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ORGANIZATIONAL STRUCTURE

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kareem El-Sayed

on 28 March 2013

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Transcript of ORGANIZATIONAL STRUCTURE

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Introduction Lauren Knowles
Theory Part I and II Mathieu Pike &
Lauren Knowles
Barrick Gold Company Case Pookiel McCabe
Coca Cola Case Pookiel/Mia
Apple Case Mia Johnston
Closing Lauren Knowles Introduction Appropriate organizational design enables an organization to execute better, learn faster, and change more easily.

Organizational structures determine:
- Individuals get to participate in which decision-making processes, and
- To what extent their views shape the organization’s actions

Provides the foundation on which standard operating procedures and routines rest

Helps differentiate organizations within the marketplace, and allow companies to achieve their goals

Four basic elements of Organizational Structure:
- Formalization,
- Mechanistic and Organic Structure
- Span of control, and
- Centralization and Departmentalization Agenda Formalization Degree to which organizations standardize behaviour through rules, procedures, formal training, and related mechanisms Companies become more formalized as they increase their dependence on various forms of standardization to coordinate work Negatives of formalization Procedures and rules that make up a formalized structure cause a decrease in organization’s flexibility
High levels of formalization can contribute to the undermining of organizational creativity and learning Success of an organization is strongly dependent on their organizational structure

Companies’ adapt different structures over time depending on changing factors within the organization and the external environment

Organizational structure is critical to a firm’s success and will determine their success in the marketplace Conclusion Hierarchical Structure Strict command and control
Ideas and important decisions shared at top levels of management
Narrow span of control
More control over company and its outcomes
Company is efficient Departmentalization Functional Structure
Organizes employees based on job tasks
Employees highly specialized
Network Structure
Supports functional structure, production process, and changes in technology
Reflects overall culture
Easily attain its goals Centralization Steve Jobs made the company highly centralized
He made key decisions, executive team had to report to him
Tim Cook is working towards a more decentralized structure
Believes in less authoritative means
Wider span of control
Employees and other senior management to take part in the creative process Conclusion Narrow span of control
All the key decisions made by the executive team
Functional structure and network structure
Allows the teams to be specialized and collaborative
Centralized towards a decentralized
Employees more job autonomy, and more of a dispersion of decision-making authority and power
Overall, the structure supports the company culture, gives the ability for the company to run efficiently, and for it to achieve its organizational goals. “Span of control is defined as the number of people that are directly reporting to the next level in the hierarchical system (McShane, 2009, p. 311).” Span of Control Many Factors can influence Span of Control

Routine tasks
Complex/highly demanding tasks
Group work
Individual work Tall organizations Flat organizations Centralization Decentralization Little power/decision making to employees More Power/decision making to employees Contingencies of Organizational Design 5 contingencies
External Environment
Organizational Size
Technology
Organizational Strategy Departmentalization Barrick organizes it’s employees around geographic areas Main headquarters in Toronto, Ontario
It hire’s locally, from each region Formalization Since Barrick is a gold mining company, it’s bound to have a great amount of criticism caused by environmental, social, legal, or ethical issues. Employees must obey!! The Code of Business Conduct and Ethics
Anti-Fraud Policy
Disclosure Policy
Insider Trading Policy
Anti-Bribery and Anti-Corruption Policy
Human Rights Policy
Safety and Occupational Health Policy Statement
Environmental Policy Statement
The Policies of his or her particular business unit applicable to such employee or director. There is a high degree of formalization! Span of Control The company has 26,000 employees with few layers of management Barrick stresses teamwork and collaboration to ensure trust and to create positive results
in 2011, about 14,000 employees created 199 teams There is a large amount of employees per supervisor/manager wide span of control!! Decentralized Structure Barrick is in 4 regions and 7 countrieseach regional business unit is responsible for their own operations and business growth, strategic guidance and oversight is provided by headquarters in Toronto.
It’s environment is too complex to keep formal decision making held by a small amount of people Mechanistic Organic narrow span of control and high degree of formalization and centralization Operate better in stable environments Wide span of control, little formalization, and decentralized decision-making Works best in a dynamic environment Survive better when the economy is suffering More compatible with high performance workplaces, quality management, and organizational learning They encourage information sharing and an empowering workforce Narrow or Wide span of control? Narrow Span of Control! The structure of Coca-Cola combines elements of centralization and decentralization. Mechanistic and Organic structures.
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