1. Organizational Design Fundamentals

3. Management Functions Planning Organizing Leading Controlling Defining goals, estab- lishing strategy, and developing subplans to coordinate activities Determining what needs to be done, how it will be done, and who is to do it Directing and moti- vating all involved parties and resolving conflicts Monitoring activities to ensure that they are accomplished as planned Achieving the organization’s stated purpose Lead to Designing organizational structures is part of organizing, one of the four basic management functions.

4. Org chart example Chief Executive Officer President Vice- President Region 3 District D Executive Vice-President Region 1 Region 2 Region 4 Region 5 District A District B District E District F District G District C Vice- President Vice- President Vice- President Vice- President Executive Vice-President

5. Alternate Org. Form: A Matrix Organization Design Engineering Manu- facturing Contract Admin. Purchasing Accounting Human Resources Alpha Project Beta Project Gamma Project Omega Project Design Group 1 Design Group 2 Design Group 3 Design Group 4 Mftg. Group 1 Mftg. Group 2 Mftg. Group 3 Mftg. Group 4 Contract Group 1 Contract Group 2 Contract Group 3 Contract Group 4 Purch. Group 1 Purch. Group 2 Purch. Group 3 Purch. Group 4 Acctg. Group 1 Acctg. Group 2 Acctg. Group 3 Acctg. Group 4 HR Group 1 HR Group 2 HR Group 3 HR Group 4

6. An IS Department Org Chart Fig. 1-3. IS professionals frequently work in project-based teams. Only 1 team works on a project, usually. People work on many projects, however (e.g. a matrix organization). Teams are comprised of diverse group of members from several areas, and may include users, managers, analysts, programmers, etc.

11. Vertical complexity Contrasting Spans of Control (Highest) Assuming Span of 8 1 2 3 4 5 6 7 1 4 16 64 256 1,024 4,096 1 8 64 512 4,096 Organization Level (Lowest) Span of 4: 4,096 Operatives. 1,365 Managers Span of 8: 4,096 Operatives. Only 585 Managers! Which organization looks more appealing to you? Assuming Span of 4

12. Horizontal complexity Functional Departmentalization Plant Manager Manager, Engineering Manager, Accounting Manager, Manufacturing Manager, Human Resources Manager, Purchasing Press Dept. Mgr. Tube Dept. Mgr. Finishing Dept. Mgr. Inspection Dept. Mgr. Castings Dept. Mgr.

13. Horizontal complexity Product Departmentalization Bombardier, Inc. Recreational Products Division Logistic Equipment Division Industrial Equipment Division Bombardier- Rotax (Gunskirchen) Mass Transit Sector Rail Products Sector Recreational and Utility Vehicles Sector Mass Transit Division Bombardier-Rotax (Vienna) Rail and Diesel Products Division

14. Horizontal complexity Customer Departmentalization Director of Sales Manager , Retail Accounts Manager , Wholesale Accounts Manager , Government Accounts Figure 10-7

15. Horizontal complexity Geographic Departmentalization Vice President for Sales Sales Director, Western Region Sales Director Southern Region Sales Director, Midwest Region Sales Director Eastern Region

16. Centralization and Decentralization DEGREE OF CENTRALIZATION DEGREE OF DECENTRALIZATION Judging by the size of the desk, where do decisions get made? Which organization looks more appealing to you?

17. Two Extremes for Organizational Types Rigid hierarchical relationships Fixed duties High formalization Formalized communication channels Centralized decision authority Vertical and horizontal collaboration Adaptable duties Low formalization Informal communication Decentralized decision authority Mechanistic Organic

18. Types of Organizations Rigid hierarchical relationships Fixed duties High formalization Formalized communication channels Centralized decision authority Vertical and horizontal collaboration Adaptable duties Low formalization Informal communication Decentralized decision authority Mechanistic Organic In which type of organization would you like to work? Do you like to take orders? Are you risk-averse, i.e. do you avoid risk? Do you prefer to be aware of the ‘big picture’?

19. Woodward’s Findings on Technology, Structure, and Effectiveness Unit Production Mass Production Process Production Structural characteristics Low vertical differentiation Moderate vertical differentiation High vertical differentiation Low horizontal differentiation High horizontal differentiation Low horizontal differentiation Low formalization High formalization Low formalization Most effective structure Organic Mechanistic Organic