Chapter15OrganizationalDesignStructureNelsonQuick.ppt

Chapter 15Organizational Design  StructureNelson Quick; Organizational Design - the process of constructing and adjusting an organization’s structure to achieve its goals.;Key Organizational Design Processes; Four Dimensions Goal orientation Time orientation Interpersonal orientation Formality of structure ;Horizontal Differentiation;Vertical Differentiation;Spatial Differentiation; Designed to achieve unity among individuals and groups Supports a state of dynamic equilibrium - elements of organization are integrated, balanced;Vertical Integration;HorizontalIntegration;Hierarchy of Authority - the degree of vertical differentiation across levels of management;Adhocracy - a selectively decentralized form of organization that emphasizes the support staff mutual adjustment among people;Prime Coordinating Mechanism Direct Supervision Standardization of Work Processes Standardization of Skills Standardization of Outputs Mutual Adjustment;Contextual Variables - a set of characteristics that influences the organization’s design processes;Size;Technology;Relationship Between Technology and Basic Design Dimensions;Environment;Strategic Dimension Predicted Structural Characteristics Innovation--to understand Low formalization and manage new processes Decentralization and technologies Flat hierarchy Market differentiation--to Moderate to high complexity specialize in customer Moderate to high formalization Moderate centralization preferences Cost control--to produce High formalization standardized products High centralization efficiently High standardization Low complexity;Context of the organization Correct size Current technology Perceived environment Current strategy goals;Differentiation Integration;Fo