Professional Documents
Culture Documents
Principles of Management
Chapter 8 - Organizational
Culture, Structure, & Design
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What Is an Organizational
Structure?
Organizational Structure
Who reports to whom & who does what
It is a formal system of task and reporting
relationship that coordinate and motivates
an organizations members so that they can
work together to achieve the organizations
goals
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Culture + Structure
Figure 8.1
Stories
A narratives based on true events that is repeated frequently
and share among organizational members.
Heroes
A person whose accomplishments embody the values of the
organization.
Organization Chart
Two kinds of information that organization charts reveal about
organizational structure are:
1. The vertical hierarchy of authority (Who reports to whom)
2. The horizontal specialization (Who specializes in what work)
A box-and-line illustration
showing the formal lines of
authority and the organizations
official positions or work
specializations.
3.
4.
A control mechanism for making sure the right people do the right
things at the right time.
Unity of command (An employee should report to no more than one
manager)
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6.
7.
Disadvantages
Tends to result in
communication difficulties and
excessive distance between the
top and bottom levels in the
organization.
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Disadvantages
6. Authority, Responsibility
and Delegation
Authority
refers to the rights inherent in a managerial position to
make decisions give orders, and utilize resources.
Responsibility
The obligation you have to perform the tasks assigned
to you.
Delegation
The process of assigning managerial authority and
responsibility to manager and employees lower in the
hierarchy.
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http://www.transformationalleadershiphq.com/effective-delegation/
Line Authority
-------- Staff Authority
Figure 8.5
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7. Centralization vs
Decentralization of Authority
Centralization
Decentralization
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Simple Structure
Functional Structure
Divisional Structure
3.1 Product Divisions
3.2 Customer Divisions
3.3 Geographic Divisions
4. Matrix Structure
5. Team-Based Structure
6. Hollow structure
7. Modular Structure
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Employee 1
Employee 2
Employee 3
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6. Hollow Structure
High specialization
Cross-functional teams
Rigid departmentalization
Cross-hierarchical teams
Centralization
Decentralization
High formalization
Low formalization
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