After studying this chapter, you should be able to:
Identify the six elements of an organization’s structure.
Identify the characteristics of a bureaucracy.
Describe a matrix organization.
Identify the characteristics of a virtual organization.
Show why managers want to create boundaryless
– Demonstrate how organizational structures differ, and
contrast mechanistic and organic structural models.
– Analyze the behavioral implications of different
– Show how globalization affects organizational structure.
What IsIs Organizational
– How job tasks are formally divided, grouped, and
– Key Elements:
Chain of command
Span of control
Centralization and decentralization
The degree to which tasks in the organization are
subdivided into separate jobs
Division of Labor
Makes efficient use of employee skills
Increases employee skills through repetition
Less between-job downtime increases productivity
Specialized training is more efficient
Allows use of specialized equipment
Can create greater economies and efficiencies – but not always…
Specialization can reach a point of diminishing returns
Then job enlargement gives greater efficiencies than
The basis by which jobs are grouped together
Grouping Activities by:
The rights inherent in a managerial position to give orders
and to expect the orders to be obeyed
Chain of Command
The unbroken line of authority that extends from the top of
the organization to the lowest echelon and clarifies who
reports to whom
Unity of Command
A subordinate should have only one superior to whom he or
she is directly responsible
The number of subordinates a manager can efficiently and effectively direct
– Wider spans of management
– Narrow span drawbacks:
• Expense of additional layers of
• Increased complexity of vertical
• Encouragement of overly tight
supervision and discouragement
of employee autonomy
– The degree to which decision making is concentrated at a single point in the organization.
– The degree to which decision making is spread throughout the organization.
The degree to which jobs within the organization are
– High formalization
• Minimum worker discretion in how to get the job done
• Many rules and procedures to follow
– Low formalization
• Job behaviors are nonprogrammed
• Employees have maximum discretion
– A structure characterized by a low degree of
departmentalization, wide spans of control, authority
centralized in a single person, and little formalization
– A structure of highly operating
routine tasks achieved through
specialization, very formalized...
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