Organizational Structure and Design
L E A R N I N G O U T L I N E
Follow this Learning Outline as you read and study this chapter.
Defining Organizational Structure
Discuss the traditional and contemporary
views of work specialization, chain of command, and span of control.
Organizational Design Decisions
Contrast mechanistic and organic
organizations.
Explain the relationship between
strategy and structure……..
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Common Organizational Designs
Contrast the three traditional
organizational designs.
Explain team, matrix, and project
structures……….
Defining Organizational Structure
Organizational Structure
The formal arrangement of jobs within an
organization.
Organizational Design
A process involving decisions about six
key elements:
Work Specialization
The degree to which tasks in the
organization are divided into separate jobs with each step completed by a
different person.Overspecialization can result in human diseconomies from
boredom, fatigue, stress, poor quality, increased absenteeism, and higher
turnover.
Departmentalization by Type
•
Functional
•
Product
•
Geographical
•
Process
•
Customer
Chain of Command
The continuous line of authority that
extends from upper levels of an organization to the lowest levels of the
organization and clarifies who reports to who.
Unity of Command
The concept that a person should have
one boss and should report only to that person
Span of Control
The number of employees who can be
effectively and efficiently supervised by a manager.
Width of span is affected by:
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Centralization
The degree to which decision-making is
concentrated at a single point in the organizations.
Organizations in which top managers make
all the decisions and lower-level employees simply carry out those orders.
Decentralization
Organizations in which decision-making
is pushed down to the managers who are closest to the action…
Organizational Designs (cont’d)
Contemporary Organizational Designs
Team structures
The entire organization is made up of
work groups or self-managed teams of empowered employees.
Matrix and project structures
Specialists from different functional
departments are assigned to work on projects led by project managers.
Matrix and project participants have two
managers……………
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