MGMT Final Ch. 7 Flashcards
Organizational Structure
System that outlines how certain activities are directed in order to achieve the goals of an organization
Mechanistic Structure
Bureaucratic, focusing on following procedures and rules through tight controls and having specialized jobs, with decisions being made by top managers
Organic Structure
Flexible, with minimal focus on procedures and rules, broadly defined jobs, and decisions made at lower levels
Determinants of Organizational Structure
Environment, size, technology, strategy
Environment
Includes mechanisms and organic but most companies are in the middle (post-bureaucratic)
Size
As companies grow in size, structures become more complex, formal, and mechanistic
Technology
They are disruptive and often require a change in structure
Strategy
As companies change strategies to align with the external environment, they will also change structure
Chain of command and unity of command
Requires each employee to report to only one boss with a clean line of command
Span of Control
The number if employees reporting to a manager (tall vs flat)
Tall Span of Control
many levels with narrow spans of management
Flat span of control
few levels with wide spans if management
Departmentalization
Have specialized jobs in a functional area (ex. accounting)
Centralization
Concentration of management and decision-making power at the top of the organizational hierarchy
Flexibility
Organic and more loose