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Organizational Structure, Design

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Title: Organizational Structure, Design


1
Organizational Structure, Design Culture
2
Organizational Structure
  • How job tasks are formally divided, grouped,
    coordinated
  • Why?
  • Meet goals objectives of organization
  • Efficiency effectiveness

3
Organizational Structure
  • 6 elements to address for a proper organizational
    structure
  • Work specialization
  • Departmentalization
  • Chain of command
  • Span of Control
  • Centralization or decentralization
  • Formalization

4
Organizational Structure
  • 1. Work specialization
  • Division of labor
  • Tasks are subdivided into separate jobs
  • Jobs broken into steps with multiple people doing
    their individual part to make the entire product
  • Assembly lines, McDonalds

5
Organizational Structure
  • 1. Work specialization
  • Advantages
  • Used to increase productivity
  • Allows skill building on the job
  • Disadvantages
  • Good to a point then diminishing returns
  • Boredom, absenteeism, stress, high turnover

6
Organizational Structure
  • 2. Departmentalization
  • Grouping of jobs according to (4)
  • Function/process
  • Product
  • Geography
  • Customer

7
Organizational Structure
  • 2. Departmentalization
  • Grouping of jobs according to (4)
  • Function/process
  • Northwest SRA Managers
  • Inclusion, cultural arts, special events
  • Pocono Family YMCA

8
Organizational Structure
  • 2. Departmentalization
  • Grouping of jobs according to (4)
  • Product
  • Nike Golf, shoes, clothing
  • REI Clothing footwear, snow gear, water gear,
    land gear
  • Geography
  • NRPA regions NPS
  • Gametime 18 independent U.S. Reps
  • NWSRA 2 area (by city) inclusion coordinators

9
Organizational Structure
  • 2. Departmentalization
  • Grouping of jobs according to (4)
  • Customer
  • retail, wholesale, government
  • corporate vs. individual clients
  • NRPA (Aquatics, L A, CBM, NTRS)

10
Organizational Structure
  • 3. Chain of command
  • Unbroken line of authority
  • the right to exercise influence, give directives
    or make certain decisions within the organization

11
Organizational Structure
  • 3. Chain of command
  • Key issues
  • Unity of Command
  • 1 supervisor ee is responsible to
  • Seeing less chain of command with empowerment
  • More access to company wide info via technology
  • Dont need to have your boss talk to the boss of
    maintenance to get the grass mowed!

12
Organizational Structure
  • 4. Span of Control
  • of people, units, operations a mgr can
    control effectively efficiently
  • Small span of control supervise smaller number
    of people
  • Larger span of control supervise larger number
    of people

13
Organizational Structure
  • 4. Span of Control
  • of people, units, operations a mgr can
    control effectively efficiently
  • Small span of control supervise smaller number
    of people
  • Larger span of control supervise larger number
    of people

14
Organizational Structure
  • 4. Span of Control
  • See smaller span of control at top larger at
    bottom of org.
  • 7 is optimal but depends on work done
  • Which is better? Smaller or larger?

15
Organizational Structure
  • 4. Span of Control
  • Wider fewer managers, more ees reporting to
    them
  • Reduces cost, speeds decision making
  • Get closer to the customer
  • Empower employees
  • Fewer layers of employees
  • Invest in training staff
  • Easier to supervise a lot of good staff than bad
    ones

16
Organizational Structure
  • 4. Span of Control
  • Smaller more managers with fewer ees
  • Tight managerial control
  • Increase cost of managers
  • Added managers slows communication
  • Encourages micro-managing discourages ee
    autonomy

17
Organizational Structure
  • 5. Centralization or decentralization
  • Degree to which decision making is concentrated
    at a single point in the organization

18
Organizational Structure
  • Centralization
  • Top managers make all the decisions
  • Consistency in decision making
  • Slow processmove up the chain of command

19
Organizational Structure
  • Decentralization
  • Decision making is pushed down to mgrs closest to
    the action
  • Quicker actions taken
  • More people provide input
  • EEs less likely to feel alienated from decision
    makers
  • Mgrs closer to situation

20
Organizational Structure
  • 5. Centralization or decentralization
  • ????
  • Which one is better?
  • Is there a place for both?

21
Organizational Structure
  • 6. Formalization
  • Degree to which jobs are standardized
  • EE has minimal discretion in how, what when to
    do things
  • Policies are strictly followed
  • Explicit job descriptions
  • Less formalization increases freedom

22
Organizational Design
  • Simple Structure
  • Bureaucracy
  • Team Based Structure
  • Matrix Structure

23
Organizational Design
  • How organizational structures are arranged and
    incorporated
  • Designs change as people come go in the
    organization

24
Organizational Design
  • Simple structure
  • Low degree of departmentalization, wide span of
    control, centralized authority, little
    formalization
  • Flat organization

25
Organizational Design
  • Simple structure
  • Fast, flexible, inexpensive, clear accountability
  • Info overload at the top
  • Difficult to use in a large organization

26
Organizational Design
  • Bureacracy
  • Highly standardized operating tasks achieved
    through specialization
  • Formalized rules
  • Tasks grouped by function
  • Centralized authority
  • Narrow span of control
  • Decision making follows the chain of command

27
Organizational Design
  • Bureacracy
  • Strength ability to perform standardized
    activities efficiently
  • Functions well with less talented less costly
    ees
  • Resistant to change
  • Close adherence to rules, minimizes decision
    making
  • Put like minds together

28
Bureaucracy
29
Organizational Design
  • Team Based Structures
  • Breaks down dept barriers
  • Org is more horizontal
  • Decentralizes decision making to team level
  • Requires ees be generalists vs. specialists
  • Naperville Park District

30
Organizational Design
  • Team Based Structures
  • Self managed teams
  • Work together to accomplish goals obj.
  • Marketing team
  • Treatment team
  • Problem solving teams
  • Short term to solve problems

31
Groups vs. Teams
32
Organizational Design
  • Matrix Structure (cross functional teams)
  • Combines functional product departmentalization
  • Assigns specialists to specific functional
    departments to work with interdisciplinary groups
    led by project leaders
  • Breaks unity of command concept
  • 2 bosses functional dept manager product
    managers

33
Home Departments Marketing Accounting Registratio
n Human resources Arts Events Sports Recreation Ma
intenance
34
Reading Org Charts
  • Lines show chain of command
  • Levels should be similar
  • Determine distinction between titles
  • Manager, supervisor, coordinator, specialist,
    leader

35
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