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Organizational design
The structures, systems, and processes that enable an
organization to implement its plans and achieve its
goals.
Advisory Command
Authority Authority
FIGURE 131
Copyright 2002 by South-Western 136
Functional Authority
FIGURE 132
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Centralization and Decentralization of
AuthorityA Closer Look (contd)
Delegating Authority
Delegationtransferring formal authority from one
position to another in an organization.
Reject
Stage 3 Acceptance
Condition
Accept
FIGURE 133
Copyright 2002 by South-Western 139
Centralization and Decentralization of
AuthorityA Closer Look (contd)
Centralization
Formal authority is concentrated at the top of the
organizational hierarchy.
Decentralization
Formal authority is diffused throughout an organization,
and specific authority for decision making is lodged at
the level where that decision gets executed.
Personalization (professionalization)
Control delegated authority
Organic Mechanistic
FIGURE 135
Copyright 2002 by South-Western 1314
The Range of Organizational Designs
Closed Open
Rigid Flexible
Structured Unstructured
Mechanistic Organic
FIGURE 136
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Strategic Choice and Organizational Design
Environment
Culture
Technology
Managements Organizational
Strategic Design
Goals Choices
Size
People
Organizational Context
FIGURE 137
Copyright 2002 by South-Western 1316
Employee Responses to Organizational
Design and Context
Complexity
Managers like tall organizations (high complexity),
lower-level employees prefer flat organizations (low
complexity).
Formalization
The higher the formalization, the lower the job
satisfaction.
Centralization and decentralization
Decentralization is preferable to centralization.
Attendance
Citizenship Behavior
Performance
FIGURE 138
Copyright 2002 by South-Western 1320
The Empowerment Model
Delegation
Personal Control
Accurate Role
Autonomy Perceptions
FIGURE 139
Copyright 2002 by South-Western 1321