8/23/2016 1 Unit – I CHAPTER - 4 ORGANIZATIONAL BEHAVIOUR - 1 MBA 12 Delivered By, Dr. S. Gokula Krishnan, PhD., Associate Professor -- – OB, HR & Data Analytics, School of Management @NCERC E-mail : [email protected]Discussions on Dr. S. GOKULA KRISHNAN, Associate Professor @NSM 2 What is Organizational Structure? Key Elements in Designing the proper Organizational Structure. Common Organizational Designs New Design Options Why do structures differ? Organizational Development OD Techniques or Interventions Reference: Stephen P Robbins, Timothy A Judge & NeharikaVohra, Organizational Behaviour, 15 th ed., p. 515-537 & 594-598
Key Elements in Designing the proper Organizational Structure.
Common Organizational Designs
New Design Options
Why do structures differ?
Organizational Development
OD Techniques or Interventions
Reference:
Stephen P Robbins, Timothy A Judge & NeharikaVohra, Organizational Behaviour, 15th ed., p. 515-537 & 594-598
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Organizational Structure
Dr. S. GOKULA KRISHNAN, Associate Professor @NSM3
Definition:
The way in which job tasks are formally divided, grouped,
and coordinated.
Key Elements:
Work Specialization
Departmentalization
Chain of Command
Span of Control
Centralization and Decentralization
Formalization
Dr. S. GOKULA KRISHNAN, Associate Professor @NSM4
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Work Specialization
The degree to
which tasks
in an
organization
are
subdivided
into separate
jobs.
Dr. S. GOKULA KRISHNAN, Associate Professor @NSM5
Departmentalization
Dr. S. GOKULA KRISHNAN, Associate Professor @NSM6
The basis by which jobs in an
organization are grouped together.
Departmentalization based on
By Functions
By Product or Service
By Geography / Place
By Type of Customer
By Matrix
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By Functions
Dr. S. GOKULA KRISHNAN, Associate Professor @NSM7
By Product/ Services
Dr. S. GOKULA KRISHNAN, Associate Professor @NSM8
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By Matrix
Dr. S. GOKULA KRISHNAN, Associate Professor @NSM9
Chain of Command
Dr. S. GOKULA KRISHNAN, Associate Professor @NSM10
The unbroken line of authority that extends from the top of the organization to the lowest echelon and clarifies who reports to whom.
Authority refers to the rights inherent in a managerial position to give orders and expect them to be obeyed. To facilitate coordination, each managerial position is given a place in the chain of command, and each manager is given a degree of authority in order to meet his or her responsibilities.
The principle of unity of command helps preserve the concept of an unbroken line of authority. It says a person should have one and only one superior to whom he or she is directly responsible. If the unity of command is broken, an employee might have to cope with conflicting demands or priorities from several superiors.
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Span of Control
Span of
control
The number
of
subordinates
a manager
can efficiently
and effectively
direct.
Dr. S. GOKULA KRISHNAN, Associate Professor @NSM11
Centralization and Decentralization
Dr. S. GOKULA KRISHNAN, Associate Professor @NSM12
Centralization refers to the degree to which decision
making is concentrated at a single point in the organization.
In centralized organizations, top managers make all the
decisions, and lower-level managers merely carry out their
directives.
In organizations at the other extreme, decentralized
decision making is pushed down to the managers closest to
the action.
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Formalization
Dr. S. GOKULA KRISHNAN, Associate Professor @NSM13
Formalization refers to the degree to which jobs within the organization are standardized.
If a job is highly formalized, the incumbent has a minimal amount of discretion over what to do and when and how to do it.
Example: Publishing representatives who call on college professors to inform them of
their company’s new publications have a great deal of freedom in their jobs.They have only a general sales pitch, which they tailor as needed, and rulesand procedures governing their behavior may be little more than therequirement to submit a weekly sales report and suggestions on what toemphasize about forthcoming titles. At the other extreme, clerical andeditorial employees in the same publishing houses may need to be at theirdesks by 8:00 a.m. and follow a set of precise procedures dictated bymanagement.
Common Organizational Designs
Dr. S. GOKULA KRISHNAN, Associate Professor @NSM14
Simple Structure
An organization structure characterized by a low degree of
departmentalization, wide spans of control, authority centralized in a
single person, and little formalization.
The Bureaucracy
An organization structure with highly routine operating tasks achieved
through specialization, very formalized rules and regulations, tasks that are
grouped into functional departments, centralized authority, narrow spans
of control, and decision making that follows the chain of command.
Matrix Structure
An organization structure that creates dual lines of authority and combines
functional and product departmentalization.
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Simple Structure
Dr. S. GOKULA KRISHNAN, Associate Professor @NSM15
Matrix Structure
Dr. S. GOKULA KRISHNAN, Associate Professor @NSM16
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New Design Options
Dr. S. GOKULA KRISHNAN, Associate Professor @NSM17
Virtual organization A small, core organization that outsources major business functions.
Boundary-less organization An organization that seeks to eliminate the chain of command, have limitless spans of control, and replace departments with empowered teams.
Some other Structures
Dr. S. GOKULA KRISHNAN, Associate Professor @NSM18
Mechanistic model
A structure characterized by extensive departmentalization,
high formalization, a limited information network, and
centralization.
Organic model
A structure that is flat, uses cross-hierarchical and cross-
functional teams, has low formalization, possesses a
comprehensive information network, and relies on participative
decision making.
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Dr. S. GOKULA KRISHNAN, Associate Professor @NSM19
Why do Structures Differ?
Dr. S. GOKULA KRISHNAN, Associate Professor @NSM20
Major causes or determinants of an organization’s structure
Organizational Strategy
Innovation Strategy
Cost-Minimization Strategy
Imitation strategy
Organization Size
Technology
Environment
Capacity
Volatility
Complexity
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Organizational Development (OD)
Dr. S. GOKULA KRISHNAN, Associate Professor @NSM21
Organizational Development (OD)
A collection of planned change interventions, built on
humanistic– democratic values, that seeks to improve
organizational effectiveness and employee well-being.
Underlying values in most OD Efforts:
Respect for the People
Trust and Support
Power Equalization
Confrontation
Participation
OD Techniques or Interventions
Dr. S. GOKULA KRISHNAN, Associate Professor @NSM22
Sensitivity training :Training groups that seek to change behaviorthrough unstructured group interaction.
Survey feedback: The use of questionnaires to identify discrepanciesamong member perceptions; discussion follows, and remedies aresuggested.
Process Consultation (PC): A meeting in which a consultant assists aclient in understanding process events with which he or she must deal andidentifying processes that need improvement.
Team Building: High interaction among team members to increase trustand openness.
Intergroup Development: OD efforts to change the attitudes,stereotypes, and perceptions that groups have of each other.
Appreciative Inquiry (AI): An approach that seeks to identify theunique qualities and special strengths of an organization, which can then bebuilt on to improve performance.
