MGMT 110 Lecture Notes - Lecture 12: Outsourcing, Technostructure, Cultural Capital
Week 12: Managing Organisational Design
Learning Objectives
- After completing this topic, you should be able to:
o Define organisations in terms of structural contingency theory
o Discuss size, technology, and environment as the key contingencies associated with
organisation structures
o Link organisational contingencies to organisational design
o Join issues of organisation structure to questions of organisational strategy
Key Concepts
- Organisational Design
o It is both the (rational) plan/model for an organisation’s structure and way of operating and
the process of achieving this
- Work Design
o It is both the (rational) plan/model for how work is to be completed and the processes of
achieving this
3 Stages of Organisational Design
- Pre-contingency
- Contingency
- Post-contingency
Organisational Structures: Classical or Traditional
- Classical view: ‘one best way’ (machine)
o Henri Fayol’s administrative principles
o Fredrick Taylor’s scientific management
o Max Weber’s bureaucracy
Factors Affecting Design of Organisational Structure
- Determine the design of organisational structure
o Organisational environment
o Technology
o Strategy
o Human resources
Universal Factors/Contingencies
- Environment
- Technology
- Size
Contingency Theory
- Several key contingencies shaping organisations
- All organisations have to deal with a predictable number of contingencies
- Contingencies will shape the organisation’s design as it adapts to them
Contingency View
- No ‘one best way’ to organise; best ‘fit’ (organic)
- Organisation form/design depends on:
o Strategy
o Environment (uncertainty)
o Size
o Task/products and services (complexity, interdependence, skills needed, etc.)
o Technology
Mintzberg’s Five Organisational Forms
Design
Description
Dominant Group
Example
Simple
structure
Simple, informal authority
centralised in a single person
Strategic apex
Small,
entrepreneurial
business
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
Organisational design: it is both the (rational) plan/model for an organisation"s structure and way of operating and the process of achieving this. Work design: it is both the (rational) plan/model for how work is to be completed and the processes of achieving this. Classical view: one best way" (machine: henri fayol"s administrative principles, fredrick taylor"s scientific management, max weber"s bureaucracy. Determine the design of organisational structure: organisational environment, technology, strategy, human resources. All organisations have to deal with a predictable number of contingencies. Contingencies will shape the organisation"s design as it adapts to them. No one best way" to organise; best fit" (organic) Organisation form/design depends on: strategy, environment (uncertainty, size, task/products and services (complexity, interdependence, skills needed, etc. , technology. Simple, informal authority centralised in a single person. Highly complex, formal environment with clear lines of authority. Software development firm: complex/formal/specialised, tightly controlled roles & responsibilities, formal rules, procedures, instructions and communication channels.
