...Chapter 10 Organizational Structure and Design |ANNOTATED OUTLINE | | 1. INTRODUCTION Designing organizational structure involves the process of organizing (the second management function) and plays an important role in the success of a company. 2. DEFINING ORGANIZATIONAL STRUCTURE Managers need to establish structural designs that will best support and allow employees to do their work effectively and efficiently. A. Several important terms must be defined in order to understand the elements of organizational structure and design: 1. Organizing is arranging and structuring work to accomplish the organization’s goals. This process has several purposes, as shown in Exhibit 10-1 and PowerPoint slide 10-6. 2. Organizational structure is the formal arrangement of jobs within an organization. 3. Organizational design is developing or changing an organization’s structure. This process involves decisions about six key elements: work specialization, departmentalization, chain of command, span of control, centralization/ decentralization, and formalization. Chapter Ten examines each of these structural elements. B. Work specialization is dividing work activities into separate job tasks. Most of today’s managers regard work specialization as an important organizing mechanism, but not as a source of ever-increasing...
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...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 tend to...
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...Key Concepts of Organizational Design Nadine Mends MMPBL/550 November 29, 2010 Maria Marin Key Concepts of Organizational Design The object of this paper is to discuss at least structures in Organization Design and Organization Design Choices. The paper will explain the importance of design choices as well as describing the characteristics, advantages, and disadvantages of various organizational structures. Next, the paper will assess the relationship between strategy, structure and process in organizations. Finally the paper will analyze the relationship between organization design and the decision making process. This will be based off the scenario of BestSnacks Inc and the opportunities facing BestSnacks in the area of Organizational Design. This paper will provide key concepts of organization design. It will describe the five best design choices and also will provide information regarding some common organizational structures. An organization will have to continuously look at the design and structure it uses to ensure that it is going to establish its goals and vision. Importance of Organizational Design Choices Organizational design choices are important for several reasons. First organizational design choices provide the firm with a choice of designs that are appropriate for achieving different purposes. Every design seeks to pattern the activities of organization towards a common outcome. From the perspective of Best Snacks Inc. it has...
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...Key Concepts of Organizational Design Marques Barnes MMPBL/550 2/3/11 Kenneth Hadzinski Key Concepts of Organizational Design Organizational design in comparison is similar to a blueprint to a construction worker. A blueprint to a construction worker includes the layout of a project, the materials needs, and instruction on how to build and where to build. Organizational design provides a blueprint for an organization just as a blueprint provides a guide for a construction worker. Organizational design provides a blueprint or process for integration the people, information and technology of an organization. Organizational design is extremely important to any organization. An organizational design must be able to function alongside the organization’s goals and strategy. Many business and organizations have changed their organizational design over the years to adjust to their respective industries and meet consumer needs. When companies go through restructuring and downsizing they are general altering the organizational design. Organizational design is important because it determines the specific roles, job functions, and job duties. The organizational design of a company represents its efforts to respond to changes, implement new ideas, ensure collaboration, and allow flexibility. Importance of Organizational Design Choices It is very difficult to choose an organizational design that meets the need of the organization. Every choice has a response or an action...
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...Key Concepts of Organizational Design Rosalind Patterson MMPBL550 August 30, 2010 Professor Josey Crisostomo Key Concepts of Organizational Design Given the importance of organizational design, why is it so often the blame for inefficiency and ineffectiveness? The reason is because good organizational design helps communications, productivity, and innovation. Organizational design is the process of aligning an organization’s structure with its mission. This means looking at the relationship between tasks, workflow, responsibility and authority, and making sure all these support the objectives of the business (www.mindtools.com). In this paper we will explore the importance of organizational design choices, the advantages and disadvantages of various organizational structures, assess the relationship between strategy, structure, and process in organizations, and analyze the relationship between organizational design and decision-making processes. Importance of Organizational Design Choices Hiring talented people is not enough to ensure the success of an organization. The best and brightest employees will not be able to do their best work in a poorly designed workplace. Consequently, poor organizational design is one of the leading causes of low employee morale and productivity (www.leadership-and-motivation-training.com). Effective organizational design creates a culture of commitment. The employees fully understand their accountabilities...
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...Introduction Organizations based their business system in different structures. Organizations can operate with blended approach between mechanistic and organic structures that need to change within some of structural traits as organizations change and mature. A success factor for organizations has the ability to adapt different structures, systems and processes to capture new market and expand. The organization design is a critical determinant of strategic competitive advantage. The importance of organization design for business leaders will also determine how effective is their strategies. Discussions The two structures for organization are basically the organic and mechanistic organization. A mechanistic organization has a rigid structure that is inflexible. Meanwhile, an organic organization is loosely designed with few levels of hierarchy and a lot of flexibility. The two structures will impact the effect of an organization. The contingency factors of organizational design decisions can affect the strategy and structure that can facilitate the achievement of goals. The innovation is a free flow of information that is based on organic organization. The cost minimization that seeks efficiency, stability, and control is under the mechanistic organization. The technological aspect of an organization in both mechanistic and organic supports the routine and non-routine technology, respectively. The output of every technology depends on the production types. Mechanistic Versus...
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...Organizational Design- A Literature Review Abstract This literature review observes the views of organizational design and business ethics as they relate to one another in business. The first portion of this paper defines organizational design and business ethics to establish their importance and also examines managerial ethics and corporate social responsibility, sources of ethical principles. The second portion pursues to explain the relationship between business ethics and organizational design and how managers shape ethics through use of value-based leadership and formal structure systems. The third portion pursues to review the importance of ethics to organizational design and the structures that support or enforce ethical behavior in organizations. The fourth portion links literature reviewed and published over the past few years together based on their reference to ethics and organizational design. The literatures are linked together based on commonalities found in the opinions of the authors relating to a spiritual perspective, ethics and corporate structure, organizational and ethical theories, and ethical strategy. Last but not least, the review concludes with a summary of the important role that ethics plays in the organizational design and structure of a business and how it applies to members of management. Keywords: business ethics, organizational design, corporate social responsibility Outline INTRODUCTION I. Organizational Design/Business Ethics ...
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...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 for, and...
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...organizational behavior and human behaviors. I will then analyze how specific organizational designs can elicit predictable attitudes and motivations. Lastly, I will propose an answer to whether it is possible to generalize and say that a certain structure is better than others. Defining the Issue An organization’s structure plays a large role in how things will get accomplished by employees within the structure. “The process of design must be complementary with the objectives. This means the design and implementation process is critical.” (Smith, n.d.) If you want flexibility, responsibility, etc. then these elements must be involved in the design of the organization’s structure. “We do not get participative highly effective organizations by fiat.” (Smith, n.d.) There are many positive and negative effects that a structure can have depending on how it is implemented in an organization. “Task and organization design has to be oriented toward improving both the technical and the human components of the organization. The process of design must address the need for variation and meaning in work. It has to take into account the needs for continuous learning, involvement in decision-making, help and support between colleagues, and meaningful relationship between work and outside society, a desirable future.” (Smith, n.d.) The key to any changes and flexibility within the structure of an organization requires constant training of employees in order to maintain relevant skill sets...
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...Student Self-administered case study Organization structure changes at Body Shop 45-60 Case duration (Min): Organizational Behaviour (OB) Organization structure and design Worldwide Case summary: There are many work tasks to be done in a large organization and consequently the work must be divided up and allocated. In this case we consider what is meant by organization structure and design; consider why it is necessary to structure human resources, discuss how we should set about this enormous challenge and ask how we can make efficient and effective use of human resources in order to attain goals and derive a sustainable competitive advantage. In particular we consider issues associated with bureaucracy and hierarchy. Body Shop grew and with it came particular design challenges. Learning objectives: Define and discuss the nature of organization design. Outline the main structural choices available to organizations. Explain the limitations of the organizational chart in describing activity within an organization. Case problem: What is organizational structure and why do large organizations need continually to consider the designs of their organization? What may be the consequences of a good or bad design for a specific organization? Personal Products Company Body Shop www.thebodyshop.com Founded in 1976 by Anita Roddick, The Body Shop International plc, known as The Body Shop, has 2,400 stores in 61 countries, and is the second largest cosmetic franchise in the world...
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...THE STAR MODEL™ JAY R. GALBRAITH The Star Model™ framework for organization design is the foundation on which a company bases its design choices. The framework consists of a series of design policies that are controllable by management and can influence employee behavior. The policies are the tools with which management must become skilled in order to shape the decisions and behaviors of their organizations effectively. What is the Star Model™? The organization design framework portrayed in Figure 1 is called the “Star Model™.” In the Star Model™, design policies fall into five categories. The first is strategy, which determines direction. The second is structure, which determines the location of decision-making power. The third is processes, which have to do with the flow of information; they are the means of responding to information technologies. The fourth is rewards and reward systems, which influence the motivation of people to perform and address organizational goals. The fifth category of the model is made up of policies relating to people (human resource policies), which influence and frequently define the employees’ mind-sets and skills. Figure 1—The Star Model™ © Jay R. Galbraith. Do not post, publish or reproduce without permission. Strategy Strategy is the company’s formula for winning. The company’s strategy specifies the goals and objectives to be achieved as well as the values and missions to be pursued; it sets out the basic...
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...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. Structure is important...
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...THE STAR MODEL JAY R. GALBRAITH The Star Model framework for organization design is the foundation on which a company bases its design choices. The framework consists of a series of design policies that are controllable by management and can influence employee behavior. The policies are the tools with which management must become skilled in order to shape the decisions and behaviors of their organizations effectively. What is the Star Model? The organization design framework portrayed in Figure 1 is called the “Star Model.” In the Star Model, design policies fall into five categories. The first is strategy, which determines direction. The second is structure, which determines the location of decision-making power. The third is processes, which have to do with the flow of information; they are the means of responding to information technologies. The fourth is rewards and reward systems, which influence the motivation of people to perform and address organizational goals. The fifth category of the model is made up of policies relating to people (human resource policies), which influence and frequently define the employees’ mind-sets and skills. Figure 1—The Star Model JAY R. GALBRAITH THE STAR MODEL 2 Strategy Strategy is the company’s formula for winning. The company’s strategy specifies the goals and objectives to be achieved as well as the values and missions to be pursued; it sets out the basic direction of the company. The strategy specifically delineates...
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...BUSI610: Organization Design and Business Ethics Mitzi N. Harvey Liberty University Abstract This literature review examines the concepts of business ethics and how it is related to the organizational design of a corporation. The first section of this review defines the concepts of business ethics and organizational design to establish their meaning and use throughout this paper. The second aspect of understanding the relationship between business ethics and organizational design comes from understanding how and/or why ethics is important to organizational design. This will illustrate any underlying influences ethics has on business structure and design. The third section of this paper reviews and groups the literature found linking ethics and organizational design. Literature is grouped together based on the similarities found in authors’ opinions, research and/or results. The next section discusses the ideas of micro and macro ethics; first defining them, illustrating the differences and then explaining how they come into play when examining the link between ethics and design. The following sections of the review, provides examples of formal organizational structures, ethical programs, and the ethical decisions that impacted them. Finally, in the conclusion of the review it summarizes the relationship between business ethics and organizational design, how this relationship impacts business, and what this means for business managers. Introduction To sustain...
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...Organizational Design Inescapable Yes or No L. Gina Hunter UMET Miramar Campus ENGLISH 502 Academic Writing for Graduate Student II Prof. Méndez March 24, 2015 The Organizational Design of a Company is necessary for success. Have you ever wondered how some organizations always at the top of the charts, but others don’t survive? Organizational Design Inescapable? A solid organizational design is what makes the difference; it relies on how strong and solid the organizational structure and design are. According to the Center for Organizational Design, organizational design is defined as a step by step methodology that identifies dysfunctional aspects of workflow, procedures, structures and systems. Realigns them to fit current business realities/goals and then develops plans to implement the new changes. The process focuses on improving both the technical and people side of the business (Allen, 2012). As we live in a world of transition, where everything is changing at the speed of light. The organizational design is an inescapable part of any organization; big or small, is the key element for integrating the people, information, and technology. Having a strong organizational design provides a clear vision, and mission, it empower employees in the decision making of the organization. As a result, the reporting process will be transparent; the information will flow smoothly, and it will provide a definite work process. With a well design structure, everyone...
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