Organizational Structures (Elements (Span of Control (Tall vs Flat…
Two Fundamental Requirements
Division of Labour
Coordinating Work Activities
Common Mental Models
Legitimate Power to Individual who use power to direct work processes and allocate resources.
Create Routine Patterns of Behaviour
Span of Control
Tall vs Flat Structures
Illustration of Structure based on Span of Control
Power with a small group of people usually at the top
Disperse decision authority and power throughout the organization
Degree org. standardizes behaviour through rules, procedures, formal training, and other mechanisms
Narrow span of control, high degree of centralization and formalization
Wide span of control, decentralized and little formalization
Departmentalization- Fourth Element
Few employees with limited product or service
Employees organized around specific knowledge or other resources
Employees are organized around geographic areas, outputs (product or services) or clients.
Globally Integrated Enterprise - work processes and executive functions are distributed around the world through global centres rather than developed in a home country and replicated in satellite countries.
Organizational Structure built around self-directed teams that complete an entire piece of work.
Overlays two structures in order to leverage the benefits of both. For example: Geographic divisional and product structure
Alliance of several organizations for the purpose of creating a product or serving a client.
Consists of Core Firm and others that are associated with it.
Contingencies of Org. Design
Dynamic vs Stable
Complex vs Simple
Diverse vs Integrated
Hostile vs Munificent
As the number of employees increases , job specialization increases
number of exceptions to standard procedure. Low variability, jobs are routine and follow standard operating procedures.
Predictability or difficulty of required work.
Decisions and actions applied to achieve the org. goals.
Structure follows Strategy