Org development
Organizational Theory & Behavior
Mgt 5320
Chapter 5 extra note: Life Cycle Stages Entrepreneurial Collectivity Formalization Elaboration
Chapter 6: Fundamentals of Organization Structure
Structure includes such things as the number of departments in an organization, the span of control, and the extent to which the organization is formalized or centralized.
Organization structure is reflected in the organization chart, and the three components that define organization structure are:
1. Formal reporting relationships
2. Grouping together of individuals into departments
3. Design of systems to ensure communication
Few products or services usually a centralized functional structure
Diversified more decentralized, divisional structure
THREE APPROACHES TO STURCTURAL DESIGN
1. FUNCTIONAL STRUCTURE
Strengths – Allows economies of scale w/i depts. Enables skill development Best in small to medium-sized organization Best with only one or few products
Weaknesses - Slow response to environment changes May cause decision making to top Leads to poor horizontal coordination Restricted view of organizational goals
2. DIVISIONAL STRUCTURE
Strengths – Suited to fast change in unstable environment Leads to client satisfaction, contact points clear High coordination across functions Allows units to adapt to differences Best in large organization w/several products Decentralizes decision making
Weaknesses - Eliminates economies of scale Leads to poor coordination across product lines Eliminates competence and technical specialization Makes integration/standard across product dificult
3. MATRIX STRUCTURE
Strengths – Achieve coordination meet dual demand environment Flexible sharing of human resources Suited to complex decisions and unstable environment Opportunity for funct. & product skill development Best in medium sized orgs. with
Mgt 5320
Chapter 5 extra note: Life Cycle Stages Entrepreneurial Collectivity Formalization Elaboration
Chapter 6: Fundamentals of Organization Structure
Structure includes such things as the number of departments in an organization, the span of control, and the extent to which the organization is formalized or centralized.
Organization structure is reflected in the organization chart, and the three components that define organization structure are:
1. Formal reporting relationships
2. Grouping together of individuals into departments
3. Design of systems to ensure communication
Few products or services usually a centralized functional structure
Diversified more decentralized, divisional structure
THREE APPROACHES TO STURCTURAL DESIGN
1. FUNCTIONAL STRUCTURE
Strengths – Allows economies of scale w/i depts. Enables skill development Best in small to medium-sized organization Best with only one or few products
Weaknesses - Slow response to environment changes May cause decision making to top Leads to poor horizontal coordination Restricted view of organizational goals
2. DIVISIONAL STRUCTURE
Strengths – Suited to fast change in unstable environment Leads to client satisfaction, contact points clear High coordination across functions Allows units to adapt to differences Best in large organization w/several products Decentralizes decision making
Weaknesses - Eliminates economies of scale Leads to poor coordination across product lines Eliminates competence and technical specialization Makes integration/standard across product dificult
3. MATRIX STRUCTURE
Strengths – Achieve coordination meet dual demand environment Flexible sharing of human resources Suited to complex decisions and unstable environment Opportunity for funct. & product skill development Best in medium sized orgs. with