Organizational Structure and Design (6 Key elements in Organization…
Organizational Structure and Design
6 Key elements in Organization Design
Authority and Responsibility
Authority is the genesis of organizational framework. It is an essential accompaniment of the job of management.
Span of Control
the area of activity and number of functions, people, or things for which an individual or organization is responsible.
how the jobs are grouped together
(grouping activities by functions performed)
Product departmentalization (grouping activities by major product areas)
Customer departmentalization (grouping activities by customer)
Geographic departmentalization (grouping activities on the basis of geography or territory)
Centralization and Decentralization
is a process where the concentration of decision making is in a few hands. while
is a systematic delegation of authority at all levels of management and in all of the organization.
dividing work activities into separate job tasks, division of labor
Formalization is the extent to which rules and procedures are followed in an organization.
According to Black's Law Dictionary, the mechanistic organization is “the organization is hierarchical and bureaucratic. It is characterized by its (1)
highly centralized authority
formalized procedures and practices
, and (3)
an organic organization is one that is very flexible and is able to adapt well to changes.
size - structure
strategy - structure
simple strategy, elaborate strategy, based on work of Alfred Chandler
environment - structure
environment is a constraint on managerial discretion
the composition of an individual team or of a multi-team system.
The divisional organizational structure organizes the activities of a business around geographical, market, or product and service groups.
a company structure in which the reporting relationships are set up as a grid, or matrix, rather than in the traditional hierarchy.
a common type of organizational structure in which the organization is divided into smaller groups based on specialized functional areas, such as IT, finance, or marketing.
boundaryless organisations are defined specifically by a lack of structures and an approach to business that is based on the free flow of information and ideas to drive innovation, efficiency and growth in a world that’s constantly changing.
a basic organizational design structure with low departmentalization, little work specialization, wide spans of control, centralized authority