Contextual Dimensions characteristics of the whole organization

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Dimensions of Organizations

• Contextual Dimensions (characteristics of the
  whole organization)
• 1. Size (of the social system, i.e., number of
  people)
• 2. Technology (nature of the task in the
  production subsystem)
• 3. Environment (elements outside the
  organization affecting it)
• 4. Goals (unique purposes of the organization)
• 5. Strategy (competitive techniques)
• 6. Culture (shared values, beliefs and norms)

Structural Dimensions (internal characteristics
of the organization) 1. Formalization (amount
of written documentation) 2. Specialization
(degree of division of labor) 3.
Standardization (degree similar work is done in
uniform manner) 4. Hierarchy of authority (who
reports to whom and span of control) 5.
Complexity (number of activities or
subsystems-vertical, horizontal, spacial) 6.
Centralization (hierarchical level with decision
making power) 7. Professionalism (level of
formal education and training of employees) 8.
Personnel configuration (deployment, e.g.,
admin., clerical, and prof. staff ratio)
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Differences between Large and Small Organizations
LARGE
SMALL
Responsive, flexible Regional reach Flat
structure, organic Simple Niche
finding Entrepreneurs
Economies of scale Global reach Vertical
hierarchy, mechanistic Complex Stable
market Organization men
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GREATER ORGANIZATION SIZE IS ASSOCIATED WITH

• Increased number of management levels (vertical
  complexity)
• Greater number of jobs and departments
  (horizontal complexity)
• Increased specialization of skills and functions
• Greater formalization
• Greater decentralization
• Smaller percentage of top administrators
• Greater percentage of technical and professional
  support staff
• Greater percentage of clerical and maintenance
  support staff
• Greater amount of written communications and
  documentation

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NEGATIVE AND POSITIVE RELATIONSHIPS AMONG SIZE
AND SELECTED ELEMENTS OF BUREAUCRATIC STRUCTURE
Greater Organization Size
Professionalism
Division of Labor
Levels in Hierarchy
Professional Support Staff
Decentralization
Need for Uniformity. Standardization
Need for Coordination
Administrative Ratio
Formalization
(-)
(-)
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ORGANIZATIONAL LIFE CYCLE
Large
Streamlining, small co. thinking
Development of teamwork
Continued Maturity
Addition of internal systems
Provision of clear direction
Decline
Crisis Need for revitalization
Creativity
Crisis Need to deal with too much red tape
Size
Crisis Need for delegation with control
Crisis Need for Leadership
Small
Entrepreneurial
Collectivity
Formalization
Elaboration
Organizational Stages of Development
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YOUTH II. Collectivity Prebureaucratic M
ostly informal, some procedures
centralized Major product, with
variations Personal, contribution to
success Employees and managers Growth,
innovation Charismatic, gives
direction Control crisis
MIDLIFE III. Formalization Bureaucratic
Formal procedures, division of labor,
new specialties, some decentralization Line of
products/services Impersonal, formalized
systems Separate innovation group Reputation,
stability, expand market control Delegation with
control Red tape crisis
MATURITY IV. Elaboration Very
Bureaucratic Teams work within bureaucracy,
heavy financial controls, decentralization Multip
le lines Extensive, tailored to product
department Institutionalized RD
group Uniqueness, total organization
renewal Participation, team approach to offset
bureaucracy Turnaround crisis
STAGE Characteristic Structure Produ
ct/Services Reward and Control
Systems Innovation Goal Top Management
Style Transition to Next Stage
BIRTH I. Entrepreneurial Nonbureaucratic Inform
al, one-person show, very centralized Single
product/service Personal, paternalistic By
owner/manager Survival, creativity Individual,
entrepreneurial Leadership crisis
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ORGANIZATIONAL DECLINE
Equilibrium
Prompt Action
Corrective Action
Successful Reorganization
Good Information
Declining Performance
Blinded Stage
Inaction Stage
Faulty Action Stage
Crisis Stage
Dissolution Stage
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ORGANIZATIONAL DECLINE
Description and key questions for decision makers
in declining organizations Blinded Stage
Failure to anticipate or detect pressure toward
entropy decline begins. Are there sufficient
internal and external scanning systems that are
capable of detecting conditions that will affect
the organizations long-term viability?
Inaction Stage Failure to decide on
corrective action decline becomes noticeable.
Is the scanning information translated into
trigger points or built-in mechanisms that will
precipitate corrective actions at appropriate
levels of the organization? Faulty Action
Stage Faulty decisions faulty implementation
of decisions. Do the decision makers use
appropriate information to arrive at solutions to
critical problems? Are there effective
procedures for implementing changes? Crisis
Stage Diminished resources last chance for
reorganization and reversal. Does the
organization have sufficient resources and
effective mechanisms for a major
reorganization? Dissolution Stage Slow
demise in forgiving environment rapid demise in
unforgiving environment. Is to leadership
willing and able to manage an orderly closing or
liquidation?
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Paths of Movement from One Stage to Another
Growth
Maturity
Birth
Revival
Decline
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Corporate Life Cycle
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Mechanistic and Organic Characteristics
Mechanistic 1. Tasks are broken down into
specialized, separate parts. 2. Tasks are
rigidly defined. 3. There is a strict hierarchy
of authority and control, and there
are many rules. 4. Knowledge and control or
tasks are centralized at the top of the
organization. 5. Communication is vertical.
Organic 1. Employees contribute to the
common task of the org. 2. Tasks are adjusted
and redefined through employee
interactions. 3. There is less hierarchy of
autho- rity and control, and there are
few rules. 4. Knowledge and control of tasks
are located anywhere in the
organization. 5. Communication is horizontal.