The document discusses different organizational designs including the mechanistic, organic, and matrix models. The mechanistic model emphasizes production and efficiency through specialization, centralization, and formalization. The organic model emphasizes adaptability through informality, decentralization, and simple structures. The matrix model superimposes product-based designs onto function-based designs. It discusses the advantages of matrix organizations and different forms they can take. The document also covers considerations for multinational organizational structures and boundaryless organizations that break down barriers.
5. The Mechanistic Model…
The type of
organizational
design that
emphasizes the
importance of
production and
efficiency.
It is an organizational
design that is highly
formalized, centralized
and complex.
6. Fayor’s Principle for Mechanistic
Model
The Principle of Specialization
The Principle of Unity of Direction
The Principle of Authority and Responsibility
The Scalar Chain Principle
Bureaucracy
7. Characteristics to achieve the maximum
benefits of the Bureaucratic Design
All tasks will be divided into highly specialized jobs
Each task is performed according to a system of abstract rules to
ensure uniformity and coordination of different tasks.
Each member or office of the organization is accountable for job
performance to one, and only one, manager.
Each employee of the organization relates to other employees
and clients in an impersonal, formal manner, maintaining a
social distance with subordinates and clients.
Employment in the bureaucratic organization is based on technical
qualifications and is protected against arbitrary dismissal.
8. Structural Characteristics to Achieve High
Levels of Production and Efficiency
It’s highly complex because of its emphasis on
specialization of labor.
It’s highly centralized because of its emphasis on authority
and accountability.
It’s highly formalized because of its emphasis on function
as the basis for departments.
10. The Organic Model…
The type of
organizational
design that
emphasizes the
importance of
adaptability and
development.
It is relatively informal,
decentralized, and
simple.
11. Characteristics of Organic Model
It’s relatively simple because of its de-emphasis of
specialization and its emphasis on increasing job
range.
It’s relatively decentralized because of its emphasis
on delegation of authority and increasing job depth.
It’s relatively informal because of its emphasis on
product and customer as bases for departments.
13. The Matrix Model…
The type of
organizational
design that
superimposes a
product-or-project-
based design on an
existing function-
based design
14. Characteristics of Matrix Model
Requires responses to rapid change in two or more
environments, such as technology and markets.
Face uncertainties that generate high information
processing requirements
Must deal with financial and human resources
constraints.
15. Advantages of Matrix Organizations…
Efficient use of Resources.
Flexibility in conditions of Change and Uncertainty
Technical Excellence
Freeing Top Management for Long-Range Planning
Improving Motivation and Commitment
Providing Opportunities for Personal Development
16. Different Forms of Matrix Organizations
Task Force
Teams
Product Managers
Product Management Departments
17. National boundaries are an important force in defining
organizational environments.
Subsidiaries or affiliates of multinational corporations can
act as conduits that introduce changes into the host
country’s environment.
Subsidiaries or affiliates of multinational corporations can
act as conduits through which features of the host country
culture are introduced throughout the multinational
organization.
Factors that have implications for structure and
Design Decisions
21. Personnel distributed geographically
Electronically connected
Differences in expertise and function
Culturally diverse
Work schedule differences
Horizontally arranged with little emphasis
on command and control authority.
Factors in Design Considerations
23. Increase in overall communication and
messages
Relationships are tenuous
Continual surety of roles, tasks, and
assignments
Caution needed in managing feedback,
discussion, performance review, and
reward systems
Greater equity of participation
Consequences
24. Boundaryless Organizations
A firm in which chains of command
are eliminated, spans of control are
unlimited, and rigid departments
are replaced with empowered
teams.
25. Characteristics of a Boundaryless
Organization
There is still hierarchy but there
is less distance, less separation
between top-level managers and
employees.
There is an emphasis on
participative decision making,
multiple hierarchy teams, team
building, and coordination.
The effective boundaryless
organization breaks down
barriers with external
constituents and distance.
Conceptually, the boundaryless
organization involves breaking
down of structure, hierarchy,
specific roles, and distance.