Managing
Organizational
Structure
and Culture
chapter ten
McGraw-Hill/Irwin
Copyright © 2014 by The McGraw-Hill Companies, Inc. All rights reserved.
Learning Objectives
1. Identify the factors that influence managers’ choice of an
2.
3.
4.
5.
organizational structure.
Explain how managers group tasks into jobs that are
motivating and satisfying for employees.
Describe the types of organizational structures managers
can design, and explain why they choose one structure over
another.
Explain why managers must coordinate jobs, functions, and
divisions using the hierarchy of authority and integrating
mechanisms
List the four sources of organizational culture, and explain
why and how a company’s culture can lead to competitive
advantage.
10-2
Designing Organizational Structure
Organizing
 The process by which
managers establish
working relationships
among employees to
achieve goals.
10-3
Factors Affecting Organizational
Structure
Figure 10.1
4
Designing Organizational Structure
 Organizational design
 The process by which managers create a specific
type of organizational structure and culture so
that a company can operate in the most efficient
and effective way
10-5
The Job Characteristics Model
Figure 10.2
10-6
Grouping Jobs into Functions
Functional Structure
 An organizational
structure composed of
all the departments
that an organization
requires to produce its
goods or services.
10-7
Product, Market, and
Geographic Structures
Figure 10.4
10-8
Matrix Structure
Figure 10.6
10-9
Product Team Structure
Figure 10.6
10-10
Allocating Authority
 Authority
 power to hold people accountable for their
actions and to make decisions concerning the use
of organizational resources.
10-11
Tall Organizations
Figure 10.8
10-12
Tall and Flat Organizations
 Flat structures have fewer levels and wide
spans of control.
 Structure results in quick communications but can
lead to overworked managers.
Figure 10.8
10-13
Integrating Mechanisms
Figure 10.9
10-14
Sources of an Organization’s
Culture
Figure 10.10
10-15