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Principles of Management
organizational design
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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?
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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
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Factors Affecting Structure
Strategy: cost control vs. innovation Size: large vs. small Technology: routine vs. nonroutine technology Environmental uncertainty: stable vs. unstable
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Traditional Organizational Designs
Functional structure Divisional structure Product Customer Geography Matrix structure
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