Week 10-12: 2nd Quarter 4.

Flat (Flatarchy) Structure

- Horizontal structure
What is an Organizational Structure? - Use a moment startups
● System that outlines how certain activities are directed to achieve - Flattens the hierarchy and chain of command
the goals of an organization. - Gives its employees a great deal of autonomy
● Determines how information flows between levels within company - Companies that use this type of structure have a high
● Decision flows from: top down in a centralized structure. speed of implementation
: distributed among various level of the org
in a decentralized structure 5. Matrix Structure
- Most confusing and least use
Centralized structure - Matrixes employees across different superiors, divisions,
● Traditional or departments
● Hierarchy of superiors and subordinates
6. Circular Structure
Types of Organizational Structure - They place higher level employees and managers at the
1. Functional structure center of an organization with concentric ring expanding
- First and most common outward.
- bureaucratic - Contain lower level employees and staff
- based on specialization of its workforce (by departments) - Encourage open communication and collaboration
- mostly implemented by small-to-medium businesses
7. Network Structure
2. Divisional/Multidivisional Structure - Organizes contractors and third-party vendors to carry out
- M-Form Structure certain key functions.
- Common among large companies w/ many business units - Satellite offices
- Based on the products, projects, or some subsidiaries it
operates. Benefits of Organizational Structures
- Ex. Johnson & Johnson: w/ thousands of products and ● Firm can decide salary grades and ranges for each position
lines of businesses; each business unit operates as its own ● Makes operations more efficient and much more effective
companyith its own president. ● A very clear organizational structure also informs employees and
how best to get their jobs done. Employees will have to work
3. Team-Based Structure harder at buying favors or courting those with decision making
- Segregate into close knit teams of employees powers in a hierarchical organization.
- Similar to divisional and functional structures ● Employees mistake on more initiative and bring creative problem
- Each team is a unit that contains both leaders and workers solving to the table in a decentralized organization.

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What are Organizational Dyn - Data can be use to determine if the organization meets it's
● Various types of people interact within a company : customers, goals.
employers, suppliers, organizational leaders
● How manager commands a company and the various strategies What is a Contingency Organization Design?
they execute. ● Claims that there is no best way to organize a corporation, to lead a
company, or to make decisions. Instead, the optimal course of
Importance: action is contingent (dependent) upon internal and external
● Strengthen the relationship they have with stakeholders, suppliers, situations.
employees, independent operators, and franchisors.
● Create high performance culture: prioritize well-being of Contingency Factors
individuals. 1. Strategy - when strategy changes, structure must change.
- At the corporate level, strategies are formulated based on
Benefits the company's mission and strategic goals and objectives.
● Create quality control standards, system standards, efficient 2. Environment - stability and predictability of the environment have
processes and best practices for a company. a direct bearing on the ability of organization to function
● Resolve disputes with patience, empathy and respect effectively. On an unstable environment the changes rapidly and is
● Evaluate the existing culture of a company less predictable has to requirements:
● Develop business strategies A. An organization must be able to adapt to change: flexible
and responsive
Elements of Organizational Dynamics B. Organization needs greater coordination among
1. Management departments
- Manager: clearly define various divisions and 3. Size of the organization - number of employees.
departments 4. Age of the organization - evolve through stage of life cycle: birth,
- Set realistic goals youth, midlife and maturity.
● Birth stage
2. Goal Execution - the organization created by the entrepreneur is
- Presenting all deliverables in an efficient manner. informal, with no rules and regulations. Decision
- Determine if any of deliverables are inefficient making is centralized with the owner and task
are not specialized.
3. Constant Supervision ● Youth stage
- Those leadership position - the organization is growing, it expands and hires
more employees.
4. Resource Control - W/ formal rules and policies
- Implement systems that are effective at gathering - Decision making is still with the owner
information. ● Midlife stage

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 - company has become quite large 1. Formal position - power attached to a position in the organization;
- Has extensive sets of rules, regulations, policies more potent than the person who occupies the position.
and systems to guide the employees. 2. Personality characteristics of the leader - charisma or personality
● Technology of an individual.
- Includes knowledge, machinery, work procedure,
and materials that convey the inputs into outputs. Bases of Power
● John French and Bertram Raven: 5 types of interpersonal power
that managers use.
- These sources of power called interpersonal since they
involve the relationship between who holds power and
those who are into influenced by him or her.

1. Reward Power - a person's control over rewarding

Power, influence and Organizational Politics outcomes. Ex managers control the rewards of salary
increases, bonuses and promotions.
Power 2. Coercive Power - evoking, to force the person to do it w/
● Potential or actual ability to influence others threats of punishment
● Transaction between an agent and a target 3. Legitimate Power - similar to authority. Power is based on
a. Agent - person using the power position and mutual agreement. The agent and target
b. Target - recipient of the attempt to use power agree that the agent has the right to influence the target.
● The ability of those who possess power bring about the outcomes The basic response to legitimate power is
they desire. internalization - degree of intrinsic satisfaction
● Influence over beliefs, emotions and behaviors of others at result from complying with the orders of a
personal or professional level. person in authority.
● To induce another person in a way that the former desirees

Two faces of power

1. Negative Face of Power - primitive, unsocialized, need to have
dominance Ina and over submissive people.
2. Positive Face of Power - socialized need to initiate, influence and
lead others in a to desired and aspired direction

Sources of Power in Organizations

Main sources of power are formal positions in the organization and the
personality characteristics of the leader.

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