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Chapter 15: Structure

Organizational Structure
The way in which job tasks are formally divided, grouped, and coordinated
Work Specialization
The degree to which tasks in an organization are subdivided into separate jobs
Division of Labor
1. Makes efficient use of employee skills
2. Increases employee skills through repetition
3. Less between-job downtime increases productivity
4. Specialized training is more efficient
5. Allows use of specialized equipment
* Can create greater economies and efficiencies, but not always…*
Departmentalization
The basis by which jobs in an organization are grouped together
Group activities
1. Function
2. Product
3. Geography
4. Process
5. Customer
Chain of Command
The unbroken line of authority that extends from the top of the organization to the lowest echelon and clarifies who reports to whom
Authority
The rights inherent in a managerial position to give orders and to expect the orders to be obeyed
Unity of Command
A subordinate should have only one superior to whom he or she is directly responsible
Span of Control
The number of subordinates a manager can efficiently and effectively direct, wider spans of management increase organizational efficiency; all things equal, the wider the span of control, the more efficient the organization
Narrow Span Drawbacks
1. Expense of additional layers of management
2. Increased complexity of vertical communication
3. Encouragement of overly tight supervisions and discouragement of employee autonomy
Centralization
The degree to which decision making is concentrated at a single point in the organization, in centralized organizations top managers make all the decisions, and lower-level managers merely carry out their directives
Decentralization
The degree to which decision making is spread throughout the organization
Formalization
The degree to which jobs within the organization are standardized
High Formalization
Minimum worker discretion in how to get the job done
Low Formalization
Workers have a great deal of freedom to exercise discretion to their work
Bureaucracy
A structure of highly operating routine tasks achieved through specialization, very formalized rules and regulations, tasks are grouped into functional departments, centralized authority, narrow span of control, and decision making that follows the chain of command
Mechanistic
A structure characterized by extensive departmentalization, high formalization, and limited information network, and centralization (Generally synonymous with the bureaucracy)
Organic
A structure that is flat, uses cross-hierarchial and cross-functional teams, has low formalization, processes a comprehensive information network, and relies on participative decision making (Looks a lot like the boundary less organizational model)
Matrix
An organization structure that creates dual lines of authority and combines functional and product departmentalization, breaks the unity of command concept, employees in the matrix have two bosses, ambiguity about who reports to whom is significantly increased and often leads to conflict
Virtual (Network or Modular)
A small, core organization that outsources major business functions, highly centralized, little or no departmentalization, major advantage is flexibility, roles, goals, and responsibilities can become unclear
Boundaryless
An organization that seeks to eliminate the chain of command, have limitless spans of control, and replace department with empowered teams

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