Sharing information of
mutual tasks; forming
common mental models to
synchronize work activities
Direct communication
Liason roles
Integrator roles
Formal hierarchy
Assigning legitimate
power to individuals,
who then use this power
to direct work process
and allocate resources
Corporate structure
Direct supervision
Standardization
Creating routine patterns
Standardized skills
standardized processes
Standardized output
Span of control
The number of people directly
reporting to the next level of hierarchy.
Tall and Flat more preferable.
Centralization and Decentralization
Means the degree
to which formal
decision authority
is held by a small
group of people,
typically those at
the top of the
organizational
hierarchy
Mechanistic and Organic Structure
Mechanistic Structure:
An organization
structure with a narrow
span of control and a
high degree of
formalization and
centralization
Organic Structure: An
organizational structure
with a wide span of
control, little
formalization, and
decentralized decision
making
Mechanistic structures work better in stable
environments because they rely on efficiency and
routine behaviours, whereas the organic structures
work better in rapidly changing environments
because they are more flexible and responsive to
these changes.
Six forms of Departmentalization
Simple structure
They employ only a few people and typically
offer only one distinct product or service
Functional Structure
This is type of departmentalization that
organizes employees around specific
knowledge or other resources
Creates specialized pools of
talent, provides more
economies of scale,
increases employee identity
Divisional Structure
A type of departmentalization that
groups employees around
geographic areas, outputs
(product/services) or clients
GS organizes employees
around distinct regions of the
country or globe
PS organizes work
around distinct outputs
CS is in which employees
are organized around
specific customer groups
Building block
structure,
accommodates
growth easily and
focuses employee
attention of products
or customers
Team-based Structure
A type that is built around self
directed teams and that complete
an entire piece of work
More flexible and
responsive to the
environment, reduces
cost as team rely less on
formal hierarchy
Matrix Structure
A type that overlays two
organizational forms in
order to leverage the
benefits of both
Optimizes the use of resources and expertise
Network Structure
Is an alliance of
several
organizations
for the purpose
of creating a
product or
serving a client
flexible in re-aligning the structure with
changing environmental requirements
Four Characteristics of External Environment
Dynamic vs Stable Env.
DE - high rate of change, leading to novel
situations and lack of identifiable
patterns (OS more suited)
SE - steady changes of supply
and demand for inputs and outputs
Complex vs Simple Env
The more CE the more decentralized the
organization with increasing complexity
Diverse vs Integrated Env
DE - greater variety of products or
services, clients and regions
IE - only one client product and geographic area
Hostile vs Munificent Env
HE - Face resource scarcity and more competition in the marketplace