MANAGEMENT AND ORGANIZATIONAL BEHAVIOR

Dr. Leigh Stelzer

ORGANIZATION DESIGN, W&N Chap. 4

Objectives:

Be able to describe organizations.

Relate structure to environmental influences and behavioral outcomes/goals.

Bureaucracy and the classical principles define modern organizations. The situation the worker faces is essentially mechanistic (bureaucratic) and based on scientific management and the classical principles of organization.

Organic v. Mechanistic (bureaucratic): Develop a definition, defining characteristics. Wright p. 164. Imagine an organization that abided by these rules. Now imagine an organization that breaks these rules.

Ways to characterize organization structure

1) Centralization: where are decisions made. Who has power? Are knowledge and power concentrated in one place in the organization or are the distributed throughout the organization? What is the impact of delegation?

2) Hierarchy: control down , unity of command How power is exercised? Command v. consultation. Authority and control are exercised by nominal superiors.

3) Formalism: strictness in definition of work roles and relationships, rigidity of relationships, precisely defined. Is this the same as rules and procedural specifications?

                    4) Rules and regulations govern the organization.

                    5) Relationships are impersonal or universalistic. "Social distance."

                    6) Employment and advancement are based on technical qualifications.

                    7) Careerism.

8) Differentiation. There are differences in the cognitive and emotional orientations of different functional departments.

9) Integration. There is coordination and collaboration among functional departments. Types of integration: Hierarchical, interactive, lateral, consultative. What does the organization chart (not) tell us?

Use these characterizations (listed above) to define mechanistic & organic organizations. Which types of organizations and structured situations empower people?

Bureaucracy (mechanistic) fails because it doesn't address the reality of work.

1. Specialization is a fine ideal. But if you want the office or the shop to work efficiently, design jobs that overlap.

2. Power requires consent. Chester Barnard's "acceptance theory of authority" and "zone of indifference".

3. There can never be enough rules to govern exceptions.

4. Interpersonal relationships and commitments, this is to say, personal loyalties make a significant contribution to the attainment of organization goals.

                                        5. Change is now the dominant environmental threat/opportunity.

Classical Principles. The primary focus is on rules for managing organizations through direct supervision. Fayol, Urwick, Parker.

Organization Structures associated with Classical Principles.

1). Specialization. How many ways to specialize?

a. Departmentation: 1. Functional v. other bases of departmentation: 2. Product 3. Geography 4. Time 5. Customer.

                                        b. line (functions?) v. staff

2). Unity of command and the scalar chain of command.

3). Span of control. Flat (broad) v. tall (narrow) organization.

4). Short lines of communication.

5). Delegation of routine matters.

6). Equal authority and responsibility

Why is the classical approach inadequate? It is a mass of contradictions. How does unity of command contradict specialization?

How does global management impact choices: How important is a local "face"? Does "face" imply place design? How important is being close?

Structural design methods to achieve coordination and manage conflict:(W&N p.148)

a. linking-pin.

b. slack resources, buffering with inventory.

c. decoupling.

d. dominance through position.

e. integrating department

Matrix Design combines functional and product design.

Network Organization

Team based organizations.

The systems approach focuses on the interaction of elements that make up the organization and affect its performance. It is a total organization perspective. The emphasis on the importance of the environment and feedback make it an attractive tool for analyzing the structure and function of organizations.

Technological factors influence organization design.

Work flow uncertainty: Don't know when its coming.

Task Uncertainty. Are there routines, prescribed ways, rules for doing task? How much initiative and judgement is required?

Task interdependence: Pooled, Sequential, Reciprocal. W&N p. 140.

Is any one of these more or less empowering?

Core technologies influence organizational design.

1. small batch, 2. mass production, 3. continuous process production.

Characteristics of the environment identified and defined. P. 167.