Title: Six Mechanisms for Coordinating and Controlling Work Activities
1Six Mechanisms for Coordinating and Controlling
Work Activities
2ORGANIZATIONAL 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?
3WEBERS 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
4PRINCIPLES 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
5WORK 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?
6JOB 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
7SPECIALIZATION (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
8ALTERNATIVES 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.
9ALTERNATIVES 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.
10TWO-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
11JOB 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)?
12- 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
13CRITICISMS 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
14When 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
15FLEXIBILITY 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
16DEPARTMENTALIZATION
- 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.
17CENTRALIZED 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
18DELEGATION 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?
19Why 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!!
20SIMPLE 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
21Functional Design for aSmall Manufacturing
Company
22FUNCTIONAL 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
23DIVISIONALIZED 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? -
24DIVISIONALIZED 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.
25A Matrix Organization
26MATRIX 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
27NETWORK (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
28TEAM 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
29THE 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?
30STRUCTURAL 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.
31ORGANIZATIONAL 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)
32MECHANISTIC 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
33ORGANIZATIONAL 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
34THE 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
35THE TASK ENVIRONMENTINDUSTRY
- THE SPECIFIC ENVIRONMENT OF THE FIRM
- THIS FIRMS
- Customers
- Suppliers
- Creditors
- Competitors
- Government Agencies
- Unions
- Stockholders
- Communities
- Special Interest Groups
36ENVIRONMENTAL 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?
37ENVIRONMENTAL 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 - - - - - - - - - - - - - -
- - - - - - - - - - - - - - - - - - - - - - - - -
- - - - - -
38ENVIRONMENTAL 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
39TECHNOLOGICAL 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
40TECHNOLOGYPERROW (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
41INFORMATION 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
42Factors 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
43STRATEGY 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
44FORCES 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
45ORGANIZATIONAL LIFE CYCLE STAGESTANSIK (80)
- STAGE STRATEGY STRUCTURE
- BIRTH CONCENTRATION SIMPLE
- GROWTH INTEGRATION FUNCTIONAL
- MATURITY DIVERSIFICATION DIVISIONAL
- DECLINE RETRENCHMENT CONSOLIDATION
- DEATH LIQUIDATION DISMEMBERMENT