What are Organizations DEFINED 1 social entities 2

Types of Organizations • Small / Large • Manufacturing / Service • Domestic /

Dimensions of Organization Design • 1) Structural Dimensions – describe the internal characteristics of

Structural Dimensions • 1) Formalization • 2) Specialization • 3) Hierarchy of Authority •

Structural Dimensions • 1) Formalization: - the amount of written documentation in the organization

Structural Dimensions • 2) Specialization: - the degree to which organizational tasks are subdivided

Structural Dimensions • 3) Hierarchy of Authority: - describes who reports to whom and

Structural Dimensions • 4) Centralization: - refers to the hierarchical level that has authority

Structural Dimensions • 5) Professionalism: - is the level of formal education and training

Structural Dimensions • 6) Personnel Ratios: - refer to the deployment of people to

Contextual Dimensions • 1) Size • 2) Organizational Technology • 3) Environment • 4)

Contextual Dimensions • 1) Size: - is the organization’s magnitude as reflected in the

Contextual Dimensions • 2) Organizational Technology - is the nature of the production subsystem

Contextual Dimensions • 3) Environment: - includes all elements outside the boundaries of the

Contextual Dimensions • 4) Goals & Strategy: - define the purpose and competitive techniques

Contextual Dimensions • 5) Culture: - is the underlying set of key values, beliefs,

As environments become more turbulent, organizations change… • From vertical to horizontal structures •

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What are Organizations? • • DEFINED: 1) social entities 2) goal-directed 3) deliberately structured and coordinated activity systems • 4) linked to external environment CEO VP Sales VP Production VP Finance

Types of Organizations • Small / Large • Manufacturing / Service • Domestic / Multinational • For-profit / Notfor-profit

Dimensions of Organization Design • 1) Structural Dimensions – describe the internal characteristics of an organization • 2) Contextual Dimensions – everything that shapes the structure of the organization

Structural Dimensions • 1) Formalization • 2) Specialization • 3) Hierarchy of Authority • 4) Centralization • 5) Professionalism • 6) Personnel Ratios

Structural Dimensions • 1) Formalization: - the amount of written documentation in the organization - Include procedures, job descriptions, regulations, and policy manuals

Structural Dimensions • 2) Specialization: - the degree to which organizational tasks are subdivided into separate jobs - Skilled trades often exhibit a high degree of specialization

Structural Dimensions • 3) Hierarchy of Authority: - describes who reports to whom and the span of control of each manager - The number of layers of management: tall vs. flat organizations

Structural Dimensions • 4) Centralization: - refers to the hierarchical level that has authority to make a decision - Centralized decision making (at top) gives little discretion to lower level employees

Structural Dimensions • 5) Professionalism: - is the level of formal education and training of employees - accounting firms have a high level of professionalism

Structural Dimensions • 6) Personnel Ratios: - refer to the deployment of people to various functions and departments - Measures include various ratios such as administrative ratio

Contextual Dimensions • 1) Size • 2) Organizational Technology • 3) Environment • 4) Goals & Strategy • 5) Culture

Contextual Dimensions • 1) Size: - is the organization’s magnitude as reflected in the number of people in the organization - organization as a social system

Contextual Dimensions • 2) Organizational Technology - is the nature of the production subsystem that changes inputs to outputs - Includes assembly lines, classrooms, oil refineries, etc.

Contextual Dimensions • 3) Environment: - includes all elements outside the boundaries of the organization - Includes customers, suppliers, competitors, government, etc.

Contextual Dimensions • 4) Goals & Strategy: - define the purpose and competitive techniques that set one organization apart from others - Includes mission statements and plans of action

Contextual Dimensions • 5) Culture: - is the underlying set of key values, beliefs, understandings, and norms shared by employees - May be observed in stories, symbols, ceremonies, etc.

As environments become more turbulent, organizations change… • From vertical to horizontal structures • From routine tasks to empowered tasks • From formal control to shared information • From competitive to collaborative strategy • From rigid to adaptive control