BUAD 200 Lecture 7: Chapter 7 Notes
9 May 2022
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Document Summary
What is organizational structure: organizational structure refers to how work is coordinated between individuals and teams within an organization, to achieve organizational goals and objectives, individual work needs to be coordinated and managed. Formalization: the extent to which an organization"s policies, procedures, job descriptions, and rules are written and explicitly articulated, combination of written rules and explicit regulations. Hierarchical levels: tall, several layers of management between frontline employees and the top level, fewer employees report to each manager, greater opprotunities for managers to supervise and monitor employee activities. Flat: few management layers, larger number of employees reporting to each manager, can lead to greater levels of freedom for each employee. Advantages of flat organizations: companies such as ikea, the swedish furniture manufacturer and retailer, are successfully using flat structures within stores to build an employee attitude of job involvement and ownership. Departmentalization: organizations using functional structures group jobs based on similarity in functions, marketing, manufacturing, finance, accounting, human resources.
