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Management and Organisational Behaviour
7th Edition
CHAPTER 16
Patterns of Structure and Work
Organisation
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005
OHT 16.2
Approaches to organisation & management
• Classical approach – focused on formal structure,
technical requirements of the organisation and general
sets of principles
• Human relations approach – focused on the informal
organisation and the psychological & social needs of
people at work
• Systems view – emphasised the socio-technical
approach, the interrelationships of sub-systems &
multiple channels of interaction
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005
OHT 16.3
The contingency approach
• A development of the systems approach
• Takes the view that there is no one best
universal structure
• A range of situational factors influence
organisational design & performance
• Emphasises the need for flexibility
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005
OHT 16.4
Figure 16.1
The if – then contingency relationship
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005
OHT 16.5
Figure 16.2
Main influences on the contingency approach
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005
OHT 16.6
The Woodward study
• Concluded that differences in organisational
structure appeared to be closely linked with
differences in manufacturing techniques
• Organisational patterns related more to the
similarity of objectives and production
techniques than to size, industry type, business
success
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005
OHT 16.7
The Woodward study
The organisational characteristics showing a direct
relationship to technology were –
• Spans of control
• Levels of management
• Percentage of total turnover allocated to wages &
salaries
• Ratio of managers to total personnel
• Ratio of clerical & administrative staff to manual
workers
• The more advanced the technology, the longer the line
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005
OHT 16.8
Table 16.2
Characteristics of production systems
Source: Reproduced with permission from Woodward, J. Industrial Organization: Theory and Practice, Second edition, Oxford
University Press (1980) p.128.
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005
OHT 16.9
Table 16.2
Characteristics of production systems
Source: Reproduced with permission from Woodward, J. Industrial Organization: Theory and Practice, Second edition, Oxford
University Press (1980) p.128.
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005
OHT 16.10
Table 16.2
Characteristics of production systems
Source: Reproduced with permission from Woodward, J. Industrial Organization: Theory and Practice, Second edition, Oxford
University Press (1980) p.128.
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005
OHT 16.11
Mechanistic systems
A rigid system of management practice and
structure characterised by –
•
•
•
•
A clear hierarchical structure
Specialisation of task
Defined duties & responsibilities
Knowledge centered at the top of the hierarchy
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005
OHT 16.12
Organic systems
A fluid & flexible system of management practice
& structure characterised by –
• The adjustment & continual redefinition of tasks
• A network structure of control, authority &
communication
• Superior knowledge not necessarily coinciding
with positional authority
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005
OHT 16.13
Mechanistic or organic systems
Mechanistic
Organic
High
Many & sharp
differentiations
SPECIALISATION
Low
No hard boundaries
Relatively few
different jobs
High
Methods spelled
out
STANDARDISATION
Low
Individuals decide &
own methods
Means
ORIENTATION OF
MEMBERS
Goals
By superior
CONFLICT
RESOLUTION
Interaction
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005
OHT 16.14
Mechanistic or organic systems
Mechanistic
Organic
Hierarchical based
on implied
contractual relation
PATTERN OF
AUTHORITY
Wide net based on
common
commitment
At top of
organisation
LOCUS OF
SUPERIOR
COMPETENCE
Wherever there is
skill & competence
Vertical
INTERACTION
Lateral
Directions, orders
COMMUNICATION
CONTENT
Advice &
information
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005
OHT 16.15
Mechanistic or organic systems
Mechanistic
To organisation
Organic
LOYALTY
From organisational PRESTIGE
position
To project & group
From personal
contribution
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005
OHT 16.16
Integration
The quality of the state of collaboration that exists
among departments that are required to achieve
unity of effort by the demands of the environment.
Lawrence & Lorsch
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005
OHT 16.17
Integration
• Describes the degree of co-ordination and
co-operation between different departments with
interdependent tasks
• Recognises that different departments could
have their own distinctive structures according to
the nature of their task
• Includes the use of mediating devices to
co-ordinate the different outlooks
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005
OHT 16.18
Differentiation
The difference in cognitive & emotional orientation
among managers in different functional
departments with respect to –
•
•
•
•
Goal orientation of managers
Time orientation
Interpersonal relations of managers
Formality of structure
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005
OHT 16.19
Integrating mechanisms
The mechanisms used depend on the amount of
integration required & the difficulty in achieving it –
• Mechanistic structures – integration can be
attempted through the use of policies, rules &
procedures
• Organic structures – integration can be
attempted via teamwork & mutual co-operation
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005
OHT 16.20
Criticisms & limitations of the contingency
approach
These usually revolve around –
•
•
•
•
•
•
•
Causal relationships
Organisational performance
Independent variables
Multiple contingencies
Planned change
Power factors
Timing of organisational change
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005
OHT 16.21
Seven habits of new organisations
•
•
•
•
•
•
•
Flexible & free-flowing
Non-hierarchical
Based on participation
Creative & entrepreneurial
Based around networks
Driven by corporate goals
Utilising technology as a key resource
Crainer
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005
OHT 16.22
The flexible firm
Atkinson suggests that firms are looking for three kinds of
flexibility • Functional flexibility – permits rapid redeployment of
employees among different activities and tasks
• Numerical flexibility – allows for restructuring to adjust
the number of employees to match the level of demand
for labour
• Financial flexibility – pay and other employment costs
reflect the supply & demand of labour
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005
OHT 16.23
Figure 16.6
The shamrock organisation
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005
OHT 16.24
Challenges of the shamrock
• Whilst the shamrock organisation is logical,
these are not easy organisations to run
• Each leaf of the shamrock has to be managed
differently yet as part of the whole
• The core is the critical hub of the organisational
network & this raises important questions as to
what activities & people belong in the core
Handy
Mullins: Management and Organisational Behaviour, 7th edition © Pearson Education Limited 2005