• Autonomous Work Teams
• An alternative to job specialization that allows
  the entire group to design the work system it
  will use.

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TWO-FACTOR THEORYHERZBERG (59)

• Assumptions
• Two Different Types Of Factors Influence
  Ushygienes Motivators
• The Opposite Of Satisfaction Is No
  Satisfaction
• The Opposite Of Dissatisfaction Is No
  Dissatisfaction
• Only Motivating Factors Lead To Satisfaction
• Hygienes At Best Lead To No Dissatisfaction
• Hygienes (Extrinsic) Motivators (Intrinsic)
• Working Conditions Responsibility
• Company Policies Challenge Of Work
• Supervisior Meaningful Work
• Coworkers Achievement
• Salary Benefits Accomplishment
• Status Symbols Growth Opportunities
• Implications
• Abundant Hygienes Do Not Motivate Workers, They
  Only Prevent Dissatisfaction
• Enrich Jobs To Provide Motivating, Challenging
  Work And High Satisfaction
• Weaknesses
• Research Methodology Is Flawed

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JOB DESIGN THEORYHACKMAN OLDHAM (76)

• Job Characteristics Model
• Five Job Dimensions Psychological States
• Skill Variety
• Task Identity ? Meaningfulness
• TASK SIGNIFICANCE (Leads To High Internal Work
  Motivation)
• Autonomy ? Personal Responsibility
• (Leads To High Quality Work Satisfaction)
• Feedback ? Knowledge Of Results
• (Leads To High Satisfaction Low Turnover)
• - - - - - - - - - - - - - - - - - - - - - - - - -
  - - - - - - - - - - - - - - - - - - - - - - - - -
  - - - - - - - -
• Effectiveness Is Moderated By Employee
  Growth-need Strength
• Calculate The Motivating Potential Score To
  Determine If The Job Needs To Be Redesigned
• Are Your Workers Motivated By Intrinsic Work
  Factors And A Strong Need For Achievement (An
  Enriched Job)?

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• HERZBERGS VERTICAL LOADING FACTORS
• (ACHIEVEMENT, GROWTH, RECOGNITION,
  RESPONSIBILITY)
• ACCOUNTABILITYHeld responsible for performance
• ACHIEVEMENT---Doing something worthwhile
  (Meaningful)
• FEEDBACK---Gets direct performance information
• WORK PACE---Able to set own work speed and rhythm
• CONTROL OVER RESOURCES---Controls how and when to
  do the job
• PERSONAL GROWTH DEVELOPMENT---Opportunity to
  learn new skills
• HACKMANS IMPLEMENTING CONCEPTS
• (Create a sense of MEANINGFULNESS,
  RESPONSIBILITY, KNOWLEDGE)
• Combine Tasks Skill Variety
• Form Natural Work Units Task Identity
• Establish Client Relationships Task Significance
• Vertical Loading Autonomy
• Open Feedback Channels Feedback

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CRITICISMS OF JOB ENRICHMENT(JOB REDESIGN)

• High Costs
• Training, Duplicate Equipment, Plant Redesign
• Some Jobs Are Eliminated
• Fewer Operatives, Supervisors Needed
• Assumes Workers Want Responsibility, Etc.
• What About Workers With Low N-ach?
• Enrichment Is Relative--effects May Be Temporary
• Do We Need Occasional Booster Shots To Keep
  Going?
• Some Jobs Cant Be Enriched
• What Do We Do To Avoid Jealousy?
• Used As A Quick Fix For Immediate Problems
• Have We Really Changed Our Philosophy Of Mgmt?
• Implemented Changes Are Often Weak Modest
• Compromises From What Was Planned
• Innovations Are Eroded Vanish Over Time

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When might redesign work?

• When New Units Are First Established
• No Past History To Deal With
• New Facilities And Workers
• When The System Becomes Unstable
• (Seizing The Opportunity!)
• Technological Change
• Change In Senior Management
• New Product Or Service Introduced
• Legislative Or Regulatory Changes
• Fluctuations In The Economy Or Environment
• 3. When The Immediate Manager Wants It
• Local Changes (Just Within The Department)
• Micro Redesign
• Management Must Be Committed To A New Philosophy

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FLEXIBILITY WORKER CONTROL

• Work Schedule Flexibility
• 1. Compressed Work Week
• Worker Fatigue
• Issue Of Overtime
• Difficulties In Work Scheduling
• 2. Flextime
• Supervision Coordination Is More Difficult
• Adequate Coverate Of Work---how To Schedule?
• Jobs That Require All To Be Present
• 3. Job Sharing / Part-time Work
• Coordinating With Other Workers
• Increased Cost Of Benefits
• 4. Telecommuting
• No Contacts With Other Workersno Coordination
• No Supervisionnot Easy To Get Help When
  Needed
• How Productive Are You When Working At Home?
• Issue Of Liability When Work Is Done At Home

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DEPARTMENTALIZATION

• How To Group Jobs Together So The Tasks Can Be
  Coordinated
• By Function (Or Task)
• Manufacturing, Marketing, Human Resources,
  Accounting
• By Geography Or Territory
• Western Division, Canadian Division, European
  Division
• By Product Or Business Line
• Bicycles, Musical Instruments, Tableware,
  Building Supplies
• By Process (Sequential)
• Casting, Grinding, Sanding, Finishing, Packing
• By Customer
• Retail, Wholesale, Government, Industrial
• Within A Single Company, Several Different
  Approaches To Departmentalization May
  Co-existfor Example
• Accounting Is Functionally Organized, Marketing
  Is By Customer Within Territory, Manufacturing Is
  By Process, And Research Development Is By
  Product.

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CENTRALIZED DECISION MAKINGDISCRETIONARY
AUTHORITY ONLY AT THE TOP

• Advantages
• Uniform Policies Actions Are Maintained
• TOP MANAGEMENT KNOWS EVERYTHING THATS GOING ON
  (Awareness)
• Control Is Maintained Over Costly/Risky
  Decisions
• Environmental Threats Are Handled By Experienced
  Managers
• Staff Experts Are Needed To Advise Top
  Management
• Disadvantages
• Decisions May Be Slow In Coming Must Wait For
  An Answer
• Top Management Too Involved In Day-to-day
  Decisions
• Lower-level Managers Are Not Learning How To
  Make Decisions
• Inflexibility Change Is Very Difficult And Slow

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DELEGATION OF RESPONSIBILITY AND AUTHORITY

• ADVANTAGES
• Communication time is shortened faster company
  decisions and reactions
• Decision makers are now closer to the action,
  thus better decisions result
• Frees up top managements time allows them to
  focus on strategic matters
• Develops skills of lower-level managers and
  personnel
• CAUTIONS
• Are levels of responsibility and authority
  clearly defined?
• Is a reliable and accurate feedback system in
  place?Does the person have the ability and
  skills necessary to make these decisions?
• Does the level of responsibility come with an
  appropriate level of authority to act?
• Have exceptional situations been clarified as to
  how they are to be handled?

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Why do managers resist delegation?

• FEAR THAT SUBORDINATES WILL FAIL
• If you want something done right --- do it
  yourself!!
• BELIEF THAT ITS EASIER TO DO THE TASK YOURSELF
• Its too time consuming to teach others how to do
  this task correctly
• A FEAR THAT SUBORDINATES WILL LOOK TOO GOOD
• The manager is insecure --- afraid the
  subordinate may take his/her job
• MANAGERS LIKE THE POWER THEY WIELD
• I enjoy the influencewhen others must come to me
  for advice or help
• WE LIKE DOING THE TASKS OURSELVES
• The work itself is enjoyableits fun for me!!

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SIMPLE STRUCTURES

• STRUCTURAL CHARACTERISTICS
• Low specialization and departmentalization
• Wide span of control and a flat structure
• Centralized authority with little formalization
• ADVANTAGES
• Fast, flexible, inexpensive to maintain
• Accountability is clear
• Workers are generalists
• DISADVANTAGES
• Workers require guidance on a regular basis
• No specialists or experts
• Owner can become overloadedtoo many things to
  decide daily
• Works best if the firm is small --- and stays
  that way

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Functional Design for aSmall Manufacturing
Company
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FUNCTIONAL ORGANIZATION

• CHARACTERISTICS
• Specialization and formalized rules and
  regulations
• A tall structure, grouped functionally, with
  narrow spans of control
• Centralized authority and decision making that
  follows the chain
• ADVANTAGES
• Highly efficient and effective in a predictable,
  routine environment
• Promotes skill specialization career
  development within departments
• Rules and procedures maintain consistency, only
  exceptions referred up
• DISADVANTAGES
• Develops experts (managers) in narrow fields, not
  generalist managers
• If theres no rule to follow, we dont know what
  to do! (No discretion)
• Doesnt adapt well to change, or unexpected
  events in the environment

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DIVISIONALIZED BY GEOGRAPHY OR TERRITORY

• Divisionalized By Territory Or Location
• ADVANTAGES
• A branch location means faster, convenient
  service to customers
• Each branch location is identical to the others
  each has full service
• De-emphasizes expertise specialization makes
  generalist managers
• DISADVANTAGES
• All functions are duplicated at each location
  (inefficient?)
• Conflicts may arise between local and corporate
  objectives
• Discretionary decisions may vary at each location
  how to maintain uniform policies and actions?

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DIVISIONALIZED BY PRODUCT, SERVICE OR CUSTOMER

• Divisionalized By Product Or Service
• ADVANTAGES
• Allows greater product / service visibility and
  customer sensitivity
• Develops managers who can think across
  functional lines
• DISADVANTAGES
• Difficult to coordinate across product or
  service lines (no similarity)
• Resource allocation decisions become more
  political
• Divisionalized By Customer
• ADVANTAGES
• Skilled specialists can deal with unique
  customers or customer groups.
• DISADVANTAGES
• The number of salespeople appears to be
  excessive (inefficient)
• A large administrative staff is needed to
  integrate activities of the various departments.

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A Matrix Organization
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MATRIX STRUCTURES

• ADVANTAGES
• Uses functional experts on special projects (
  both function product)
• Very flexible, adaptable to environmental
  changes
• Emphasizes cooperation and coordination to get
  the job done
• Reduces the amount of vertical communication
  needed within the firm
• DISADVANTAGES
• Violates the Unity of Command principle (one
  boss)
• A costly, inefficient structure with overlap,
  duplication and waste
• Conflict potential is high due to power
  struggles between units
• Workers can experience much stress with dual
  assignments overloads

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NETWORK (VIRTUAL) STRUCTURES

• CHARACTERISTICS
• Highly Centralized
• Little Or No Departmentalization
• ADVANTAGES
• Dont have to actually own or operate all
  business functions
• Outsources (contracts) with experts to provide
  cutting-edge services
• Can focus your energy and capital at what you do
  best
• Very flexible, can get in and /or out of
  business quickly
• Can be very sensitive to cost and quality
• DISADVANTAGES
• No ability to expedite or control many of the key
  operations
• Contracts must be negotiated terms are not
  permanent
• No managerial expertise is developed in managing
  contracted areas
• Hard to identify where the organization is located

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TEAM STRUCTURESHORIZONTAL, CROSS-FUNCTIONAL TEAMS

• ADVANTAGES
• Experts from several areas assembled into one
  autonomous team
• Able to respond quickly to customers fast
  service (one-stop?)
• Team selects its leader, delegates roles and
  makes its own decisions
• Participative, free communication within, no
  hierarchies to follow
• Strong sense of ownership, commitment
• DISADVANTAGES
• Specialists are cut off from their peers
  (isolated)
• Inconsistencies in actions and policies across
  teams (no uniformity)
• Difficult to coordinate and control from the top
• ARE COORDINATING MECHANISMS NEEDED?
• LIAISON ROLES -- informal contacts v. contact
  managers
• TASK FORCES -- temporary problem-solving
  groups
• COMMITTEES -- Ad Hoc v. Permanent standing
  committees

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THE NEED FOR COORDINATION

• If departments and work groups are
  interdependent the greater the need for
  coordinationespecially if the departments are
  decentralized.
• Pooled interdependence
• When units operate with little interaction their
  output is simply pooled at the organizational
  level.
• Sequential interdependence
• When the output of one unit becomes the input of
  another unit in sequential fashion.
• Reciprocal interdependence
• When activities flow both ways between units.
• Are structural coordinating mechanisms needed?
• Can we rely on the hierarchy, rules and
  procedures, and an occasional committee meeting
  to coordinate across these boundaries?

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STRUCTURAL COORDINATING MECHANISMS

• The Managerial Hierarchy
• Going up the hierarchy (chain of command) to find
  a manager with the authority to make the
  decisions that affect the interdependent units.
• Rules and Procedures
• Coordinating routine activities via rules and
  procedures that set priorities and guidelines for
  actions.
• Liaison Roles
• Designating a specific manager who will
  facilitate the flow of information to the
  interdependent units by acting as a common point
  of contact.
• Task Forces (Temporary problem-solving groups)
• Used with multiple units when coordination is
  complex requiring more than one individual and
  the need for coordination is acute.
• Committees disbanded when the need for
  coordination has been met.
• Integrating Departments (Permanent structures)
• Permanent organizational units that maintain
  internal integration and coordination on an
  ongoing basis.
• May have authority and budgetary controls.

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ORGANIZATIONAL STRUCTURE IS STRONGLY INFLUENCED
BY

• Environmental Uncertainty
• Burns Stalker (61)
• Thompson (67)
• Duncan (72)
• Organizational Technology
• Woodward (65)
• Thompson (67)
• Perrow (67)
• Internal Information-processing Needs
• Lawrence Lorsh (67)
• Galbraith (73)
• Managerial Strategy
• Chandler (62)
• Organizational History Maturity
• Greiner (72)
• Schwartz Davis (81)

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MECHANISTIC v. ORGANIC STRUCTURESBURNS STALKER
(61)

• If Environment Is ? Stable Dynamic
• Tasks Specialized Shared
• Integrating Roles Few Many
• Authority Hierarchical Expertise
• Rules Procedures Many, Written Few
• Communication Vertical Horizontal
• Chain Of Command Clear Free
• Span Of Control Narrow Wide
• Decision Making Centralized Decentralized
• Formalization High Low
• Primary Objective Efficiency Adaptability
• Ideal Structure Is Mechanistic Organic
• Major Problems Cant Adapt Quickly Not
  Efficient
• Nonparticipative Hard To Coordinate

33
ORGANIZATIONAL RATIONALITYTHOMPSON (67)

• Seal off (protect) the core technology from
  environmental influences
• REDUCE UNCERTAINTY -- PROTECT THE CORE
• Buffer the core technology by surrounding it with
  specialized input and output components
• FORM DEPARTMENTS TO INTERFACE WITH THE
  ENVIRONMENT
• (SO THE CORE DOESNT HAVE TO DEAL WITH THE
  ENVIRONMENT)
• Smooth out the input and output transactions
• THE MORE INDEPENDENT THESE BUFFERS BECOME, THE
  GREATER THE
• NEED TO DEVELOP COORDINATING MECHANISMS ACROSS
  DEPARTMENTS
• Anticipate and adapt to environmental changes
• THE ORGANIZATION MUST BE FLEXIBLE AND ADAPTABLE
  TO SURVIVE

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THE MACRO ENVIRONMENT

• POLITICAL
• Supports
• Controls
• Pending Legislation
• ECONOMIC
• Inflation
• Unemployment
• Productivity
• Growth
• SOCIO-CULTURAL
• Geographic Location
• Customs Values
• Demographics
• TECHNOLOGICAL
• Basic Research, New Knowledge
• New Products, Processes, Services

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THE TASK ENVIRONMENTINDUSTRY

• THE SPECIFIC ENVIRONMENT OF THE FIRM
• THIS FIRMS
• Customers
• Suppliers
• Creditors
• Competitors
• Government Agencies
• Unions
• Stockholders
• Communities
• Special Interest Groups

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ENVIRONMENTAL UNCERTAINTYDUNCAN (72)

• COMPLEXITY
• SIMPLE COMPLEX
• STATIC - - - - - - - - - - - - - - - - - - - -
  - - - - - - - - - - - - - - - - - - - - - - - - -
• LOW MODERATELY
• UNCERTAINTY LOW
• UNCERTAINTY
• DYNAMISM - - - - - - - - - - - - - - - - - - - -
  - - - - - - - - - - - - - - - - - - - - - - - - -
• (CHANGE)
• MODERATELY HIGH
• HIGH UNCERTAINTY
• UNCERTAINTY
• DYNAMIC - - - - - - - - - - - - - -
  - - - - - - - - - - - - - - - - - - - - - - - - -
  - - - - - -
• COMPLEXITY of Entities the Firm must deal
  with?
• DYNAMISM How Frequently do these entities (or
  their demands) change?

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ENVIRONMENTAL UNCERTAINTYSCHWAB (80)

• THREE ISSUES TO ADDRESS
• IMPORTANCE (Significance)
• What is the impact of this environmental
  segment on the firm?
• PREDICTABILITY
• Can the firm anticipate pending shifts and
  changes in this segment?
• CONTROL (Influence)
• Can the firm manipulate or control this
  segment?
• PREDICTABILITY
• HIGH LOW
• HIGH - - - - - - - - - - - - - - - - - - - -
  - - - - - - - - - - - - - - - - - - - - - - - - -
• LOW MODERATELY
• UNCERTAINTY LOW
• UNCERTAINTY
• CONTROL - - - - - - - - - - - - - - - - - - - -
  - - - - - - - - - - - - - - - - - - - - - - - - -
• (INFLUENCE) MODERATELY HIGH
• HIGH UNCERTAINTY
• UNCERTAINTY
• LOW - - - - - - - - - - - - - -
  - - - - - - - - - - - - - - - - - - - - - - - - -
  - - - - - -

38
ENVIRONMENTAL UNCERTAINTY AND STRUCTURE

• POSSIBLE FITS BETWEEN ENVIRONMENT AND STRUCTURE
• Low Uncertainty Mod Low Uncertainty
• Simple Functional
• Functional Mechanistic
• Mechanistic Divisionalized
• Mod High Uncertainty High Uncertainty
• Mechanistic/Functional Divisionalized
• Divisionalized Matrix
• Matrix Organic
• Organic

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TECHNOLOGICAL DETERMINISM

• CAPITAL INTENSITY
• WOODWARD (65) UNIT MASS PROCESS
• HIERARCHICAL LEVELS 3 4 6
• RATIO OF WORKERS/ADMINISTRATORS 9/1 4/1 1/1
• NUMBER OF RULES Few Many Few
• FIRST-LINE SPAN OF CONTROL 23 48 15
• EXECUTIVE SPAN OF CONTROL 4 7 10
• LABOR COSTS AS OF TOTAL High Medium Low
• CAPITAL INVESTMENT IN EQUIPMENT Low Medium High
• OPTIMAL STRUCTURE ORG MECH ORG
• INTERDEPENDENCE
• THOMPSON (67)
• LONG-LINKED (Serial) -- Assembly Line X1 ?
  X2 ? X3 ? X4 ? X5
• MEDIATING (Pooled) -- Bank C1 ? B ? C2
• INTENSIVE (Reciprocal) -- Hospital (Phase
  1) T ? X1 ? Dr
• (Phase 2 ) T ? X1 ? Dr

40
TECHNOLOGYPERROW (67)

• Knowledge Or Information Used In The Conversion
  Process
• Dimensions
• 1. Number Of Unforseen Problems Encountered
  (Exceptions)
• 2. Availability Of Ready Answers Or Solutions
  (Analyzability)
• Of Unforseen Problems
• Few Many
• ----------------------------------------------
  ------------------
• Difficult
• Ease Of Locating Craft Non-routine
• An Acceptable ------------------------------------
  ----------------------------------------------
• Solution Routine Engineering
• Easy
• ----------------------------------------------
  ------------------------------------------------
• Technological Determinism Technology Determines
  Structure

41
INFORMATION PROCESSINGGALBRAITH (73)

• Traditional Coordinating Mechanisms
• Informal Contact
• RULES PROCEDURES (Standard Operating
  Procedures)
• HIERARCHY (Exceptions)
• GOALS TARGETS (Specify Outcomes, Not
  Behaviors)
• As Information Processing Needs Increase, The
  Organization Must Work Harder To Stay In Contact
  With Its Various Units.
• Strategy 1 -- Reduce The Amount Of Information
  Processed
• Rely On Slack
• Establish Self-contained Units
• Strategy 2 -- Increase Capacity To Handle More
  Information
• Install More Vertical Information Systems
• Structure More Lateral Relationships
• Some Lateral Coordinating Mechanisms
• Liaison Roles, Task Forces, Standing Committees,
  
• Cross-functional Teams, Matrix Structures

42
Factors That Affect The Difficulty Of Achieving
IntegrationLorsch (77)

• The Degree Of Differentiation
• The Number Of Units Requiring Integration
• Patterns Of Interdependence Between The Units
• Sequential
• Pooled
• Reciprocal
• The Frequency Of Interaction Required Among The
  Units
• The Complexity And Importance Of The Information
  Shared

43
STRATEGY DETERMINES STRUCTURECHANDLER (62)

• STRUCTURES ARE ENACTED BY MANAGEMENT
• WHAT IS YOUR STRATEGIC OBJECTIVE?
• INNOVATION
• You need a loose structure, with low
  specialization, low formalization and
  decentralized decision making. ORGANIC
  STRUCTURE
• COST MINIMIZATION
• You need tight control, extensive work
  specialization, high formalization and high
  centralization. MECHANISTIC STRUCTURE
• IMITATION
• You need tight controls over current activities
  and looser controls for new undertakings. COMBINA
  TION STRUCTURE

44
FORCES THAT SHAPE THE ORGANIZATIONGREINER (72)

• Organizational Age
• Organizational Size
• Growth Rate Of The Industry
• Stage Of Evolution
• Creativity
• Direction
• Delegation
• Coordination
• Stage Of Revolution (Current Crisis)
• Leadership
• Autonomy
• Control
• Red Tape

45
ORGANIZATIONAL LIFE CYCLE STAGESTANSIK (80)

• STAGE STRATEGY STRUCTURE
• BIRTH CONCENTRATION SIMPLE
• GROWTH INTEGRATION FUNCTIONAL
• MATURITY DIVERSIFICATION DIVISIONAL
• DECLINE RETRENCHMENT CONSOLIDATION
• DEATH LIQUIDATION DISMEMBERMENT