Bài giảng Organisational behaviour - Chapter 15 Organisational structure and design

Organisational structure and designChapter learning objectivesDescribe the two fundamental requirements of organisational structures. Summarise the three main forms of coordination.Explain why companies can have a wider span of control than previously believed. Discuss the advantages and disadvantages of centralisation and formalisation.Contrast functional structures and divisional structures. Outline the features and advantages of the matrix structure.Describe four features of team-based organisational structures.Describe the network structure.Summarise the contingencies of organisational design. Explain how organisational strategy relates to organisational structure.2 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and TravaglioneTribal structure of Flight CentreFlight Centre has a unique ‘tribal’ organisational structure that facilitates easy replication and fuels organic growth. The Brisbane-based travel agency is organised into families, villages and tribal countries.© AAP Image/Dave Hunt3 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and TravaglioneDivision of labourSubdivision of work into separate jobs assigned to different peoplePotentially increases work efficiencyNecessary as company grows and work becomes more complex© AAP Image/Dave Hunt4 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and TravaglioneForms of work coordinationInformal communicationsharing informationhigh media-richnessimportant in teamsFormal hierarchydirect supervisioncommon in larger firms problems  costly, slow, less popular with young staffStandardisationformal instructionsclear goals/outputstraining/skills© AAP Image/Dave Hunt5 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and TravaglioneOrganisationalstructureelementsSpan ofcontrolCentralisationDepartment-alisationFormalisationElements of organisational structure6 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and TravaglioneSpan of controlNumber of people directly reporting to the next levelAssumes coordination through direct supervisionWider span of control possible whenused with other coordinating methodssubordinates’ tasks are similartasks are routineFlatter structures require wider span (if same number of people in the firm)7 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and TravaglioneThe decentralisation of Coca-ColaCoca-Cola decentralised its organisational structure by cutting half of the staff at its Atlanta headquarters and moving the regional chieftains closer to their local markets. In India, decision making has been moved further down to different areas of that diverse country.© AFP/CORBIS8 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and TravaglioneOrganisational crisesManagement desire for controlIncrease consistency, reduce costsCentralisationComplexity  size, diversityDesire for empowermentDecentralisationForces for (de)centralisation9 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and TravaglioneMechanistic vs organic structuresMechanisticHigh formalisationNarrow span of controlHigh centralisationOrganicLow formalisationWide span of controlLow centralisation10 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and TravaglioneEffects of departmentalisationEstablishes work teams and supervision structureCreates common resources, measures of performance, etcEncourages informal communication among people and subunits11 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and TravaglioneOrganises employees around skills or other resources (marketing, production)Chief ExecutiveFinanceProductionMarketingFunctional organisational structure12 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and TravaglioneOrganises employees around geographic areas, products or clientsDivisionalised structureEnterprisesystemsLaserjetsolutionsConsumerproductsChief Executive13 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and TravaglioneProject CManagerProject BManagerProject AManagerEngineeringManagerMarketingManagerSoftwareManagerEmployees are temporarily assigned to a specificproject team and have a permanent functional unitProject-based matrix structureChief Executive14 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and TravaglioneFeatures of team-based structuresSelf-directed work teamsTeams organised around work processesVery flat span of controlVery little formalisationUsually found within divisionalised structure15 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and TravaglioneCoreCompanyProductDevelopmentCompany(Australia)Call CentreCompany(NZ)AccountingCompany(Australia)ManufacturingCompany(Malaysia)DistributionCompany(Singapore)Network organisational structure16 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and TravaglioneHighanalysabilityLowanalysabilityHigh varietyLow varietyScientificresearchAssemblylineSkilledtradesEngineeringprojectsTypes of organisational technology17 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and TravaglioneOrg environment and structureDynamic• High rate of change• Use organic structureStable• Steady conditions, predictable change• Use mechanistic structureComplex• Many elements (such as stakeholders)• DecentraliseSimple• Few environmental elements• Less need to decentralise18 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and TravaglioneOrg environment and structure (cont)Diverse• Variety of products, clients, locations• Divisional form aligned with the diversityHostile• Competition and resource scarcity• Use organic structure for responsivenessIntegrated• Single product, client, location• Don’t need divisional formMunificent• Plenty of resources and product demand• Less need for organic structure19 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and TravaglioneOverview of the next chapterElements of organisational cultureImportance of organisational subculturesTypes of corporate culture artefactsFunctions of organisational cultureOrganisational culture on business ethicsFour strategies for merging organisational culturesHow to strengthen an organisation’s culture20 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and TravaglioneOrganisational structure and design