ORGANIZATIONAL STRUCTURE: How jobs are formally divided, grouped, & coordinated.
Six Key Elements of Structure
(1) Work specialization (2) Departmentalization (3) Chain of command (COC) (4) Span of control (SOC) (5) Centralization (6) Formalization
Mechanistic M d l M h i i Model Organic Model O i M d l
•High specialization •Rigid departmentalization •Clear COC Cl •Narrow SOC •Centralization Centralization •High formalization
•Cross-functional & cross-level teams •Free i f F information flow i fl •Wide SOC •Decentralization •Low formalization
Continuum of Organizational Designs
Bureaucracy Matrix Team Structure Simple Structure Virtual/Network Organization
Boundaryless or Horizontal Organization
Bureaucracy (bi Cos.; government) B (big C )
Highly specialized, formalized. Highly d Hi hl departmentalized. t t li d Centralized authority, narrow SOC. Decision making by the chain of command. command Matrix (high tech. companies) Combines functional and product C bi f ti l d d t departmentalization. Breaks unity of command principle. principle
Team Structure ( (any size) i )
Teams used for central coordination device. device Complements bureaucracy. Breaks departmental barriers barriers. Simple (small businesses) Low departmentalization. departmentalization Wide spans of control. Centralized authority authority. Little formalization.
Individual O t I di id l Outcomes
Positively related to productivity. Negatively with satisfaction satisfaction.
Span of control
Positively related to managers’ satisfaction satisfaction.
Negatively related to j b satisfaction (b/ of N ti l l t d t job ti f ti (b/c f lack of participation). NOTE: Moderated by Individual Differences
Robbins dd R bbi addresses in the link b/w strategy i th li k b/ t t and structure...