Organization theories Regarding to Rabinz

1. To define the structure, organization, design and
related theories
By BEHSHAD MEHRABI

2. 1. GENERAL
2. Dimensions of Organizational Structure
3. Strategy
4. The size of Organization
5. Technology
6. Enviroment
7. Types of organizational structures
Abstract

3. Objective:
To define the structure, organization, design and
related theories

4.  Some basic definitions
The organization is a social phenomenon that
consciously coordinated with certain boundary for the
purpose or objectives, based on a series of works on
permanent basis.
‫دارای‬ ‫و‬ ‫شده‬ ‫هماهنگ‬ ‫آگاهانه‬ ‫طور‬ ‫به‬ ‫كه‬ ‫آید‬ ‫می‬ ‫شمار‬ ‫به‬ ‫اجتماعی‬ ‫ای‬ ‫پدیده‬ ‫سازمان‬
‫سلسله‬ ‫یك‬ ‫اساس‬ ‫بر‬ ،‫اهدافی‬ ‫یا‬ ‫هدف‬ ‫تحقیق‬ ‫برای‬ ‫و‬ ‫بوده‬ ‫مشخصی‬ ‫نسبتا‬ ‫ثغور‬ ‫و‬ ‫حدود‬
.‫كند‬ ‫می‬ ‫فعالیت‬ ‫دائمی‬ ‫مبانی‬

5. • The Conscious :
Implies that Management
• Social phenomenon
Individuals or groups that are interacting with each
other
• Boundary
Members from non-members distinctive

6. What is structure?
we define the structure as components of the
organization which is formed with:
I. Complexity
II.Formalization
III.Centralization

7. What is organization theory?
Is a major that studies the structure and organization
design. Organization theory to both describe and
prescribe the course deals.

8. organizational behavior
Organizational behavior, attitude and lacking respect to matters
on individuals and small groups are emphasized. Behavior within
organizations, performance, and employee attitudinal variables such
as employee productivity, absenteeism at work, shift work and job
satisfaction focused.

9. Biological metaphors
The organization phenomena such as trees, animals
or human beings (which we'll assume that you're
reasonably offered by them) that they are living and has
life.

10. The definition of a system:
System consists of interconnected components are
configured and linked together to form a single whole,
separate from the elements.
Societies are a system. Cars, plants and the human body
are also examples of the types of systems. In these systems,
the data are obtained then modified and converted to
produce those outcomes.

11. Types of systems:
Usually systems have been classified into open and closed
systems.
 Completely closed system
System, which receives no external source of energy, does
not emit out any energy .
 Open systems
this system has dynamic interaction with environment.

12. Features of open system:
All the system include three elements of inputs,
processes and outputs. Systems receive materials,
energy, information, human resources and so on, and
convert to the goods, services, resources, waste, etc

13. ORGANIZATION THEORY, STRUCTURE AND DESIGN-
( OTSD )
How an Organization Creates Value
Organization’s Inputs
Raw materials
Money and capital
Human resources
Information and knowledge
Customers of service organization’s
Organization’s Environment
Shareholders
Suppliers
Distributors
Government
Competitors
Organization’s Conversion Process
Machinery
Computers
Human skills and abilities
Organization’s Outputs
Finished goods
Services
Dividends
Salaries
Value for stakeholders

14. Lifecycle perspective
. Organizations are born and grow and eventually
Die. Every day, new organizations arise, at the same
time hundreds are dismissed and do not operate .

15. Lifecycle steps:
1. Entrepreneurs
2. the initial formation
3. formalization and control
4. Complex structure
5. Decline

16. Objective:
Understanding the dimensions of organizational
structure

17.  Complexity : which consists of three aspects:
1. Vertical - how deep
2. Horizontal - how wide
3. Geographic - how spread
• Formalization :degree to which rules and procedures are
spelt out in the organization. : So that staff roles are
defined by means of official documents
• Centralization : which implies where decisions are made
in the organization

18. FACTORS WHICH AFFECT STRUCTURE
 1. STRATEGY
 2. ORGANISATION SIZE
 3. TECHNOLOGY
 4. ENVIRONMENT

20. Strategy can be defined as the determination of the basic long-
term goals and objectives of the enterprise, and the adoption
of courses of action and allocation of resources necessary for
carrying out the goals.
There are three strategy dimensions
A. Innovation Strategy
B. Cost Minimization Strategy
C. Imitation Strategy
Innovation Strategy emphasizes to introduction of New products and
services.
Cost Minimization Strategy emphasizes tight cost controls,
Avoidance of unnecessary innovation or marketing expenses, And price
cutting.
Imitation Strategy seeks to move into new products or new
Markets only after their viability has already been proven.
Strategy

21. IMPACT OF STRATEGY ON STRUCTURE
From the above definition the question which arises is whether strategy is premeditated or it
just emerges. There are two views viz.
Planning Mode :
describes strategy as a plan or explicit set of guidelines developed in advance. Managers
identify where they want to go ; and then they develop a systematic and structured plan to get
there. This was the dominant thinking until recently.
Evolutionary Mode :
which is a recent perspective says that Strategy is not necessarily a well-thought-out and
systematic plan .
The advantage of the evolutionary mode is that of being able to cope with both static and
dynamic strategies.
Environmental
Factors
&
Organizational
Factors
Strategy Structure

22. IMPACT OF STRATEGY ON STRUCTURE
Chandler’s Strategy –structure thesis
Alfred Chandler –a Harvard historian has published his work in the
early 60s with extensive research of large American companies during
The period 1909 and 1959. He said, “ A new strategy required a new or
at least refashioned structure if the enlarged enterprise was to be operated
efficiently…. Unless structure follows strategy, inefficiency results.”
(a) Backward integration
(b) Creating product groups if the variety of products was large
(c) Realizing financial, technological and personnel economies of growth
and size cannot be realized
Time 1 1+1 1+2
Product Diversification Low High
Strategy
Structure Simple Functional Divisional

24. IMPACT OF SIZE ON ORGANIZATIONAL STRUCTURE
As an organization grows there is bound to be an impact on its structure.
Generally, large organizations- those employing 2000 or more employees
tend to be :
(a) More Specialized
(b) More Departmentalized
(c) Have more vertical levels
(d) More rules and regulations
when compared to smaller organizations.
Furthermore, size affects structure at a decreasing rate for e.g. an
organization of 2000 employees is as it is fairly mechanistic and an
addition of another 500 employees will not have any impact.
But an organization of 300 employees if it adds another 500 employees
will have a substantial impact in terms of developing a more mechanistic
structure

25. IMPACT OF SIZE ON ORGANIZATIONAL STRUCTURE
Increased Size
Greater
Differentiation
Between Units
Greater Div.
Of Labour
(Job Spln.
Within units)
More Levels
in the
Hierarchy
Less need
for Intraunit
Coordination
More need for
Interunit
Coordination
Larger Unit
Size
More
Formalisation
of Behaviour
More use of
Planning Control
Systems
Structure more
Bureaucratic
(Unskilled variety)

26. Objective:
To define the technology and earlier research, theories
and technologies relation with structure

27. Technology
Information, equipment, techniques and processes needed to
transform inputs to outputs is defined as Technology.
Woodward Technology Classification:
1- Small-batch:
Production is based on the order (eg order to tailor clothes)
2- Mass Production:
products produced in large batches (eg, refrigerator manufacturing companies)
3- Continuous-proc :
Continuously automated manufacturing process with maximum complexity (such
as oil refineries and chemical)

28. IMPACT OF Technology ON ORGANIZATIONAL STRUCTURE
(base on Woodward Classification):
Structural
Characteristics
Small-batch Mass Production Continuous-proc
Proportion of
skilled workers
High Low High
Complexity Low High Low
Formalization Low High Low
Centralization Low High Low

29. Knowledge-based technologies:
 Woodward Classification is base on producing companies but Less than
half of the organizations are producer so another Classification was
introduced by Charles Peru .
 Two basic dimensions of knowledge-based technology
1) Variability of Duty : Exceptions are related to
diversifications
2) Analyzability : capability of analyzing the problems and
finding solution

30. Art and Industrial(3) Non-repetitive(4)
Repetitive(1) Engineering(2)
DiversificationLow High
Low
High
Analyzability
Repetitive
Non-repetitive
Classification Technology of Peru

31. Classification Technology of Peru
1) Repetitive :
With very few Exceptions and easy to analyzing like Bank cashier
2)Engineering
With several Exceptions and easy to analyzing like tax Accounting
3)Art and Industrial
With very few Exceptions and complex to analyzing like Serviceman
1)Non-repetitive
With Several Exceptions and complex to analyzing like researchers

33. • Environment :
composition of the agencies or the forces that affect
the function of organizations and organization have
little control or no control at all. (Factors outside the
organization)
• General environment
All factors that affect the organization, However, the
dependence of the organization is not clear Such as
economic factors. Political. Social. Culture. Ecological
status.

34. • Private environment:
Part of the environment that are directly related
to the organization include customers.
Competitors. Institutions .... in achieving its
goals .its Unique and with specific environmental
conditions will be change d.
• Organization Domain :
Range of products , services and markets which
will be influenced by organization.

35. Environmental Unreliability
All Environments based on "environmental
Unreliability " are different. some are statics and
others are dynamic and it’s a threat to the
effectiveness of the organization so managers are
seeking to way to minimize it

36. Statics Environment :
 Private environment with Few change in forces
 Without new competitor and low competition.
 without New technological barriers .
 Pressure groups have little activity.
Dynamic Environment :
 Government regulations which affecting working conditions are
changing rapidly.
 New competitors are emerging regularly
 Absorbing raw material is difficult and Consumers' tastes are changing

37. Environmental Uncertainty
Mechanistic Structure Organic Structure
Simple structure Complex Structure
Low differentiation High Differentiation
Low Integration High Integration
Centralized Decision- Making Decentralized Decision-Making
Standardization Mutual Adjustment
LOW HIGH
Two types of structures were introduced by Burns and Stalkerz

38. THREE DIMENSIONAL MODEL OF THE
ENVIRONMENT
Stable
Dynamic
Scarce
Complex
Abundant
Simple

39. Objective:
Understanding the common elements of the
organizations and types of deferent structures

40. Middle
Line
Support
Staff
Techno-
structure
The Five parts of the Organization
Operative Core
Strategic Apex

41. Structure in Fives- Manufacturing Firm
VPs
Oper & Mktg.
Plant Mgrs RSMs
Foremen RSMs
Purchasing Assemblers Machine Salespersons Shippers
Agents Operators
(OC)
(SS)
Strategic Planning.
Controller
Personnel Training
Operations Research
Production Scheduling
Works Study
Technocratic clerical
staff
Legal Counsel
Public Relations
Industrial Relations
Research & Devlpt.
Pricing
Payroll
Reception
Mailroom
Cafeteria
Board of Directors
President (SA)
Executive Committee
President’s staff
(TNS)
(ML)

42.  DIAGRAM OF AN ORGANIZATION
1. OPERATING CORE-
operators who perform the basic work of producing the products and rendering
the services
2. STRATEGIC APEX-
High level managers
3. Middle Line
is created between the Strategic Apex and the Operators.
4. ANALYSTS-
they are required for facilitating coordinating of work through the process of
standardization.
5. SUPPORT STAFF-
role is not standardized but is to provide indirect services. More in the nature of
administrative support.

43. Deferent structures
The synthesis achieved through the following:
1. Simple Structure:
based on Direct Supervision in which the
Strategic Apex is the key part
2. Machine Bureaucracy:
based on standardization of work processes
in which Technostructure is the key part.
3. Professional Bureaucracy :
has the standardization of skills in
which the Operating Core is the key point.
4. Divisionalized Form :
based on standardized output, in which the
Middle Line is the key part.
5 Adhocracy :
based on Mutual Adjustment in which Support Staff
(sometimes with the Operating Core) is the key part.