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Org Structure Design

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by

Dan Andrews

on 6 February 2016

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Transcript of Org Structure Design

Organizational Structure &Design
Departmentalization?
Formalization

Highly formalized jobs offer little discretion over what is to be done.

Low formalization means fewer constraints on how employees do their work.
Mechanistic
Chain of Command~ continuous line of authority
Alfred Chandler
Authority
Responsibility
Unity of Command
Strategy Frameworks:
Innovation
Pursuing competitive advantage through meaningful and unique innovations
favors an organic
structuring.
Cost minimization
Focusing on tightly controlling costs
requires a mechanistic
structure for the organization.
Imitation
Minimizing risks and maximizing profitability by copying market leaders
requires both organic and mechanistic
elements in the organization’s structure.
Organizational Design
THIS is that kind of classroom!
Be careful what you post online: it may be seen and passed on to many viewers
this
Functional
Product
Decentralization
Organizations in which decision-making is pushed down to the managers who are closest to the action.
Employee Empowerment
Organic Organization
Specialization
Departmentalization
Chain of Command
Span of Control
Centralization /Decentralization
Formalization
Specialization
Geographical
Process
customer
Cross functional
Centralization
The degree to which decision-making is concentrated at a single point.
Oganizations in which top managers make all the decisions and lower-level employees simply carry out those orders.
Span of Control

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