Submitted by: Submitted by enyrebel23
Views: 335
Words: 544
Pages: 3
Category: Business and Industry
Date Submitted: 06/03/2011 01:10 PM
Organizational Structure
I. Three main components of organizational structure
A. Complexity: degree of differentiation of activities
1. horizontal complexity: number of units across organization
2. vertical complexity: depth of organizational hierarchy
a. flat structures: small number of levels, wide span of control (# of workers each managers oversees)
b. tall structures: many levels, narrower spans of control
3. spatial complexity: geographical dispersion of physical and human resources
B. Formalization: degree of standardization (e.g., rules, job descriptions, procedure)
C. Centralization: degree of concentration of decision-making
II. Mechanistic vs. Organic structures
A. Structure types
1. Mechanistic structure: high complexity and formalization; centralized decision-making (also, rigid relationships, fixed duties, downward communication, little participation in decision-making)
2. Organic structure: low complexity and formalization; decentralized decision-making (also, adaptable duties, flexible relationships, horizontal and upward communication)
B. Factors leading to structure types
|Factor |Mechanistic |Organic |
|1. Size |Large |Small |
|2. Strategy |Cost-minimization, imitation |Innovation, single product line |
|3. Technology |Mass production, routine tasks, |Unit production, intensive technology |
| |well-defined problems |(combining services tailored to customer), |
| | |nonroutine tasks, ill-defined problems...