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Organizational Structures (Elements (Span of Control (Tall vs Flat…
Organizational Structures
Two Fundamental Requirements
Division of Labour
Job Specifications
Coordinating Work Activities
Informal Communication
Sharing knowledge
Common Mental Models
Formal Hierarchy
Legitimate Power to Individual who use power to direct work processes and allocate resources.
Standardization
Create Routine Patterns of Behaviour
Skills
processes
output
Elements
Span of Control
Tall vs Flat Structures
Illustration of Structure based on Span of Control
Centralization
Power with a small group of people usually at the top
Decentralization
Disperse decision authority and power throughout the organization
Formalization
Degree org. standardizes behaviour through rules, procedures, formal training, and other mechanisms
Mechanistic
Narrow span of control, high degree of centralization and formalization
Organic
Wide span of control, decentralized and little formalization
Departmentalization- Fourth Element
Simple Structure
Few employees with limited product or service
Functional Structure
Employees organized around specific knowledge or other resources
Divisional Structure
Employees are organized around geographic areas, outputs (product or services) or clients.
Globally Integrated Enterprise - work processes and executive functions are distributed around the world through global centres rather than developed in a home country and replicated in satellite countries.
Team-Based
Organizational Structure built around self-directed teams that complete an entire piece of work.
Matrix
Overlays two structures in order to leverage the benefits of both. For example: Geographic divisional and product structure
Network Structure
Alliance of several organizations for the purpose of creating a product or serving a client.
Consists of Core Firm and others that are associated with it.
Contingencies of Org. Design
External Environment
Dynamic vs Stable
Complex vs Simple
Diverse vs Integrated
Hostile vs Munificent
Org. Size
As the number of employees increases , job specialization increases
Technology
Variability
number of exceptions to standard procedure. Low variability, jobs are routine and follow standard operating procedures.
analyzability
Predictability or difficulty of required work.
Strategy
Decisions and actions applied to achieve the org. goals.
Structure follows Strategy