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    6 - Organizational Structure and Theory

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    Priyanka
    The document discusses different organizational structures such as: 1) Mechanistic structures which are bureaucratic with specialized functional tasks and formalized processes. 2) Organic structures which are more flexible and boundaryless with empowered teams that cross hierarchies and functions. 3) New structure designs like boundaryless, modular, strategic alliances, and virtual organizations. It also discusses how the choice of structure depends on factors like the organization's strategy, size, technology, and objectives. For example, an innovation strategy suits an organic structure while a cost-minimization strategy suits a mechanistic structure.

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    6 - Organizational Structure and Theory

    Uploaded by

    Priyanka
    29 views9 pages
    The document discusses different organizational structures such as: 1) Mechanistic structures which are bureaucratic with specialized functional tasks and formalized processes. 2) Organic structures which are more flexible and boundaryless with empowered teams that cross hierarchies and functions. 3) New structure designs like boundaryless, modular, strategic alliances, and virtual organizations. It also discusses how the choice of structure depends on factors like the organization's strategy, size, technology, and objectives. For example, an innovation strategy suits an organic structure while a cost-minimization strategy suits a mechanistic structure.

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    6_Organizational structure and theory

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    The document discusses different organizational structures such as: 1) Mechanistic structures which are bureaucratic with specialized functional tasks and formalized processes. 2) Organic structures which are more flexible and boundaryless with empowered teams that cross hierarchies and functions. 3) New structure designs like boundaryless, modular, strategic alliances, and virtual organizations. It also discusses how the choice of structure depends on factors like the organization's strategy, size, technology, and objectives. For example, an innovation strategy suits an organic structure while a cost-minimization strategy suits a mechanistic structure.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    29 views9 pages

    6 - Organizational Structure and Theory

    Uploaded by

    Priyanka
    The document discusses different organizational structures such as: 1) Mechanistic structures which are bureaucratic with specialized functional tasks and formalized processes. 2) Organic structures which are more flexible and boundaryless with empowered teams that cross hierarchies and functions. 3) New structure designs like boundaryless, modular, strategic alliances, and virtual organizations. It also discusses how the choice of structure depends on factors like the organization's strategy, size, technology, and objectives. For example, an innovation strategy suits an organic structure while a cost-minimization strategy suits a mechanistic structure.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 9

    Organizational

    behaviour
    Organizational structure and theory
    Structure
    Bi-polar organization structure

    Mechanistic: bureaucratic Organic: boundaryless


    Traditional structures

     Simple: low departmentalization, wide span of control, authority centralized, little


    formalization
     Bureaucracy: highly routine operating specialized functional task, formalized,
    centralized, narrow span and chain of commands
     Matrix: dual lines of authority with functional and product department (facilitate
    coordination in interdependent activities/ information permeates quicker/ lesser
    burden on an individual/ providing specialists in working- confusion and
    conflicts/ stressful)

    What structure do you think O.P. Jindal


    operates?
    New designs

     Boundaryless organization: no chain of command, limitless span of control,


    replaces departments by empowered teams
     Cross-hierarchical teams participate in decision making eliminating vertical hierarchy
     Cross-functional teams and rotation roles integrate different functions together
    eliminating horizontal functional team
     Modular: mostly in manufacturing business where separate parts are outsourced
    and then compiled
     Strategic alliance: two or more companies collaborate to form a partnership that is
    beneficial to all parties
     Network: outsources major business functions to concentrate more on what they
    are in business to do
     Virtual organization: small, core organization, outsourcing major business
    functions,
     Talented people for specific projects & disbanded/ no long term and sometimes no
    overhead cost/ no bureaucracy
     Core executive group with outsourcing/ flexibility/ innovative idea with little money/
    cost effective more than big organizations - advantage
     Perpetual flux/ lesser company dedication/ unclear responsibility/ political behaviour/
    less adaptive/difficult in communication and response sometimes – disadvantage
    How will you determine which structure to
    follow?

    Strategy
    Structure should follow strategy

    More the size, more mechanistic


    Structure
    Routine technology (inputs to
    outputs), more mechanistic

    Objective
    3 major strategies – say which structure?

     Innovation: introduction of major new products and services unique in nature


     Organic structure
     Cost-minimization: tight cost control, avoidance of unnecessary innovation or
    marketing expenses, price cutting
     Mechanistic structure
     Imitation: seeks to move into new products or new markets only after their
    viability has already been proven (only when competitors have proven that market
    is there)
     Mixed
    Would you vouch for a deskless open
    workplace?

    Confidential discussions/ mixed personality/ personal privacy/ client’s


    confidentiality/ document safety/ enforcement of accountability

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