The document discusses two universal perspectives on organization design: the bureaucratic model and behavioral model. The bureaucratic model, developed by Max Weber, emphasizes a logical, rational structure based on authority, division of labor, and hierarchy. While efficient, it can be inflexible and neglect human elements. The behavioral model, developed by Rensis Likert, argues organizations should focus on work groups and interpersonal processes. Likert's System 4 approach emphasizes supporting relationships, group decision-making, and high performance goals. Both models have strengths but also limitations, as there is no single best way to design all organizations.

2. Organization Design
& Its Perspective

3. Outline:
Identify the basic nature of organization
design.
Identify the two basic universal perspectives
on organization design.
 Bureaucratic Model
 Behavioral Model

4. The Nature of Organization Design:
 Organization Design:
 The overall set of structural elements and the relationships among those
elements used to manage the total organization.
 A means to implement strategies and plans to achieve organizational goals.
 Organization Design Concepts:
 Organizations are not designed and then left intact. Organizations are in a
continuous state of change.
 Organization design for larger organizations is extremely complex and has
many nuances and variations.

5. Universal Perspectives on
Organization Design:
 Bureaucratic Model (Max Weber)
 According to Max Weber, a German sociologist, a bureaucracy is
defined as an organization founded on a legitimate and formal
system of authority.
 A logical, rational, and efficient organization design based on a
legitimate and formal system of authority.

6. Characteristics:
 Adopt a division of labor with each position filled by an expert.
 create a hierarchy of position so that the scalar chain of command runs
from top to bottom in the organization.
 Establish a hierarchy of positions, which creates a chain of command
runs from top to bottom in the organization.
 All managers should conduct business in an impersonal
manner, maintaining an appropriate social distance from their
subordinates.
 Establish specific personnel policies and practices to ensure that
employment and promotion in the organization is based on expertise
and performance.

7.  Advantages
 Efficiency in function due to well-defined practices and procedures.
 Organizational rules prevent favoritism.
 Recognition of and requirement for expertise stresses the value of an
organization’s employees.
 Disadvantages
 Organizational inflexibility and rigidity due to rules and procedures.
 Neglects the social and human processes within the organization.
 Belief in “one best way” to design an organization does not apply to all
organizations and their environments.

8. Behavioral Model: Likert System
 Renesis Likert
 Organizations that pay attention to work groups and interpersonal
processes are more effective than bureaucratic organizations.
 Universal approach that recognized the weakness and limitations
of the rational and mechanistic characteristics of bureaucratic
model.

9. Likert’s System 4 Organization
Rensis Likert discovered critical relationships between organization
design and effectiveness. His research dealt with eight characteristics
of organizations-
 The leadership process
 The motivation process
 The communication process
 The interaction process
 The decision process
 The goal setting process
 The control process
 Performance goals

10.  Likert concluded that the managers should adopt what he called as
system 4 approach to the organization design.
 System 4 was a behavioral approach that emphasized on supporting
relationships, practiced group decision making, and established high-
performance goals.
 Strength
 Emphasis on behavioral process of organization.
 Weakness
• This approach was founded on the premise that there is only “one best way”
to design organizations, while it seems to be abundantly clear that there is no
best way.

11. Thank You!!!!