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Organizational Structure and Change

Terms in this set (27)

Four building blocks of structure
centralization, formalization, hierarchical levels, departmentalization
centralization
the degree to which decision making authority is concentrated at higher levels in an organization
decentralization
Make decisions and solve problems at lower levels, giving authority to more employees
formalization
the extent to which policies, procedures, job descriptions, and rules are written and explicitly articulated. Many rules and regulations, reduces ambiguity and provides direction but reduces innovativeness, motivation, and satisfaction
Tall Structure
A form of hierarchy that has several layers of management between frontline employees and the top. Greater control, many promotional opportunities. Small span of control
Flat structure
A hierarchy that consists of few layers, often with large numbers of employees reporting to a single manager. More employee autonomy, fewer managers to be paid so it can be more cost effective. Wide span of control
Span of Control
Number of employees reporting to a single manager
Departmentalization
Functional and Divisional Structures
Functional Structures
Group jobs based on similarity in functions.
Divisional Strucutre
Grouping job based on products, services, customers, or geographic locations. Functional structure replicated across divisions. Employees become generalists
Two types of organizational Structures based on the 4 building blocks
Mechanistic and Organic Structures
Mechanistic Structures
resemble a bureaucracy and are highly formalized, centralized, tall, and departmentalized. Best for cost minimization
Organic Structures
Flexible and decentralized with fluid communication. Flat, informal, team based. Conductive to entrepreneurial behavior and innovativeness
Matrix Organizations
Uses the best of functional and divisional chains of command. Violates the unity of command principle.
Boundaryless Organization
Organization delivers some but not all of the services, relies on partners. Eliminates barriers between departments and between organization and external environment
Modular organization
Where all the nonessential functions are outsources. Outsources manufacturing of components- Ex: Car companies assemble parts they get from other organizations. You can outsource the cost of manufacturing to someone else but you lose some control Ex: airbags, also lose expertise in some areas
Strategic Alliance
Boundaryless design where two or more companies find an area of collaboration and combine their efforts to create a mutually beneficial partnership
Networked Structure
Designed around a central core of key functions and outsources other functions to other companies who can do them cheaper or faster. Ex: Amazon outsources shipping
Learning organization
acquiring knowledge and changing behavior as a result is part of design. Experimentation and testing potentially better operational methods in response to threats as a way of identifying future opportunities
Causes of organizational change
workplace/social demographics, technology, globalization (geo-political), changes in market conditions, organizational growth, poor performance
why people resist change
disrupted habits, personality,feelings of uncertainty, fear of failure, personal impact of change, prevalence of change, perceived loss of power
Change:Who
Active Resistance-may sabatoge change effort, outspoken objectors
Passive resistance- being disturbed by change without voicing these opinions
compliance-going along with change with little enthusiasm
Enthusiastic support- defenders of the new way and encouraging others to give support to the change effort
Lewin's 3 stage model of change
Unfreezing-ensures that employees are ready for change
Changing- execute the intended change
Refreezing- ensures the change becomes permanent
Degrees of change
evolutionary- piecemeal "bottoms-up"
revolutionary- sudden, drastic, and organization-wide "top-down"
7-S Model
Use the framework to identify what isn't working. To prepare for change and how each dimension(7) will be effected
Data are collected which enable the change agent to make some determinations as to where the primary problems are across 7 categories.
After data analyzed, recommendations for change are made
Kotter's Steps for Organizational Change
1.Establish a sense of urgency
2.build a coalition for change
3.Create a vision for change->find using the 7S model
4.Communicate a plan for change
5.Eliminate obstacles to change
6.create small wins
7.build on change
8.make change a part of culture
Ringi System
A Japanese system of management that involves proposals at lower levels being signed and passed along to higher-level management in an effort to build consensus
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