...Concepts of Organizational Design Shelley Witt MMPBL/550 May 9, 2011 William Gillis Key Concepts of Organizational Design Organizational design is an important part of organizational theory. Organizational design changes with a company as its growth and goals are determined. Some important aspects that control organizational design are structure, strategy, and processes. Each individual organization needs to determine its own design based on its needs and mission. Every plan has its own advantages and disadvantages which are weighed carefully in making the corporate design decision. Importance of Organizational Design Choices In order for an organization to remain effective throughout changes and growth it must continuously evaluate the organizations design. “Organizational design involves difficult choices about how to control—that is, coordinate organizational tasks and motivate the people who perform them—to maximize an organization’s ability to create value” (Jones,2004, p. 4). Organizational design involves the process of aligning the organizational structure with its mission. Organizational design looks at the complex relationships between workflow, tasks, authority, and responsibility. Organizational design makes sure they all support the organizations objectives. Companies with good organizational design tend to have effective communication, increased productivity, and substantial innovation. Companies with poor organizational design...
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...Key Concepts of Organizational Design Ryan MMPBL/550 December 13, 2010 Key Concepts of Organizational Design [The introduction goes here. It should be one or two paragraphs explaining the findings of your paper. The introduction should prepare the reader for the contents of the paper by previewing the four main topics in your paper. Be sure to end with a transition word or sentence to lead into Section 1 of your paper. Triple click anywhere in this paragraph to begin typing your own introduction.] In this paper, I will provide some key concepts of organizational design and its importance, assessing the relationships between strategy, structure, and process in organizations and the relationship between organization design and decision-making processes are analyzed. In the next section, I will describe the five best design choices and the characteristics, advantages, and disadvantages of various organizational structures. Importance of Organizational Design Choices [This should explain the importance of organizational design choices. Be sure to end with a transition word or sentence to lead into the next section of your paper. Triple click anywhere in this paragraph to begin typing.] One valuable element of developing a strategy for a company is to form an organizational design that fits the company’s purpose, culture, and processes. Organizational design has become a top priority because of increased competitive pressures and the use of information technology...
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...Café Britt: A Costa Rica Pride BUS 655 (Designing Effective Organization) BUS 550 (Organization Behavior and Design) Issam A. Ghazzawi, Ph.D. SPECIFIC LEARNING OBJECTIVES In today’s global economy, organizations are faced with many challenges including motivating and rewarding employees; communicating and making effective decisions; evaluating group and team behavior; assessing their organizational structure and determining its effectiveness, assessing its leadership and determining its effectiveness; and evaluating alternative methods to managing change in the newly designed organization. Successful managers must learn the importance of creating functional and effective structures, processes, and understanding and managing the human side of the organization as this will enable people to effectively work together to achieve agreed upon goals. Therefore, this integrated term-long case is designed to give you an opportunity to design an effective organization. After reading and responding to the case questions, students should be able to: * Assess an organization’s mission statement and tie said mission to the organization’s goals. * Evaluate an organization’s culture and suggest a culture that promotes creativity. * Identify the factors responsible for creating and transmitting organizational culture and for getting it to change. * Identify and suggest effective techniques for motivating employees. * Suggest and describe some of the steps...
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...Organizational Structure Broadly defines as the sum total of the ways in which an organization divides its tasks and then coordinates them. It defines the firms’ decision-making authority and serves as the connecting fiber between the company’s strategy and the actions and behaviour of its members. An organization structure designates formal reporting relationships, encompassing the number of levels in the hierarchy and the span of control held by managers and supervisors; identifies groupings of individuals into specific positions, work units, teams, departments, division and others as well as the groupings of these submits into the total organization. Organization structure is reflected in the organization chart. The organization chart is the virtual representation of a whole set of underlying activities and processes in an organization. It can be quite useful in understanding how a company works. It’s also shows the various parts of an organization, how they are interrelated, and how each position and department fits into the whole. The concept of an organization chart – showing what positions exist, how they are grouped, and who reports to whom. Several Dimensions of Organization Structure and Design Chain of Command An unbroken line of authority that links all persons in an organization and shows who reports to whom. It is associated with two underlying principles. Unity of Command – each employee is held accountable to only one supervisor. Scalar Principle...
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...Teamwork Arq6426 Organizational Behavior October 10th, 2011 Table of Contents Introduction pg. 3 Discussion pg. 5 Organizational Design and Team Structure pg. 5 Why Teams? pg. 6 Team Roles pg. 8 Teamwork Model pg.10 Collaboration; Advantages and Disadvantages pg.12 Conclusion pg.14 References pg.15 The Advantages and Disadvantages of Teamwork Introduction A recent study performed by the Department of Trade and Industry in the UK determined that people are a fundamental building block within any organization and the only point at which true responsibility for quality can lie is with the person or group actually doing a job or carrying out the process (Department of Trade and Industry, 2011). Managers must determine how to group people together in order to perform the work needed done by the organization (Kates & Galbraith, 2007). The five most common approaches managers may take to do so include: * Functional * Divisional * Matrix * Team * Networking The importance of recognizing the structure of an organization may have a direct impact upon the end results of collaboration and the teamwork model and why the organization may well choose teamwork as an approach to meeting its needs. Indeed, workplace collaboration may be an instrumental part of the decision making process within organizations; at the same time, the very act of collaborating and the process of team building...
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...Industry SYNOPSIS OF CHAPTER Chapter 12 examines how managers can best implement their strategies in single-industry firms in order to achieve a competitive advantage and superior performance. First, the main elements of strategy implementation—structure, control systems, and culture—are analyzed in detail, focusing on the way they work together to create an organizing framework. Then the chapter turns to the topic of using structure, control, and culture at the functional level to build distinctive competencies. After that, the chapter addresses the challenges of implementing the generic business strategies of cost leadership or differentiation in a single industry. The final section covers restructuring and reengineering, two strategies that single-business firms can use to improve corporate performance. The next chapter takes up where this one leaves off and examines strategy implementation across industries and across countries—that is, implementing corporate and global strategy in firms that compete in more than one industry. TEACHING OBJECTIVES 1. Introduce the main elements of strategy implementation—structure, control systems, and culture—and their relationships to each other. 2. Demonstrate how structure, control, and culture can build distinctive competencies at the functional level. 3. Describe the use of structure, control, and culture in implementing a single-business firm’s generic business strategy. 4. Discuss the use of restructuring and reengineering in improving...
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...chapter Organisational Structure and Design . 9.1 Defining Organizational Structure • • Describe each of the five forms of departmentalization. • Differentiate, authority, responsibility, and unity of command. • Sandra Carlos Discuss the traditional and contemporary views of work specialization, chain of command, and span of control. Explain how centralization – decentralization and formalization are used in organizational design. Organising 9.2 Mechanistic and Organic Structures • Contrast mechanistic and organic organizations. • Explain the contingency factors that affect organizational design. o -the process of organising an organisation’s structure o -undergone lots of changes in the last few years 9.3 Common Organizational Designs • Contrast the three traditional organizational designs. • Describe the contemporary organizational designs. • Discuss the organizational design challenges facing managers today. Exhibit 9–1 Purposes of Organizing • Divides work to be done into specific jobs and departments. • Assigns tasks and responsibilities associated with individual jobs. • Coordinates diverse organizational tasks. • Clusters jobs into units. • Establishes relationships among individuals, groups, and departments. • Establishes formal lines of authority. • Allocates and deploys organizational resources. Organisational Structure -formal framework by which...
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...Synopsis of Chapter Chapter 12 examines how managers can best implement their strategies in single-industry firms in order to achieve a competitive advantage and superior performance. First, the main elements of strategy implementation—structure, control systems, and culture—are analyzed in detail, focusing on the way they work together to create an organizing framework. Then the chapter turns to the topic of using structure, control, and culture at the functional level to build distinctive competencies. After that, the chapter addresses the challenges of implementing the generic business strategies of cost leadership or differentiation in a single industry. The final section covers restructuring and reengineering, two strategies that single-business firms can use to improve corporate performance. The next chapter takes up where this one leaves off and examines strategy implementation across industries and across countries—that is, implementing corporate and global strategy in firms that compete in more than one industry. Teaching Objectives 1. Introduce the main elements of strategy implementation—structure, control systems, and culture—and their relationships to each other. 2. Demonstrate how structure, control, and culture can build distinctive competencies at the functional level. 3. Describe the use of structure, control, and culture in implementing a single-business firm’s generic business strategy. 4. Discuss the use of restructuring and reengineering...
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... | | |Managing Conflict | | |Matching Structure with Strategy | | |Restructuring, Reengineering, and E-Engineering | | |Linking Performance and Pay to Strategies | | |Managing Resistance to Change | | |Creating a Strategy-Supportive Culture | | |Production/Operations Concerns When Implementing Strategies | | |Human Resource Concerns When Implementing Strategies | CHAPTER OBJECTIVES After studying this chapter, you should be able to do the following: |1. |Explain why strategy implementation is more difficult than strategy...
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...Key Concepts of Organizational Design Allison Battles University of Phoenix / MMPBL 550 November 1, 2010 Professor Frederick Janson Key Concepts of Organizational Design Organizational design is an important aspect of organizational theory that designates many of the processes and the structure within an organization. It can shape the organization’s culture and help the organization to achieve its goals. Organizational design is also important to change management within the organization. The most important factor, though, is that it supports the company’s strategy for success. As many organizations are experiencing growth, the concepts of organizational design become more complex. The organizational designs and structures discussed here will simplify the terms in order for a clearer understanding of the concepts. Importance of Organizational Design Choices Organizational design is vital to an organization’s success. Part of developing a strategy for a company to achieve its goals is to create a dynamic organizational design that fits the company’s purpose, culture, and processes. “To optimize effectiveness, the form of organization must be matched to the purpose it seeks to achieve” (Autry, 1996, para. 7). In the most basic terms, the organizational design should be aligned with the organization’s strategies-the goals, the objectives, and the mission-and support the desired outcome. It is important that the organizational design of a company work...
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...chairs. For decade the company, protected by patents, has been enjoying a sale growth with high average margins in the range of 40-50%. However competitors, entering the market with comparable chair designs due to patents expiration, and the early 2000’s worldwide recession flattened sales and dropped profits. Kevin Wentworth, CEO and cofounder of KCC, came up with a new strategy to sustain their competitive advantage: value leadership. Kevin wants to move from KCC previous strategy of growing sales through quantity to focus on quality of sales. KCC wanted to differentiate itself by developing a stronger customer focus, understanding better customers’ needs and wants, and improving customer service levels. In order to implement the new strategy, Kevin decided to change the organization structure from functional to divisional. Kevin thought that divisionalization, if implemented properly, could help KCC achieve its objective. Jobs and responsibilities were redesigned and a new performance measurement and incentives program have been created to support Kevin’s new direction of corporate focus. Despite the conviction from most managers that this was a good idea, Kevin was privately worried about the risks involved. Unfortunately KCC’s early experiences with the divisionalized structure created more concerns. In this report we are going to produce a comprehensive analysis of KCC’s management in terms of its objectives, strategy formulation and its management control system. The first...
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...Advantages & Disadvantages of Divisional Organizational Structure X Chris Joseph is a freelance writer residing in Pennsylvania. He has written hundreds of articles for newspapers and the Internet on a variety of topics, including several on golf for GolfLink.com. He holds a Bachelor of Science degree in marketing from York College of Pennsylvania. By Chris Joseph, eHow Contributor updated: January 18, 2011 Large companies that serve a varied customer base or operate in a number of geographic regions may choose to operate with a divisional structure. This is a more decentralized type of operation where each division functions much like its own separate company. This type of operation format offers certain benefits as well as potential pitfalls. 1. Self-sufficiency o An advantage of a divisional structure is that each division can operate as a separate, self-sufficient unit without having to rely heavily on the parent company or top management of the organization. Divisions typically have their own separate management structure that allows them to make decisions quickly, often without the need for approval from others. Divisions have their own equipment, supplies and resources, which allow for a more autonomous method of operation. Specialization o Another advantage of a divisional structure is that it allows for a high degree of specialization. Workers with similar talents and abilities can work together and focus on specific projects that help the division meet its...
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... It is important to be aware of your company's organizational structure because it reveals information regarding who has authority over whom; how and why a company divides the workload by specific people and by groups/teams. Understanding your organizational structure can also reveal important cross-functional relationships to coordinate work efforts for optimum results. It can show where breakdowns can occur in the hierarchy and assist in developing solutions for increased accountability. In this paper, we will discuss and describe the organizational structure of Google and compare their organizational structure to the organizational structure of two other fortune 500 companies, Boeing and Microsoft. We will evaluate how organizational functions (such as marketing, finance, human resources, and operations) influence and determine the organizational structure of your selected organization. Finally, we will explain how organizational design (such as geographic, functional, customer-based, product, service, hybrid, matrix, marketing channels, and departmentalization) determines why each organizational structure works for that company’s needs. Organizational Structure Organizations are designed and structured in such a way to best meet their needs and goals. How an organization is setup can directly impact how successful the organization is in achieving those goals. Without an appropriate organizational structure, a business will not succeed. Organizations large...
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... It is important to be aware of your company's organizational structure because it reveals information regarding who has authority over whom; how and why a company divides the workload by specific people and by groups/teams. Understanding your organizational structure can also reveal important cross-functional relationships to coordinate work efforts for optimum results. It can show where breakdowns can occur in the hierarchy and assist in developing solutions for increased accountability. In this paper, we will discuss and describe the organizational structure of Google and compare their organizational structure to the organizational structure of two other fortune 500 companies, Boeing and Microsoft. We will evaluate how organizational functions (such as marketing, finance, human resources, and operations) influence and determine the organizational structure of your selected organization. Finally, we will explain how organizational design (such as geographic, functional, customer-based, product, service, hybrid, matrix, marketing channels, and departmentalization) determines why each organizational structure works for that company’s needs. Organizational Structure Organizations are designed and structured in such a way to best meet their needs and goals. How an organization is setup can directly impact how successful the organization is in achieving those goals. Without an appropriate organizational structure, a business will not succeed. Organizations large...
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...Chapter 12--Managing Organization DesignChapter 12--Managing Organization Design Student: ___________________________________________________________________________ 1. Organizational design is the building block. Job design is how the blocks are put together. True False 2. The appropriate degree of specialization can vary, but not the appropriate span of management. True False 3. Organization design is a means to implement strategies and plans to achieve organizational goals. True False 4. One of the primary strengths of a bureaucratic form of organization structure is how it prevents favoritism. True False 5. The bureaucratic model is the model of organization design consistent with the human relations movement that stresses attention to developing work groups and concern with interpersonal processes. True False 6. A strength of Likert's System design is that it finds one best way to design an organization. True False 7. Orange County Choppers makes custom motorcycles. It uses continuous-process technology. True False 8. Woodward considered continuous-process technology simple compared to large-batch technology. True False 9. Exxon Mobil is an example of an organization that uses large-batch technology. True False 10. According to Burns and Stalker, firms that use an organic design are the most successful firms in a stable environment. True False 11. A manager at Johnson & Johnson has...
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