Internal
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Review Notes on  CO:  Organizational Structure:  Forms & Outcomes
External
Links
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 An Overview of Organizational Structures  
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       Social Structure   
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       Organizational Structure Types  
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       The Organizations of Social Structures  
        Do not confuse Org Structure  w/ Social Structure:  e.g.:  peers, family  
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 In general, the corporation today is organized into TWELVE Departments, but there may be more or less.  They are listed in approximate order of historical appearance  
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 Org Structure Charts   
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 Mintzberg developed a model w/ FIVE Components in the Org Structure  
  Hall developed a model w/ FOUR Qualities of the Org Structure
Each of these is a variable that has high, medium, & low levels		  
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       a.  Complexity  
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       b.  Formalization  
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       c.  Centralization  
 
       d.  Communications   [Discussed in CO 7]  
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 Organized Anarchies  
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 Organizational Culture   
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 Democratic Org Structure   

 
Internal
Links

Top
 Outline on an  Overview of Organizational Structure
External
Links
  -  Project:  Draw an Orgl Structure
Link
  -  Project:  Your Org's Structural Qualities
Link
  -  Project:  Organizational Structure Compared to Social Structure 
Link
  SOCIAL STRUCTURE IS THE CONFIGURATION OF AN ENTIRE SYSTEM OF ORGANIZATION SUCH AS THE CONFIGURATION OF THE ECON SECTOR OF SOCIETY   
  It is important not to confuse social structure w/ orgl structure  
  Social structure is the organization of society, including institutions, social positions, the relationships among social positions, the groups or orgs that make up society, & the distribution of scarce resources w/in the society  
  Social structure is the patterned & relatively stable arrangement of roles & statuses found w/in societies & social institutions  
  The idea of social structure points out the way in which societies, & institutions w/in them, exhibit predictable patterns of organization, activity & social interaction  
  This relative stability of org & behavior provides the predictability that people rely on in every day social interaction  
  Social structures are inseparable from cultural norms & values that also shape status & social interaction  
  See Also:  Social Structures  
  Social structures are all composed of groups or organizations  
  Each of the social structures, PF REG M CEML, is composed of orgs, & orgs w/in each of the social structures has similar structures that are unique to that social structure  
  Economic orgs, i.e. businesses have structures made up of the relations btwn different members of the business held together by various economic bonds  
  While different economic orgs, i.e. businesses, have some different features of their structures, all businesses have some structural features in common including owners, mgrs, partners; & workers, employees who are together by the bond of creation, labor, employment  
  ORG STRUCTURE IS THE FORMAL REPORTING RELATIONSHIPS, GROUPINGS & SYSTEMS OF AN ORG 
 
  Org structure is the distributions, along various lines, of people among social positions that influence the role relations among these people (Blau, 1974, p. 12 )  
 
 Org structure is the established pattern of relationships among the various parts of an org & among the various workers in the org
 
  Most orgs in the core nations are organized as bureaucracies, in the shape of a pyramid, w/ authoritarian lines of command & control, w/ minimal input from wkrs  
 
 Org structure is not visible in the same sense as the structure of a material object such as a bridge, but its consequences are just as real
 
 
 Social structure is related to orgl structure, but is a more general concept used to describe such diverse phenomena as the family & the govt
 
  Org & social structures specify patterns of obligations & responsibilities that the incumbents of different roles have in relation to one another  
  Orgl structural relationships influence the sympathies, affections, & animosities that different members of the group are likely to experience toward one another  
  Specific orgs, such as govt agencies, economic orgs, religious orgs, political parties, etc., have different aims, but they share in common identifiable, unique structures for the attainment of their goals  
  Some of the traits of all org structures are discussed below, while the traits of economic orgs, i.e. businesses are discussed elsewhere  
  See Also:  See Also:  The Organizations that Compose the Social Structures  
  See Also:  Economic Org's Structure  
  THE DIVISION OF LABOR & THE RESULTING HIERARCHY ARE TWO MAJOR COMPONENTS OF ANY ORG STRUCTURE   
  A major factor in any orgl structure is the division of labor which is the specialized positions in an org structure  
  When there is a division of labor, people are given different tasks or jobs w/in orgs  
  Hierarchy is the authority inherent in an org structure which is specified via a top down chain of command  
  Hierarchy is the positions that people fill that have rules & regs that specify how people are to act in their orgl positions   
  ORG STRUCTURE INVOLVES THE COMPOSITION OF THE SYSTEM OF CONTROL IN AN ORG   
  Ranson, Hinings & Greenwood (1980) see orgl structure as "a complex medium of control which is continually produced & recreated in interaction & yet shapes that interaction:  structures are constituted & constitutive"   
  Fombrun (1986) sees orgl structure as the juxtaposition of techl solutions, pol exchanges, & soc interpretation in & around orgs resulting in modes of structuring  
  For Fombrun there is a dialectical unfolding of relations among orgl actors that has consequences for orgl form  
  For Fombrun structure is thus continually emergent & yet retains properties of social relations from the past  
  Review:  Each of the types of orgs generally has a form of orgl structure that is unique to it including functional, vertical & matrix orgl structures  
  In analyzing orgl structure, common factors are looked at across org type  
  Orgl structure is one component of the org's internal env which determines how activities are conducted  
  Orgl structure determines how authority & communications flow from management to workers
 
  The trend in orgl structure is toward "flatter," decentralized orgs w/ close communications btwn internal & external participants 
 
  THE TASKS, MGT STRATEGY, & EXTERNAL FACTORS ALL AFFECT ORG STRUCTURE   
  There are THREE factors that affect orgl structure, including the:
 
  a.  tasks performed by an org
 
 
 b.  manner in which management desires to perform the task ( i.e., mgt. strategy )
 
 
 c.  external factors such as customers, competitors, govt, etc.
 
 
 The components of orgl structure execute basic tasks/functions, such as design, production, marketing, finance, HRM, etc.  
  MANY OTHER FACTORS IMPACT ORG STRUCTURE SUCH AS DEPTS, CORE COMPETENCIES, COMPLEXITY, THE SOC STRUCTURAL ENV, & MORE   
 
 In general, the corporation today is organized into TWELVE Departments, but there may be more or less.  They are listed in approximate order of historical appearance  
 
 Mintzberg developed a model w/ FIVE Components in the Org Structure  
 
 Mintzberg developed an Org Typology based on his model of Org Structure  
 
 Hall developed a model w/ FOUR Qualities of the Org Structure each of these is a variable that has high, medium, & low levels
 
 
 a.  Complexity  
 
 b.  Formalization  
 
 c.  Centralization  
 
 d.  Communications  

 
Internal
Links

Top
  Outline on  Social Structure
External
Links
  -  Video:  Society, Culture, & Social Structure        2:25
Link
  -  What is society?  Society is made up of social structure & culture  
  SUMMARY: Social Structures have the following characteristics: 
A.  Social grps or orgs
B.  Positions
      1)  Role 
           a. Role set
           b. Role strain
           c. Role conflict
           d. Role exit		 2.  Bases of a position
           a. Class
           b. Status
           i. Ascribed status
           ii. Achieved status
           iii. Master status
           c. Power		 C.  Regular relationships
      1)  Division of labor
      2)  Stratification
D.  Constant share of resources
E.  Historical development
 
  A SOCIAL STRUCTURE IS THE ORGANIZATION OF SOCIETY, OUR PATTERNS OF BEHAVIOR AS SEEN IN FAMILY STRUCTURE, EDUCATION, ETC.   
 
 Social structure is the organization of society, including institutions, social positions, the relationships among social positions, the groups or orgs that make up society, & the distribution of scarce resources w/in the society  
  Social structure is the patterned & relatively stable arrangement of roles & statuses found w/in societies & social institutions  
  The idea of social structure points out the way in which societies, & institutions w/in them, exhibit predictable patterns of organization, activity & social interaction  
  This relative stability of org & behavior provides the predictability that people rely on in every day social interaction  
  Social structures are inseparable from cultural norms & values that also shape status & social interaction  
 
 Social structure is the organization of society, including
- groups of organizations that
- perform basic functions of society
- support society's culture
- accepted as an essential element in society, that is, are taken for granted 
 
  Social structure is the relatively stable patterns of social behavior  
  In the sense that structure is not visible, it is a reified, abstract concept  
  TODAY THE SOCIAL STRUCTURES INCLUDE PF REG M CEML   
 
  List of Social Structures  (  PF REG M CEML  )
1.  Peers
2.  Family
3.  Religion
4.  Econ / work
5.  Govt		 6.  Military
7.  Charity
8.  Education
9.  Media
10.  Leisure / Recreation
 
  COMPONENTS OF SOCIAL STRUCTURES   
 
 Social structures have FIVE components or qualities including being composed of groups, in particular positions, w/ regular relationships to each other, a constant share of resources, & a particular historical development
 
  A.  SOCIAL GROUPS OR ORGANIZATIONS   
Link
 The first component of a social structure is that is is made up of social groups or organizations
-  two or more people 
-  who share a common purpose
-  have a structure of roles & statutes
 
  Each of the social structures, PF REG M CEML, is composed of orgs, & orgs w/in each of the social structures has similar structures that are unique to that social structure  
  Families have structures made up of the relations btwn different members of the family held together by various familial bonds  
  While different families have some different features of their structures, all families have some structural features in common including parents, guardians, leaders; & children, young adults, dependents; extended members, aunts, uncles, etc. who live together by the bond of procreation or some other intimate bond  
  Economic orgs, i.e. businesses have structures made up of the relations btwn different members of the business held together by various economic bonds  
  While businesses have some different features of their structures, all businesses have some structural features in common including owners, mgrs, partners; & workers, employees who are together by the bond of creation, labor, employment  
  See Also:  Economic Orgs Structure  
  More of the TEN social structures are examined below  
  B.  POSITIONS   
blank The second component of a social structure is that  it is made up of persistent positions are roles, classes, status's, & power which persist over history   
Link
 1)  A ROLE is any position in a social structure or the expected behavior in a social position  
  a.  A role set is a collection of related roles attached to one social position or status;  sets of expected behavior  
  b.  Role conflict is conflicting or opposing expectations or behaviors among various roles  
  Role conflict can be reduced by "compartmentalizing" our lives  
  c.  Role strain is conflicting or opposing expectations or behaviors w/in same role  
  d.  Role exit is the process by which people disengage from important social roles  
  2)  The three BASES OF POSITION are class, status, & power  
   There is disagreement about which interpretation of position is most important   
  a.  Class is an actor's position ( upper, middle, lower ) in relationship to the economy / their income  
  Listings of classes typically include the upper, middle, & lower classes, but also may be stratified into finer distinctions  
  The most common system of classes today includes the upper, upper middle middle, working, & lower classes  
Link
 b.  Status is an actor's level of prestige or honor  
  Status is a social position that an individual occupies  
 
 There are THREE types of status:  ascribed, achieved, & master  
 
 i.  Ascribed status is the status an actor is born into  
 
 A person generally receives ascribed status through birth, including race, sex, family of origin, etc.  
  An ascribed status is a social position that someone receives at birth or involuntarily assumes later in life  
  ii.  Achieved status is the status an actor earns or creates; i.e. achieved status is at least partially a result of something that the actor does   
 
  An achieved status is a social position that someone assumes voluntarily & that reflects personal ability & effort
 
 
 iii.  Master status is an actor's most important status; i.e. the status that is most central & important in an actor's life  
  A master status is a status that has special importance for social identity, often shaping a person’s entire life  
 
 An actor may be able to choose their achieved status, but ascribed & master status' are attributed by society through social structures  
 
 Marx said, 'A person may make history, but they make history under conditions not of their own choosing.'  
 
 For most people in modern industrial countries, their master status is their occupation  
  A status set consists of all the statuses a person holds at a given time  
 
 c.  Power is the authority or the ability to get people to act  
  C.  REGULAR RELATIONSHIPS   
 
 The third component of a social structure is that there are constant or regular relationships among groups & social structures:   
  TWO common types of regular relationships in social structures include a division of labor & stratification  
  1)  The division of labor is the constant allocation of type of labor; a system of specialization  
  2)   Stratification  is the constant allocation of resources; a system of inequality  
  D.  CONSTANT SHARE OF RESOURCES   
Link
 The fourth component of a social structure is that each social structures, historically, receives a  constant share of resources
Which are the 3 richest social structures?
Which are the 3 poorest social structures?		  
  E.  HISTORICAL DEVELOPMENT   
Link
 The fifth component of a social structure is that social structures each have a unique historical development  
  See Also:  The Organizations that Compose the Social Structures  
  See Also:  Organizational Structure  
  EXAMPLES OF THE SOCIAL STRUCTURES          ( PF REG M CEML )  
Link
 1.  Peers  
      a.  Groups:  
      b.  Positions  
      c.  Relationships  
      d.  Resources  
      e.  Historical development  
Link
 2.  Family  
Link
 3.  Religion  
Link
 4.  Economy / work  
Link
 5.  Government  
Link
 6.  Military  
Link
 7.  Charity  
Link
 8.  Education  
Link
 9.  Media  
Link
 10.  Leisure / Recreation  

 
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A.  Social Groups:
    In the case of social institutions, MANY people are required
Example: Students are a group in the social structure of education
      Blue collar workers, mgrs., up mgt., stock holders, etc.  in the the social structure of education

 
Top  
1)  Role      EXAMPLES
a.  Role Set:      student,  mother/father,  teacher
b.  Role Conflict:    sales & family life
c.  Role Strain:  sales job conflict among management, customers, co-workers

 
Top  
b. Social Position based on Status
Status:  ( level of prestige/honor ):  any position in SS:  see table in book 
i.  Ascribed Status:  gender, race, religion, family, looks, size, 
ii. Achieved Status:  earn, at least partially as result of own action: most imp:  occupation, education, income, Motherhood
iii. Master Status:  Had been different for men & women:  occupation & Motherhood, looks

 
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D.  Relatively historically constant % of resources is allocated to each social structure
Which are the 3 richest SS's?
Which are the 3 poorest SS's?

Richest                                     Poorest
Econ / work                              Family
Military                                    Peers
Govt                                         Education


 
Top  
E. Each Social Structure has a unique historical development
The SS List presents each SS in its approximately order of historical emergence
1. Peers
2. Family
3. Religion
    Are believed to be prehistorical, the emergence of which made civilization itself possible

4.  Work / econ
5.  Government
6.  Military
7.  Charity
    Are believed to emerge when the 1st glimmers of civilization began

8.  Education
9.  Media
    Emerged early in history, but were only for the elites until the modern era when they became widely available

10.  Leisure / recreation
       Is a product of the late stages industrial revolution


 
Top   See Also:  The Organizations that Compose Social Structures  
1.  Peers            SS Examples 
Often combined/formed around recreation / leisure
Groups:  (Orgs):   Most peer groups today are informal orgs:
    friends or any group primarily composed of friends:
    frats, sororities, bowling club, bridge club; cliques:
    Jocks, brains, grunges, preps, skanks, gangs use specific
    names, e.g. the CMT, etc.
Positions:  various functional leaders:  most friendship groups  have some informal leader; also:  clown, goat, etc.
Relationships:  division of labor based on position; may divide labor depending on task at hand
Allocation of Resources:  random strat w/in groups;       but preps more likely to be UC; jocks less likely, etc.
History:  It is believed that prior to our development into homo sapiens, that we developed close relationships
It may be this social tie that distinguishes us from other primates, though many other primates do have peer relations
So how are ours different?
Coop to hunt
Breeding males stay in same tribe

 
Top   See Also:  The Organizations that Compose Social Structures  
2.  Family       SS Examples
Groups: (Orgs): Most family groups today are informal orgs:  Smiths, Jones, etc.
Traditional, Non-traditional family, Single Mom, Single Dad, Step, Extended...
The family is legally recognized
Positions are legally recognized
Positions:  Mom, Dad, kids, Head of Household, Step-, Grandma, ....
Relationships:  Mom to daughter, Dad to daughter, Mom to Dad,   Step Dad to Step Kid, 
Traditional family to Traditional family; Single Mom family to Extended family ....
Allocation of Resources:  society is structured so that Non-traditional family (working Mom & Dad) receives most 
    resources;   the least?
History:  The History of family is very complex
H-G society:  matrilineal, serial monogamy
Ancient:  Serial monogamy & polygamy
Industrial:  Monogamy
Today:  Monogamy & serial monogamy

 
Top   See Also:  The Organizations that Compose Social Structures  
3.  Religion          SS Examples
Groups:  (Orgs):  Most religious groups today are formal organizations
Positions:  Religious leader:  priest, cleric, rabbi, monk etc.         Religious follower: 
Relationships:  varied depending on religion:  e.g. Catholic is more hierarchical; 
Allocation of Resources:  religion estb wealth over time & based on conversions:  older religions more wealthy
History:  Paganism, Polytheism, Monotheism, Secularism

 
Top   See Also:  The Organizations that Compose Social Structures  
4.  Work  (the Economy)      SS Examples
Groups:  (Orgs):  Most econ groups today are formal orgs:  businesses (corporations, partnerships, entrepreneur)
      unions, professional orgs, worker associations; 
     most workers belong only to informal peer/ class groups 
Positions:    Owner, mgr., admin, worker, tech, etc.
Relationships:  most very authoritarian/ hierarchical:
    higher position gives orders to lower position;
    obedience required w/in workplace bounds
Allocation of Resources:  Great strat:  owners, mgrs. etc.
    control wealth of society
History:
H-G society:  Work not recognized as separate activity
Only worked to survive; no wk, no survival
Ancient:  Separate process of wk recognized
   because ruling class emerges, who do not wk
Industrialized society:  Amount of wk in society increases, becomes rationalized
Wk is removed from the home

 
Top   See Also:  The Organizations that Compose Social Structures  
5.  Govt      SS Examples
Groups:  (Orgs):  Most govt groups today are formal orgs 
Positions:  Elected officials, bur, citizens, non citizens
Relationships:  wide range of variation:  democracy to totalitarian
Allocation of Resources:  US govt controls 1/4 to 1/2 GDP
History: 
H-G society:  Govt & peers (tribe) & religion & family all intertwined
Ruled by consent & status
Ancient:  Govt & religion & family still intertwined, but becomes more  removed from the governed
Ruled by violence & authoritarianism
Industrial:  Some vestiges of democracy develop

 
Top   See Also:  The Organizations that Compose Social Structures  
6.  Military      SS Examples
Groups:  (Orgs):  Most mil groups today are formal orgs
Positions:  leaders, soldiers
Relationships:  same hierarchy as econ (econ based on mil model) except that obedience is total
Allocation of Resources:  Lower strat than in econ
History: 
H-G society:  Hunters were also warriors
Little war except to steal wives 
Ancient:  Soldiering becomes an occupation
Div of labor separates out separate class of warriors
Becomes linked w/ govt
Industrial:  Separate of mil from govt

 
Top   See Also:  The Organizations that Compose Social Structures  
7.  Charity     SS Examples
Groups:  (Orgs):  Most char groups that raise large amounts of $$ today are formal orgs, but many informal groups
    also exist:  Want to contribute to the JJ Kelly Cross Country Team Travel Fund? 
Positions:   formal orgs have typical. mgr/wkr pos;  volunteers
Relationships:   formal orgs have typical. mgr/wkr relations;
    volunteers maintain relations based on commitment to goals
Allocation of Resources:  formal orgs raise billions;    small orgs raise small amounts for local groups
History: 
H-G society:  if you worked, you shared & received all goods
Ancient:  religion dictates alms for the poor
Industrial:  Charity is business; separated from religion; taken on by govt

 
Top   See Also:  The Organizations that Compose Social Structures  
8.  Education       SS Examples
Groups:  (Orgs):  Most ed groups today are formal  orgs:   Elementary, middle, high, Community College, College, Grad
Positions:  teachers & students
Relationships:  similar to econ:  voluntary after hi school
Allocation of Resources:  Teachers more than students;    less $$ than govt, wk, mil
History: 
H-G society:  Learn from tribal peers:  man to man; woman to woman
Ancient:  Formal ed develops for elites
Industrial:  Formal ed expands to other classes in the 1800's

 
Top   See Also:  The Organizations that Compose Social Structures  
9.  Media      SS Examples
Groups:  (Orgs):  Most media groups today are formal orgs
Positions:  Mgrs., admin, reporters
Relationships:  similar to econ model
Allocation of Resources:  typical
History: 
H-G society:  gossip
Ancient:  Elites receive news orally by messenger
Writing develops; elites receive some written communication
Industrial:  Use of printing press expands;  Communication avail to all classes

 
Top   See Also:  The Organizations that Compose Social Structures  
See Also:  The Social Structure of Rec & Leisure  
10.  Recreation / Leisure         SS Examples
Groups:  (Orgs):  Most recreation groups (friends, bridge clubs, etc.)
   today are informal orgs that purchase recreation services from  formal orgs
Positions:  same as friends in informal orgs; same as econ in formal orgs
Relationships:  same as friends & econ
Allocation of Resources:  more $$ spent every day on recreation
History: 
H-G society:  as w/ work, separate spheres of wk & leisure not recognized
Ancient:  leisure seen as time of rest & societal rituals
Industrial:  Leisure develops as industry; people seek fulfillment through leisure

 
Internal
Links

Top
 Outline on the  Organizational Structure Types
External
Links
  ORGL STRUCTURES ARE A SUBSET OF SOCIAL STRUCTURES   
  Structures specify patterns of obligations & responsibilities
 
  Soc structures are patterns of relationships in society including such patterned relationships as  family, econ/work, ed, govt, media, rec
 
  Orgl structures are patterns of relationships among various parts of an org
 
  Overview of Orgl Structures
There are many types of orgl structures, including: 
1.  Functional orgs
2.  Geographic orgs
     - regional orgs
     - global orgs
     - global heterarchies
3.  Product/Division orgs
4.  Hybrid orgs
5.  Matrix orgs
6.  Democratic orgs
     - Heterarchies
     - Horizontal orgs
 
  The major types of orgl structure include functional, geographic, product or division, hybrid, matrix, & democratic orgs  
  1.  FUNCTIONAL ORGS HAVE ORGL STRUCTURES THAT GROUPS ACTIVITIES ALONG A COMMON FUNCTION 
 
  Characteristics of a func org include:
 
  - an env w/ low uncertainty, & hi stability
 
  - tech that is routine, w/ low interdependence
 
  - size that is small to medium
 
  - goals that emphasize internal efficiency, & tech qual
 
  - operational goals that emphasize functional goals
 
  - planning & budgeting on a cost basis
 
  - authority that is based on line authority which runs through the func mgrs
 
 Link
 Chart on Strengths & Weaknesses of Func Orgs  
  The chart on the strength & weaknesses of  func orgs shows that functional orgs op best in a stable env, & are less effective in an unstable env  
  2.  GEOGRAPHICALLY ORGANIZED ORGS HAVE AN ORGL STRUCTURE THAT DIVIDES ITS OPS INTO GEOG REGIONS, EACH OF WHICH REPORTS TO ONE CEO 
 
  Geographic orgs have an orgl structure that divides its ops into geog regions, each of which reports to one CEO  
  Global geog structures have an orgl structure that divides its ops into world regions, each of which reports to one CEO  
  Global heterarchy structures have an orgl structure that divides its ops into world regions among different types of orgs w/ different (heterogamous) types of org structures, each of which may report to different CEOs, & because it is an amalgam of orgs, they often relate in more of a democratic than authoritarian manner  
Link
 Chart on Strengths & Weaknesses of Geog Orgs  
  The chart on the strength & weaknesses of geog orgs shows that they op best in a large, unstable env & are less effective in a small, stable env  
  3.  PRODUCT OR DIVISIONALIZED ORGS HAVE AN ORG STRUCTURE BASED ON WHAT IS PRODUCED OR SOME KIND OF DIVISION BASED ON FUNCTION, PRODUCT ETC.   
  Product/Division orgs have an orgl structure where divisions are made according to: 
- indiv products
- prod grps
- services
- major projects		 - programs
- divisions
- businesses
- profit centers
 
  Characteristics of Product or Divisionalized Orgs include:   
  - an env w/ moderate to hi uncertainty that is changing   
  - tech that is nonroutine & has a hi interdependence among depts   
  - a large size   
  - goals that emphasize ext effectiveness, adaptation, & client satisfaction   
  - op goals w/ a prod line emphasis   
  - planning & budgeting around prod profit centers   
  - authority based on prod mgrs   
Link
 Chart on Strengths & Weaknesses of Product or Divisional Orgs   
  The chart on the strength & weaknesses of  product or divisionalized orgs shows that they op best in a complex env & are less effective in a simple env   
  4.  HYBRID ORGS EXHIBIT A STRUCTURE THAT COMBINES CHARACTERISTICS OF BOTH FUNCTION & GEOG ORGS   
  Characteristics of Hybrid Orgs include:   
  - an env w/ moderate to hi uncertainty & changing customers demands   
  - tech that is routine or nonroutine, w/ some interdependence among depts   
  - a large size   
  - goals that emphasize ext effectiveness & adaptation plus efficiency w/in some functions   
  - op goals that emphasize prod line emphasis, w/ some func emphasis  
  - planning & budgeting around profit center basis for division, & a cost basis for central functions  
  - authority: based on prod mgrs & the coordination w/ func mgrs  
Link
 Chart on Strengths & Weaknesses of Hybrid Orgs  
  The chart on the strength & weaknesses of  hybrid orgs shows that they op best in complex envs when the org dev multiple prod lines  
  5.  MATRIX ORGS COMBINE STRUCTURES OF FUNCTIONAL & DIVISIONAL ORGS   
  Matrix orgs exhibit a strong form of horz linkage in which both product & functional structures (horz & vert) are implemented simultaneously  
  Matrix bosses are dept heads & program directors who have complete control over their subordinates  
  Project matrix orgs exhibit an orgl structure where project or prod mgr has primary responsibility, & functional mgrs simply assign tech personnel to projects & provide advisory expertise  
  Characteristics of Matrix Org include:  
  - an env w/ hi uncertainty  
  - tech that is nonroutine, w/ many interdependencies  
  - a moderate size w/ few prod lines  
  - dual goals: that are often based on prod innovation & tech specialization  
  - op goals: w/ a product & functional emphasis  
  - dual sys's of planning & budgeting: by function & prod lines  
  - joint authority btwn func & prod heads  
Link
 Chart on the Strengths & Weaknesses of Matrix Orgs  
  The chart on the strength & weaknesses of matrix orgs shows that they op best in orgs w/ complex envs & multiple prod lines that require a high degree of specialization   
  6.  DEMOCRATIC ORGS HAVE STRUCTURES THAT COMBINE THE REPRESENTATION, EXECUTIVE, & JUDICIAL FUNCTIONS   
  -  Democratic orgl structures have developed through a number of innovations that have primarily focused on representation   
  -  A heterarchy democratically combines a number of orgs in something more tightly linked than a network   
  -  Horizontal org  

 
Top
  
Chart on the Strengths & Weaknesses of Functional Orgs
External
Links
1.  Econ of scale w/in func depts 1.  Slow response to env changes  
2.  In depth skill dev 2.  Hierarchy overload; decisions pile on top   
3.  Excels @ func goals 3.  Poor horz coordination among depts   
4.  Best in small to med orgs 4.  Less innovation  
5.  Best w/ 1 or few prods 5.  Restricted view of org goals  
The chart on the strength & weaknesses of  func orgs shows that functional orgs op best in a stable env, & are less effective in an unstable env  

 
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Chart on the Strengths & Weaknesses of Geographic Orgs
External
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Strengths Weaknesses  
1.  Rapid change in unstable env 1. Eliminates econ of scale in func depts  
2.  Hi local client satisfaction because local responsibility & contact pts are clear 2.  Poor coordination across regional lines  
3.  Hi coordination across func 3.  Weak in depth competence & tech specialization  
4.  Hi adaptation to differences in regions 4.  Weak integration & standardization across prod lines  
5.  Best in large orgs w/ several regions    
6.  Decentralizes dec making    
The chart on the strength & weaknesses of geog orgs shows that they op best in a large, unstable env & are less effective in a small, stable env  

 
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Chart on the Strengths & Weaknesses of  Product or Divisionalized Orgs
External
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Strengths  Weaknesses   
1.  Rapid change in unstable env  1.  Eliminates econ of scale in func depts   
2.  Hi client satisfaction because prod responsibility & contact pts are clear  2.  Poor coordination across prod lines   
3.  Hi coordination across func 3.  Weak in depth competence & tech specialization   
4.  Hi adaptation to differences in products  4.  Weak integration & standardization across prod lines   
5.  Best in large orgs w/ several prods     
6. Decentralizes decision making     
The chart on the strength & weaknesses of  product or divisionalized orgs shows that they op best in a complex env & are less effective in a simple env   

 
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Chart on the Strengths & Weaknesses of  Hybrid Orgs
External
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Strengths Weaknesses  
1.  Org achieves adaptability & coordination in prod & efficiency in func depts 1.  Potential for excessive mgt overhead  
2.  Better alignment btwn corp & div level goals 2.  Conflict btwn div & corp depts  
3,  Hi coordination w/in & btwn prod lines    
The chart on the strength & weaknesses of  hybrid orgs shows that they op best in complex envs when the org dev multiple prod lines  

 
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Chart on the Strengths & Weaknesses of  Matrix Orgs
External
Links
Strengths Weaknesses  
1.  Hi coordination to meet dual demands from env 1.  Mgrs have dual authority; which is confusing to mgrs & wkrs  
2.  Flex sharing of human resources across prod lines 2.  Members need good interpersonal skills & extensive training  
3.  Suited to complex dec & unstable env 3.  Time consuming:  freq meetings & conflict resolution  
4.  Hi op for func & prod skill dev 4.  Members must understand org struc for it to wk;
Members must adopt collegial rather than vertical type relations		  
5.  Best in med size orgs w/ mult prods 5.  Must have dual pressures (prod & expertise) from env to maintain pwr bal in org  
The chart on the strength & weaknesses of matrix orgs shows that they op best in orgs w/ complex envs & multiple prod lines that require a high degree of specialization  

 
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 Outline on the Organizations that Compose Social Structures
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THE TEN SOCIAL STRUCTURES ARE  PF  REG  M  CEML   
  -  The TEN Social Structures  PF REG M CEML: 
           Peers, Family Religion, Economy, Govt   Military Charity, Ed, Media, Leisure 		  
  1.  PEERS ARE FRIENDS OR ANY GROUP PRIMARILY COMPOSED OF FRIENDS OR CLOSE ACQUAINTANCES  
  Friends are those w/ whom we have primary relationships as opposed to secondary relationships for recreational or nurturance purposes   
  See Also: Primary & Secondary Relationships   
  Most peer groups today are informal orgs 
 
  Examples of peer groups include frats, sororities, bowling club, bridge club; cliques, jocks, brains, grunges, preps, skanks, gangs use specific names, e.g. the CMT, etc. 
 
  2.  THE FAMILY IS A PRIMARY GROUP THAT COMES TOGETHER FOR PROCREATION & NURTURANCE   
  Most family groups today are informal orgs:  Smiths, Jones, etc. 
 
  There are many examples of types of family orgs:  traditional, non-traditional family, single mom, single dad, step, extended... 
 
  The family is legally recognized & positions w/in the family are legally recognized 
 
  Some families are nearly formalized by their status or power, including families such as the: 
Rothschilds                 Gates 
Mellons                       Fords 
Carnegies                    Cosbys 
Waltons                       Rockefellers 
 
  3.  RELIGION IS THAT GROUP OF ORGS FOCUSING ON A PARTICULAR SYSTEM OF FAITH
 
  Most religious groups today are formal orgs 
 
  The major religions of the world include:  Christianity, Islam, Hinduism, Buddhism, Confucianism, Judaism, et al 
 
  Supplement:  Map of Religions Origins 
Link
  Supplement:  Map of Modern Religions 
Link
  1,063 mm Christians
The Catholic Church fragmented to form 7 other "Protestant" churches including the 
- Presbyterians 
- Baptists 
- Lutherans 
- Methodists 
- Episcopalians 
- Congregationals 
- Mormons 
 
  Islam aka Muslims        554 mm 
Muslims are separated into the sects of the: 
- Sunnis 
- Shiites		  
  Hinduism   461 mm 
 
  Buddhism    250 mm 
 
  Confucianism    158 mm 
 
  Judaism    17 mm 
Jews are separated into the sects of the: 
- orthodox 
- 'non orthodox' 		  
  US religious demographics: 
64.8  %     all Protestant denominations 
24.2          Catholic 
  1.4          Jewish 
  9.6          Other (including none) 		  
  4.  THE ECONOMY (AKA WORK, BUSINESS, ETC.) IS THAT SET OF ORGS FOCUSED ON THE SYSTEM OF PRODUCING, DISTRIBUTING & CONSUMING GOODS & SERVICES   
  There are FOUR sectors of the modern econ including: the: 
- agricultural sector 
    Subsistence agriculture 
    Production farming 
    Processing 
- industrial sector
    Extractive
    Manufacturing
    Distribution
- service sector
    Financial
    Production services (advertising, etc.)
    Personal
- technology sector		  
  Major Econ Orgs:  
       The Global 100  
       The Fortune 500  
  5.  GOVERNMENT IS THE ADMINISTRATION OF A NATION OR OTHER SOVEREIGN ENTITY   
  See Also:  Montesquieu's Forms of Govt  
  There are EIGHT types of govt orgs including the hunter gatherer govt, the tribal govt, the authoritarian govt, the totalitarian govt, the monarchical govt, the aristocratic govt, the representative democracy govt, the direct democracy govt  
  Note:  Types 1 - 6 are often called autocracies  
  1. The hunter gatherer form of govt is usually a small govt w/ a hereditary or merit based leadership in its simplest form  
  2. The tribal form of govt is usually a small govt w/ hereditary or merit based leadership in more complex forms such as councils, & often includes alliances w/ other tribes  
  3. The authoritarian form of govt usually excludes the of majority of people from political participation but w/ little govt intervention  
  4. The totalitarian form of govt usually excludes the of majority of people from political participation but w/ extensive govt intervention  
  5. The monarchical form of govt usually excluded the of majority of people from political participation but w/ extensive govt intervention; power is passed from generation to generation w/in a single family  
  6. The aristocratic form of govt usually excludes the of majority of people from political participation but w/ extensive govt intervention; power is passed from generation to generation w/in a ruling class  
  Many political sci from Plato to Tocqueville thought the aristocratic form of govt was the best form & it is only w/ the recent advent of democracy that people in general believe that it is superior  
  7. The representative democracy form of govt exercises power by the people as a whole through democratic representatives  
  8. The direct democracy  form of govt exercises power by people through direct legislation  
  Today there are about 200 nations in the world  
  6.  THE MILITARY IS THAT SET OF ORGS CONCERNED W/ OFFENSE & DEFENSE, INCLUDING THE MICEC   
  Most military groups today are formal orgs, though some guerilla, terrorist, or war lord types of military units are more informal, or loose networks  
  US:  4 services:
Marines
Air Force
Army
Navy		  
  Evolution of Military Orgs  
  Many military orgs have the same hierarchical structure as the econ (econ based on military model) except that obedience is total  
  Modern mil orgs have evolved new strategies & tactics as technology has changed  
  The org structure of the mil has changed to reflect this new strat & tactics & all services are more integrated into one military  
  THE MILITARY INDUSTRIAL CONGRESSIONAL EXECUTIVE COMPLEX (MICEC) IS THAT SET OF ORGS CONCERNED W/ THE PRODUCTION & CONSUMPTION OF WAR MATERIAL   
  CW Mills studied the military industrial complex (MIC) & found it to be a major force in modern societies  
  The mil is seen as part of a tripartite org network which includes:
- the military
- industry
- govt		  
  Today the concept of the MIC has been developed by social theorists to include the military industrial congressional executive complex  (MICEC) because of the heavy involvement of these other branches of govt   
  In the MICEC, elites circulate into positions of power in any of these 3 areas, usually more than one  
  The fact that Clinton was the first non-military President since WW1 demonstrates the prevalence of the MICEC  
  The fact that most high govt officials have worked in private sector in military related industries, & have been in the military demonstrates the prevalence of the MICEC  
  7.  CHARITY IS THAT SET OF ORGS W/ THE VALUE BASED GOAL TO GIVE ASSISTANCE TO PEOPLE & ORGS   
  Most charitable groups that raise large amounts of $$ today are formalorgs, but many informal groups also exist  
  The two other social structures have similar goals as charitable orgs are
1.  the religion soc struc
2.  the welfare sector of the govt soc struc		  
  Major Charitable Orgs include:
United Way
Salvation Army
Red Cross		  
  8.  EDUCATION IS THAT SET OF ORGS CONCERNED W/ SEARCHING FOR KNOWLEDGE & SKILL & TEACHING IT   
  Most ed groups today are formal orgs  
  Today the major sectors of the ed soc struc today are pre-school, elementary, middle, high, community college, college, graduate school  
  The orgl characteristics of ed are that it is:
- decentralized (becoming more centralized)
- private & public
- linked to the religious social structure		  
  9.  THE MEDIA IS THAT SET OF ORGS CONCERNED W/ DISCOVERY OF INFO & MASS DISSEMINATION OF THAT INFO, INCLUDING ENTERTAINMENT 
 
  Most media groups today are formal orgs  
  Media sectors include
- entertainment
- news
- education
- advertising		  
  The media soc struc is highly networked  
  The entertainment sector of the media soc struc is similar to the leisure / recreation soc struc  
  The media soc struc is networked to the ed soc struc  
  The advertising sector of the media soc struc is networked to econ / wk social structure  
  The news sector of the media soc struc is networked to govt social structure & others  
  Media Orgs
NBC
CBS
ABC
Time Warner CNN
Fox
Movie & performing arts
Books & print media		  
  10.  LEISURE / RECREATION IS THAT SET OF PEER & ECON BASED ORGS CONCERNED W/ THE PRODUCTION & CONSUMPTION OF AMUSEMENT, SPORTS, RELAXATION, ETC.   
  Most recreation groups (friends, bridge clubs, etc.) today are informal orgs that purchase recreation services from formal orgs  
  Leisure is being commercialized by media orgs  
 
 Informal Leisure Orgs
 
  In informal leisure orgs, friendship circles form around various activities  
  Female oriented leisure /rec activities organize around:
- work
- home, birthing, childcare
- family extra curricular activities
- kitchen & home activities
- ladies' night out group
- shopping
- hobbies
- sports participation		  
  Male oriented leisure /rec activities organize around:
- work
- family extra curricular activities
- yard & garage activities
- men's night out group
- hunting
- hobbies
- sports watching
- sports participation		  
 
 Formal Leisure Orgs
 
  Small formal groups may form around any of the act. discussed above, e.g. bowling club may be formalized & even linked to nat level org  
  Media & entertainment soc strucs have strong influence on all of society  

 
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Outline on   Organizational Departments 
External
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  Organizations today are rational, bureaucratic, corporations which are organized into departments  
 Link
 In general, the corporation today is organized into TWELVE departments, but there may be more or less.  They are listed in approximate order of historical appearance  
 
 1.  OPERATIONS   
  Originally the owner was the manager in charge of operations   
  Operations had the most influence in early organizations  
  2.  ENGINEERING   
  3.  MARKETING   
  4.  FINANCE   
  5.  ACCOUNTING   
  6.  SALES  
  Sales has the most influence in orgs today  
  In the 1970s, Perrow believed the sales department had the most power in organizations, but he believes that today management has the most power  
  7.  ADVERTISING  
  8.  PERSONNEL  
  9.  PURCHASING   
  10.  RESEARCH & DEVELOPMENT   
  11.  SHIPPING / DISTRIBUTION   
  12.  MANAGEMENT / ADMINISTRATION   
  INFORMAL STRUCTURES PERMEATE & LINK THE FORMAL STRUCTURES / DEPTS OF ORGS   
  The informal structure is made up of the things people actually do on a day to day basis in an organization  
  The informal structure operates in contrast to what the official rules say organizational members should do  
  The informal communications system in an org is also known as the grape vine  
  The grape vine is made up of the communications that occur outside of the formal channels of communication  
  The grape vine can either support or hinder the operation of the formal or informal org structures  
  PYRAMIDAL STRUCTURES ARE THE MOST COMMON & TYPICALLY DEPICT A HIERARCHY OF AUTHORITY   
  Org depts are typically organized into the traditional orgl pyramid  
  There are THREE basic types of pyramidal structures which organize the departments  
  In the functional design the departments are organized based on what they do  
  In the geographic design the departments are organized based on where they are located  
  In the matrix design the departments are organized on functional & managerial lines  

 
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 Outline on Organizational Structure Charts
External
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  An orgl chart (below) may be considered to be a 'generic' model in that it represents the typical hierarchical bureaucracy in many Western nations today 
 
  The top tiers of an org pyramid represent upper mgt, then middle mgt below them, & the smallest boxes on the bottom represent the wkrs or wkrs' units   
 
 
  The pyramidal orgl chart (below) focuses only an administration & therefore primarily covers upper & middle mgt, w/ no actual wkrs begin represented
 
 
 
  The industrial orgl chart (below) represent a functional org chart in that four major functions are represented:  R & D, mkting, the factory, & admin 
 
 
 
  The Japanese industrial firm's organizational chart (below) represents a functional design by focusing on sales, engineering, purchasing, mfr, quality control, & mgt 
 
  Note that the Japanese firm puts mgt on par w/ other orgl structures while Western orgs typically place mgt above the rest of the org in the hierarchy   
 
 

 
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 Outline on the Five Basic Components of an Organization
by Henry Mintzberg
External
Links
  -  Project:  Draw Your Org Using Mintzberg's Org Components 
Link
  THERE ARE FIVE BASIC COMPONENTS OF ANY ORG STRUCTURE INCLUDING THE:
A.  STRATEGIC APEX 
B.  MIDDLE LINE 
C.  OPERATING CORE 
D.  TECHNOSTRUCTURE
E.  SUPPORT STAFF 
 
 
 
  The strategic apex includes mgrs which includes the top mgrs, middle line mgrs, & first line supervisors
 
  The middle line includes the higher level workers who finish, do marketing & distribution of the products or services
 
  The operating core includes the lowest level of workers in org who make products or provide services
 
  The technostructure includes the analysts who help the org adapt to env & internal goals/structure
 
  The support staff includes the R & D, cafeteria, legal branch, payroll, public relations, mailroom workers
 
  The concept of authority coupling denotes that the apex, middle line & op core are connected through a single line of formal authority
 
  The technostructure & support staff affect the op core indirectly  
  The technostructure & support staff  are not directly in the single line of formal authority  
  The staff, in common usage, refers to Mintzberg's technostructure or supporting staff
 
  There are TWO Functions of the Staff:
1.  provide advice, guidance, etc.
2.  perform special services for the line		  
  The operating core may use any of THREE processes including pooling, sequencing, or reciprocating
 
  The pooled process is the process of the operating core that is based on segmentation of the production process into all one process  
  The sequential process is the process of the operating core that is based on segmentation of the production process into a production line  
  Reciprocal coupling is the process of the operating core that is based on mutual feedback btwn parts of the core or other orgs  

 
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 Outline on  Organizational Complexity  by Richard Hall
External
Links
  -  Project:  Draw your complex org
Link
  For Hall, there are FOUR Features of Org Structure 
 
  A. Complexity 
 
  B. Formalization   
  C. Centralization   
  D. Communications 
 
  Each of these is a variable:  has high, medium, low levels 
 
  A.  ORG COMPLEXITY IS THE RESULT OF IT CONSISTING OF MANY PARTS IN COMPLICATED RELATIONSHIPS W/ EACH OTHER 
 
  Individual parts of an org can vary in their complexity along several dimensions including: 
 
1.  the division of labor 
2.  job titles
3.  multiple divisions 
4.  hierarchical levels 
5.  professional activity 
6.  professional training 
7.  envl complexity 		  ( hi / lo ) 
( many / few )
 ( many / few )
( many / few )
( hi / lo )
( hi / lo ) 
( hi / lo ) 		 8.  org ideology 
9.  org behavior
10.  org integration
11.  org change
12.  sources of pressure
13.  joint programs
14.  corp crime 		  ( complex / simple )
( complex / simple )
 ( hi / low )
( often / infrequent )
( many / few )
 ( many / few )
( hi / lo )

 
 
  1.  THE DIVISION OF LABOR IS THE WORKPLACE RELATIONSHIP WHERE DIFFERENT WORKERS CARRY OUT DIFFERENT STEPS IN PRODUCING A PRODUCT   
  The DOL in an org is impacted by the level of horizontal differentiation, i.e. the more different tasks or sections in an org the more DOL & horz diff there is  
  Increased horizontal differentiation increases complexity that is, increasing the subdivision of tasks performed by the org, makes the org structure broader
 
  There are TWO methods to subdivide tasks
 
  a.  One of the methods to subdivide tasks is to have specialists such as professionals or craftspersons perform a wide range of complex tasks
 
  b.  One of the methods to subdivide tasks is to have non specialists such as line wrkrs or laborers perform narrow range of simple tasks
 
  Hage agrees that increased horizontal differentiation increases complexity that is, the greater the number of occupations & longer periods of training required,  the more complex the org
 
  Hage assumes that training differentiates workers from other workers  
  Price views complexity as the degree of knowledge required to produce the output
 
  2.  THE MORE JOB TITLES THERE ARE IN AN ORG, THE BROADER THE RANGE OF THE ORG'S IMPACT   
  Scope is the range of understanding, or the ability to understand & generally in an org, the more job titles there are, the greater the scope  
  Increased scope in an org results in increased complexity  
  The scope is the amount of activities carried out by the org or amount of customers who require a variety of services which require differentiated services or work
 
  Generally, increased scope in an org may be defined as more job titles because even having more people under the same job title provides more of the human power of understanding on one area, & more job titles increases the number of people in various areas of understanding  
  3.  MULTIPLE DIVISIONS GENERALLY REFERS TO VERTICAL DIFFERENTIATION, THOUGH OFTEN DIVISION CAN REPRESENT INCREASED HORZ DIFFERENTIATION   
  Increased vertical differentiation results in increased complexity  
  Vertical differentiation is the number of supervisors or supervisory levels
 
  Vertical differentiation affects the height of the orgl hierarchy  
  In a vertically differentiated system, authority & responsibility are distributed to each level or the org  
  The taller the hierarchy, the more difficult the communications  
  4.  HIERARCHICAL LEVELS REFERS TO THE VERTICAL DIFFERENTIATION OF MULTIPLE DIVISIONS BY AUTHORITY LEVEL   
  Thus, there may be increased vertical differentiation w or w/o increased hierarchy   
  There may be more divisions, but they may all have the same authority, or there may be more divisions each w/ a different level of authority   
  Increased complexity results in increased internal labor markets  
  In these complex orgs, there are more likely to be internal labor markets  
 
 Orgs w/ Dual Career Ladders are more complex
Supervisors & wkrs
Each has separate career ladder		  
  5.  PROFESSIONAL ACTIVITY & DIFFERENTIATION IS DESIGNED TO DEAL W/ SPECIALIZATION OF THE DIV OF LAB & INCREASES PROBLEMS OF CONTROL, COORDINATION, & COMMUNICATION  
  Complexity in either horizontal or vertical differentiation increases problems w/ control, coordination, communication  
  6.  PROFESSIONAL TRAINING MUST INCREASE AS THE AMOUNT OF SPATIAL DISPERSION INCREASES TO MAINTAIN THE COORDINATION OF ACTIVITY   
  Increased spatial dispersion results in increased complexity  
  Spatial dispersion is the physical distance among org components, customers, env, etc.  
  Horizontal or vertical components may be spatially dispersed  
  Orgs can have a variety of dispersion qualities  
  Examples of spatial dispersion include:
- the centralization manufacturing & the dispersion of sales		  
  - the dispersion of manufacturing in such industries as autos who generally have separate engine plants, tranny plants, assembly plants, etc.  
  - the dispersion of dispersed internet firms  
  The range of the variance of complexity runs from orgs w/ a low division of labor, flat hierarchy, centralized (undispersed) to massive orgs designed to perform simple & unchanging tasks  
  An example of a low level of the variance of complexity in an org is seen in Alumax which has one large manufacturing plant  
  An example of a low level of the variance of complexity in an org is seen in Standard Oil which has a hi div of lab, a tall hierarchy, & is decentralized (dispersed)  
  7.  INCREASED TASK OR ENVL COMPLEXITY RESULTS IN INCREASED ORGL COMPLEXITY
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  Task complexity increases as the division of labor increases, as the hierarchy increases, or as the org becomes more decentralized when either the task becomes more complex or their env becomes more complex  
  8.  ORGL COMPLEXITY AFFECTS THE ORG'S MEMBERS' IDEOLOGY   
  Lawrence & Lorsch (1967) found that org complexity affects FOUR aspects of members' ideology, including:
- their orientations toward goals
- the differing emphases on interpersonal skills
- varied time perspectives
- the type & extent of formalization of structure		  
  9.  ORGL COMPLEXITY AFFECTS THE ORG'S MEMBERS' BEHAVIOR  
  L & L also found that org complexity affects FOUR aspects of members' behavior, including:
- becoming more interested in personal / org goals as opposed to or goals
- the loss or gain of some departments of  interpersonal skills
- the variation of time perspectives among depts
- the dev of differentiated levels of formalization in various depts; e.g.  less diff @ the top of the org		  
  10.  INCREASED COMPLEXITY CREATES THE NEED FOR INTEGRATION  
  L & L found that the quality of collaboration that exists among departments that are required to achieve unity because of demands of env is affected by the complexity of the org  
  The Contingency Approach holds that effectiveness is not achieved by following one org model  
  According to the contingency approach, there is no one best way to org for achieving highly varied goals w/in highly varied env  
  Under some conditions, one particular form is best,  under other conditions, another form is best  
  Increased complexity results in increased administrative intensity  
  Admin Intensity is the  pressure in orgs to add personnel to handle increased control & coordination resulting from complex org or env  
  Thus there is an org trade off btwn the level of complexity needed to achieve the econ of scale & the level of admin intensity needed to control a complex org  
  11.  INCREASED VERTICAL & HORZ DIFFERENTIATION RESULTS IN INCREASED ORG CHANGE  
  This is because hi levels of info flow through such an org
Different viewpoints are bound to develop which leads to changes		  
  12.  THERE ARE INTERNAL & EXTERNAL SOURCES OF PRESSURE FOR ORGS TO BECOME MORE COMPLEX  
  Internal & external sources of pressure lead to more differentiated vertical & horizontal structures  
  A higher level of env complexity results in increased org complexity  
  Env complexity is the result of FOUR factors, ie envs are made up of: 
  - customers
  - govt; govt regs
  - technology
  - competition		  
  The speed of change in the env also creates need for org complexity  
  13.  INCREASED COMPLEXITY RESULTS IN MORE JOINT PROGRAMS  
  Joint programs are "partnerships" w/ other orgs; networks  
  When facing env complexity an org can develop it's own complex structure to deal w/ it or it may develop joint programs  
  The more complex an org is, the more likely it is to become yet more complex & develop more new/joint programs & interorganizational relations   
  Org networks will continue to develop & society wide, interorganizational relations will continue to develop  
  The web of orgs will become more intricate & thus society will become more org "dense"  
  Individuals & society will be more dependent upon fewer & more complex orgs  
  Thus decision about orgs' future will become decisions about society itself  
  14.  INCREASED COMPLEXITY RESULTS IN INCREASED CORPORATE CRIME  
  Vaughan holds that corporate crime is likely to increase as the org becomes more complex because top mgrs find it more difficult to control the more complex org  

 
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 Outline on  Organizational Formalization  by Richard Hall
External
Links
  -  Project:  Raising or lowering formalization & bureaucratization in your org
Link
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 For Hall, there are FOUR Features of Org Structure
 
  A. Complexity
 
  B. Formalization
 
  C. Centralization  
  D. Communications
 
            Each of these is a variable w/ high, medium, & low levels
 blank
  B.  FORMALIZATION IN ORGS MEANS TO STRUCTURE IT TO ADHERE TO STRICT RULES OR CUSTOMS; TO BECOME MORE AUTHORITATIVE, OFFICIAL 
 
  To form means to fashion, mold, shape, develop, make up, or compose  
  Formalization is the process or structure of organizing according to strict forms, rules, or usages  
  Formalization makes the organization more authoritative or official & some feel this is stifling or stiffly conventional  
  Formalization is the level of organizational control over members
 
  Because orgl formalization creates control over people, it has an ethical & political implications  
  FORMALIZATION INCLUDES JOB CODIFICATION   
  Formalization can be accomplished by written or unwritten norms & standards, standardized, written rules, regs, procedures, etc.  
  With low formalization, orgl actors are capable of exercising their own judgment & self control
 
  With high formalization orgl actors are viewed as incapable of making their own decisions & require a large number of rules to guide behavior
 
  Maximal formalization exists when there are very detailed procedures
 
  High formalization of personnel procedures results in high qualified or professional members & low need for other types of formalization & centralization  
  Minimal formalization exists when there are no procedures & actions based on intuition, inspiration, taste, professional opinion
 
  FORMALIZATION MAY BE ACHIEVED THROUGH PROFESSIONALIZATION 
 
  Formalization can serve the same function in the organization as professionalization  
  Selecting highly quality members, i.e. professionals, assures that members will act according to org's demands hence less of a need for rules, regs:  formalization 
 
  Professionals have gone through extensive training & have internalized rules, regs, norms, etc. 
 
  Formalization & professionalization can be designed to do the same thing organize & regularize the behavior of members   
  Formalization sets rules & procedures & the means of ensuring they are followed   
  Professionalization is a non organizational means of doing the same thing   
  Formalization decreased initiative & professionalization increased initiative   
  Increased routine work results in increased increased formalization   
  Orgs w/ routine work more likely to have greater formalization   
  NEW FORMALIZATION OFTEN INCLUDES NEW TECHNOLOGY & VICE VERSA   
  Formalization is correlated w/ new programs  
  Formalization may be a tradition for the org that develops when an important early top executive establish a belief system  
  Orgs thus develop characteristic that are embedded in both the formalization & informal systems of the org  
  Formalization is one defining characteristic of an org  
  THERE ARE THREE BROAD REACTIONS TO FORMALIZATION INCLUDING THE 
BUREAUCRAT
BUREAUPATHIC
THE BUREAUTIC		  
  THE BUREAUCRAT IS NEARLY OBSESSED W/ RULE MAKING & FOLLOWING   
  Formalization is highly correlated w/ the bureaucratic personality  
  Formalization may create bureaucratic personality in organization members  
  Robert Merton developed the concept of the bureaucratic personality which develops where impersonal rules limit a person's functions   
  The vicious circle of bureaucracy is such that:
Workers follow rules for sake of rules since this is how they are evaluated
Rules become more important than the goals they were designed to accomplish
The org become rigid
Rules become a form of security for members
Eventually there is no drive for autonomy since that would be threatening		  
  But actions & decisions based on past training & experience may be inappropriate under different conditions  
  In a similar vein William Whyte, 1956, developed the concept of the "organization man" (sic), who is one who follows the rules, exactly & completely  
 
 THE BUREAUPATHIC IS ONE WHO NEEDS TO SUBORDINATE OTHERS   
  In many workplaces there are people who use their position, or any advantage they can muster, to oppress, subordinate or simply put down others   
  Bureaupathics are the adult, orgl version of the school yard bully   
 
 A BUREAUTIC IS ONE WHO STRIKES OUT AT THE SYSTEM 
 
  Bureautics may personalize every encounter, refusing to recognize the legitimacy of rules   
  Bureautics may view every rule as designed to frustrate them   
  Other bureautics may be true rebels seeking to reconstruct the org   
 
 BUREAUCRATS, BUREAUPATHICS, & BUREAUTICS ARE ALL, IN MANY SENSES, CONTRARY TO PROFESSIONALIZATION 
 
 
 Miller holds that professionals are likely to feel alienated in orgs because org rules ( formalization ) are viewed as a duplication of norms of the profession.... & are seen as less valid than prof training/ethics
 
  Formalization that results in bureaucratization is, clearly, contrary to professionalization
 
  For Hall, bureaucratization is broader than formalization
 
  Bureaucratization is inversely related to professionalization  
  There is an inverse relationship btwn hierarchy & professional attitude  
  The presence of a rigid hierarchy may not adversely affect professionals if the hierarchy is recognized as legitimate  
  Blau:  hierarchy can increase communications btwn professionals & top management  
  ORGANIZATIONS STRUGGLE TO BALANCE BUREAUCRATIZATION & PROFESSIONALIZATION   
  With too little freedom, the members feel oppressed, alienated, bureaucratic & engage in rule following for its own sake  
  With too much freedom, behavior becomes erratic & organizationally irrelevant  
  The best choice is to emphasize the kinds of guidelines for behavior that members bring to the org & train where needed  
  But people often feel that professional behavior is irrelevant  
  Conflict btwn professionalization & the org is widespread-- but not inevitable  
  A professional legal dept in bank is less formal than other divisions  
  Thus formalization in org varies across division  

 
Internal
Links

Top
 Outline on Organizational Structure Centralization   by Richard Hall
External
Links
  -  Project:  Changing the Centralization/Bureaucratization of Your Organization 
Link
  -  Project:  Transforming Organizations 
Link
  -  Project:  Your Centralized Org 
Link
 
 For Hall, there are FOUR Features of Org Structure
 
 
      A.  Complexity  
 
      B.  Formalization  
 
      C.  Centralization
 
 
      D.  Communications
 
 
           Each of these is a variable:  has high, medium, low levels
 
 
 C.  CENTRALIZATION IS THE DISTRIBUTION OF POWER W/IN THE ORG
 
  The level of centralization determines whether decisions are made at the top of the org or not  
  Centralization is the concentration of the power of direction, to bring under one control, to concentrate at a single point, to bring under one system & one control  
 
 See Also:  Democratic Orgs  
 
 For Hage, centralization is the level & variety of participation in strategic decision making
 
 
 For Van de Ven & Ferry (1980), centralization is the locus of decision making 
 
 Link
 The Table on Bureaucracy & Centralization shows that it is possible to design an org w/ low bureaucratization & low centralization
 
 
 The level of centralization can vary w/in one org, w/ different sections of the org having different levels of centralization
 
  STREET LEVEL BUREAUCRATS ARE LOWER LEVEL EMPLOYEES WHO HAVE HI AUTHORITY & DISCRETION 'IN THE STREET'   
 
 Lipsky (1982) researched, & coined the term street level bureaucracies where the orgs allow members wide discretion
 
  Street level bureaucrats (SLB) may include: 
 - teachers                          - lawyers
 - social workers                 - prison guard
 - police officers                  - mental health clinics
 - judges                              - parole officers		  
 
 Other street level bureaucracies include many high reliability organizations (HROs) personnel such as:
 - urban firefighters           - wildland firefighters
 - military personnel          - powerline workers
 - EMS personnel             - medical personnel
 - airline pilots                   - powerline workers
 
 
 In many ways, street level bureaucrats & HRO personnel are semi-professionals
 
 
 For street level bureaucrats, the org is highly bureaucratized at the middle & top, w/ wide discretion at the bottom
 
  See Also:  Lower Level Employees  
  EVALUATION MAY VARY ALONG PROFESSIONALIZATION, BUREAUCRATIC OR CENTRALIZATION LINES W/IN THE ORG  
 
 Evaluation may vary along professionalization, bureaucratic or centralization lines w/in the org
 
 
 Increased size creates conflicting pressure for centralization in order to standardize evaluations  
 
 As size increases, the importance of decisions increases creating pressure for personal involvement, reducing the level of delegation  
 
 The volume of decisions also increases pressure for expert advice, increasing the level of delegation  
  ROUTINE TECHNOLOGY IS AMENABLE TO CENTRALIZATION WHILE NON ROUTINE TECH CANNOT BE CENTRALIZED   
  In examining centralization & technology, work assignments that are delegated w/ controls usually occur when the technology is routine   
  Work delegated with little or no controls is usually considered to be non routine in it's technology   
  If technology varies across the org, then org must be structured accordingly   
  Participative management is found to be more successful w/ hi tech   
  In routine situations, rules can successfully govern & thus little delegation through participation is needed   
  Lincoln & Zeitz (1980) found that professionals desire high levels of participation in decision making   
  Lincoln & Zeitz (1980) found a high level of professionalization of an org results in all workers experiencing an increase in influence   
  An examination of centralization & the org's relationships w/ actors in it's env shows that the level of competition has a strong impact on the level of centralization   
  Negandhi & Reiman (1972) found that in an expanding economy, or market competition creates decentralization   
  Pfeffer & Leblebici (1973) found that in a contracting economy, or market competition creates centralization   
  Less market competition results in more changes in product, processes, etc.   
  Increased in turbulence in the env results in decentralization   
  Centralization is more appropriate for turbulent, unstable env   
  LOOSE COUPLING REFERS TO ORGS THAT ARE MORE LIKE NETWORKS THAN BUREAUCRACIES  
  A decentralized org is a loosely coupled org: the components are not highly integrated   
  Weick (1976) & Aldrich (1979) define loose coupling as org units with low levels of interdependence   
  These types of orgs are more flexible & responsive to env   
  Loose coupling is not same as decentralization   
  Degree of coupling refers to levels of interdependence among units   
  Centralization refers to distribution of power  
  Many loosely coupled orgs are are decentralized  
  ORGL POLITICIZATION OCCURS AS ORGS TAKE ON POLITICAL GOALS   
  In examining the interaction of centralization & macro politics, we see that the nature & structure of orgs w/in a society affect the social order because, among other things, orgs are used for political purposes  
  Orgs are used for political purposes by the:  
  - Bolsheviks who use org weapons  (Selznick, 1960)  
  - leaders of China's Cultural Revolution:  orgs used for political indoctrination  
  - workers who developed Yugoslavia: self management into a system where workers elect wkrs council that elect management  
  - Israeli kibbutz: system which developed small orgs which a socialist econ system & the  total rotation of work  
  But ideological/political goals are not always met even in orgs which explicitly pursue these goals  
  In any society, orgs are integral part of that system: capitalist, communist, socialist, etc., & are used for the ends of that system  
  Tannenbaum et al (1974, 1976) studied centralization in 10 nations
- Austria                       - Rumania
- Italy                           - Bulgaria
- Israel                         - Hungary
- Yugoslavia                 - West Germany
- US                             - Ireland		  
  Tannenbaum found SEVEN results
- Israel & US:  most successful plants
- Is:  decentralization:  hierarchy eliminated
- US:  hierarchy:  limited potential for workers; greater participation in US
- US:  no attempt to reduce inequality
- HRM is manipulation:  diverts attention from exploitation & injustice
- Workers do not feel as alienated but are powerless
- HRM creates discrepancy btwn subjective & objective experience of alienation		  
  Marxist view of participative mgt is that in Israel & Yugoslavia participative management is seen as an attempt to alter traditional power relations w/in the org as well as in society  
  The Marxists also see the US participative management  as an attempt to hide traditional power relations w/in the org as well as in society  
  Question: which worker is more likely to press for change? 
The worker who has participation, but feels no exploitation 
Or the worker who feels exploitation, but has never participated?		  
  CENTRALIZATION DOES CONCENTRATE ORGL POWER BUT ORGS CAN STILL BE STRUCTURED TO ACHIEVE JUDICIOUS USE OF POWER   
  In examining organizational centralization of power as applied to govt, Gibb (1981) sees org structure as a legitimate centralization of power & thus as a form of private govt  
  Hall finds that equality in orgs is extremely unlikely because the nature of orgs requires hierarchy once beyond very small size, simple tech & low level of complexity  
  The idea of the democratic org is out of reach for most org theorists  
  Recall:  Lincoln & Zeitz (1980) found a high level of professionalization of an org results in all workers experiencing an increase in influence  
  The internal politics of an organization roughly reflects the larger political system of that society  
  Labor management negotiations & battles over prerogatives of management & workers reflect wider political schisms  
  Power can be delegated to lower level workers or power can be taken by lower level workers  
  The distribution of power atone time will have a crucial impact on the distribution of power in the future  
  In comparing the centralization of orgs & the centralization of society
A society w/ a majority of highly centralized orgs probably is one where workers have little participation
The same would probably be true of participation in society		  
  The level of centralization w/in orgs indicates what leaders assume about members: whether they need tight control or not  

 
Top
  
Table on Bureaucracy & Centralization
Level of Bureaucracy ----->
Level of Centralization \/
Few policies/ broadly defined
Many policies/ narrowly defined
Decisions made @ top:
     Headquarters
11 Autocracy
- All decisions made at the top; 
- Workers governed by policies; 
- All decisions referred up the line
12  Bureaucracy
- Decisions made by workers
        w/in policy framework
- Unique problems referred to top
Decisions made @ bottom: 
     Operational worker /
     Professional
21 Collegial
- Most decisions made at low level 
       w/o policy restrictions;
- Other decisions
      made @ low level
      w/in political framework 
22  Street-Level Bureaucracy
- Decisions made at low level 
       w/in political  framework; 
- Workers have discretion over
       unique problems
The Table on Bureaucracy & Centralization shows that it is possible to design an org w/ low bureaucratization & low centralization

 
Internal
Links

Top
 Outline on the  Organized Anarchy
External
Links
  ORGANIZED ANARCHIES ARE ORGANIC IN THAT THEY ARE FLEXIBLE, ADAPTIVE, NONHIERARCHICAL, & DECENTRALIZED   
  Cohen, March & Olsen developed the concepts of the org as an organized anarchy & the garbage can model of decision making   
  The garbage can model of decision making is used, whereby decisions are almost randomly made by matching solutions & problem, because the org is viewed as experiencing extremely high uncertainty 
 
  Organized anarchies are viewed as extremely organic orgs in an env of highly uncertain conditions 
 
  Organic orgs have 
-  a loose, flexible mgt that recognizes the unstable nature of the external env 
-  systems marked by free flowing adaptive processes 
-  an unclear hierarchy of authority 
-  a decentralized decision making process 
 
  Org anarchies do not rely on the normal vertical hierarchy of authority & bureaucratic decision rules 
 
  THE WEAKNESSES OF ORG ANARCHIES ARE THAT THEY HAVE PROBLEMATIC PREFERENCES, TECH PROBLEMS, & HAVE HIGH TURNOVER RATES   
  Orgs morph into organized anarchies when they have problematic preferences, unclear, poorly understood tech, & turnover 
 
  1.  Org anarchies have problematic preferences when goals, problems, & solutions are ill defined & ambiguity characterizes each step of a decision process 
 
  Note that preferences may be clear to one actor or grp while being unclear to another, depending on their power, position, knowledge, experience, etc. 
 
  2.  Org anarchies have unclear, poorly understood tech when cause & effect relationships w/in the org are difficult to identify 
 
  Org anarchies have unclear, poorly understood tech when an explicit data base that applies to decisions is not available 
 
  3.  Org anarchies have turnover when orgl positions experience a high turnover rate, or actors are busy & have only limited time to allocate to a problem 
 
  Org anarchies have turnover when actors commitment & involvement in any given decision are fluid & limited 
 
  Org anarchies are often characterized by: 
- rapid change 
- a collegial env 
- a non bureaucratic env 
- dec mking under problematic circumstances 
 
  Few orgs act as org anarchies all or most of the time, but many orgs experience significant periods of anarchic operation 
 

 
Internal
Links

Top
 Outline on  Organizational Culture
External
Links
  Culture may be defined as the shared content of society & thus organizational culture is the shared content of an org 
 
  The content of a society or org is it's shared knowledge, beliefs, values, & norms ( K B V N ) & the physical & abstract manifestations of that content 
 
  Org culture is the shared knowledge, beliefs, values, & norms of an org 
 
  Org culture is the interaction of the formal & informal structures of an org w/ the goals & objectives of the org leaders   
  Org culture is a special type of subculture that is unique to the network that includes & surrounds an org 
 
  An org culture includes all of an org's stakeholders or constituencies including customers, suppliers, govt regulators, families, similar orgs, etc. 
 
  All orgs have an org culture which is based on the social relationships, as organized by the formal org structure, that emerge among the people who work in or w/ the org 
 
  Lauer & Handel, 1983, found that all orgs have an org culture, a negotiated order   
  W/in an org, there are frequently org subcultures among the different org constituencies, such as employees in a dept, employees at a particular level of the org such as blue collar workers, middle mgt, & upper mgt 
 
  An example of a slice of an org culture is where two workers in an engineering firm may become friends & help each other w/ their work which a third worker may be excluded from this friendship & thus not have help w/ her/his work 
 
  Org culture has a impact on how the bureaucracy of the org actually operates, in contrast to how it operates "on paper" 
 
  Org culture & the groups w/in an org, each of which who may possess it's own org subculture, often called a workplace culture 
 
  Org culture & workplace culture may facilitate or hinder the attainment of stated org goals 
 
  The org, w/ it's org culture & workplace culture may even develop their own goals, which may be inferior or superior to the org's stated goals, depending on one's perspective 
 
  Org & workplace cultures are sometimes known as the org's "negotiated order" in recognition of their emergence from the ongoing informal negotiations among different members of the org (Fine, 1984, Ouchi, & Wilkins, 1985, Miller, 1991) 
 
  Scott, 1992, holds that regardless of the formal structure, people ultimately make the org 
 
  The negotiated order is the aggregation of the org's members needs, objectives, & experiences of others in the org 
 
  People in orgs push to get what they want, try things out, test the limits of the rules 
 
  Anselm Strauss, et al, 1964, found that the nature of the hospital they studied at any given time was the outcome of pressures, actions, & reactions of the people who made up the org 
 
  The doctors, attendants, nurses, administrators, patients, & others each has their own objectives, understandings or reality, and ideas about mental illness, which governed his or her behavior & relationships to others   
  Compromises, "looking the other way" & "agreements to disagree" were abundant in the hospital & were always subject to change as the situation changed or as new people entered the org   
  Strauss held that the hospital on one day is not the same as the hospital at a later time even though the formal structure stayed the same   
  Org culture is unique to each org & cannot be understood by examining the org's formal structure (Fine, 1984, Ouchi, & Wilkins, 1985)   
  As w/ any culture, new members must be socialized into the org culture & new employees who do not become socialized or accept the org culture experience conflict   
  The grapevine is the informal communication structure of the org culture   
  The national culture of a nation impacts the org & it's org culture   
  NOT IN HS0212 P.  332;  HALL 0511 P. 209;  ORG BEH 0207, P. 220;  INTRO TO BIZ   

 
Internal
Links

Top
  Outline on  Democratic Organizational Structure
External
Links
  -  Project:  Bureaucratic & Democratic Orgs
Link
  -  Project:  Govt Orgs & Democracy
Link
  -  Project:  Democratic Orgs' Effect on Society
Link
  MOST OF US ARE SOCIALIZED / ACCUSTOMED TO WKING IN AUTHORITARIAN ORGS & CANNOT CONCEIVE OF OR FUNCTION IN DEMOCRATIC WKPLACES   
  Democratic organizations use the structures & culture of democracy to disseminate power w/in the organization to achieve the advantages of democracy  
  Most orgs are authoritarian in that the boss/owner is the absolute ruler  
  Organizations range in political authority, as do countries, from authoritarian to democratic  
  Most organizations are totalitarian / authoritarian  
  Few people feel / see the contradiction of living in a democratic country & working in an authoritarian workplace  
Link
 Democratic workplaces typically demonstrate increased efficiency  
  Productivity studies show a general increase in productivity when workers control the process of the work  
  During the 1960s & 1970s, the US fell behind Japan & Europe in terms of productivity  
  DEM ORGS MAY EXHIBIT ALL OR ANY OF ALL THE QUALS OF: 
1.  QCCs
2.  LIFETIME EMPLOYMENT 
3.  COOP WK AGREEMENTS 		 4.  DEMOCRATIC UNIONS 
5.  DEMOC ORG STRUC 
6.  EMPLOYEE OWNERSHIP 		 7.  PAY LINKED TO PRODUCTIVITY 
8.  COOP WK CULTURE 
9.  MINIMUM DIV OF LABOR
 
  Japanese workplaces have made TWO democratic innovations  
  1.  QUALITY CONTROL CIRCLES  ( QCCs ) ARE A TYPE OF DEM WKPLACE WHERE WKRS HAVE CONTROL OF QUALITY ISSUES   
 
 QCCsare small to medium sized groups that make suggestions on how to improve the organization  
 
 QCCs have FOUR Functions
 
  a.  QCCs function to improve & develop the organization  
  b.  QCCs function to increase respects for workers, improve human relations & enhance worker satisfaction  
  c.  QCCs function to utilize workers full potential  
  d.  QCCs function to lower production cost, improve product quality, while taking into account worker needs  
 
 Thus the purpose of QCCs is both financial & psychological
While Japanese wages quadrupled btwn 1969 & 1979, American wages fell during this time
 
  Formal orgs in Japan are like very large primary groups as described by Ouchi & his Theory Z type orgs  
  In developing his Theory Z type orgs Ouchi highlights five differences btwn formal orgs in Japan & in the US, including: hiring & advancement, lifetime security, holistic involvement, broad based training, & collective decision making  
  2.  LIFETIME EMPLOYMENT IS CONSIDERED TO BE ESSENTIAL FOR A DEM WKPLACE BECAUSE IT BUILDS WKR COMMITMENT   
Link
 Lifetime employment, called tenure by Weber,  fosters loyalty & commitment
 
Link
 One limitation of the Japanese innovations is that they are limited to the shop floor  
Link
 Worker management relations in Japan are less conflicted than in US  
  Scandinavian workplaces have made TWO democratic innovations  
  3.  COOPERATIVE WORK AGREEMENTS CREATE DEM DECISION MAKING AT THE UPPER LEVELS OF THE WKPLACE   
  Cooperative work agreements are contracts designed to allow high levels of employee input/power in workplace usually resulting in innovative work processes  
  Example:  At Saab the workers did away w/ the "holy grail" of the assembly line & developed pod production  
  4.  DEMOCRATIC UNIONS MAGNIFY THE POWER OF WKRS WHO MUST DEAL W/ MGT AS EQUALS IN A DEM WKPLACE   
  Democratic unions are those that voice for workers at all levels of the firm, including the shop floor, middle mgt. upper mgt. & the board room  
  There are FIVE orgl features that are important for orgl democracy to succeed  in the US & there are several types of each of these orgl features   
  5.  DEM ORGL STRUCTURE OPERATES DIFFERENTLY THAN THE COMMAND & CONTROL BUREAUCRACY   
 
 Democratic orgl structure has FOUR features
 
  a. Democratic orgl structure has the feature of direct or representative democracy  
  b. Democratic orgl structure has the feature of including democratic unions  
  c. Democratic orgl structure has the feature of supplementing democracy w/ cross division QCCs  
  d. Democratic orgl structure has the feature of bring democratic features to all areas of the organization  
  6.  EMPLOYEE OWNERSHIP, LIKE LIFETIME EMPLOYMENT, BUILDS WKR COMMITMENT   
 
 There are THREE major forms of employee ownership
a.  Corporation w/ employee stock ownership of at least 51% w/ no one person w/ a controlling block
b.  Cooperative
c.  Partnership 
  7.  PAY IS LINKED TO  PRODUCTIVITY BECAUSE THE MOST DEM FORM OF COMPENSATION IS MERIT PAY   
 
 There are THREE major forms of  pay linked to productivity 
a.  Piecework pay
b.  Innovation pay
c.  Org wide bonus 
On average, top level managers cannot earn more than four times the pay of lower level workers
 
  8.  A COOPERATIVE ORGL CULTURE IS PERHAPS THE MOST DIFFICULT ASPECT OF DEMO ORGS BECAUSE PEOPLE ARE ACCUSTOMED TO BEING TOLD WHAT TO DO   
 
 A cooperative orgl culture has SIX aspects
a.  Psychologically prepared democrats
b.  Internalized social controls are 
c.  Commitment to participation 
d.  Ability to be proactive
e.  Commitment to equality of opportunity & outcome
f.  Commitment to social responsibility
 
  The informal side of bureaucracy is that members of organizations try to personalize their procedures & surroundings  
  9.  A MINIMUM DIVISION OF LABOR DEMOCRATIZES THE WKPLACE BECAUSE WKRS ARE EXPECTED TO BE ABLE TO PERFORM NEARLY ALL TASKS   
 
 A minimum division of labor may be accomplished through FOUR work processes
a.  Rotation of work
b.  Job enlargement
c.  Work teams
d.  Cross training
 
  'WORK W/O BOSSES' IS KANTER'S CONCEPTION OF A DEM WKPLACE WHERE THE WKRS MAKE ALL THE DECISIONS   
  Work Without Bosses: Organizational Democracy As the Alternative to Bureaucracy, by RM Kanter
RM Kanter found that cooperatives & collectives utilize FOUR techniques
a.  Minimum written rules
b.  Shun specialization through the development of  job rotation & job enlargement
c.  Eliminate formal positions
d.  Democratic/consensus decision making		  
  RM Kanter found that in order to understand the fundamental differences btwn cooperatives & collectives & traditional organizations, one must distinguish among THREE types of rationality  
  Traditional orgs use either economic rationality or formal rationality   
  Traditional orgs use either economic rationality or formal rationality   
  Cooperatives & collectives utilize substantive rationality   
  Orgs that utilize economic rationality focus on developing the most efficient path to achieve a goal   
  Orgs that utilize formal rationality focus on adhering to rules & procedures, w/ goals being secondary   
  Orgs that utilize formal rationality focus on adhering to values over goals, rules, or procedures   
  ROTHSCHILD-WHITT FOUND SMALL, TIGHT KNIT ORGS MOST EASILY ESTB WKPLACE DEMOC CULTURE & STRUCTURE  
  If democracy is to succeed as an alternative to bureaucracy, Rothschild-Whitt has found that FIVE characteristics are important
a.  Small size
b.  Sense of community
c.  Socialize outside the job
d.  Limits on terms of office
e.  Organized political groups which were institutionalized		  
  THERE ARE MANY DEMOC ORGS THOUGH MOST MAJOR CORPS CONTINUE W/ AUTHORITARIAN STRUCTURES   
  Examples of democratic orgs 
a.  United Airlines            ( ESOP )
b.  Saab                           ( team structure ) 
c.  Saturn                         ( team structure ) 
d.  Avis Car Rental          ( ESOP ) 		  
  Other orgs w/ substantial democratic features   
  Starbucks  
  Southwest Airlines   

 
Top  
Democratic workplaces increase efficiency 
Productivity studies find that workers w/ control of the work process show /\ prod
Today:  greater competitive pressures so we are attempting to design more efficient workplaces
US fell behind industrial world ( Japan & Europe ) in this is playing catch up now

 
Top  
2.  Lifetime Employment
Has made Japanese work organizations more efficient 
Workers are less likely to leave for a better job elsewhere
The employer is expected not to lay off workers to cut costs
Top mgt. takes wage cuts
Workers are retrained & reassigned
Japanese top execs earn less than American execs    3x   10x

 
Top  
Japanese Innovations are limited to shop floor

Workers have power mostly at the shop floor level.  They still receive goals from top.
QC circles act w/in framework of goals set by management


 
Top  
Worker Management Relationships in Japan are less conflicted

Also, there is less of a history of worker management. conflict in Japan.
QCCs have not been widely accepted by unions

The End
 
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