Organizational Structure, Design & Culture. Organizational Structure How job tasks are formally divided, grouped, & coordinated Why? –Meet goals &

Organizational Organizational Structure, Design & Structure, Design &

CultureCulture

Organizational StructureOrganizational Structure

How job How job taskstasks are formally divided, are formally divided, grouped, & coordinatedgrouped, & coordinated

Why?Why?– Meet goals & objectives of organizationMeet goals & objectives of organization– Efficiency & effectivenessEfficiency & effectiveness


6 elements to address for a proper 6 elements to address for a proper organizational structureorganizational structure

1.1. Work specializationWork specialization

2.2. DepartmentalizationDepartmentalization

3.3. Chain of commandChain of command

4.4. Span of ControlSpan of Control

5.5. Centralization or decentralizationCentralization or decentralization

6.6. FormalizationFormalization


1. Work specialization1. Work specialization

– Division of laborDivision of laborTasks are subdivided into separate jobsTasks are subdivided into separate jobs

– Jobs broken into steps with multiple Jobs broken into steps with multiple people doing their individual part to people doing their individual part to make the entire productmake the entire product

– Assembly lines, McDonald’sAssembly lines, McDonald’s


1. Work specialization1. Work specialization

– AdvantagesAdvantagesUsed to increase productivityUsed to increase productivityAllows skill building on the jobAllows skill building on the job

– DisadvantagesDisadvantagesGood to a point & then diminishing returnsGood to a point & then diminishing returnsBoredom, absenteeism, stress, high turnoverBoredom, absenteeism, stress, high turnover


2. Departmentalization2. Departmentalization– Grouping of jobs according to (4): Grouping of jobs according to (4):

Function/processFunction/processProduct Product Geography Geography CustomerCustomer



Function/process Function/process

– Northwest SRA Managers:Northwest SRA Managers: Inclusion, cultural arts, special eventsInclusion, cultural arts, special events

– Pocono Family YMCAPocono Family YMCA



Product Product – Nike: Golf, shoes, clothing Nike: Golf, shoes, clothing – REI: Clothing & footwear, snow gear, water gear, REI: Clothing & footwear, snow gear, water gear,

land gearland gear

Geography Geography – NRPA regions; NPSNRPA regions; NPS– Gametime – 18 independent U.S. RepsGametime – 18 independent U.S. Reps– NWSRA – 2 area (by city) inclusion coordinatorsNWSRA – 2 area (by city) inclusion coordinators



Customer Customer – retail, wholesale, governmentretail, wholesale, government– corporate vs. individual clientscorporate vs. individual clients– NRPA (Aquatics, L & A, CBM, NTRS)NRPA (Aquatics, L & A, CBM, NTRS)


3. Chain of command3. Chain of command– Unbroken line of authorityUnbroken line of authority

the right to exercise influence, give the right to exercise influence, give directives or make certain decisions directives or make certain decisions within the organizationwithin the organization


3. Chain of command3. Chain of command– Key issuesKey issues

Unity of CommandUnity of Command– 1 supervisor ee is responsible to1 supervisor ee is responsible to

Seeing less chain of command with Seeing less chain of command with empowermentempowerment

– More access to company wide info via technologyMore access to company wide info via technology

– Don’t need to have your boss talk to the boss of Don’t need to have your boss talk to the boss of maintenance to get the grass mowed!maintenance to get the grass mowed!


4. Span of Control4. Span of Control– # of people, units, & operations a mgr # of people, units, & operations a mgr

can control effectively & efficientlycan control effectively & efficiently

– Small span of control – supervise smaller Small span of control – supervise smaller number of peoplenumber of people

– Larger span of control – supervise larger Larger span of control – supervise larger number of peoplenumber of people


4. Span of Control4. Span of Control– # of people, units, & operations a mgr # of people, units, & operations a mgr

can control effectively & efficientlycan control effectively & efficiently

– Small span of control – supervise smaller Small span of control – supervise smaller number of peoplenumber of people

– Larger span of control – supervise larger Larger span of control – supervise larger number of peoplenumber of people


4. Span of Control4. Span of Control

– See smaller span of control at top & See smaller span of control at top & larger at bottom of org.larger at bottom of org.

– 7 is optimal but depends on work done7 is optimal but depends on work done

– Which is better? Smaller or larger?Which is better? Smaller or larger?


4. Span of Control4. Span of Control– Wider – fewer managers, more ee’s Wider – fewer managers, more ee’s

reporting to themreporting to themReduces cost, speeds decision makingReduces cost, speeds decision makingGet closer to the customerGet closer to the customerEmpower employeesEmpower employeesFewer layers of employeesFewer layers of employeesInvest in training staffInvest in training staff

– Easier to supervise a lot of good staff Easier to supervise a lot of good staff than bad onesthan bad ones


4. Span of Control4. Span of Control– Smaller – more managers with fewer Smaller – more managers with fewer

ee’s ee’s Tight managerial controlTight managerial controlIncrease cost of managersIncrease cost of managersAdded managers slows Added managers slows

communicationcommunicationEncourages micro-managing & Encourages micro-managing &

discourages ee autonomydiscourages ee autonomy


5. Centralization or decentralization5. Centralization or decentralization

– Degree to which decision making is Degree to which decision making is concentrated at a single point in the concentrated at a single point in the organizationorganization


CentralizationCentralization

– Top managers make all the decisionsTop managers make all the decisions

– Consistency in decision makingConsistency in decision making

– Slow process…move up the chain of Slow process…move up the chain of commandcommand


DecentralizationDecentralization– Decision making is pushed down to mgrs Decision making is pushed down to mgrs

closest to the actionclosest to the action

– Quicker actions takenQuicker actions taken

– More people provide inputMore people provide input

– EE’s less likely to feel alienated from decision EE’s less likely to feel alienated from decision makersmakers

– Mgrs closer to situationMgrs closer to situation


5. Centralization or decentralization5. Centralization or decentralization

– ????????– Which one is better?Which one is better?– Is there a place for both?Is there a place for both?


6. Formalization6. Formalization

– Degree to which jobs are standardizedDegree to which jobs are standardized– EE has minimal discretion in how, what EE has minimal discretion in how, what

& when to do things& when to do things– Policies are strictly followedPolicies are strictly followed– Explicit job descriptionsExplicit job descriptions– Less formalization increases freedomLess formalization increases freedom

Organizational DesignOrganizational DesignSimple StructureSimple Structure

BureaucracyBureaucracyTeam Based StructureTeam Based Structure

Matrix StructureMatrix Structure

Organizational DesignOrganizational Design

How organizational structures are How organizational structures are arranged and incorporatedarranged and incorporated

Designs change as people come & go Designs change as people come & go in the organizationin the organization


Simple structureSimple structure– Low degree of departmentalization, wide Low degree of departmentalization, wide

span of control, centralized authority, span of control, centralized authority, little formalizationlittle formalization

– ““Flat” organizationFlat” organization


Simple structureSimple structure– Fast, flexible, inexpensive, clear Fast, flexible, inexpensive, clear

accountabilityaccountability– Info overload at the topInfo overload at the top– Difficult to use in a large organizationDifficult to use in a large organization

KNR Director

Athletic Training Faculty Exercise Physiology Faculty PETE Faculty RPA Faculty


BureacracyBureacracy– Highly standardized operating tasks Highly standardized operating tasks

achieved through specializationachieved through specialization– Formalized rulesFormalized rules– Tasks grouped by functionTasks grouped by function– Centralized authorityCentralized authority– Narrow span of controlNarrow span of control– Decision making follows the chain of Decision making follows the chain of

commandcommand


BureacracyBureacracy– Strength – ability to perform Strength – ability to perform

standardized activities efficientlystandardized activities efficiently– Functions well with less talented & less Functions well with less talented & less

costly ee’scostly ee’s– Resistant to changeResistant to change– Close adherence to rules, minimizes Close adherence to rules, minimizes

decision makingdecision making– Put like minds togetherPut like minds together

BureaucracyBureaucracy


Team Based StructuresTeam Based Structures– Breaks down dept barriersBreaks down dept barriers– Org is more horizontalOrg is more horizontal– Decentralizes decision making to team Decentralizes decision making to team

levellevel– Requires ee’s be generalists vs. Requires ee’s be generalists vs.

specialistsspecialists– Naperville Park DistrictNaperville Park District


Team Based StructuresTeam Based Structures– Self managed teamsSelf managed teams

Work together to accomplish goals & obj.Work together to accomplish goals & obj.Marketing teamMarketing teamTreatment teamTreatment team

– Problem solving teamsProblem solving teamsShort term to solve problemsShort term to solve problems

Groups vs. TeamsGroups vs. Teams


Matrix Structure (cross functional teams)Matrix Structure (cross functional teams)– Combines functional & product Combines functional & product

departmentalizationdepartmentalization

– Assigns specialists to specific functional Assigns specialists to specific functional departments to work with interdisciplinary departments to work with interdisciplinary groups led by project leadersgroups led by project leaders

– Breaks unity of command conceptBreaks unity of command concept 2 bosses – functional dept manager & product 2 bosses – functional dept manager & product

managersmanagers

Home Departments:

Marketing

Accounting

Registration

Human resources

Arts

Events

Sports

Recreation

Maintenance

Reading Org ChartsReading Org Charts

Lines show chain of commandLines show chain of command

Levels should be similarLevels should be similar

Determine distinction between titles:Determine distinction between titles:– Manager, supervisor, coordinator, Manager, supervisor, coordinator,

specialist, leaderspecialist, leader

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Organizational Structure, Design & Culture. Organizational Structure How job tasks are formally divided, grouped, & coordinated Why? –Meet goals &