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Organizational Structure

Organizational Structure

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Organizational Structure

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  1. Organizational Structure How organizations rationalize their resources

  2. Structure Offers Clues About • Where formal power resides • How tasks are coordinated • How the actions of members are controlled • How decision-making authority is assigned • How strategy and decisions are enacted

  3. Organizational Structure What is the role of structure? • Provides a roadmap for workflow • Creates or restrains interactions • Influences attitudes and social relations • Influences how work is completed

  4. Organizational Structure What is the appropriate way to divide and coordinate work and work related processes? • Differentiation – Influences how well organizations collaborate (Horizontal, Vertical, Personal, Spatial) • Integration – Determines how Organizations coordinate their work (Mutual Adjustment, Direct supervision, Standardization)

  5. Organizational Structure Mechanistic Structures • Bureaucracy • Clearly defined roles • Senior people have more knowledge of issues and problems • Standardized policies and procedures govern organizational decision-making • Rewards are determined by adherence to instruction from supervisors

  6. Organizational Structure Organic structures • Flexibly designed to cope with change • Less focus on formal roles and specialization • Not assumed that people in higher positions are better informed than those in lower positions • Horizontal relationships are equal to or more important than vertical relationships • Formal structure is fluid and changeable

  7. Organizational Structure Dimensions of Structure exist on a continuum • Centralization • Formalization • Complexity

  8. Organizational Structure Determinants of structure • Size • Complexity • Strategy • External considerations • Managerial experience and skill