Assignment 2
Flo20thebest
Structure.Authority.Power.pptx
Organizational Structure
Authority & Power
It is not the strongest species that survive, nor the most intelligent, but the ones most responsive to change.
Charles Darwin
Purposes of Organizing
President
VP Operations
VP Marketing
VP Finance
Mgr Purchasing
Mgr Warehouse
Mgr Customer Serv.
Mgr Planning
Mgr Market Research
Director Sales
Mgr Accounting
Sales Mgr Europe
Sales Mgr America
Superv Accounts Payable
Superv Accounts Receivables
Functional Organizational Structure
President
VP Consumer Products
VP Small Business Accounts
VP Major Business Accounts
Human Resources
Manufacturing
Marketing
Human Resources
Human Resources
Marketing
Manufacturing
Marketing
Manufacturing
Customer/Markets Organizational Structure
Chief Financial Officer
Accounting
Planning
Project Manager
Product 1 Manager
Design Engineering
Manufacturing
Purchasing
Designer
Designer
Manufacturing
Employee
Purchasing
Employee
Manufacturing Employee
Purchasing
Employee
Matrix Organizational Structure
Accounting
Accountant
Accountant
Human Resources
HR Employee
HR Employee
President
VP Europe
VP North America
VP Latin America
Human Resources
Manufacturing
Marketing
Human Resources
Human Resources
Marketing
Manufacturing
Marketing
Manufacturing
Products/Services/Geographical Organization
Marketing
Marketing
Marketing
Modular or Network Organizational Structure
Core Company
Logistics Company
Design Company
Payroll
Company
Home Office
(Owner and Secretary)
Temporary Telecommuter
Temporary Independent Contractor
Overseas Programmer
Virtual Organizational Structure
Overseas Web Design Team
Sales
HR
Finance
Holacracy Organizational Structure
General Company Circle
Board Circle
Development Department Circle
Mike
Paul
Mike and Paul are part
of a pool of employees
Goal 1
Goal 2
Based on skills, these employees
are in circles with different goals.
Each circle has subcircles.
Mike is leader of one circle.
Paul is leader of a circle within that.
If Paul removes Mike from the subcircle,
Mike is still his leader in the larger circle.
Communities
Or
Temporary Groups
Holacracy
Benefits & Drawbacks of Collaborative Work
Structural Options
Mechanistic vs. Organic
Mechanistic organization -an organizational design that’s rigid and tightly controlled
•Organic organization -an organizational design that’s highly adaptive and flexible
Mechanistic Structure = Formal
Rigid relationships
Fixed duties
Many rules
Formalized communication channel
Centralized decision making
Formalized Communication Channels Centralized Decision Authority Taller Structures
Emphasis on completing tasks as opposed to achieving company goals
Belief upper management is better capable of making decision
Fixed Duties Many Rules
Rigid Hierarchical Relationships
Formalization (Mechanistic)
Formalization-the degree to which jobs within the organization are standardized and the extent to which employee behavior is guided by rules and procedures.
–Highly formalized jobs offer little discretion over what is to be done.
–Low formalization means fewer constraints on how employees do their work.
Organic Structure = Informal
Collaboration
Adaptable duties
Few rules
Informal communications
Decentralized authority
Flatter structure
Few Rules
Informal Communication
Decentralized Decision Authority
Flatter Structure
Employee Empowerment
Collaboration Vertical and Horizontal
Adaptable Duties
Networks
Internal Collaboration
Communities of practice -groups of people who share a concern, a set of problems, or a passion about a topic, and who deepen their knowledge and expertise in that area by interacting on an ongoing basis.
Task force
Group
Team
Ad hoc Committee
Group Think
Making Communities of Practice Work
How does technology affect structure?
Telecommuting -a work arrangement in which employees work at home and are linked to the workplace by computer.
•Compressed workweek-a workweek where employees work longer hours per day but fewer days per week
•Keeping Employees Connected -mobile computing and communication technology have given organizations and employees ways to stay connected and to be more productive
–e-mail, calendars, wireless networks, corporate databases, social media, video conferences and web cams.
Today’s Challenges
Managing Global Structural Issues
–When designing or changing structure, managers may need to think about the cultural implications of certain design elements
–Formalization may be more important in less economically developed countries and less important in more economically developed countries where employees may have higher levels of professional education and skills
Power vs. Authority Chain of Command = position on the food chain (hierarchical) Span of Control = span of influence/how many employees report to each manager
Span of Control -the number of employees who can be effectively and efficiently supervised by a manager. Chain of Command -the continuous line of authority that extends from upper levels of an organization to the lowest levels of the organization—clarifies who reports to whom
Authority
Authority -the rights inherent in a managerial position to tell people what to do and to expect them to do it.
•Acceptance theory of authority -the view that authority comes from the willingness of subordinates to accept it.
Line authority -authority that entitles a manager to direct the work of an employee
•Staff authority -positions with some authority that have been created to support, assist, and advise those holding line authority
Authority vs. Power
Which is which?
-Legitimacy is based on a leader’s position in the organization
-An individual’s capacity to influence decisions
Types of Leadership Power
Power Type Power Description
Coercive Power - Based on Fear
Connection Power - Based on Links with important people
Expert Power - Based on the leader’s skills & knowledge
Information Power - Based on access to information
Legitimate Power - Based on position
Referent Power - Based on personal traits
Reward Power - Based on rewards, pay, promotion, recognition
Adapted from Amacom(2005) Ethical Decision-Making. Retrieved from www.amacombooks.org/leadershipact
Improving Your Power
Identify someone –a boss, coworker, friend, roommate, teammate, parent, sibling, significant other –with whom you would like to improve/increase your power. Determine what tactics might work
How Power-Oriented am I?
Answer professor’s 10 questions with one chosen number response for each.
1 = Disagree a lot
2 = Disagree a little
3 = Neutral
4 = Agree a little
5 = Agree a lot
Machiavellianism
