organisation structure

Foundations
Foundations of of Organization
Organization
Structure
Structure
15-1

Chapter
Chapter Learning
Learning Objectives
Objectives
 After studying this chapter, you should be able to:
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Identify the six elements of an organization’s structure.
Identify the characteristics of a bureaucracy.
Describe a matrix organization.
Identify the characteristics of a virtual organization.
Show why managers want to create boundaryless organizations. – Demonstrate how organizational structures differ, and contrast mechanistic and organic structural models.
– Analyze the behavioral implications of different organizational designs.
– Show how globalization affects organizational structure.

What
What IsIs Organizational
Organizational Structure?
Structure?
 Organizational Structure
– How job tasks are formally divided, grouped, and coordinated – Key Elements:
1.

Work specialization

2.

Departmentalization

3.

Chain of command

4.

Span of control

5.

Centralization and decentralization

6.

Formalization

1.
1. Work
Work Specialization
Specialization
 The degree to which tasks in the organization are subdivided into separate jobs
 Division of Labor
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Makes efficient use of employee skills
Increases employee skills through repetition
Less between-job downtime increases productivity
Specialized training is more efficient
Allows use of specialized equipment

 Can create greater economies and efficiencies – but not always… 15-4

Work
WorkSpecialization
SpecializationEconomies
Economiesand
andDiseconomies
Diseconomies

 Specialization can reach a point of diminishing returns
 Then job enlargement gives greater efficiencies than does specialization

2.
2. Departmentalization
Departmentalization
 The basis by which jobs are grouped together
 Grouping Activities by:
– Function
– Product
– Geography
– Process
– Customer

3.
3. Chain
Chain of of Command
Command
 Authority
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The rights inherent in a managerial position to give orders and to