organizational structure and design Flashcards
organizing involves determining
what tasks to be done
who is to do them
how the tasks are to be grouped
who reports to whom
where decisions are to be made
organizational structure
how jobs tasks are formally divided, grouped and coordinated within the organization
organizational design
the process of developing or changing an organization structure
why do organizations need structures
divide work into departments and jobs
monitor performance
assign and coordinate tasks
create specialists
establish personal relationships
establish formal lines of authority
allocate and deploy resources
6 major elements of organizational structure
work specialization
compartmentalization
chain of command
span of control
centralization and decentralization
formalization
compartmentalization: functional
groups employees based on work performed
compartmentalization: product
groups employees based on major product areas in the corporation
compartmentalization: customer
groups employees based on customers’ problems and needs
compartmentalization: geographical
groups employees based on the location served
compartmentalization: process
groups employees based on the basis of work or customer flow
chain of command: staff managers vs line managers
advise upper management who are responsible for profits and product divisions
type of structure: mechanistic
rigid hierarchy
fixed duties
rules
formalized
centralized
taller structures
type of structure: organic
collaboration
adaptable duties
few rules
informal
decentralized
flatter structures
strategy determines structure: cost leadership
mechanistic
type of structure: differentiation
adjust, adapt and a wide range of problem-solving agents
simple structure: pros and cons
fast, flexible, inexpensive, clear accountability
not appropriate for growth, reliance on one person is risky
functional structure: pros and cons
specialization and groups with similar tasks
lose sight of what is best overall, little understanding of what other units are doing
divisional structure: pros and cons
focus on results
duplication of activities and resources
team: pros and cons
involved and empowered, reducing barriers
no clear chain of command, pressure to perform
matrix-project: pros and cons
fluid and flexible, faster decision making
the complexity of assigning people, task and personality conflicts
boundaryless: pros and cons
flexible and responsive draws talent where it’s found
lack of control, communication difficulties
