organisation structure

Topics: Organizational structure, Structure, Bureaucracy Pages: 17 (692 words) Published: August 3, 2015
Foundations
Foundations of
of Organization
Organization
Structure
Structure
15-1

Chapter
Chapter Learning
Learning Objectives
Objectives
 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
organizations.
– Demonstrate how organizational structures differ, and
contrast mechanistic and organic structural models.
– Analyze the behavioral implications of different
organizational designs.
– Show how globalization affects organizational structure.

What
What IsIs Organizational
Organizational Structure?
Structure?
 Organizational Structure
– How job tasks are formally divided, grouped, and
coordinated
– Key Elements:
1.

Work specialization

2.

Departmentalization

3.

Chain of command

4.

Span of control

5.

Centralization and decentralization

6.

Formalization

1.
1. Work
Work Specialization
Specialization
 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…

15-4

Work
WorkSpecialization
SpecializationEconomies
Economiesand
andDiseconomies
Diseconomies

 Specialization can reach a point of diminishing returns
 Then job enlargement gives greater efficiencies than
does specialization

2.
2. Departmentalization
Departmentalization
 The basis by which jobs are grouped together
 Grouping Activities by:
– Function
– Product
– Geography
– Process
– Customer

3.
3. Chain
Chain of
of Command
Command
 Authority


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

4.
4. Span
Span of
of Control
Control
The number of subordinates a manager can efficiently and effectively direct

– Wider spans of management
increase organizational
efficiency
– Narrow span drawbacks:
• Expense of additional layers of
management
• Increased complexity of vertical
communication
• Encouragement of overly tight
supervision and discouragement
of employee autonomy

Contrasting
Contrasting Spans
Spans of
of Control
Control

5.
5. Centralization
Centralization and
and Decentralization
Decentralization
 Centralization
– The degree to which decision making is concentrated at a single point in the organization.

 Decentralization
– The degree to which decision making is spread throughout the organization.

6.
6. Formalization
Formalization
 The degree to which jobs within the organization are
standardized.
– 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

Common
CommonOrganization
OrganizationDesigns:
Designs:Simple
SimpleStructure
Structure
 Simple Structure
– A structure characterized by a low degree of
departmentalization, wide spans of control, authority
centralized in a single person, and little formalization

Common
CommonOrganizational
OrganizationalDesigns:
Designs:Bureaucracy
Bureaucracy
 Bureaucracy
– A structure of highly operating
routine tasks achieved through
specialization, very formalized...
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