MGT 500 Lecture Notes - Lecture 27: Decision-Making

• School: Ball State University
• Department: Management
• Course: MGT 500
• Professor: Ronda Smith

Document Summary

Common organizational designs: simple structure, bureaucracy, functional, divisional, matrix structure, virtual structure, team structure, circular structure. There are a number of organizational structures available to companies. Simple structure: low degree of departmentalization, wide spans of control, authority centralized in a single person, little formalization, difficult to maintain in anything other than small organizations. The first and most basic structure is the simple structure. This structure has a low degree of departmentalization, wide spans of control and centralized decision making with little formalization in job design. Bureaucracy: highly routine operating tasks achieved through specialization, formal rules and regulations, centralized authority, narrow spans of control, tasks grouped by functional departments, decision making follows the chain of command. In a bureaucratic organization there will be a great deal of structure. The tasks will be completed through specialization, and they tend to be formalized through rules and regulations. Departments will be highly defined by function and authority is centralized.