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McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. Organizational Structure Chapter 15
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15-2
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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
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15-4 Organizational Structure
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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
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15-6 Organizational Structure
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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
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15-8 Common Organizational Forms Simple structures Bureaucratic structures ๏ Functional structures ๏ Multi-divisional structures ๏ Product structures ๏ Geographic structures ๏ Client-based structures ๏ Matrix structures
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15-9 Simple Structures
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15-10 Multi-Divisonal Structures
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15-11 Multi-Divisonal Structures
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15-12 Matrix Structures
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15-13
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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
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15-15 How Important is Structure?
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