Organization theory and design 11e richard daft chapter 09

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PART I: INTRODUCTION TO ORGANIZATIONS. 1. Organizations and Organization Theory. PART II: ORGANIZATIONAL PURPOSE AND STRUCTURAL DESIGN. 2. Strategy, Organization Design, and Effectiveness. 3. Fundamentals of Organization Structure. PART III: OPEN SYSTEM DESIGN ELEMENTS. 4. The External Environment. 5. Interorganizational Relationships. 6. Designing Organizations for the International Environment. PART IV: INTERNAL DESIGN ELEMENTS. 7. Manufacturing and Service Technologies. 8. Using Information Technology for Control and Coordination. 9. Organization Size, Life Cycle, and Decline. PART V: MANAGING DYNAMIC PROCESSES. 10. Organizational Culture and Ethical Values. 11. Innovation and Change. 12. Decision-Making Processes. 13. Conflict, Power, and Politics. Integrative Cases. Glossary. Name Index. Chapter Organization Size, Life Cycle, and Decline Organization Theory and Design ©2013 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Eleventh Edition Richard L Daf Differences Between Large and Small Organizations ©2013 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Organization Size: Is Bigger Better? Pressures for Growth – – Companies in all industries strive for growth to acquire the size and resources needed to compete globally Size enables companies to take risks Dilemmas of Large Size – – – – Large organizations are able to get back to business more quickly following a disaster Large companies are standardized, mechanistic, and complex Small companies are flexible and can be responsive Many companies aim to have a big company/small-company hybrid ©2013 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Five Famous Mergers and Acquisitions Gone Wrong ©2013 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Organizational Life Cycle ©2013 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Organization Characteristics During Four Stages of Life Cycle ©2013 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part What is Bureaucracy? • • Weber defined bureaucracy as a threat to liberty • • Bureaucracy is the most efficient system for organizing Bureaucracy includes: – Rules and standard procedures – Clear tasks and specialization – Hierarchy of authority – Technical competence The control introduced by Weber was rational and a significant idea ©2013 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Weber’s Dimensions of Bureaucracy and Bases of Organizational Authority ©2013 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Size and Structural Control • • • Formalization – rules, procedures, and written documentation Centralization – level of hierarchy with authority to make decisions Personnel Ratios – clerical and professional support staff ratios ©2013 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Percentage of Personnel Allocated to Administrative and Support Activities ©2013 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Bureaucracy in a Changing World • • • • Bureaucracy worked for the industrial age • • Narrowly defined jobs and rules limit creativity, flexibility, and rapid response The system no longer works for today’s challenges Organizations face new challenges and need to respond quickly Over-bureaucratization is evident in the inefficiencies of large U.S government organizations Some organizations are using temporary structures for emergencies or crisis situations 11 ©2013 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Approaches to Busting Bureaucracy • Google uses bullpen sessions every afernoon • Small geographic based teams • Increasing authority of workers • The increasing professionalism of employees is attacking bureaucracy 12 ©2013 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Three Organizational Control Strategies 13 ©2013 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Examples of Rules at a Yacht Club 14 ©2013 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Organizational Decline and Downsizing The decrease of an organization’s resources over time is caused by: – Organizational atrophy – Vulnerability – Environmental decline or competition Downsizing refers to intentionally reducing the size of a company’s workforce 15 ©2013 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Stages of Decline and the Widening Performance Gap 16 ©2013 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Easing Downsizing Tension 1) 1) Searchfor foralternatives alternatives Search 2) 2) Communicatemore, more,not notless less Communicate 3) 3) Provideassistance assistanceto todisplaced displacedworkers workers Provide 4) 4) Helpthe thesurvivors survivorsthrive thrive Help 17 ©2013 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Design Essentials  Organizations experience pressures to grow  Organizations evolve through stages of the life-cycle  Larger organizations usually adopt bureaucratic characteristics  All organizations require systems for control  Many organizations experience decline 18 ©2013 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part [...]... Bureaucracy worked for the industrial age • • Narrowly defined jobs and rules limit creativity, flexibility, and rapid response The system no longer works for today’s challenges Organizations face new challenges and need to respond quickly Over-bureaucratization is evident in the inefficiencies of large U.S government organizations Some organizations are using temporary structures for emergencies or crisis... or duplicated, or posted to a publicly accessible website, in whole or in part Design Essentials  Organizations experience pressures to grow  Organizations evolve through stages of the life-cycle  Larger organizations usually adopt bureaucratic characteristics  All organizations require systems for control  Many organizations experience decline 18 ©2013 Cengage Learning All Rights Reserved May... decrease of an organization s resources over time is caused by: – Organizational atrophy – Vulnerability – Environmental decline or competition Downsizing refers to intentionally reducing the size of a company’s workforce 15 ©2013 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Stages of Decline and the Widening... Three Organizational Control Strategies 13 ©2013 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Examples of Rules at a Yacht Club 14 ©2013 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Organizational Decline and ... Bureaucracy includes: – Rules and standard procedures – Clear tasks and specialization – Hierarchy of authority – Technical competence The control introduced by Weber was rational and a significant idea... • Narrowly defined jobs and rules limit creativity, flexibility, and rapid response The system no longer works for today’s challenges Organizations face new challenges and need to respond quickly... accessible website, in whole or in part Organizational Decline and Downsizing The decrease of an organization s resources over time is caused by: – Organizational atrophy – Vulnerability – Environmental
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