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Foundations of Organization Structure - Coggle Diagram
Foundations of Organization Structure
Organizational Structure
Def:
Ways that job tasks are formally divided, grouped, coordinated
7 elements
Work specialization:
Division of labor into separate activities
Departmentalization:
Group jobs together → Coordinate common tasks can be
Chain of Command:
Authority line from top → Lowest & clarifies who reports to whom
Authority
: Rights inherent in a managerial position
Unity of Command:
A person should have one & only one superior
Span of Control:
Optimal team size for efficiency
Centralization:
Concentration of power in decision-making
& Decentralization:
Empowering managers and teams
Formalization:
Standardization of work tasks
Boundary Spanning:
Individuals form relationships outside formally assigned groups
Common Organizational Frameworks
& Structures
The Simple Structure
Def:
few departments, large teams per manager, centralized power, minimal formal rules
Strengths
Simple, fast, flexible
Inexpensive
Clear accountability
Weaknesses
Difficult to maintain in large corp
Risky bc of dependence on one person
The Bureaucracy:
The use of formal rules, hierarchies, specialization, follows the chain of command
The Matrix Structure
: Dual lines of authority and
combines functional
vs
product departmentalization
Newer Trends in Organizational Design
The Virtual Structure:
A small, core organization that outsources major business functions (highly centralized, little/no departmentalization)
The Team Structure:
Eliminates chain of command, replaces departments = empowered teams
The Circular Structure:
Executives = center, spreading vision outward in rings
grouped by function
Downsizing
Def
Systematic effort to → Make organization leaner = closing locations, reducing staff, selling off business units (do not add value)
Strategies
Investment:
Focus on core competencies
Communication:
Early communication about downsizing → Reduces employee anxiety & fosters a sense of consideration
Participation:
Employee involvement → Lessen anxiety and achieve staff reductions without forced layoffs
Assistance:
Offering severance → Shows company's respects employees' contributions & prioritizes their future success
Mechanistic vs Organic Structural Models
Mechanistic model
: = bureaucracy, extensive departmentalization, strict rules, limited information flow, minimal employee involvement in decisions
Organic model:
Flexible, team-oriented (cross-functional, cross-hierarchical), information sharing, high employee decision-making
Org’s structure
Means → Management achieve objectives
Strategies
Innovation:
Meaningful & unique innovations
Cost-minimization:
Tightly controls costs
Imitation:
Copy successful innovations & take advs on the best of both → Minimize risk + maximize opportunity for profit
Org Size
Larger organizations → More mechanistic
Size has a bigger impact on smaller org
Technology:
the way an org transfers its inputs → outputs
Environment:
Outside forces that → Affect performance (Capacity, Volatility, Complexity)
Institutions
: Institutions = guidelines for "appropriate" organizational behavior, often invisible but powerful
Behavioral Implications of Different Org Designs
Span of Control
(fewer supervisors/employee): Large span of control → Better performance
Centralization:
Less centralized → Greater amount of autonomy
Predictability vs Autonomy
National Culture