Week 2: lecture slides about structures Flashcards
What is organizational structure?
The way tasks are formally divided, grouped and coordinated
What are the design components of organizations? (6)
- Work specialization
- Departmentalization
- Chain of command
- Span of control
- Centralization & decentralization
- Formalization
What is meant with work specialization?
The way tasks are divided into separate jobs completed by different individuals
What is different between high and low formalization of jobs? (2)
- autonomy (Low vs High)
- Job descriptions or behaviors
What are the 6 common structures of organizations?
- Simple
- Functional
- Divisional
- Matrix
- Team/project
- Network
What are the characteristics of a simple structure? (3)
1 CEO
Employees directly beneath
Example startup
What is a functional structure?
Structure based on functional area of expertise (e.g., marketing, sales, HR and so forth)
Advantage = more expertise and specialization
disadvantage = risk of lack of comms
What is a divisional structure?
Several specialties work together on different products. Each specialty is represented in each product line
What is a matrix structure?
Functional and divisional combined
What is a team structure?
Teams work on several projects at once and are grouped together based on their specialty
What is a network organization?
Is about pooling different resources together.
Organization is about finding different suppliers in different regions and countries
Specifically useful for global internet companies
State the recommend org structure:
Small company
Stable and simple environment
One single product
Simple structure
State the recommend org structure:
Medium company
Stable and certain environment
Efficiency and quality control (routine)
functional structure
State the recommend org structure:
Large company
Somewhat stable and complex environment
Innovation and product specialization
Divisional structure
State recommended org structure:
Large company
Instable and complex environment
Unique customer demands + high technical specialization
matrix structure