McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. Organizational Structure Chapter 15

15-2

15-3 Organizational Structure Formally dictates how jobs and tasks are divided and coordinated between individuals and groups within the company An organizational chart is a drawing that represents every job in the organization and the formal reporting relationships between those jobs Such charts vary in five elements of structure

15-4 Organizational Structure

15-5 Organizational Structure When considered in combination, the five dimensions of organizational structure create at least two types of firms: ๏ Mechanistic organizations are efficient, rigid, predictable, and standardized organizations that thrive in stable environments ๏ Organic organizations are flexible, adaptive, outward- focused organizations that thrive in dynamic environments

15-6 Organizational Structure

15-7 Organizational Design The process of creating, selecting, or changing the structure of an organization. Depends on: ๏ Business environment ๏ Company strategy ๏ Technology ๏ Company size

15-8 Common Organizational Forms Simple structures Bureaucratic structures ๏ Functional structures ๏ Multi-divisional structures ๏ Product structures ๏ Geographic structures ๏ Client-based structures ๏ Matrix structures

15-9 Simple Structures

15-10 Multi-Divisonal Structures

15-11 Multi-Divisonal Structures

15-12 Matrix Structures

15-13

15-14 How Important is Structure? Changes to an organization’s structure can have negative effects on the employees who work for the company, at least in the short term ๏ The process of changing an organization’s structure is called restructuring

15-15 How Important is Structure?