ADM 2336 Lecture Notes - Lecture 21: Organizational Chart, Hierarchical Routing, Organizational Structure

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Organizational Structure
Organizational Structure
Formally dictates how jobs and tasks are divided and coordinated between
individuals and groups within the company
Organizational chart represents job in the organization and the formal reporting
relationships between those jobs
Such charts vary depending on five structural elements or dimensions
5 dimensions of organization structure
Work specialization
Degree of organization's division of tasks
§
Chain of command
Who reports to whom and formal authority relationships
§
Span of control
Where decisions are formally made
§
Centralization vs. decentralization
Formalization
Standardization of behaviours and decisions in the organization
through rules and procedures
§
The five dimensions of organizational structure create at least two types of
firms
Mechanistic organizations (Bureaucracy)
Effective, rigid, predictable, and standardized organizations that
thrive in stable environments
§
High degree of specialization
Narrow view of tasks
§
Clear line of authority
§
High level of hierarchical control
§
Vertical communication
§
Employee encouraged to develop firm-specific knowledge within
there area of specialization
§
Organic organizations
Class 21 -Mar. 29th
Thursday, March 29, 2018
14:27
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Document Summary

Formally dictates how jobs and tasks are divided and coordinated between individuals and groups within the company. Organizational chart represents job in the organization and the formal reporting relationships between those jobs. Such charts vary depending on five structural elements or dimensions. Who reports to whom and formal authority relationships. Standardization of behaviours and decisions in the organization through rules and procedures. The five dimensions of organizational structure create at least two types of firms. Effective, rigid, predictable, and standardized organizations that thrive in stable environments. Employee encouraged to develop firm-specific knowledge within there area of specialization. Flexible, adaptive, outward-focused organizations that thrive in dynamic environments. Employees think more broadly of where their responsibilities lie. Knowledge and expertise are decentralized and individual decisions are encouraged. Employee encouraged to develop knowledge and expertise outside their specialization. The process of creating, selecting, or changing the structure of an organization depends on.

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