Organization design is a process in which managers develop or change their organizations structure.

When managers develop or change the organizations structure, they are engaging in organization design Organizational Structure The formal arrangement of jobs within an organization Organizational Design A process involving decisions about six key elements: work specialization, unity of command, span of control, authority and responsibility, centralization versus decentralization, and departmentalization Work specialization A job is broken down into a number of steps and each is completed by a separate individual. Chain and Unity of Command The chain of command is the continuous line of authority that extends from upper organizational levels to the lowest and clarifies who reports to whom. Span of control The number of subordinates a manager can direct efficiently and effectively.

Authority and Responsibility Authority refers to the rights inherent in a managerial position to give orders and expect the orders to be obeyed Authority is related to ones position and ignores personal characteristics. Responsibility is the obligation to perform assigned activities Are there different types of authority relationships? Line authority Staff authorit Line Authority The position authority (given and defined by the organization) that entitles a manager to direct the work of operative employees. Staff Authority Positions that have some authority (e.g., organization policy enforcement) but that are created to support, assist, and advise the holders of line authority Power" could be defined as the unilateral ability (real or perceived) or potential to bring about significant change, usually in people, through the actions of oneself or of others. While authority is defined by ones vertical position in the hierarchy, power is made up of both ones vertical position and ones distance from the organizations power core, or center. Centralization versus Decentralization Centralization is a function of how much decision-making authority is pushed down to lower levels in an organization; the more centralized an organization, the higher the level at which decisions are made. Decentralization is the pushing down of decision-making authority to the lowest levels of an organization. Formalization

The degree to which jobs within the organization are standardized and the extent to which employee behaviour is guided by rules and procedures