Chapter 14 - Organizational Structure Flashcards
organizational structure
formally dictates how jobs and tasks are divided and coordinated between individuals and groups within an organization
organization chart
representation of how work happens, and formal relations between jobs
elements of organizational structure
work specialization, chain of command, span of control, centralization, formalization
work specialization - division of labour
chain of command - who reports to whom
span of control - how many employees a manager is responsible for
centralization - where decisions are formally made
formalization - rules to standardize decision making
two types of organizations
mechanistic and organic
mechanistic
efficient, rigid, predictable, thrive in stable environments
organic organization
flexible, adaptive, outward-focused, thrive in dynamic environments
organizational design
process of creating, selecting or changing the structure of an organization
- business environment (factors external to the organization
- company strategy (objective/goals)
- technology (transformation of input to g/s)
- company size (# of employees)
organizational forms
simple, bureaucratic, function, multi-divisional, matrix
matrix structur
combination of functional and multidivisional strcuture
functional structure
employee groups by function
multidivisional structur
product, geographic, client substructures
product: employees group around diff products
geo: diff locations
client: specific customers