Rebel

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...