Chap 3 : Organizational Structure
[Pages:23]Chap 3 : Organizational Structure
? Organization versus Structure ? Theories of contingency approach
? Internal and external factors ? a typology of organizations (Mintzberg)
? Types of organizational structures
? functional organization (U-form) ? divisional organization (M-form, H-form) ? matrix organization (matrix-form) ? network organization ? composite structure examples ? formal and informal structure
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Solvay Business School
Five circles model
(Hatch, 1997)
ENVIRONMENT
Culture
Social structure
ORG
Physical structure
Technology
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Chronology of organizational theories (SCOTT)
1900 - 1930 Organize for efficient production
"Order from rules"
1960 - 1970
Individual is a rational
Adapt structure
agent
"Organization modeled by exogenous forces"
Max WEBER(1864-1920) Frederick TAYLOR (1856-1915) Henri FAYOL (1841-1925)
Directive Management
Alfred CHANDLER Paul LAWRENCE et Jay LORSCH Johan WOODWARD Charles PERROW
Contingency and planification
Organization is a closed system
Human Relations
Herbert SIMON
Organization is an open system Michel CROZIER
Participating management
Elton MAYO Douglas McGREGOR Abraham MASLOW Frederick HERZBERG
? role of group and working conditions ?
Karl WEICK James MARCH William OUCHI
Individual is a social
agent
? Complexity, change, turbulence and adhocracy ?
Individual motivation 1930 - 1960
Anne Drumaux Management ? Organization Mobilize through c3ulture
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Definitions
? organization is a pattern of relationships through which people, under the direction of managers, pursue their common goals
? organizational structure is the way in which organization's activities are divided, organized and coordinated
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Theories of contingency approach
Internal Variables
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External Variables (environment)
age size technology strategy coordination Labor division
variability turbulence relativity national culture
Starbuck, Greiner, Stinchcombe Dale, Blau, Aldrich Woodward, Perrow Chandler, Child
Mintzberg
Burns et Stalker Emery et Trist Laurence et Lorsch Hofstede
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Chandler
Structure has to match strategy
Multidivisional firm Diversification
Functional evoluated organization
Vertical integration Unit firm
Geographic expansion
Field unit
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Environment's factors
? Burns and Stalker
? The Mechanistic Organization ? The Organic Organization
? Lawrence and Lorsch
? Differentiation and Integration ? Three sub-environments
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Organization Environment
Stable
Dynamic
1. Stable Demand
2 Unchanged set of competitors
3. Evolutionary technological innovation and new product developments .
4. Government policies change little over time
1. Changes in Demand
2 Changes in the nature of competition
3.Revolutionary technological innovation and new product development (R&D)
4. Quickly evolving government policies
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Burns and Stalker
Mechanistic - RIGID
Organic - FLUID
? specialization and fragmentation of tasks
? coordination of tasks to achieve a common goal
? hierarchic structure of control
? continuous re-definition of responsibilities
? knowledge vertical flow through hierarchy
? lateral flow of knowledge
? loyalty and obedience to the superior ? instructions and decisions ? prestige due to job titles
?knowledge dictate authority center ? information and advice ? prestige due to expertise
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Mechanistic and Organic Organization
Specialization&Tall Hierarchy
Flat structure
Centralized Decision Making
Decentralized decision making
Knowledge at the top of the pyramid Knowledge locates everywhere
Employees ? procedure oriented
People ? goal oriented
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