Lecture 10 (Organizational structure) Flashcards
What does organizational structure define
Organizational structure defines how job tasks are divided, grouped, and coordinated.
Division of labour meaning
Division of labour refers to how each person in an organization performs a distinct operation. This
has proven to desperately increase production output
Departmentalization meaning and by what categorized
Departmentalization refers to how jobs are grouped within an organization. This can be done by:
- Function
- Products or services
- Geographical area
The Chain of command meaning
who reports to whom
Authority meaning
Authority is the formal right to give orders
within the chain of command.
Generally speaking, the longer the chain of command is, the slower implementation can occur
Unity of command meaning
Unity of command is when a person should have only one superior. If not, ambiguity and power struggles may result.
Span of control meaning
Span of control is another coordination device that tackles how the organization is controlled
What are narrow spans of control
Narrow spans of control:
- Are expensive (more managerial levels)
- Make upward vertical communication more complex
- Overly tight supervision has negative effects on employee attitudes and behavior
What are wide spans of control
typically are more efficient, less managerial levels
Centralization of authority pros cons
Centralized:
Top makes all decisions
- Information overload
- Large distance -> Alienation
+Local knowledge distributed
Decentralization of authority pros cons
Decentralized:
Local managers make decisions
-“Island mentality”
+Better and detailed knowledge
+Close to the action and to those affected
Formalization meaning
Formalization means standardization and control through:
- Explicit job descriptions
- Organizational rules
- Procedures
- Protocols
Simple structure of organizational structure characteristics
- Low degree of specialization & departmentalization,
- Relatively wide span of control possible,
- Highly centralized: One decision maker
- Little formalization
- Fast, flexible
- Inexpensive to operate
- Risky: all depends on one person
- Inadequate for growth
Types of organizational structure
- Simple structure
- Bureaucracy
- Matrix structure
- Virtual design
Organic organizational design
-Flat hierarchy
-Informal
-Decentralized
-Innovation strategy
-Small organizational size
-Nonroutine technology
-Scarce, dynamic, complex environment
Mechanistic organizational design
-Tall hierarchy
- Formal
- Centralized
- Cost-minimization strategy
- Large organizational size
- Routine technology
- Abundant, stable, simple environment
Bureaucracy organizational structure characteristics
- routine tasks
- specialization
- strict rules and regulations
- tasks grouped into units
- centralized authority
- narrow spans of control
- Decision making that follows the chain of command
Matrix structure organizational structure characteristics
- Combined functional and product departmentalization
- Facilitates coordination with complex and interdependent activities
- 2 bosses
- Fosters power struggles
- Can be stressful work environment
Virtual design organizational structure characteristics
- Flexible
- Cost efficient: No buildings, little overhead
- Loose social relationships
- Continuous change
Island mentality meaning
isolated communities perceiving themselves as exceptional or superior to the rest
