Chapter 6

Organizational
Designs

Robbins et al., Fundamentals of Management, 4th Canadian Edition

©2005 Pearson Education Canada, Inc. FOM 6.1
 Learning Outcomes
 Identify and define the six elements of organization
structure
 Describe the advantages and disadvantages of work
specialization
 Contrast authority and power
 Identify the five different ways by which management can
departmentalize
 Contrast mechanistic and organic organizations
 Summarize the effect on organization structures of
strategy, size, technology, and environment
(continued)

Robbins et al., Fundamentals of Management, 4th Canadian Edition

©2005 Pearson Education Canada, Inc. FOM 6.2
 Learning Outcomes
(continued)
 Contrast the divisional and functional
structures
 Explain the strengths of the matrix structure

 Describe the boundaryless organization and

what elements have contributed to its
development
 Explain what the term learning organization
means
 Describe what the term organization culture
means

Robbins et al., Fundamentals of Management, 4th Canadian Edition

©2005 Pearson Education Canada, Inc. FOM 6.3
 Organization Organization
Structure Design

The framework Developments in

for dividing, or changes to
assigning, and the structure of
coordinating work an organization
Robbins et al., Fundamentals of Management, 4th Canadian Edition
©2005 Pearson Education Canada, Inc. FOM 6.4
 Key Elements
of Organization Structure
Work Authority and
Specialization Responsibility

Chain Centralization vs.

of Command Decentralization

Span of Control Departmentalization

Robbins et al., Fundamentals of Management, 4th Canadian Edition
©2005 Pearson Education Canada, Inc. FOM 6.5
 Work Specialization
High

 Job is broken down into a number of

steps
Productivity

 Each step is completed by a separate

individual
 Makes efficient use of the diversity of
skills that workers have
Low

Low Work Specialization High

Robbins et al., Fundamentals of Management, 4th Canadian Edition

©2005 Pearson Education Canada, Inc. FOM 6.6
 The Chain of Command
Chief Executive
Officer

Executive Executive
President
Vice President Vice President

Vice Vice Vice Vice Vice

President President President President President

Region Region Region Region Region

1 2 3 4 5

District District District District District District District

A B C D E F G

Robbins et al., Fundamentals of Management, 4th Canadian Edition

©2005 Pearson Education Canada, Inc. FOM 6.7
 Span of Control
 Number of employees that an manager
can manage effectively
 Increased over the last several years
 Contingency variables impact number

Robbins et al., Fundamentals of Management, 4th Canadian Edition

©2005 Pearson Education Canada, Inc. FOM 6.8
 Authority vs. Responsibility
 Rights inherent in  Obligation to
managerial position perform
to give orders and  Goes hand-in-hand
expect them to be with authority
followed
 Related to one’s
position--not the
characteristics of
person
Robbins et al., Fundamentals of Management, 4th Canadian Edition
©2005 Pearson Education Canada, Inc. FOM 6.9
 The Concept of Authority
Chief Executive
Officer

Research and Human

Finance AccountingMarketingProduction
DevelopmentResources

Robbins et al., Fundamentals of Management, 4th Canadian Edition

©2005 Pearson Education Canada, Inc. FOM 6.10
 Line Authority
 Level of authority that entitles manager
to direct the work of an employee
 Contributes directly to the achievement
of organizational objectives

Robbins et al., Fundamentals of Management, 4th Canadian Edition

©2005 Pearson Education Canada, Inc. FOM 6.11
 The Concept
of Power

The Power
Core Authority
Level

Finance Human
Accounti Resources
ng

Research and
Marketing Production Development

Functio
n
Robbins et al., Fundamentals of Management, 4th Canadian Edition
©2005 Pearson Education Canada, Inc. FOM 6.12
 Coercive

Referent Reward

Power

Expert Legitimate

Robbins et al., Fundamentals of Management, 4th Canadian Edition

©2005 Pearson Education Canada, Inc. FOM 6.13
 The Degree of Centralization
Lower Higher

Decentralization
Top Management Control

Employee Empowerment
Centralization
Higher Lower
Robbins et al., Fundamentals of Management, 4th Canadian Edition
©2005 Pearson Education Canada, Inc. FOM 6.14
 Five Ways to Departmentalize
 Functional
 Product
 Customer
 Geographic
 Process

Robbins et al., Fundamentals of Management, 4th Canadian Edition

©2005 Pearson Education Canada, Inc. FOM 6.15
Robbins et al., Fundamentals of Management, 4th Canadian Edition
©2005 Pearson Education Canada, Inc. FOM 6.16
 Strategy

Contingency Size
Factors and
Organization
Technology
Design

Environmental
Uncertainty
Robbins et al., Fundamentals of Management, 4th Canadian Edition
©2005 Pearson Education Canada, Inc. FOM 6.17
 POWER
 How do You Build Power in and
Organization

Robbins et al., Fundamentals of Management, 4th Canadian Edition

©2005 Pearson Education Canada, Inc. FOM 6.18