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  • OB Model developed by Margie Parikh

    Understanding Individuals in organisationsPerception/Attitude/Motivation/personaity

    Understanding groups in organisationsThresholds of interperson behaviour/understanding groups and teams/communication/Conflict,stress and negotiation/decision making/power and politics

    Understanding how organisations shape behaviourOrganisational design /Organisational structure/Organisational roles/organisational culture

    Effectiveness through managing and leading human behaviour at work

    Individual effectiveness

    Effectiveness of groupRelationships

    Effectiveness of Organisational roles

    Group effectiveness

    Organisational effectiveness

    Effectiveness of systems and process

    Prof. Mary Bodra.

  • ORGANIZATIONAL STRUCTURES

    The key is to match structures to goals

  • Organizational Structures

    Organizational structure is the way in which the interrelated groups of an organization are constructed.

    The main concerns are effective communication and coordination

    Prof. Mary Bodra.

  • Organizational Structures Several aspects determine the organizational

    structure DETERMINANTS OF ORGANIZATIONAL

    STRUCTURE Strategy Technology Size Environment Differentiation-Integration Power and Control-Chain and span of control

    Prof. Mary Bodra.

  • Contingency Factors Structural decisions are influenced by: Overall strategy of the organization Organizational structure follows strategy.

    Size of the organization Firms change from organic to mechanistic organizations

    as they grow in size.

    Technology use by the organization Firms adapt their structure to the technology they use.

    Degree of environmental uncertainty Dynamic environments require organic structures;

    mechanistic structures need stable environments.

    Prof. Mary Bodra.

  • Contingency Factors Strategy Frameworks: Innovation Pursuing competitive advantage through meaningful and

    unique innovations favors an organic structuring.

    Cost minimization Focusing on tightly controlling costs requires a

    mechanistic structure for the organization.

    Imitation Minimizing risks and maximizing profitability by copying

    market leaders requires both organic and mechanistic elements in the organizations structure.

    Prof. Mary Bodra.

  • Contingency Factors Strategy and Structure

    Achievement of strategic goals is facilitated by changes in organizational structure that accommodate and support change.

    Size and Structure

    As an organization grows larger, its structure tends to change from organic to mechanistic with increased specialization, departmentalization, centralization, and rules and regulations.

    Prof. Mary Bodra.

  • Contingency Factors Technology and Structure

    Organizations adapt their structures to their technology.

    Woodwards classification of firms based on the complexity of the technology employed:

    Unit production of single units or small batches

    Mass production of large batches of output

    Process production in continuous process of outputs

    Routine technology = mechanistic organizations

    Non-routine technology = organic organizations

    Prof. Mary Bodra.

  • Woodwards Findings on Technology, Structure, and Effectiveness

    Prof. Mary Bodra.

  • Contingency Factors

    Environmental Uncertainty and Structure

    Mechanistic organizational structures tend to be most effective in stable and simple environments.

    The flexibility of organic organizational structures is better suited for dynamic and complex environments.

    Prof. Mary Bodra.

  • Strategy and Goals of Organisation

    Strategy and goals are closely linked

    Strategy of the firm starts with selecting some goals over others

    Prof. Mary Bodra.

  • What is Strategy ?

    Strategy is the process of positioning the organisation in the competitive environment and implementing actions to complete successfully

    Prof. Mary Bodra.

  • What are the different types of organizational goals?

    Societal goals Reflect an organizations intended contributions to the

    broader society By contributing to the larger society organizations gain

    legitimacy-a social right to operate By claiming to provide specific types of societal

    contributions an organisation can claims over resources, individuals, markets, and products Example Tobacco firm(heavily taxed social contribution

    highly questionable)

    Prof. Mary Bodra.

  • What are the different types of organizational goals? Mission statement Often a social contribution of the firm is a part of

    its mission statement A written statement of organizational purpose A good mission statement identifies whom the

    firm will serve and how it will go about accomplishing its societal purpose A mission statement is often the first visible

    outcome in developing a strategy

    Prof. Mary Bodra.

  • What are the different types of organizational goals? Output goals Define the type of business the organization is

    pursuing Provide some substance to the more general

    aspects of mission statements Example for a bank the out goals will be retail

    banking ,commercial banking ,investment advisory services and electronic payment processing

    Prof. Mary Bodra.

  • What are the different types of organizational goals?

    Systems goals Concerned with the conditions within the organization that

    are expected to increase the organizations survival potential

    Typical systems goals include growth, productivity, stability, harmony, flexibility, prestige, and human resource maintenance

    System goals provide a road map that helps them link together various units of their organisation to assure survival

    Prof. Mary Bodra.

  • What are the different types of organizational goals? Well-defined systems goals can: Focus managers attention on what needs to be

    done Provide flexibility in devising ways to meet

    important targets Be used to balance the demands, constraints, and

    opportunities facing the firm Form a basis for dividing the work of the firm-

    basis for developing a formal structure

    Prof. Mary Bodra.

  • Defining Organizational Structure Successful organizations develop a structure

    consistent with the pattern of goals established by senior management

    The formal structure shows the planned configuration of positions, job duties, and the lines of authority among different parts of the organization

    Prof. Mary Bodra.

  • Defining Organizational Structure Organizational Structure The formal arrangement of jobs within an

    organization.

    Organizational Design A process involving decisions about six key elements:

    Work specialization

    Departmentalization

    Chain of command

    Span of control

    Centralization and decentralization

    Formalization

    Prof. Mary Bodra.

  • Organizational Structure Work Specialization The degree to which tasks in the organization are

    divided into separate jobs with each step completed by a different person. Overspecialization can result in human

    diseconomies from boredom, fatigue, stress, poor quality, increased absenteeism, and higher turnover.

    Prof. Mary Bodra.

  • Departmentalization by Type

    Functional Grouping jobs by functions

    performed

    Product Grouping jobs by product

    line

    Geographical Grouping jobs on the basis

    of territory or geography

    Process Grouping jobs on the basis

    of product or customer flow

    Customer Grouping jobs by type of

    customer and needs

    Prof. Mary Bodra.

  • Exhibit 102 Functional Departmentalization

    Advantages Efficiencies from putting together similar specialties and

    people with common skills, knowledge, and orientations Coordination within functional area In-depth specialization

    Disadvantages Poor communication across functional areas Limited view of organizational goals

    Prof. Mary Bodra.

  • Prof. Mary Bodra.

  • Product Departmentalization

    + Allows specialization in particular products and services+ Managers can become experts in their industry+ Closer to customers Duplication of functions Limited view of organizational goals

    Prof. Mary Bodra.

  • Geographical Departmentalization

    Advantages More effective and efficient handling of specific

    regional issues that arise Serve needs of unique geographic markets better

    Disadvantages Duplication of functions Can feel isolated from other organizational areas

    Prof. Mary Bodra.

  • Process Departmentalization

    + More efficient flow of work activities Can only be used with certain types of products

    Prof. Mary Bodra.

  • Customer Departmentalization

    + Customers needs and problems can be met by specialists- Duplication of functions- Limited view of organizational goals

    Prof. Mary Bodra.

  • Organization Structure

    Chain of command A listing of who reports to whom up and down the

    organization Unity of command Each person has only one boss and each unit one

    leader Span of control The number individuals reporting to a supervisor

    Prof. Mary Bodra.

  • Organization Structure Span of Control The number of employees who can be effectively and

    efficiently supervised by a manager.

    Width of span is affected by: Skills and abilities of the manager

    Employee character

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