Principles of Management organizational design

Elements of Organizational Design Work specialization: what are you good at? Departmentalization: who do you work with? Chain of command: who do you report to? Span of control: how many people do you manage? Centralization and decentralization: who decides? Formalization: how many rules do you have?

Mechanistic vs. Organic Structure High specialization/cross-functional teams Rigid departmentalization/cross-hierarchical teams Clear chain of command/free flow of information Narrow spans of control/wide spans of control Centralization/decentralization High formalization/low formalization

Factors Affecting Structure Strategy: cost control vs. innovation Size: large vs. small Technology: routine vs. nonroutine technology Environmental uncertainty: stable vs. unstable

Traditional Organizational Designs Functional structure Divisional structure Product Customer Geography Matrix structure