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Organisational Structure Change

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Organisational Structure Change

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  • Feb. 2011
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Definition

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

Organizational Structures
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
Mechanistic
Bureaucracy Matrix Team Structure Simple Structure Virtual/Network Organization

Organic

Boundaryless or Horizontal Organization

Organizational Designs
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

Organizational Designs
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
Work specialization
Positively related to productivity. Negatively with satisfaction satisfaction.

Span of control
Positively related to managers’ satisfaction satisfaction.

Centralization
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

Organizational Outcomes
Robbins dd R bbi addresses in the link b/w strategy i th li k b/ t t and structure...

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