Organizational behavior and design can be summarized in 3 points:
1. Organizational design refers to how managers structure organizations to achieve goals through elements like task allocation, reporting relationships, and departmentalization. Common designs include functional, divisional, matrix, and hybrid forms.
2. Organizational behavior studies human behavior, attitudes, and performance in organizations. It draws from disciplines like psychology, sociology, and anthropology.
3. Managers perform functions like planning, organizing, leading, and controlling. Their roles can be informational, interpersonal, and decisional. Organizational behavior aims to improve outcomes like productivity, turnover, effectiveness, and job satisfaction.
3. Introduction of Organization Designs
Organizational design refers to
the way managers structure their
organization to reach the
organization’s goals.
Structural elements include
Allocation of duties, tasks, and
responsibilities between departments
and individuals.
Reporting relationships.
Number of levels.
4. Introduction of Organization Designs Conti…
An incomplete picture because of
informal arrangements and underlying
behavioral processes.
Two basic goals of organizational
design
Get information to decision makers.
Coordinate the interdependent parts of an
organization.
5. Forms of Organizational Design
Three major forms
Functional,
Divisional,
Matrix,
Combine functional and divisional designs to get
a hybrid design
Several variations of the divisional design
Several evolving forms of organizational design
6. Organizational Design by Function
Groups tasks of the organization according to the
activities they perform
Typically configured into departments such as
manufacturing, engineering, accounting, marketing, .
. .
Functional configurations can vary from one
organization to another depending on tasks and
goals
7. Organizational Design by Function Conti…
Strategy
Focused on a few products or services
in well defined markets with few
competitors
External environment
Stable,
Simple,
Little uncertainty
Technical process
Routine with little interdependence with
other parts of the organization
Each major functional area helps
align the company with each
8. Organizational Design by Function Conti…
Line and staff
Line does the major operating tasks
Staff gives support and serve in advisory
roles.
Emphasizes technical skills within each
function
Individuals work with others who share
common backgrounds and views
9. Organizational Design by Function Conti…
Strengths
Specialization
Brings specialists together
Collegial relationships develop among specialists
Clear career paths for specialists
10. Organizational Design by Function Conti…
Weaknesses
Does not help managers respond quickly to external
changes.
Emphasis on specialization promotes a tunnel-vision
view of the goal of the function.
Functional design can produce a set of widely
accepted behaviors and perceptions with the
organization.
11. Organizational Design by Division
Uses decentralization.
Divisions formed around products, services,
locations, customers, programs, or technical
process.
Often evolves from a functional design.
12. Organizational Design by Division Conti…
Strategy
Focused on different products, services, customers, or
operating locations.
External environment
Complex, fast changing, with moderate to high uncertainty.
Technical process
Non routine and interdependent with others parts of the
organization
Size
Large
13. Organizational Design by Division Conti…
Strengths
Easily adapts to differences in products, services,
clients, location, and the like. For example,
products and differ in how manufactured and
marketed.
Products, services, and customers are highly
visible.
Often appear in division names.
14. Organizational Design by Division Conti…
Weaknesses
Loses economies of scale because many functions such
as accounting are duplicated within the divisions.
Technical specialization is more diffuse compared to a
functional design.
Hard to get uniform application of policies and procedures
across divisions
15. Hybrid Organizational Design
Hybrid design uses both functions and
divisions.
The divisions decentralize some functions,
and the headquarters location centralizes
others.
Centralized functions often are the costly
16. Hybrid Organizational Design Conti…
Strategy
Focused on many products or services
External environment
Fast changing, moderate to high uncertainty, complex
Technical process
Both routine and non routine, high interdependence with
functions and divisions
Size
Large
17. Hybrid Organizational Design Conti…
Weaknesses
Focus on division goals can lose total organization view.
Non-uniform application of organizational policies.
Potential for high administrative overhead if staff
expands without control.
18. Matrix Organizational Design
Used when two sectors of the external
environment demand management attention.
Typically responding to the customer and
technical parts of the environment.
Customers have special needs
Technology changes fast
19. Matrix Organizational Design Conti…
Conditions under which an organization may
choose a matrix design:
Pressures from the external environment for a dual focus.
High uncertainty within the multiple sectors of the external
environment
Constraints on human and physical resources
20. Matrix Organizational Design Conti…
Strengths
Responsive, flexible, efficient use of costly
resources.
Potentially high levels of human motivation
and involvement.
Managers can respond fast to market
changes.
People get information about a total project,
not only about their specialty.
21. Matrix Organizational Design Conti…
Weaknesses
High levels of ambiguity because of multiple
authority relationships.
Ambiguity can encourage power struggles among
managers.
Multiple authority relationships can give opposing
demands to people.
High conflict potential can reach dysfunctional
levels and act as significant stressors for people in
matrix organizations
22. Types of Organizational Designs
Organizational designs fall into two
categories
Traditional.
Contemporary.
Traditional Designs
Include simple structure, functional
structure, and divisional structure.
Contemporary Designs
Include team structure, matrix structure,
project structure, boundary less
organization, and the learning
organization.
23. Traditional Designs
Simple Structure
A simple structure is defined as
a design with low
departmentalization, wide spans
of control, centralized authority,
and little formalization. This type
of design is very common in
small start up business.
24. Traditional Designs Conti…
Divisional Structure
The divisional structure is a type
of organizational structure that
groups each organizational
function into a division.
These division can correspond to
either products or geographies.
25. Traditional Designs Conti…
Functional Structure
A functional structure is defined as a
design that groups similar or related
occupational specialties together. It
is the functional approach to
departmentalization applied to the
entire organization.
26. Contemporary Designs Conti…
Team Structure
A team structure is a design
in which an organization is
made up of teams, and
each team works towards a
common goal.
Employees are more
involved and empowered.
27. Contemporary Designs Conti…
Project Structure
A project structure is an
organizational structure in which
employees continuously work on
projects.
This is like a matrix structure; as
one project is completed,
employees move on to the next
project.
28. Contemporary Designs Conti…
Matrix Structure
A matrix structure is one that
assigns specialists from different
functional areas to work on
projects but who return to their
areas when the project is
completed.
29. Contemporary Designs Conti…
Learning Organization
A learning organization is defined as
an organization that has developed
the capacity to continuously learn,
adapt, and change. In order to have a
learning organization a company must
have very knowledgeable employees
who are able to share their knowledge
with others and be able to apply it in a
work environment.
30. Contemporary Designs Conti…
Boundary less Organization
A boundary less organization is one in
which its design is not defined by, or
limited to, the horizontal, vertical, or
external boundaries imposed by a
predefined structure. In other words it
is an unstructured design.
31. A Process View of Organizational Design
Discards the view of packaging duties and tasks along
functional or divisional lines.
The organization is a set of interconnected processes that
weave across multiple functions.
Focuses on the results of a process not on people’s skills or
functions.
People have responsibility for all or part of a process with
decision authority over those parts.
32. Organizational Behavior
Organizational Behavior the study of human
behavior, attitudes, and performance in
organizations
Value of OB:
Helps people attain the competencies needed to become
effective employees, team leaders/members, or managers
Competency:
An interrelated set of abilities, behaviors, attitudes, and
knowledge needed by an individual to be effective in
most professional and managerial positions
33. What Managers Do ?
Managers:
Who achieve goals through other people.
Managerial Activities:
Make decisions.
Allocate recourse.
Direct activities other to attain goals.
35. Where Managers work
Organization:
A consciously coordinated social
unit, composed of two or more
people, that function on a relatively
continuous basis to achieve a
common goal or set of goals.
36. Management Functions Conti…
Organizing
Determines what tasks to be
done, who is to do them, how to
tasked are grouped, who reports
to whom, and when decision are
made
37. Management Functions Conti…
Planning
Planning which defines
the overall strategy to
achieve the
organization’s goals
38. Management Functions Conti…
Leading
A function that includes
motivating employee
directing others,
selection the most
effective
communication
channels, and resolving
the conflicts.
39. Management Functions Conti…
Controlling
Which ensures the things
are going the same way
as they should be with
minimal disruption
40. Informational
Mentor
seeks and receives a wide variety of special information (much of it current)
to develop a thorough understanding of the organization and environment;
emerges as the nerve center of internal and external information for the
organization.
Disseminator
Transmits information received from outsiders or from other subordinates to
members of the organization. Some information is factual; some involves
interpretation and integration of diverse value positions of organizational
influences. Disseminating what is of value, and how, is a critical
informational role.
Spokesman
transmits information (plans, policies, results, etc.) within and outside of
the organization; serves as an expert on the organization's industry.
42. Interpersonal
Figurehead
Symbolic head; performs a number of routine duties of
a legal or social nature.
Leader
Motivates and activates subordinates; performs
staffing, training, and associated duties.
Liaison
Maintains a self-developed network of outside contacts
and informers who provide favors and information.
43. Management Skills Conti…
Technical skills
Comprise the knowledge and capabilities to
perform specialized tasks related to a specific field.
Human Skills
The ability to work with understand, and motivate
other people, both individually and in groups.
Conceptual skills
The mental ability to analyze and diagnose
complex situation
44. Contributing Disciplines to the OB Field
Conti…
Sociology:
The study of people in
relation to their fellow
human beings.
45. Contributing Disciplines to the OB Field
Conti…
Social Psychology:
An area with in psychology that
blends concept from psychology
and sociology and that focuses on
the influence of people on other
people.
46. Management Skills
It is the ability to apply specialized
knowledge or expertise as how
professional they are with respect to
their knowledge
Technical Skills
Human skills
Conceptual Skills
47. Contributing Disciplines to the OB Field
Psychology:
The science that seeks to
measure, explain, and
something change the
behavior of humans and
other animals.
48. Contributing Disciplines to the OB Field
Conti…
Anthropology:
The study of societies to learn about
human beings and their activities
49. Contributing Disciplines to the OB Field
Conti…
Political Science:
The study of the behavior of
individuals and groups with in a
political enjoinment
50. Challenges and Opportunities for OB
Improving Quality and Productivity
Quality management (QM)
Process reengineering
Responding to the Labor Shortage
Changing work force demographics
Fewer skilled laborers
Early retirements and older workers
Improving Customer Service
Increased expectation of service quality
Customer-responsive cultures
51. The Dependent Variables Conti…
Productivity
A performance measure that
include effectiveness and
efficiency.
52. The Dependent Variables Conti…
Turnover
The voluntary and
involuntary permanent
withdrawal from an
organization.
53. The Dependent Variables
Dependent Variable
A response that is affected by an
independent variable
57. The Dependent Variables Conti…
Job Satisfaction
A general attributes
towards one’s job the
difference between the
amount of reward
workers receive and
the amount thy believe
they should receive.