Organizational Structure, Design

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Organizational Structure, Design Culture
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Organizational Structure

• How job tasks are formally divided, grouped,
  coordinated
• Why?
• Meet goals objectives of organization
• Efficiency effectiveness

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Organizational Structure

• 6 elements to address for a proper organizational
  structure
• Work specialization
• Departmentalization
• Chain of command
• Span of Control
• Centralization or decentralization
• Formalization

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Organizational Structure

• 1. Work specialization
• Division of labor
• Tasks are subdivided into separate jobs
• Jobs broken into steps with multiple people doing
  their individual part to make the entire product
• Assembly lines, McDonalds

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Organizational Structure

• 1. Work specialization
• Advantages
• Used to increase productivity
• Allows skill building on the job
• Disadvantages
• Good to a point then diminishing returns
• Boredom, absenteeism, stress, high turnover

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Organizational Structure

• 2. Departmentalization
• Grouping of jobs according to (4)
• Function/process
• Product
• Geography
• Customer

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Organizational Structure

• 2. Departmentalization
• Grouping of jobs according to (4)
• Function/process
• Northwest SRA Managers
• Inclusion, cultural arts, special events
• Pocono Family YMCA

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Organizational Structure

• 2. Departmentalization
• Grouping of jobs according to (4)
• Product
• Nike Golf, shoes, clothing
• REI Clothing footwear, snow gear, water gear,
  land gear
• Geography
• NRPA regions NPS
• Gametime 18 independent U.S. Reps
• NWSRA 2 area (by city) inclusion coordinators

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Organizational Structure

• 2. Departmentalization
• Grouping of jobs according to (4)
• Customer
• retail, wholesale, government
• corporate vs. individual clients
• NRPA (Aquatics, L A, CBM, NTRS)

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Organizational Structure

• 3. Chain of command
• Unbroken line of authority
• the right to exercise influence, give directives
  or make certain decisions within the organization

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Organizational Structure

• 3. Chain of command
• Key issues
• Unity of Command
• 1 supervisor ee is responsible to
• Seeing less chain of command with empowerment
• More access to company wide info via technology
• Dont need to have your boss talk to the boss of
  maintenance to get the grass mowed!

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Organizational Structure

• 4. Span of Control
• of people, units, operations a mgr can
  control effectively efficiently
• Small span of control supervise smaller number
  of people
• Larger span of control supervise larger number
  of people

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Organizational Structure

• 4. Span of Control
• of people, units, operations a mgr can
  control effectively efficiently
• Small span of control supervise smaller number
  of people
• Larger span of control supervise larger number
  of people

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Organizational Structure

• 4. Span of Control
• See smaller span of control at top larger at
  bottom of org.
• 7 is optimal but depends on work done
• Which is better? Smaller or larger?

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Organizational Structure

• 4. Span of Control
• Wider fewer managers, more ees reporting to
  them
• Reduces cost, speeds decision making
• Get closer to the customer
• Empower employees
• Fewer layers of employees
• Invest in training staff
• Easier to supervise a lot of good staff than bad
  ones

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Organizational Structure

• 4. Span of Control
• Smaller more managers with fewer ees
• Tight managerial control
• Increase cost of managers
• Added managers slows communication
• Encourages micro-managing discourages ee
  autonomy

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Organizational Structure

• 5. Centralization or decentralization
• Degree to which decision making is concentrated
  at a single point in the organization

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Organizational Structure

• Centralization
• Top managers make all the decisions
• Consistency in decision making
• Slow processmove up the chain of command

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Organizational Structure

• Decentralization
• Decision making is pushed down to mgrs closest to
  the action
• Quicker actions taken
• More people provide input
• EEs less likely to feel alienated from decision
  makers
• Mgrs closer to situation

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Organizational Structure

• 5. Centralization or decentralization
• ????
• Which one is better?
• Is there a place for both?

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Organizational Structure

• 6. Formalization
• Degree to which jobs are standardized
• EE has minimal discretion in how, what when to
  do things
• Policies are strictly followed
• Explicit job descriptions
• Less formalization increases freedom

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Organizational Design

• Simple Structure
• Bureaucracy
• Team Based Structure
• Matrix Structure

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Organizational Design

• How organizational structures are arranged and
  incorporated
• Designs change as people come go in the
  organization

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Organizational Design

• Simple structure
• Low degree of departmentalization, wide span of
  control, centralized authority, little
  formalization
• Flat organization

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Organizational Design

• Simple structure
• Fast, flexible, inexpensive, clear accountability
• Info overload at the top
• Difficult to use in a large organization

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Organizational Design

• Bureacracy
• Highly standardized operating tasks achieved
  through specialization
• Formalized rules
• Tasks grouped by function
• Centralized authority
• Narrow span of control
• Decision making follows the chain of command

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Organizational Design

• Bureacracy
• Strength ability to perform standardized
  activities efficiently
• Functions well with less talented less costly
  ees
• Resistant to change
• Close adherence to rules, minimizes decision
  making
• Put like minds together

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Bureaucracy
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Organizational Design

• Team Based Structures
• Breaks down dept barriers
• Org is more horizontal
• Decentralizes decision making to team level
• Requires ees be generalists vs. specialists
• Naperville Park District

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Organizational Design

• Team Based Structures
• Self managed teams
• Work together to accomplish goals obj.
• Marketing team
• Treatment team
• Problem solving teams
• Short term to solve problems

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Groups vs. Teams
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Organizational Design

• Matrix Structure (cross functional teams)
• Combines functional product departmentalization
• Assigns specialists to specific functional
  departments to work with interdisciplinary groups
  led by project leaders
• Breaks unity of command concept
• 2 bosses functional dept manager product
  managers

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Home Departments Marketing Accounting Registratio
n Human resources Arts Events Sports Recreation Ma
intenance
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Reading Org Charts

• Lines show chain of command
• Levels should be similar
• Determine distinction between titles
• Manager, supervisor, coordinator, specialist,
  leader

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