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Organization and Design

This overview covers key concepts in organizational structure and job design that affect business efficiency and employee satisfaction. It explores the chain of command, division of labor, span of control, and the differences between mechanistic and organic structures. The Contingency Theory is discussed, emphasizing how organizational structure should adapt to environmental conditions. Additionally, various job design methods—such as job simplification, rotation, enrichment, and the Job Characteristics Model—are examined, showcasing their impact on worker motivation and performance.

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Organization and Design

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  1. Organization and Design

  2. I. TERMS 1. Chain of command 2. Division of labor - Job specialization 3. Span of Control - flat (horizontal) - tall (vertical)

  3. I. TERMS (cont’d) 4. Line vs. Staff 5. Centralized vs. Decentralized Authority 6. Organization Chart 7. Bureaucracy 8. Mechanistic versus Organic

  4. II. Organization Structure 1. Contingency theory – Type of structure should reflect environmental conditions a. types of structure: i. mechanistic – rigid hierarchy, many rules, formalized communication, centralized authority, taller structures ii. Organic – collaboration, few rules, informal communication, decentralized authority, flatter structures

  5. 1. Contingency theory (cont’d.) b. environmental conditions i. technology (routine or innovative) ii. size iii. environmental stability/uncertainty

  6. 1. Contingency theory (cont’d.) c. Routine technology, large size, stable/certain environment suggests a mechanistic structure d. Innovative technology, smaller size, unstable/uncertain environments suggest an organic structure

  7. II. Organization Structure (cont’d) 2. Departmentalization (structure) a. functional b. product c. customer d. geographic e. matrix – combines functional and product forms f. divisional g. horizontal team organization h. network/virtual organization i. learning organization

  8. III. Job design 1. Job simplification (specialization) 2. Job expansion (less specialization) a. job rotation – Boeing? b. job enlargement - horizontal integration of a job by increasing perception of ownership. Sony did this in their manufacturing plant. “At a plant here, men are dismantling conveyor belts on which as many as 50 people assembled camcorders. Nearby, Sony has set up tables to form a snail-shaped shop for four people. Walking through this “spiral line,” workers assemble an entire camera themselves, doing everything from soldering to testing. Output per worker is 10% higher! WSJ

  9. c. Job enrichment - vertical integration of a job by adding responsibility/motivators. 3. Other job expansion methods - job sharing, flextime, homework, shift scheduling, compressed workweek. 4. Work teams – cross-functional (integrated) autonomous, self-managed, leaderless etc.

  10. 5. The Job characteristics model is a description of the job!!!! Job characteristics  critical Psy states  outcomes a. How do you find out if job has characteristics? MPS = (skill var + task ID + task sig) x Aut x Feedback 3 b. Equation is moderated by growth need strength. c. Implication? Design jobs with intrinsic rewards to substantially increase morale and performance. AETNA uses this model to design jobs.

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