HRM 301 Organizational Behavior

Dr. N. Rotter

George & Jones: Chap. 15

Objectives:

After today's session, you should be able to:

1. Explain the basic characteristics of organizational structure as they are reflected in an organization chart.

2. Describe different approaches to differentiation and integration

3. Distinguish between mechanistic and organic structures.

4. Describe the link between organizational effectiveness and organizational structure.

I. Basic Characteristics of Organizational Structure

A. What is organizational structure

B. Division of labor

C. Hierarchy of authority

D. Span of control

E. Line vs staff positions

F. Decentralization

II. Differentiation and Integration

A. Differentiation

1. Simple structures

2. Functional structure

3. Product structure

4. Geographic structure

5. Market structure

6. Matrix structure

7. Virtual organizations

B. Integration

1. Hierarchy of authority

2. Direct contact and supervision

3. Liaison roles

4. Teams, committees, task forces

5. Standardization and formalization

III. Mechanistic and Organic Organizational Designs

A. Mechanistic design and stable conditions

B. Organic design and dynamic conditions

IV. Organizational Effectiveness and Organizational Structure

A. Criteria of effectiveness

1. Output approach: profit, quality, productivity, growth

2. Internal process approach; worker motivation, communication, loyalty, decision making

3. Systems resource approach: ability of the firm to obtain raw materials and knowledge resources

(This includes material, human resources, finances, and public support)

4. Stakeholder approach: Satisfaction of owners, employees, customers, and community

B. Relationship of effectiveness to structure: Organizational size

1. Relation of size to organizational structure

2. Relation of size to employee reactions