ORGANISATION STRUCTURE

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CHAPTER 8

ORGANISATION STRUCTURE

•                  LECTURE OUTLINE

•                  Nature of organisation structure

•                  Job design

•                  Types of departmentalisation

•                  Methods of vertical coordination

•                  Promoting innovation

(methods of horizontal coordination)

•                  NATURE OF
ORGANISATION STRUCTURE

Formal pattern of interactions and coordination designed by management to link the tasks of individuals and groups in achieving organisational goals.

•                  NATURE OF
ORGANISATION STRUCTURE

Four elements:

1.                       Assignment of tasks and responsibilities to individuals and units

2.                       Clustering these to form a hierarchy

3.                       Mechanisms for vertical coordination

4.                       Mechanisms for horizontal coordination

•                  NATURE OF
ORGANISATION STRUCTURE

The organisation chart

–                                        Line diagram depicting broad outlines of an organisation’s structure

The chain of command

–                                        Unbroken line of command ultimately linking each individual with the top organisational position

•                  NATURE OF
ORGANISATION STRUCTURE

Principles of chart design

–                                        As few hierarchical levels as possible

–                                        Charts should show who has authority over who

–                                        Charts should show official lines of responsibility & communication

•                  NATURE OF
ORGANISATION STRUCTURE

•                  JOB DESIGN

Work Specialisation

•                  Degree to which work is broken down into various jobs

•                  Most organisations require work specialisation, otherwise every employee would need to be able to perform every job

•                  JOB DESIGN

Specification of task activities associated with a particular job

•                  logical grouping of tasks

•                  design of jobs affects employee        motivation

•                  JOB DESIGN

Four main approaches:

•                  Job simplification

•                  Job rotation

•                  Job enlargement

•                  Job enrichment

•                  JOB DESIGN

Job simplification

Process of configuring jobs so job-holders have only a small number of narrow activities to perform.

•                  JOB DESIGN

Job rotation

Practice of periodically shifting workers through a set of jobs in a planned sequence.

•                  JOB DESIGN

Job enlargement

Allocation of a wider variety of similar tasks to a job to make it more challenging.

Job Scope

Number of different tasks an employee performs in a particular job.

•                  JOB DESIGN

 

Job enrichment

Process of upgrading the job-task in order to increase significantly potential for growth, achievement, responsibility and recognition.

•                  Job depth

•                  Job characteristics model

•                  JOB DESIGN

Job characteristics model:

Model developed to guide job-enrichment efforts.

•                  Core job characteristics

•                  Critical psychological states

•                  Outcomes

•                  JOB DESIGN

Core job characteristics

•                  Skill variety

•                  Task identity

•                  Task significance

•                  Autonomy

•                  Feedback

•                  JOB DESIGN

Critical psychological states:

•                  Experienced meaningfulness of work

•                  Experienced responsibility for work outcomes

•                  Knowledge of the actual results of work

•                  CORE JOB CHARACTERISTICS

Outcomes

•                  High internal work motivation

•                  High ‘growth’ satisfaction

•                  High general job satisfaction

•                  High work effectiveness

skill variety      experienced meaningfulness

task identity           of the work                       high internal work

task significance                                                          work motivation

high ‘growth’

autonomy    experienced responsibility             satisfaction

for work outcomes

high work

feedback from       knowledge of results from             effectiveness

work activities

•                  MANAGING DIVERSITY:  ALTERNATIVE WORK SCHEDULES

•                  MANAGING DIVERSITY: ALTERNATIVE WORK SCHEDULES

Schedules based on adjustments in the

normal work schedule rather than in the

job content.

•                  Flexitime

•                  Compressed work week

•                  Job sharing

•                  DEPARTMENTALISATION

Clustering individuals into units, and units into departments and larger units, to facilitate achieving organisational goals.

•                  TYPES OF DEPARTMENTALISATION

•                  Functional

•                  Divisional

•                  Hybrid

•                  Matrix

•                  DEPARTMENTALISATION

•                  METHODS OF VERTICAL
COORDINATION

Linking of activities at the top of the organisation

with those at the middle and lower levels to

achieve organisational goals.

•                  Formalisation

•                  Span of management

•                  Centralisation vs decentralisation

•                  Delegation

•                  Line & staff positions

•                  METHODS OF VERTICAL
COORDINATION

Formalisation:

•                  Degree to which written policies, rules, procedures, job descriptions and other documents specify what actions are (not) to be taken under a given set of circumstances

•                  Extent of formalisation tends to grow with
age & size.

•                  METHODS OF VERTICAL
COORDINATION

Factors influencing span of management:

–                                        High competence levels

–                                        Low interaction requirements

–                                        Work similarity (between organisational peers)

–                                        Low problem frequency and seriousness

–                                        Physical proximity

–                                        Few non-supervisory duties of managers

–                                        Considerable available assistance

–                                        High motivational work possibilities

•                  METHODS OF VERTICAL
COORDINATION

Centralisation

Extent to which power & authority are retained at the top organisational levels

Decentralisation

Extent to which power & authority are delegated to lower levels

Factors favouring centralisation

•                  Large organisational size

•                  Geographic dispersion

•                  Technological complexity

•                  Environmental uncertainty

•                  METHODS OF VERTICAL
COORDINATION

•                  METHODS OF VERTICAL
COORDINATION

Delegation

Assignment of part of a manager’s work to others, along with both responsibility & authority necessary to achieve expected results

Factors restraining delegation

•                  Fear of subordinate failure

•                  Time to train subordinates

•                  Enjoy doing tasks

•                  Release of authority

•                  Concern for task performance

•                  Fear subordinate competence

•                  METHODS OF VERTICAL
COORDINATION

Configuration of line and staff positions:

•                  Line authority

Authority following the chain of command established by the formal hierarchy

•                  Functional authority

Authority of staff over others in the organisation in matters related directly to their respective functions e.g. HRM dept

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METHODS OF HORIZONTAL
COORDINATION

Horizontal coordination:

•                  Linking of activities across departments at similar levels

•                  Need for information processing across the organisation

•                  Promotes innovation through dissemination of ideas & information

•                  METHODS OF HORIZONTAL
COORDINATION

Horizontal coordination promoted by:

•                  Slack resources

Cushion of resources that facilitates adaptations to internal/external pressures, as well as initiation of changes

•                  Information systems

One information source for many users

•                  Lateral relations

Direct contact, liaison roles, task forces, teams

•                  LECTURE SUMMARY

•                  The nature of organisational structure

–                                        Definition

–                                        Organisation chart

–                                        Job design

•                  Job design

–                                        Designing for motivation: job enlargement, rotation, enrichment, simplification

•                  Types of departmentalisation

–                                        Functional, divisional, hybrid, matrix

•                  LECTURE SUMMARY

•                  Methods of vertical coordination

–                                        Formalisation

–                                        Span of management

–                                        Centralisation vs decentralisation

–                                        Delegation

–                                        Line & staff authority

•                  LECTURE SUMMARY

•                  Methods of horizontal coordination

–                                        Slack resources

–                                        Information systems

–                                        Lateral relations