Chapter 13/14 Organizational Structure and Change Flashcards
Pyramidal vs Flat
• Pyramid: can see chain of command, helps understand who you report you
o Has greater specialization, as sales person only focuses on sales in local area
o Centralized Decision Making: More levels= Authority takes place at higher levels: Ex: Local sales manager asks regional sales, not director of sales
o More rules/regulation
• Flat
o Work is shared
o Specialization is lower as people are more responsible for regional area
o Work is less formalized as more autonomy given
Span of Control for Organization
- Number of subordinates that can be efficiently and effectively managed
- Small span: fewer employees you manage
- Larger span: more employees you manage
o Few people to watch: costs more
o Wider span of control: costs less
o Problem with more autonomy, not as much attention/unable to ask questions (flat structure)
Contrasting Spans of Control
-Span of Control: Depends on experience of employees/type of work that takes place
• Span of 4
o Number of people in middle of pyramid is greater
• Span of 8
o Can have a lot fewer employees if larger span of control
Main Types of Departmentalization in Organizations
• The basis on which jobs are grouped together
• Main types of departmentalization
o Functional: Organizational functions that operate within most companies, HR, finance, marketing, operations, r&d
o Product or Customer
o Geographical
o Matrix
Examples:
• Functional: employees grouped together by specialized skills
• Product: Different divisions specifically for each product, department focused on achieving goals for product x/y
• Geographical: varies by different country laws, workforce that’s available, based on # of factors that would determine if you want a geographic departmentalization
Matrix Departmentalization
- A hybrid structure in which two or more forms of departmentalization are used together
- Most common matrix combines product and functional departmentalization
Mechanistic vs Organic Models
-The Mechanistic Model: Military Organization
-The Organic Model: Free flowing of information, more autonomy, cross-functional, wide spans of control
• Breaks the unity of command principle
o Employees have two bosses (dual-reporting)
• Advantages:
o Facilitates coordination when there are many activities
o More cross-functional communication
o Efficient allocation of specialists
• Disadvantages:
o Power struggles, confusion, stress
Strategy-Structure Relationship
- Innovative: Needs more organic/loose structure, which will allow free flowing of information. Decentralized information
- Cost minimization: Tries to formalize work as much as possible, so behaviours are repeated
- Imitation: mix of mechanist and organic structure, depending on competitors/environment the organization may try different aspects and see what is successful
Forces that change Organizations and Targets for Change
• Forces for change
o Workforce, technology, competition
o Social trends and world politics
o Economic shocks
• Targets for change
o People (hire/let go)
o Structure & Culture (hierarchical model) (aggressive model- to easy going)
o Purpose, Strategy, & Objectives (what you are, what you’re trying to achieve)
o Tasks and Technology (rethink tasks done by employees, and tech needed)
Resistance to Change
• Individual Resistance o Habit and fear of the unknown o Job security and economic loss o Threat to self-concept -Changes may influence individuals: Loss of power, status, identity, expertise • Organizational Resistance o Group and Structural Intertia -Norms and built-in mechanisms to produce stability and predictability in processes and behavior
Overcoming Resistance to Change
• Education and Communication
o Increases trust and understanding of change
• Participation and Involvement
o Meaningful contribution from employees
• Building support
o Expensive, but can reduce fear and anxiety
• Fairness
o Ensure fairness in implementation process
• Coercion
o Last resort for getting employees to cooperate
-Employees more open to change, if they see a crisis happening
