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8 Cards in this Set

  • Front
  • Back

Organizational Structure

Defines how job tasks are formally divided, grouped and coordinated.

Six key elements of oganizational structure

- Work specialization: division of labour


- Departmentalization: divide organization by functions/products/geographical elements


- Chain of command: line of authority (unity of command = everyone has superior)


- Span of control: wider span is more efficient


- Centralization: top managers make decision


- Decentralization: managers close to action make decisions


- Formalization: degree to which jobs are standardized

Common organizational designs

Simple structure, bureaucracy and matrix structure

The simple structure

Low degree of departmentalization, wide spans of control, centralized authority, little formalizations (often young companies)




Strengths: simple, fast, flexible inexpensive to operate, accountability is clear




Weak: overload information at top, long decisionmaking process if large org.

The bureaucracy

Highly routine operating tasks because of specialization, formalization, regulation, functional departments, centralized authority, narrow span of control, strong chain of command




Strength: efficient and economies of scale


Weak: no modification

The matrix structure

Both functional and product departmentalization




Strength: low number of specialists, pooling/sharing of specialized resources




Weak: difficult coordination

New design options

- The virtual organization


- The boundaryless organization


- The leaner organization

Why do structures differ?

The mechanistic and organic model




- Organizational strategy


- Organization size


- Technology


- Environment