BASIC MODELS OF ORGANIZATION DESIGN

BASIC MODELS OF ORGANIZATION DESIGNOrganization Design may be defined as the total pattern of structural elements and patterns used to manage the overall organizationOrganizational Design should be seen as a tool for the implementation of organizational strategies and the attainment of organizational goals.Models of Organizational Design:The Bureaucratic ModelThe Behavioral Model

Given by Max Weber, a German sociologist

A bureaucracy is defined as an organization founded on a legitimate and formal system of authority.

Weber considered bureaucratic organization as being logical, rational and highly efficient.The Bureaucratic ModelIdeal bureaucracy has following characteristics:Each organization should create an absolute and clear division of labor and staff each job with an expert in that particular staff.Should establish a hierarchy of position Should establish a concise and consistent set of rules and regulationsShould establish specific personnel policies and practicesManagers should conduct business in an impersonal manner, maintaining an appropriate social distance from their sub ordinates

First model of OD, still serves as basic foundation for the understanding and application of new OD approaches

Despite the changes in technology and workers attitude, operational efficiency and effectiveness can still be improved by the selective application of such bureaucratic principals.

Example: McDonaldsStrengths of BureaucracyReflects the social and psychological implications of organizational life

Following are the two behavioral models of OD:Socio Technical systems theoryLikerts Systems 4 organizationThe Behavioral Model Establishes two premises for OD:

a social system that provides the framework for all the human interactions that sustain both the formal and informal organizationsa technical system that provides the framework for the tasks that produce the organizations goods and servicesSocio Technical systems theory

Rensis Likerts research deals with the following eight characteristics of organizations:

The Leadership ProcessThe Motivation ProcessThe communication ProcessThe Interaction ProcessThe Decision ProcessThe Goal Setting ProcessThe Control ProcessThe Performance GoalsLikerts Systems 4 organization

Strengths:Emphasis on behavioral processes of the organizationNo best way to design the organizationsTechnologyEnvironment Size

Situational issues in Organization DesignDownsizingDe-jobbingBorderless StructuresInformation Processing imperativeTrends in Organization DesignTall HierarchyPaternalistic relationship b/w boss/ subordinateHigh degree of formalization with endless paperworkDivisional structure with little delegationStuffed Organization structureOrganizational issues in India