Organizational behavior Organizational structure and Human resource policies
Organizational Behavior Organizational Structure and Human Resource Policies
Organization design The process of assessing and selecting the structure and formal system of communication, division of labor (work specialization), coordination, control authority, and responsibility to achieve an organizations goals
Organization Design • The process of assessing and selecting the structure and formal system of communication, division of labor (work specialization), coordination, control, authority, and responsibility to achieve an organization’s goals
Effective Organization mplements an organizations strategy in a manner which satisfies the needs of its multiple stakeholders-customers shareholders, and employees Must be aligned fit with the strategy, situation, and objectives of stakeholders
Effective Organization • Implements an organization’s strategy in a manner which satisfies the needs of its multiple stakeholders – customers, shareholders, and employees. • Must be aligned “fit” with the strategy, situation, and objectives of stakeholders
Organizational alignment Fit Strategy Structure -tasks, specialization, authority Systems- processes and procedures Staffing- people and competencies Skills -distinctive competencies Style-leadership and operating Shared Values- guiding principles
Organizational Alignment “Fit” • Strategy • Structure – tasks, specialization, authority • Systems – processes and procedures • Staffing – people and competencies • Skills – distinctive competencies • Style – leadership and operating • Shared Values – guiding principles
Organizational structure How jobs tasks are formally divided grouped and coordinated Work specialization Departmentalization Chain and Unity of command Span of control Centralization versus decentralization
Organizational Structure • How jobs tasks are formally divided, grouped and coordinated – Work specialization – Departmentalization – Chain and Unity of command – Span of control – Centralization versus decentralization
Work specialization The degree to which tasks are subdivided Into separate jobs Efficient use of employee skills Increases employee skills through repetition Less downtime between jobs Allows use of specialized equipment
Work Specialization • The degree to which tasks are subdivided into separate jobs – Efficient use of employee skills – Increases employee skills through repetition – Less downtime between jobs – Allows use of specialized equipment
Departmentalization The basis by which jobs are grouped together Function Product Geography Process Customer
Departmentalization • The basis by which jobs are grouped together – Function – Product – Geography – Process – Customer
Chain and Unity of Command The chain of command is the unbroken line of authority that extends from the top of the organization to the lowest level and clarifies who reports to whom The unity of command states that subordinate should have only one superior to whom he or she is directly responsible
Chain and Unity of Command • The chain of command is the unbroken line of authority that extends from the top of the organization to the lowest level and clarifies who reports to whom • The unity of command states that subordinate should have only one superior to whom he or she is directly responsible
Span of control The number of subordinates a manager can efficiently and effectively direct Narrow span of control Additional layers of management Increased complexity of vertical communication Tight supervision Discouragement of employee autonomy
Span of Control • The number of subordinates a manager can efficiently and effectively direct • Narrow span of control – Additional layers of management – Increased complexity of vertical communication – Tight supervision – Discouragement of employee autonomy
Centralization The degree to which decision making is concentrated at a single point in the organization
Centralization • The degree to which decision making is concentrated at a single point in the organization