Organizational Theory: Determinants of Structure

The external hither is to conceive why constructions keep the erection that they do. By "structure" I balance attenuatedgs enjoy mark and stamp of smooth irrelativeiation, perpendicular irrelativeiation, mechanisms of coordination and govern, contrivealization, and centralization of potentiality. See handouts page for further counsel on constructional erection.According to Taylor, Fayol, Weber and other augustan theorists, thither is a unmarried best way for construction to be erectiond. Yet constructions differ ponderably on structural attributes. The external of plenteous lore has been to conceive what determines these variations. Is it purposehither or immanent? Are some constructions batrust hither full than others, or are irrelative designs rectify for irrelative residences? Contingency Theory In contrariety to the augustan scholars, most theorists today honor that thither is no one best way to constitute.What is material is that thither be a fit incompact the construction's erection, its distance, its technology, and the requirements of its environment. This perspective is understandn as "contingency theory" and contrarietys delay the perspective of augustan theorists enjoy Weber, Taylor, Fayol, etc. who cogitation that thither probably was one way to run constructions that was the best. Distance This refers to talents, compute of personnel, outputs (customers, sales), instrument (wealth). Blau's studies illusion that irrelativeiation (# of pur-posees, departments, job titles) increases delay distance, but at a decreasing objurgate.In contrariety, the % of the construction that is confused in authoritative balancehead declines delay distance, ascititious to economies of lamina. Increasing distance is so connected to increased structuring of constructions activities but decreased ardor of potentiality. Managerial practices, such as flexibility in personnel assignments, distance of commission of pattern, and sense on results rather than procedures, are connected to the distance of the item managed. Technology/Task Ponder hinder courseing at a bank. This apparition is usually completed by a duty item that is distantly contrivealized, has a noble trade of specialization and disunion of effect, and violent centralization of decision-making. In contrariety, the spiritual minority of an ad exercise is usually not contrivealized at all, the disunion of effect is repeatedly blurry, and it is distantly decentralized. It shows that real activities naturally "go delay" real erections. Joan Woodward set that by shrewd an construction's principal arrangement of product, you could forebode their erection:Unit product/little devise. Companies that compel one-of-a-kind manner products, or little quantities of products (e. g. , ship erection, aircraft mould, furniture compelr, tailors, printers of subordinate marriage prelude, surgical teams). In these companies, typically, race's skills and cognizance is further material than the the machines used. Relatively rich to possess-effect: effect course is unpredictable, forced to pre-program or automate. Flat construction (few pur-posees of hierarchy). Ceo has low p of govern (frequented reports).Relatively low percentage of managers Constitutional erection (see handout) Mass product/large devise. Companies that vend vast volumes of selfselfsame products (e. g. , cars, razor blades, aluminum cans, toasters). Compel burdensome use of automation and nock lines. Typically, bigger than little devise Taller hierarchies proendow pur-posee is vast (superintendent p of govern is 48) Relatively nobleer compute of managers (consequently hierarchy is so towering) Mechanistic, bureaucratic erection Relatively common to opeobjurgate Continuous Production.Primarily companies that levigate liquids and powders (e. g. , chemical companies, oil levigateries, bakeries, dairies, distilleries/breweries, electric potentiality pur-posets). Machines do anything, cosmicals equitpowerful adviser the machines and pur-pose changes. These constructions are towering and attenuated or smooth inverted pyramid: almost nobody at the proendow At the very top thither is an constitutional erection Lower pur-posees further mechanistic, but consequently machines do anything, thither is not plenteous tractate effect, low pur-posee supervision, etc.Chick Perrow '67 looked at how the number and stamp of crusty that supervenered during product artful erection. Two stamps of crusty: (a) can be solved via quiet, analytic quest course (enjoy artificer fixing car), (b) no analytic framework, trust on recognition, guesseffect (enjoy advertising, film-making, disamalgamate lore). Few Crusty Divers Crusty Un-analyzpowerful pottery, point glass, motel size artwork; plumbing; computer technical maintenance (craftwork) succession effect, but when amounts fruit up, it is forced o aspect what to do film making; aerospace; (non succession lore) hitherons that no one unquestionably understands how to do: effect on recognition, involved cognizance Analyzpowerful succession, enjoy screws; (succession manufacturing) the few amounts that supervene are usually not-arduous to conceive manner machinery, erection dams; (engineering product) the contact of courteous-mannered-known principles and technologies to lots of new and irrelative residences It turns out that proendow left constructions (analyzpowerful and few crusty) watch to be distantly centralized and contrivealized -- in brief, bureaucracies.Bureaucracies are the best feasible constructional contrive when the hitheron is courteous-mannered-understood, and how to best complete it can be established in gait. At the other distant, the top equitpowerful constructions (unanalyzpowerful and divers crusty) are not courteous-mannered-mannered discussd by bureaucracies. Thither are so divers crusty and new residences that having a set of contriveal procedures which designate how to discuss full residence is out of the topic. Organizations in this box watch to be distantly decentralized and use instately balances of coordination and govern. The discusss keep to do delay cosmical bounded wisdom. Bounded wisdom refers to the deed that past cosmicals keep scant brain talents, we cannot regularly confront the arbitrary optimal disruption to a consecrated amount -- we singly keep the spell and talents to ponder a few feasible disruptions, and elect the best incompact those. But we can't ponder all feasible disruptions. ) Unquestionably involved arrangements are arduous to pre-plan: thither are too divers contingencies. We batrust can't aspect it all out. Scarcity to admit for real-time, yielding commutation. Environment Adaptation Organizations actively adhonorpowerful to their environments.For copy, constructions oppositeness involved, distantly unreal environments typically irrelativeiate so that each constructional item is oppositeness a littleer, further real amount. for copy, if Japanese tastes in cars are perfectly irrelative from American tastes, it is unquestionably forced to compel a unmarried car that appeals to twain negotiates. It is easier to engender two sepaobjurgate duty items, one that compels cars for the Japanese negotiate, and the other that compels cars for the US negotiate. Natural Option Organizations whose erections are not disposed to the environment (which includes other constructions, communities, mannerers, governments, etc. succeed not percontrive courteous-mannered-mannered and succeed lose. Most new constructions lose delayin the principal few years. If the environment is stanch, this option course succeed direct to most constructions life courteous-mannered-adapted to the environment, not consequently they all progressive themselves, but consequently those that were not courteous-mannered-adapted succeed keep died off. Assurance The administration is a monster neteffect of constructions linked by buying and vending relationships. Full assemblage has suppliers (inputs) and mannerers (outputs). Full assemblage is subject on twain their suppliers and their mannerers for instrument and capital.To the distance that a assemblage scarcitys it's suppliers hither than they scarcity it, the assemblage has potentiality. That is, potentiality is a jurisdiction of asymmetric reciprocal assurance. Assurance is itself a jurisdiction of the availability of resource afford. A depends on B to the distance that thither are few resources to B that are servicepowerful to A. Assurance is so a jurisdiction of how plenteous A scarcitys what B has got. If the Post It's assemblage rouses to delineate forcedball delay you, and thither are no amipowerful resources, it's stagnant not a big trade consequently Post It's are equitpowerful not that material.Organizations that keep potentiality balance others are agencyful to fix elements of erection on them. For copy, GM is glorious for impressive accounting arrangements, consume governs, manufacturing techniques on their suppliers. The sets of entities in an construction's environment that delineate a role in the construction's sanity and enactance, or which are artful by the construction, are determined stakeholders. Stakeholders keep interests in what the construction does, and may or may not keep the potentiality to wave the construction to defend their interests. Stakeholders are varied and their interests may harmonize on some issues and not others.Therefore you confront stakeholders twain cooperating delay each other in alliances, and competing delay each other. Aspect 1. Uncompromised stakeholders. When stakeholders are uncompromised to each other (as in Aspect 1), the construction usually has an easier spell of delineateing the irrelative parties off one another. For copy, it can personate its goals and scarcitys irrelatively to each stakeholder, delayout solicitude-alarm of life set out. Or, such competitive stakeholders into outbidding each other (e. g. , a university can tel one alumnus that another alumnus is environing to produce a vast discount).Furthermore, when the stakeholders are uncompromised, they cannot coordinate their efforts, and so keep molestation governling the construction. Aspect 2. Well-connected stakeholders. In contrariety, when the stakeholders are courteous-mannered-connected (as in Aspect 2), the construction cannot personate itself irrelatively to each one, or it succeed be set out. Furthermore, if the bonds incompact the stakeholders are closer than the bonds delay the construction, the stakeholders may edge delay each other counter the construction, and won't act in ways that negatively like other stakeholders. Institutionalization Under conditions of indistinctty, constructions resemble others that show to be lucky. In other utterance, if nobody unquestionably understands what compels a movie lucky, and then notability has a blockbuster hit, fullbody else copies the movie, and the constructional erection that manufactured the movie, hoping that they succeed get the selfselfsame results. This can creator all industries to inoculate harmonious structural features. One discuss why this happens is the solicitude-alarm of litigation or batrust reproach.If divers courteous-mannered-known, lucky companies rouse inoculateing some new treatment mode -- say, self-governing teams -- and you don't consequently you understand its not misapply for your assemblage, and then attenuatedgs rouse to go wickedness for your assemblage, race succeed say 'see? you should keep inoculateed self-governing teams. we told you so'. So to shun that, if the top companies in a opportunity all inoculate some new mode, then all the others do to to shun life reproachd. In attention, difdisamalgamate of ideas due to personnel translate and functional develop trailing can engender tenor as courteous-mannered.