Organization Theories

the manner in which a management achieves the right combination of differentiation and integration of the organization’s operations, in response to the level of uncertainty in its external environment.

• Organization design

• design

• organization

pertains to the usual or old-fashioned ways which includes:

1.Simple

2.Functional

3.Divisional

• traditional theory

• Modern theory

it has few department, wide span of control, or a bigger number of subordinates directly reporting to a manager; has a centralized authority figure and has a little formalization of work;

• simple

• functional

• divisional

-This organizational design groups together similar or related specialties

-Is utilized and put into practice in an entire organization.

-For example, a marketing firm that markets cars and related products likes tires, car batteries, and accessories.

• simple

• functional

• divisional

-is made up of separate business divisions or units, where the parent corporation acts as overseer to coordinate and control the different divisions and provide financial and legal support services

• simple

• divisional

• functional

refers to contemporary design theories that includes:

1.Team Design

2.Matrix-Project Design

3.Boundary-less Design

• modern theory

• traditional

-is made up of work groups or teams.

-Its advantages include empowerment of team members and reduced barriers among functional areas.

• team design

• project design

• matrix project design

• boundaryless design

-refers to an organization design where specialists from different departments work on projects that are supervised by a project manager.

• Project Design

• Matrix Project Design

• Team Design

refer to an organizational design where employees continuously work on a project.

• project design

• team design

• matrix project design

-the design is not defined or limited by vertical, horizontal and external boundaries.

- there are no hierarchical levels that separate the employees, no departmentalization, no boundaries the separate the organization from customers, suppliers and other stakeholders.

• boundaryless design

• project design

• matrix project design

• team design