Organizational structure Flashcards
organizational structure:
Formally dictates how jobs and tasks are divided and coordinated between individuals and groups within the company.
organizational chart
A drawing that represents every job in the organization and the formal reporting relationships between those jobs.
Work specialization
Represents the degree to which tasks in an organization are divided into separate jobs.
Chain of command
Answers the question of who reports to whom and signifies formal authority relationships.
Span of control
Represents how many employees each manager in the organization has responsibility for.
- narrow span of control: allows managers to be much more hands on with employees using directive leadership styles while developing close mentoring relationships
Centralization
Refers to where decisions are formally made in organizations.
Centralization
Refers to where decisions are formally made in organizations.
Formalization
Represents the degree to which rules and procedures are used to standardize behaviors and decisions in an organization.
mechanistic organizations:
Efficient, rigid, predictable, and standardized organizations that thrive in stable environments
- High levels of formalization
- A rigid and hierarchical chain of command
- High degree of work specialization
- Centralization of decision making.
- Narrow spans of control.
Organic organizations:
Flexible, adaptive, outward-focused organizations that thrive in dynamic environments.
- Low levels of formalizations
- Weak or multiple chains of command
- Low levels of work specialization
- Wide spans of control
- decentralized decision making
Organizational design:
The process of creating, selecting, or changing the structure of an organization.
Business environment:
The outside environment, including customers, competitors, suppliers, distributors, and other factors external to the firm, which all affect organizational design.
Whether it is stable or dynamic.
stable business environment
Don’t change frequently and any changes that do occur happen slowly.
Allow organizations to focus on efficiency and require little change over time.
dynamic business environment
Change on a frequent basis and require organizations to have structures that are more adaptive.
low cost producer (company strategy)
Focus on selling products at the lowest possible cost.
Need to focus on being as efficient as possible.
Mechanistic approach to organizational design.