Chapter 5: Organizational Structure lecture notes from 01/02/11

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Published on 16 Oct 2011
School
York University
Department
Administrative Studies
Course
ADMS 1000
Lecture 5: Organizational Structure
Chapter 4 Case: Pixar (p. 167)
The Introduction
What are the elements of organizational structure?
How has the organizational landscape been changing in recent years?
What are the implications of these changes?
The Elements Of Organizational Structure
Work specialization / Division of labour: how the jobs are set up
o Functional: Simple, repetitive tasks
o Social / Narrow: Specialization of an individual
o Wide:
Centralization: where the power of the organization rests
o High: highly centralized organization
Example: McDonalds
Everything is identical in every store
Standardized way to making the products, script that
employees follow
Power rests at the top of the organization
o Low: a decentralized organization
Example: Microsoft
Require people to work in teams
Require them to be innovative and to be able to make decisions
Must be flexible and respond to the market as necessary
Ability to make changes without asking for permission
All employees have the power to make decisions
Span Of Control: how many managers there are/how the hierarchy is set up
o Narrow: only a few people responding to one manager (one or two)
Much more control/ability to manage those employees
o Wide: a lot of employees responding to one manager
Less lines of authority, more communication between
managers
Formalization: how much a job is formalized and set
o High: little to no creativity or innovation allowed
o Low: more innovation and creativity allowed
Organizational Metaphors
Mechanistic structure
o Organizations as Machines (classical management approaches)
Rational and goal-oriented entities
Emphasizes control, efficiency, formal rules and structures
Organic Structure
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Document Summary

Work specialization / division of labour: how the jobs are set up: functional: simple, repetitive tasks, social / narrow: specialization of an individual, wide: Centralization: where the power of the organization rests: high: highly centralized organization. Standardized way to making the products, script that employees follow. Power rests at the top of the organization: low: a decentralized organization. Require them to be innovative and to be able to make decisions. Must be flexible and respond to the market as necessary. Ability to make changes without asking for permission. All employees have the power to make decisions. Span of control: how many managers there are/how the hierarchy is set up: narrow: only a few people responding to one manager (one or two) Much more control/ability to manage those employees: wide: a lot of employees responding to one manager. Less lines of authority, more communication between managers.

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