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Organizational Structure How organizations rationalize their resources.

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Presentation on theme: "Organizational Structure How organizations rationalize their resources."— Presentation transcript:

1 Organizational Structure How organizations rationalize their resources

2 Structure Offers Clues About  Where formal power resides  How tasks are coordinated  How the actions of members are controlled  How decision-making authority is assigned  How strategy and decisions are enacted

3 Organizational Structure What is the role of structure?  Provides a roadmap for workflow  Creates or restrains interactions  Influences attitudes and social relations  Influences how work is completed

4 Organizational Structure What is the appropriate way to divide and coordinate work and work related processes?  Differentiation – Influences how well organizations collaborate (Horizontal, Vertical, Personal, Spatial)  Integration – Determines how Organizations coordinate their work (Mutual Adjustment, Direct supervision, Standardization)

5 Organizational Structure Mechanistic Structures  Bureaucracy  Clearly defined roles  Senior people have more knowledge of issues and problems  Standardized policies and procedures govern organizational decision-making  Rewards are determined by adherence to instruction from supervisors

6 Organizational Structure Organic structures  Flexibly designed to cope with change  Less focus on formal roles and specialization  Not assumed that people in higher positions are better informed than those in lower positions  Horizontal relationships are equal to or more important than vertical relationships  Formal structure is fluid and changeable

7 Organizational Structure Dimensions of Structure exist on a continuum  Centralization  Formalization  Complexity

8 Organizational Structure Determinants of structure  Size  Complexity  Strategy  External considerations  Managerial experience and skill


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