Organizational Behaviour

Classical View of Structure
Division of Labour – Specialization; breaking jobs down into simple and repetitions tasks Unity of Command – a subordinate should have only one superior to whom he or she is directly responsible. Responsibility - an obligation to perform Line Authority – authority to direct the work of a subordinate
The coming of the New Organization
Rapid and unexpected change Increasing diversity Change in managerial behaviour Adoption to computer technology
Classical View of Structure……
Chain of Command – the superior-subordinate authority chain that extends from the top of the organization to the lowest echelon Staff Authority – positions that support, assist and advise line managers Span of Control – the number of subordinates a manger can efficiently and effectively divert Departmentation: grouping of activities on some common basis
Loans FEX SA TDR
Departmentalization by Geography
VP (Sales)
Sales Manager Western Region
Sales Manager Sales Manager Southern Region Northern Region
Sales Manager Eastern Region
The Organic Structure
The Organic Structure…..
Low horizontal differentiation Collaboration (both horizontal and vertical) Adaptable duties Low formalization Informal communication Decentralized decision authority
Departmentation by Function
Plant Manager
Manger Engineering Manager Accounts Manger Manufacturing Manger Personal Manager Purchase
Departmentalization by Product
The Mechanistic Structure
The Mechanistic Structure……
High horizontal differentiation Rigid hierarchical relationships Fixed duties High formalization Formalized communication channels Centralized decision authority
Why do Structures Differ?
Strategy Strategy Innovation Structural Option Organic: loose structures; low division of labour, low formalization, decentralized. Mechanistic: tight control; extensive division of labour, high formalization, high centralization. Mechanistic and Organic: mix of loose and tight properties; tight controls for current activities, loose controls for newer undertakings.
Departmentalization by Process
Plant Manager
Cast Department Manager
ቤተ መጻሕፍቲ ባይዱ
Press Department Manager
Tube Department Manager
Finishing Department Manager
Inspectio packing & Shippin Dept Manage
The Organizational System
Organizational Structure Organizational Designs
What is Structure?
The degree of complexity, formalization and centralization in the organization. Complexity is the degree of vertical, horizontal and spatial differentiation in an organization Formalization is the degree to which jobs within the organization are standardized. Centralization is the degree to which decision making in concentrated at a single point in the organization
President VP (Fuels) VP (Lubricants & Waxes) Marketing Planning VP (chemicals)
Supply & distribution
Manufacturing
Departmentalization by Customer
Manager