CMQ/OE Certification Prep. Course - Part 1- Chapter 01| Video # 01

PART 1
Leadership
chapter 1 a. organizational structures
Chapter 2 B. Leadership Challenges
Chapter 3 C. Teams and Team Processes
Chapter 4 D. ASQ Code of Ethics
CMQ/OE
CERTIFICATION PREP. COURSE
By: Eng. Hosam Abd Al-Galeil , All rights reserved
Copyright©2022

I.A. Organizational Structures
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Organizational Structure
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Strategic leadership includes defining the structures to achieve the overall vision and
mission of an organization and its strategies and systems.

Organizational Design factors
The design of an organization (Organization Structure ) is the formal framework for
communication and authority and is determined by three major factors:
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• Complexity.
The number of different entities that will exist in the
organization (for example, job titles, reporting levels,
functional departments, and physical work locations)
• Formalization.
How much will the organization rely on standard guidelines
and procedures to instruct and direct employee activities?
• Centralization.
Whether decision-making authority is located primarily at
upper management levels or is delegated to lower levels.

Purposes of organizational design are to:
• Divide the total work required into logical functional groupings and the jobs .
• Assign specific tasks and responsibilities to each individual job.
• Allow better coordination of diverse organizational tasks.
• Establish relationships among individuals, work units, and functions.
• Establish formal lines of authority and decision-making.
• Allocate and deploy organizational resources.
Purposes Of Organizational Design
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A decision must be made as to how work activities Will be organized both vertically
and horizontally.
To Create An Appropriate Design
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An appropriate organizational design will assist in aligning all of the employees, departments,
and processes which remove systemic conflict and achieve strategic goals.
The vertical structure
typically categorizes
positions as top
managers, middle
managers, first-line
managers, and
operations personnel .
A horizontal dimension
answering questions such as
“How will work activities be
allocated?”
or
“What form of
departmentalization will work
best?”

Vertical Organizational Design
Unity Of Command :
 The idea that a subordinate should be directly responsible to only one superior which be the basic intent
of vertical design is to avoid conflicts, misunderstandings, or misuse of resources .
Types of authority
• Line authority is the superior-subordinate relationship
extending from the top of the organization to its lowest levels
• Staff authority (human resources) which have the authority to
support and advise when organizations become larger and more
complex.
Today, authority is recognized as only one aspect of the larger
concept of power .
For example, some individuals in an organization may have
considerable informal authority due to their knowledge or
personality.
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Vertical Organizational Design
Span of control
Refers to how many subordinates a manager can effectively and efficiently supervise.
 Typically no more than six in order to maintain close control.
 The wider or larger the span of control, the more efficient the
organizational design. Today many organizations have reduced
the number of managerial positions through restructuring while
increasing the spans of control.
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The optimum span of control is determined by :
• Amount of employees’ training and experience
• Similarity of subordinate tasks
• Complexity of the tasks and physical proximity of subordinates
• Degree to which standardized procedures are in place
• The organization’s management information and internal communication systems
• Available resources
• Organizational beliefs and values

Horizontal Organizational Design
Division of labor :
Individuals specialize in doing part of an activity rather than the entire activity such as Assembly-line
production, in which each worker repeatedly does a standardized task .
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Organizations have discovered
that giving employees a variety
of activities to perform,
allowing them to do a whole
and complete piece of work,
and putting them together into
teams makes jobs more
interesting, and higher quality
often results.
Drawbacks of division
of labor such as
boredom, job stress ,
low productivity, poor
quality, increased
absenteeism, and high
turnover.

Centralization Decentralization
Centralization/Decentralization
Centralization/decentralization refers to how much decision-making authority has been
delegated to lower management levels.
 Fayol notes that the proper
amount of centralization or
decentralization depends on the
situation.
 Organizational designers should
select the amount of
centralization/decentralization
that best allows management to
implement goals and strategies.
 Organizations have traditionally
been structured as pyramids, with
authority and power concentrated
at the top and with relatively
centralized decision-making
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More decentralization might be
needed when:
 The environment is complex or
uncertain.
 Lower-level managers are capable and
experienced at making decisions.
 Lower-level managers want a voice in
decisions .
 Corporate culture.
 The organization is geographically
dispersed.
 Effective implementation of strategies
depends on more involvement and
flexibility to make decisions.

Types Of Organizational Structures
Flatter organization :
The current tendency is to move to flatter organizations which having :
 Fewer hierarchical levels and more flexible reporting arrangements.
 Implies a wider span of control.
 IT have greatly simplified the processes of communication and decision-making.
 Allowing authority to be more widely dispersed.
Organizations are becoming managed
more as horizontal processes rather than
vertical hierarchies (for example, as a part
of the supply chain or value chain),
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Matrix organization :
A matrix structure is one way of formalizing a structure that provides both effective horizontal
and operational decision-making as well as allowing development of functional specialties.
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Parallel or collateral organization:
 Often used when an organization desires to
implement a significant change which consists of a
group of employees (often a diagonal slice of the
organization) who meet on a regular basis in order
to guide the change process .
 Once the organization has made the transition, the
parallel structure is dissolved.
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Departmentalization is the way that organization grouping its work activities .
Basic Types of Departmentalization :
Departmentalization
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Other Types : Team, Matrix, Cells , Boundaryless

Other Factors Affect Organizational Structures
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Organizational
Structures
 Strategy
 Size
 Technology
 Core competencies
 Workforce issues
 Facilities
 Other environmental factors
 Combinations
 Regulatory, legal , and other requirements.
 Union
 Competition

Management Hierarchy And Influence On The Organization
To ensure that an organization achieves its desired outcomes, someone must plan,
allocate resources, and monitor results , these are major activities for which
management personnel have responsibility.
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Management Hierarchy And Influence On The Organization
supervisors (usually considered part of management)
must communicate downward the vision ,mission,
principles, and strategic objectives and take the actions
necessary for their work unit, monitor and maintain the
processes and people and be accountable for the
quality and quantity of product and service required.
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Organization culture influence organization structure
Organization culture may be determined by leadership views, by past practice, or by
attitudes in surrounding society.
 If the leadership places a high value on following orders, a narrow span of control may result.
 If an organization has been successful
allowing relative independence of
different divisions, adding linkages to
control this independence will be difficult
to include, even if there is good economic
reason to do so.
 A society that values following the
direction of authority will find difficulty
encouraging individuals to innovate .
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CMQ/OE Certification Prep. Course - Part 1- Chapter 01| Video # 01

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