Human Resource

Chapter 3: Organization structure

Introduction

Organization structure is the infrastructure within which strategy is conceived and implemented; Structure can be seen as both the outcome of strategic decision and a factor that influences strategy.

This chapter will pay particular attention on how organizations structure and design jobs.

In this chapter:

• Be aware of alternative organizational structures, from highly regulated bureaucracies to looser networks;

• Be able to reflect on the implementation of such structural designs in reality;

• Understand the links between structure and other topics such as power, strategy and technology;

• Be aware of the development in structure, such as virtual and networked organizations, and some of the implications of these developments for HRM.

Classical bureaucracy

Concept of Bureaucracy:

• It was first developed by Weber, a German sociologist (1947)

• Ideally known as the legal rational framework: it is legal because organizations operate their operations based on rules and procedures for every position or job.

• Weber distinguished the legal-rational model (legal-rational) from charismatic model (leader drive) and traditional model (influenced by customer and practice)

Features of classical bureaucracy:

• Clear definition of duties and responsibilities

• Maximum specializations

• Vertical pattern and Obedience of authority

• Maximum use of rules (legal rational Model)

• Remuneration is determined by rank and job responsibilities and promotions are determined by seniority or achievement as judged by supervisors

• Clear separation between ownership of the organization and its control.

Classical bureaucracy shortcomings:

• High pressure on individuals to act methodically and cautiously to adhere to rules and procedures.

• The mean to the end becomes more important than the end itself: a ritualistic attachment to rules and procedures, authority and status rights can delay if...