Organizational Behavior Essay

This first essay I would like you to respond to textbook, Chapter 15, discussion question #5 on page 416. Your essay must be a minimum of 600 words, in APA format, with cover page. No abstract is necessary for your essay assignments. Make sure that you properly cite your references. NOTE: Your file MUST be in WORD (.doc) format.

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Designing Effective


Chapter Fifteen




After reading the material in this chapter, you should be able to:

LO15.1 Describe the four characteristics common to all organizations. LO15.2 Explain the difference between closed and open systems. LO15.3 Define seven basic ways organizations are structured





After reading the material in this chapter, you should be able to:

LO15.4 Discuss Burns and Stalker’s findings regarding mechanistic and organic organizations. LO15.5 Identify when each of the seven organization structures is the right fit. LO15.6 Describe the four generic organizational effectiveness criteria.




What is an Organization?

Organization  system of consciously coordinated activities or

sources of two or more people.




What is an Organization?

Four common denominators  Coordination of effort  Common goal  Division of labor  Hierarchy of authority




What is an Organization?

Unity of command principle  each employee should report to a single






At Creative Calendars, Inc., each employee reports only to one manager. This reflects: A.The division of labor. B.Coordination of effort. C.A narrow span on control. D.The unity of command principle.




Organization Charts

Organization chart  a graphic

representation of formal authority and division of labor relationships







Dimensions of an Organizational Structure

Hierarchy of


Division of labor

Spans of control

Line and staff





Sample Organization Chart for a Hospital




Organization Charts

Span of control  the number of people reporting directly to a

given manager. Generally, the narrower the span of control, the closer the supervision and the higher the administrative costs as a result of a higher manager-to-worker ratio.




Organization Charts

Staff personnel  Do background

research and provide technical advice, and recommendations to line managers.


Line Managers  have authority to

make organizational decisions.





An Open-System Perspective

Closed System  self-sufficient entity, closed to the surrounding

environment. Open System  depends on constant interaction with the

environment for survival




The Organization as an Open System




Organization Design in a Changing World

Organizational design  The structures of accountability and

responsibility used to develop and implement strategies, and the human resource practices and information and business processes that activate those structures




Traditional Design

Functional structure  groups people according to the business

functions they perform manufacturing, marketing, finance

Divisional structure  groups together activities related to outputs

type of product or customer




Traditional Design

Matrix structure  combines functional

and divisional chains of command to form a grid with two command structures




Matrix Structure




Principles for Designing a Horizontal Organization

1. Organize around complete workflow processes 2. Flatten hierarchy and use teams to manage

everything 3. Appoint process team leaders to manage internal

team processes 4. Let supplier and customer contact drive

performance 5. Provide required expertise from outside the team

as needed




Designs That Open Boundaries between Organizations

Hollow structure  organization identifies core competencies and

outsources other activities such as manufacturing, taking and shipping

Modular structure  Outsources parts of a product instead of





Designs That Open Boundaries between Organizations

Virtual organization  organization identifies partners with the needed

talents and negotiates an agreement in which the participants typically work in separate facilities, linked by technology as they work toward a common goal





Chad has developed a new product to improve gas mileage. He has formed a new venture but must outsource his marketing and distribution. His firm has a _________ organization. A.Functional B.Divisional C.Matrix D.Hollow




The Contingency Approach to Designing Organizations

Contingency approach to organization design  organizations tend to be more effective when

they are structured to fit the demands of the situation




Mechanistic versus Organic Organizations

Mechanistic organizations  Rigid bureaucracies with strict rules, narrowly

defined tasks, and top-down communication. Organic organizations  Flexible networks of multitalented individuals

who perform a variety of tasks




Different Approaches to Decision Making

Centralized decision making  key decisions are made by top management Decentralized decision making  important decisions are made by middle- and

lower-level managers





Bankers International (BI) can be described as a rigid bureaucracy with strict rules, narrowly defined tasks and top-down communication. BI can also be described as a(n) __________ organization. A.Mechanistic B.Organic C.Decentralized D.Wide-span




Getting the Right Fit

A functional structure can save money by grouping together people who need similar materials and equipment Divisional structures increase employees’ focus on customers and products




Getting the Right Fit

A successful matrix structure requires superior managers who communicate extensively, foster commitment and collaboration, manage conflict and negotiate effectively to establish goals and priorities consistent with the organization’s strategy




Getting the Right Fit

Horizontal designs improve coordination and communication Organizations that become hollow, modular, or virtual can generate superior returns by focusing on what they do best





Oneal, CEO of Fredhandbag HobbyTown, wants to improve the communication in his firm. He should change to a _________ organization. A.Functional B.Matrix C.Horizontal D.Modular




Four Dimensions of Organizational Effectiveness

Figure 15-4




Generic Effectiveness Criteria

Goal accomplishment  most widely used effectiveness criteria Resource acquisition  organization is effective if it acquires necessary

factors of production





Sherman, a new manager at Get Well Industries, is interested in learning about the most likely used effectiveness criterion for organizations. Which of these would you recommend to Sherman? A.Goal accomplishment B.Resource acquisition C.Internal processes D.Strategic constituencies satisfaction





Generic Effectiveness Criteria

Internal processes  focuses on “what the organization must excel

at” to effectively meet its financial objectives and customers’ expectations.

Strategic constituencies satisfaction  Strategic constituency: any group of people

with a stake in the organization’s operation or success.





Strategic Constituencies Satisfaction

Strategic constituency  any group of individuals who have some stake

in the organization—for example, resource providers, users of the organization’s products or services, producers of the organization’s output, groups whose cooperation is essential for the organization’s survival, or those whose lives are significantly affected by the organization




Mixing Effectiveness Criteria: Practical Guidelines

Goal accomplishment approach is appropriate when goals are clear, consensual, time- bounded, and measurable




Mixing Effectiveness Criteria: Practical Guidelines

Resource acquisition approach is appropriate when inputs have a traceable effect on results or output




Mixing Effectiveness Criteria: Practical Guidelines

Internal processes approach is appropriate when organizational performance is strongly influenced by specific processes




Mixing Effectiveness Criteria: Practical Guidelines

Strategic constituencies approach is appropriate when powerful stakeholders can significantly benefit or harm the organization




Video: One Smooth Stone

The corporate event planning industry is very dynamic. What characteristics of One Smooth Stone help it to remain competitive and successful in this industry? Why won’t the premises of organization theory proposed by theorists like Fayol and Weber work for organizations in a dynamic environment? Why won’t they work with knowledge workers? How important is it to ensure that the values of outsourcing partners align with One Smooth Stone’s? Why?


  • Designing Effective Organizations
  • After reading the material in this chapter, �you should be able to:
  • After reading the material in this chapter, �you should be able to:
  • What is an Organization?
  • What is an Organization?
  • What is an Organization?
  • Question?
  • Organization Charts
  • Dimensions of an �Organizational Structure
  • Sample Organization Chart for a Hospital
  • Organization Charts
  • Organization Charts
  • An Open-System Perspective
  • The Organization as an Open System
  • Organization�Design in a Changing World
  • Traditional Design
  • Traditional Design
  • Matrix Structure
  • Principles for Designing a Horizontal Organization
  • Designs That Open Boundaries between Organizations
  • Designs That Open Boundaries between Organizations
  • Question?
  • The Contingency Approach to Designing Organizations
  • Mechanistic versus Organic �Organizations
  • Different Approaches to Decision Making
  • Question?
  • Getting the Right Fit
  • Getting the Right Fit
  • Getting the Right Fit
  • Question?
  • Four Dimensions of Organizational� Effectiveness
  • Generic Effectiveness Criteria
  • Question?
  • Generic Effectiveness Criteria
  • Strategic Constituencies Satisfaction
  • Mixing Effectiveness Criteria: �Practical Guidelines
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