Chapter 14 Flashcards
6 sections of organizational structure
work specialization Departmentalization centralization/decentralization Span of control Chain of command formalization
organizational Structure
defines how job tasks are formally divided, grouped, or coordinated
departmentalization
the basis which jobs are grouped
4 departmentalization groups
function
product of service
geography
customer
Unity of command
a person should only have one manager he is directly responsible
3 organizational designs
simple structure
matrix
bureaucracy
simple structure adv.
simple, fast, flexible, accountability
simple structure dis.
only for small orgs. risky
bureaucracy
very formalized, functional departments, centralized authority, narrow span of control. follows chain of command
bureaucracy adv.
ability to perform standardized activities in efficient manner, high formalization, little need for innovation
Bureaucracy dis.
obsessive concern with rules, programmed decision rules.
Matrix structure
2 forms of departmentalization: product and function
Function adv.
putting like specialist together, minimizing number necessary while allowing pooling and sharing of specialized resources across products
Function dis.
difficulty of coordinating the task of diverse functional specialists on time and within budget
product adv.
facilitates coordination among specialist to achieve on time completion and meet budget targets. Clear responsibility with duplication of activities and costs.
Boundaryless org
eliminate vertical and horizontal boundaries, external barriers between company and its customer and suppliers.. limitless span of control, eliminate chain of command.
why do structures suffer?
size
strategy
technology
environment
3 strategies
innovation - organic
cost minimization - mechanistic
imitation - both
two models of structures
mechanistic
organic
3 environments
capacity
volatility
complexity
capacity
the degree which the environment can support growth
volatility
degree of instability in an environment
complexity
the degree of heterogencity and concentration among environmental elements
