Organizational Structures Flashcards
Bureaucratic
Top-Down Management Approach
Hierarchical communication channels and career paths
Focus on Independent performance
Highly Specialized Jobs with Narrowly Defined Descriptions
Flat
Decentralized Management Approach
Few levels
Broadly defined jobs with general descriptions
Emphasis on Teams and Product Development
Internal Alignment(Internal Equity)
the relationships among different jobs/skills/competencies within a single organization
What does Internal Alignment structure need to do?
Support organization strategy, and workflow
Motivate Behaviour
Internal Pay Structure
the array of pay rates for different work or skills within a single organization
What is an internal pay structure defined by?
The number of levels of work
The pay differentials between the levels
The criteria used to determine those levels and differentials
Differentials
pay differences among levels
Higher pay is usually due to work that;
requires more skill/knowledge
has unpleasant working conditions
work that adds more value to the company
Content
work performed in a job and how it gets done
Value
worth of the work
Structure based on Content;
ranks jobs based on skills required
complexity of tasks
problem solving
responsibility
Structure based on Value;
focuses on relative contribution of skills, tasks, and responsibilities
Job-Based Structure
relies on the work content
(Tasks, behaviours, responsibilities)
Person-Based Structure
shifts focus to the employee
(skills, knowledge, the employee possesses and if they are used in the job)
Internal Labour Markets
refers to rules and procedures that;
Determine the pay for the different jobs within a single organization
Allocate employees among those different jobs
Equity Theory - Fairness
people compare the ratio of their own outcomes to inputs with that of others
Employees judge fairness by comparing;
- To jobs similar to their own
- Their job to others at the same employer
- Their pay against external pay levels
Tournament Theory
Relationships between motivation and performance
- Works best in situations where individual performance matters most
Institutional Model
copy others and conform
“Best Practices”
Consequences of an Internally-Aligned pay structure
Efficiency
Fairness
Compliance
What shapes Internal Structures?
External Factors
Organizational Factors
Internal Structure
External Factors
Economic Pressures
Government policies, laws, regulations
Stakeholders
Cultures and Customs
Organization Factors
Strategy
Technology
Human Capital
HR Policy
Employee Acceptance
Cost Implications
Internal Structure
Levels
Differentials
Criteria
Strategic Choice: Hierarchical
Values differences in work content, skills, contribution
Many levels with large differentials
Includes detailed description of work done at each level
Strategic Choice: Egalitarian
All employees are valued equally
Advantage:
- Fewer levels and smaller differentials
Disadvantage:
- Equal treatment can mean more knowledgeable employees feel underpaid
Differences in pay structure influence;
peoples attitudes
work behaviours
AKA - success of organizations
