ORGANIZATIONAL STRUCTURE

Key Elements of Organizational Structure
Examples of Traditional Organizational Designs
Graphics by J. Styles
Questions
An organizational structure defines how job tasks are formally divided, grouped, and coordinated.

There are 6 key elements considered when designing an organization’s structure:

Work specialization
Departmentalization
Chain of Command
Span of Control
Formalization
Centralization and Decentralization
Span of Control
Formalization
Centralization and Decentralization
Organizations that are structure around:

limited specialization
wide spans of control
low centralization
low formalization
Gives employees greater autonomy
The more commonly used structures include the bureaucracy, simple structure, and the matrix structure.

bureaucracy samples
simple structure samples
and the matrix structure samples
The new structural options for organizations involve breaking down the boundaries either internally, externally, or a combination of the two.

The Team structure modifies internal boundaries (Toyota, Xerox, GM Canada).
Virtual organization modifies external organizational boundaries (Amazon, Newman’s Own).
Boundaryless organization attempts to break down both internal and external boundaries (BMW, Motorola, 3M)
Leaner organization has less bureaucracy, speeds decision making,
an
d allows for routine downsizing (RIM)
Why Organizational Structures Differ
Behavioural Implications of Different Organizational Designs
What works? Mechanistic vs. Organic Structure
How does strategy support structure?
How does size, technology and environment affect structure?
Ca
se Study Discussion - I Detest
B
ureaucracy
Features of Organizations [Mechanistic/Organic]:

- work specialization, span of control, centralization
Generally
- Work specialization leads to higher productivity as tasks become routine
Span of control
- Shows no effect on personal satisfaction or productivity -
some prefer autonomy, while some prefer stricter guidance
Centralization
- Actually decentralization or autonomy increases personal accountability and therefore greater productivity
and
satisfaction
No c
le
ar cut winner when identifying the better organization structure -
Benef
its to each!
Global Implications:

Culture and Organization Structure
US/Canadian structures’ influence is global
Culture and Structure Preferences
Power distance is the degree of disparity in power distribution in the organization.
Countries will differ greatly in their acceptance of the low/high power distance.
Culture and Boundaryless Organizations
International pr
ese
nce and joint partnerships will remove the geographical and cultural b
arriers.
Organizational structure determines the level of autonomy an individual has.

Strategy, organizational size, technology, and environment determine an organization's structure.

There is no one best structure, and individuals differ in their preference of organizational structure.
Graphics Staging Area
What Newer Organizational Structures Look Like
Presented by:
A. Haughton, L. Stantis, J. Styles, K. Black, R. Salem
ORGANIZATIONAL STRUCTURE
Thank you

Organizations structure around:

high levels of formalization and specification
strict adherence to the chain of command
limited delegation of authority
and narrow spans of control

Gives employees little autonomy
The goal of the new organizational forms is to improve agility by creating a lean, focused, and flexible organization.
Presented by:
A. Haughton, L. Stantis, J. Styles, K. Black, R. Salem
ORGANIZATIONAL STRUCTURE