Designing Adaptive Organizations

Topics: Organizational structure, Flat organization, Organization Pages: 17 (4622 words) Published: October 13, 2014
Chapter 10
Designing Adaptive Organizations
Chapter Outline

I. Organizing the Vertical Structure
A. Work Specialization
B. Chain of Command
C. Span of Management
D. Centralization and Decentralization
II. Departmentalization
A. Vertical Functional Approach
B. Divisional Approach
C. Matrix Approach
D. Team Approach
5. The Virtual Network Approach
F. Advantages and Disadvantages of Each Structure
III Organizing for Horizontal Coordination
1. The Need for Coordination
2. Task Forces, Teams, and Project Management
3. Reengineering
IV. Factors Shaping Structure
1. Structure Follows Strategy
2. Structure Reflects the Environment
3. Structure Fits the Technology

I. ORGANIZING THE VERTICAL STRUCTURE Exhibit 10.1

How would you define organizing? Why is it important?
Organizing is the deployment of organizational resources to achieve strategic goals It is important because it follows from strategy. Strategy defines what to do, and organizing defines how to do it. The organizing process leads to the creation of organization structure, which defines how tasks are divided, resources are deployed and departments are coordinated. . Organization structure refers to:

Formal tasks assigned to individuals and departments
Formal reporting relationships including lines of authority, decision responsibility, number of hierarchical levels and span of managers' control Design of systems for coordination across departments

The organization chart is the visual representation of an organization's structure. It delineates the chain of command, indicates departmental tasks and how they fit together, and provides order and logic for the organization . Every employee has an appointed task, line of authority, and decision responsibility. There are several important features of the vertical structure: A. Work Specialization

A fundamental principle is that work can be performed more efficiently if employees are allowed to specialize. Work specialization, sometimes called division of labor, is the degree to which organizational tasks are subdivided into separate jobs. Production is efficient because employees perform small, well defined tasks. Organizations are moving away from this principle because wit too much specialization, employees are isolated and do only a single boring job. Many companies are enlarging jobs to provide greater challenges or assigning teams to tasks so employees can rotate among the jobs performed by the team. B. Chain of Command

The chain of command is an unbroken line of authority that links all persons in an organization and shows who reports to whom. It is associated with two underlying principles:
Unity of command. Each employee is held accountable to only one supervisor. The scalar principle. There is a clearly defined line of authority in the organization that includes all employees. 1. Authority, Responsibility, and Delegation

The chain of command illustrates the authority structure of the organization. Authority is the formal and legitimate right of a manager to make decisions, issue orders, and allocate resources to achieve organizational outcomes Authority is distinguished by three characteristics:

Authority is vested in organizational positions, not people. Managers have authority because of the positions they hold. Authority is accepted by subordinates. Authority flows top down through the organizations hierarchy; subordinates comply because they accept the managers' orders. The acceptance theory of authority argues that a manager has authority only if subordinates choose to accept the commands. Authority flows down the vertical hierarchy. Positions at the top have more formal authority than those at the bottom. Responsibility is the duty to perform the task or activity an employee has been assigned; managers are assigned the authority commensurate with responsibility. Accountability is the mechanism through which authority and responsibility are brought into alignment. Those...
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