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Chapter6Organizational Structure and Design1Copyright ?2019 Pearson Education, Inc.
Learning OutcomesDescribe six key elements in organizational design.Identify the contingency factors that favor either the mechanistic model or the organic model of organizational design.Compare and contrast traditional and contemporary organizational designs.Discuss the design challenges faced by today’s organizations.2Copyright ?2019 Pearson Education, Inc.
6.1Describe six key elements in organizational design. 3Copyright ?2019 Pearson Education, Inc.
Elements of Organizational StructureWork specializationDepartmentalizationAuthority and responsibilitySpan of controlCentralization vs. decentralizationFormalization4Copyright ?2019 Pearson Education, Inc.
Specialization5Copyright ?2019 Pearson Education, Inc.
Departmentalization6Copyright ?2019 Pearson Education, Inc.
Types of Authority Relationships7Copyright ?2019 Pearson Education, Inc.
Line and Staff Authority8Copyright ?2019 Pearson Education, Inc.
Unity of Command A structure in which each employee reports to only one manager.9Copyright ?2019 Pearson Education, Inc.
How Do Authority and Power Differ?Authority: a right whose legitimacy is based on an authority figure’s position in the organization; it goes with the jobPower:an individual’s ability to influence decisions10Copyright ?2019 Pearson Education, Inc.
Power Versus Authority11Copyright ?2019 Pearson Education, Inc.
Sources of Power 12Copyright ?2019 Pearson Education, Inc.
Span of ControlMost effective and efficient span depends on:Employee experience and training (more they have, larger span).Similarity of employee tasks (more similarity, larger span).Complexity of those tasks (more complex, smaller span).13Copyright ?2019 Pearson Education, Inc.
Centralization DecentralizationCentralizationdecision making takes place at upper levels of the organizationDecentralizationlower-level managers provide input or actually make decisions14Copyright ?2019 Pearson Education, I
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