Organizational Structure

and Design
 Defining Organizational
Structure
• Organizational Structure

• Organizational Design
Some Purposes of Organizing

• Divides work to be done into specific jobs and

departments
• Assigns tasks and responsibilities associated with
individual jobs
• Coordinates diverse organizational tasks
• Clusters jobs into units
• Establishes relationships among individuals, groups,
and departments
• Establishes formal lines of authority
• Allocates and deploys organizational resources
Organizational Structure

Work Specialization
Organizational Structure (cont’d)

Departmentalization
 Departmentalization by Type
• Functional

• Product

• Geographical

• Process

• Customer
Organizational Structure (cont’d)
• Chain of Command
Organizational Structure (cont’d)
• Authority

• Responsibility

• Unity of Command

• Delegation
Organizational Structure (cont’d)
• Line and Staff Authority
Organizational Structure (cont’d)
• Span of Control
Organizational Structure (cont’d)
• Centralization

• Decentralization
Factors that Influence the
Amount of Centralization
• More Centralization
Factors that Influence the
Amount of Decentralization
• More Decentralization
Organizational Structure (cont’d)
• Formalization
Mechanistic Versus Organic
Organization
Mechanistic Organic
Structural Contingency Factors

• Overall strategy of the organization

• Size of the organization

• Technology use by the organization

• Degree of environmental uncertainty

Structural Contingency Factors
(cont’d)
• Innovation

• Cost minimization

• Imitation
Structural Contingency Factors
(cont’d)
• Size and Structure
Structural Contingency Factors
(cont’d)
• Technology and Structure
Structural Contingency Factors
(cont’d)
• Environmental Uncertainty and Structure
Common Organizational Designs

• Simple Structure

• Functional Structure

• Divisional Structure
Organizational Designs (cont’d)

• Team Structures

• Matrix Structures

• Project Structures
Organizational Designs (cont’d)

• Boundaryless Organization
Removing Boundaries

• Virtual Organization
• a virtual organization is a network of cooperation
made possible by, what is called ICT, i.e.
Information and Communication Technology,
which is flexible and comes to meet the dynamics
of the market.
• Network Organization (Modular Organization)
Outsourcing Issues
• Problems in Outsourcing
Organizational Designs (cont’d)
• Learning Organization
Characteristics of a Learning
Organization
Organizational Design
• Boundaryless
• Teams
• Empowerment

Organizational Culture
Information Sharing
• Strong Mutual Relationships
THE LEARNING • Open
• Sense of Community
ORGANIZATION • Timely
• Caring
• Accurate
• Trust

Leadership
• Shared Vision
• Collaboration