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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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

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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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