6. Structure and Organizational
Performance
Sept 11, 2001
Police/Fire Department
Could not communicate despite
their command posts being 3
blocks apart
Breakdown of communication
and coordination
Absence of a clear, workable
structure impaired effectiveness
Individual Heroism
USS Kennedy
Prepared for most combat
contingencies
Clear well understood goals,
roles, relationships and
coordination =
organizational performance
Uniforms – supervisors yellow,
brown aircraft traffic, red for
weapons and fire, purple for
fuelers
8. Max Weber – Early 20th Century
Monocratic Bureaucracy as
an ideal form that maximized
norms
Technical qualifications
instead of family ties or
friendship
Employment as long-term
career
Hierarchy of offices
9. Structural Forms and Functions
Blueprint for expectations and exchanges among
internal and external players
Design options are almost infinite
Design needs to fit circumstances
Studies go back and forth on whether people enjoy more
choice or more structure (Moeller 1968) (Leavitt 1978)
10. Structural Forms and Functions
Adler and Borys (1996) argue that structure is as
important as the amount of rigidity. There are good rules
and bad ones. Formal structure enhances moral if it helps
us get our work done. It has a negative impact if it gets
in our way, buries us in red tape, or makes it too easy for
management to control us (p.69)
11. Basic Structural Tensions
Differentiation: dividing work, division of labor
Integration: coordinating efforts of different roles and
units
Suboptimization: When you create roles and units of
specialization, you can lose sight of big picture
(remember the Police/Fire Department illustration?)
12. Vertical coordination
Authority (the boss makes the decision)
Rules and policies
Planning and control systems
Performance control (focus on results) vs.
action planning (focus on process)
S.O.P. ?
14. Lateral Coordination
Meetings
Task Forces (bigger can mean you need more lateral
face to face communication)
Coordinating Roles (persuasion people that can go back
and forth between specialized turfs)
Matrix Structures
Networks
Strengths and Weaknesses of Lateral Strategies
17. Vertical/Lateral Coordination Activity
2 groups of 4; 1 group of 3
Group according to color of Starburst
Grab markers/chart paper
Illustrate what Vertical Coordination and Lateral
Coordination might look like in an Educational Setting
Share your description/illustration with the class
18. McDonald’s and Harvard: A
Structural Odd Couple
McDonald’s: clearer goals, more centralized,
tighter performance controls
Harvard: diffuse goals, highly decentralized,
high autonomy for professors
Why have two successful organizations
developed such different structures?
19. Structural Imperatives
Size and Age
Core Process
Environment
Strategy and Goals
Information Technology
People: Nature of Workforce
The case of Citibank
22. I. Structural Configuration
Mintzberg’s five-sector logo
Operating core
People who perform basic
work (line workers)
Administrative
Component
Managers/supervisors (line
supervisor)
Strategic Apex
Focus on outside environment
(executives)
Techno structure
Specialist/analysts (engineers)
Support staff
Perform tasks that facilitate
work (secretaries)
23. I. Structural Configuration cont…
Simple structure
Two Levels:
Strategic apex
Operating level
Start-up companies
Virtues
Structure is very flexible & adaptable
One person directs the entire operation
Vices
Lack of strategic planning (boss too close to
operations)
Authority can block change
24. I. Structural Configuration cont…
Machine bureaucracy
Important decisions are made at the strategic apex
Day-to-day operations are controlled by managers &
SOPs
Example: McDonalds
Challenges:
How to motivate employees and satisfy workers in the
operating core
Constant tension between headquarter and local
managers
Overcome challenges by:
Permitting experimentation
(Egg McMuffin breakfast sandwich)
25. I. Structural Configuration
Professional Bureaucracy
Characteristics:
Operating core is larger than other structural parts
Few managerial levels exist between the strategic
apex and professors (flat organizational structure)
Examples: Universities (EIU or U of Illinois)
Challenges:
Quality control and coordination
Dealing with incompetence and irresponsibility
Respond slow to change
26. I. Structural Configuration
Divisionalized Form
Work accomplished through quasi-autonomous
units (multispecialty hospital) serving defined
markets
Division heads (presidents) are accountable to
the corporate office
As long as the division performs, they have free
reign
Benefits:
Offer economies of scale
Ample resources
Responsive
Challenges:
Headquarters may lose touch with operations
28. II. Why Restructure?
Environmental Shifts: A mandated shift can occur – as was the case
of the American Telephone and Telegraph Company, or Ma Bell or
even more commonly now – AT&T.
Technology Shifts: This may be one of the most profound reasons for
restructuring in today’s fast paced techno-world. When is the last
time that you walked into a Blockbuster Video store, played a game
of solitaire with real cards, or made sure you had change in your
pocket for a pay phone.
Organizations Grow: When organizations outgrow the Mom & Pop
stage of business, they need an organizational structure to support
tasks, decisions, and authority to remain profitable.
Leadership Changes: When new leaders step into existing
organizations – there is often a “New sheriff in town, things are going
to change mentality.”
29. III. Successful Restructure
Why were these restructuring efforts successful?
1. Developed a new conception of the
organizational goals and strategies
2. Carefully studied the existing structure and
processes (had the complete picture)
3. Designed new structure in light of goals,
technology, and environment
4. Experimented while retaining things that
worked
31. Examples of Effective Group Work/
Teamwork
Organ transplant procedure
WWII U.S. Army commando team
Al Quaeda
32. Tasks and Linkages in Small
Groups
Structural options for small and large tasks
Situational Variables Influencing Structure
What are we trying to accomplish?
What needs to be done?
Who should do what?
How should we make decisions?
Who is in charge?
How do we coordinate efforts?
33. Tasks and Linkages in Small
Groups
Situational Variables, con’t.
What do individuals care about most?
What are special skill and talents?
What is the relationship?
How will we determine success?
34. 5 Fundamental Team
Configurations
Basic Structural
Configurations
One Boss
Dual Authority
Simple Hierarchy
Circle
All Channel
Figure 5-1: One Boss
35. 5 Fundamental Team
Configurations
Basic Structural
Configurations
One Boss
Dual Authority
Simple Hierarchy
Circle
All Channel
Figure 5- 2: Dual Authority
40. Choosing the Appropriate
Structure
Determining an appropriate structural design
Nature and degree of task interaction
Geographic distribution of members
Where is autonomy needed, given the team’s goals and
objectives?
Should structure be conglomerate, mechanistic, or organic?
Task of management:
fill out line-up card
prepare game plan
Influence flow
41. 6 Characteristics of High-Quality
Teams
Shape purpose in light of demand or opportunity
Specific, measurable goals
Manageable size
Right mix of expertise
Common commitment
Collectively accountable
42. The Saturn Story
Quality, Consumer Satisfaction,
Customer Loyalty
Employees granted authority
Assembly done by teams – Wisdom of
Teams
Group Accountability
43. Marshmallow Challenge
The Marshmallow represents student achievement – the
higher your marshmallow, the more students have
achieved.
Materials: 20 pieces of raw spaghetti, 1 yard of string, 1
yard of masking tape, 1 marshmallow
In 18 minutes – create the most student success, within the
given work structure, within your assigned roles.
44. Marshmallow Challenge
Roles:
Apex: You are in charge of making decisions and directing
others. You do not directly produce work.
Operator: You are a producer.
No decisions. You are directed by others.
Support Staff: You support the work of others.
No decisions, or production.
Techno-Structure/Middle Line: You coach operators and report
to the Apex.
No decisions, or production.
45. Marshmallow Challenge
Recap
Each group share out:
What kind of structure did your group have?
How does this relate(or not) to work environments?
What worked well?
What needed improvement?
If this were your organization, how would you restructure?
46. Structural Artifacts
Share your artifact(s) with your group
Focus on two artifacts to share with the class
Choose one that works well within your structure
Choose one that needs improvement
Enjoy your Starbucks!
