BUAD309 Lecture Notes - Lecture 3: Departmentalization

• School: University of Delaware
• Department: Business Administration
• Course: BUAD309
• Professor: Sicilia Domenick

Document Summary

Six elements of structural organization (bureaucracy: work specialization, departmentalization, chain of command, span of control, centralization and decentralization of decision making, formalization (standardization) Simple structure- most widely practiced in small businesses; owner and manager the same: inexpensive, flexible, accountability, risky, dependent on one person. Matrix structure: combines two forms of departmentalization functional and product. Virtual organization: small organization that outsources major business functions. Boundaryless organization: eliminate chain of command, limitless span of control, replaces departments with teams, cross-functional teams break horizontal boundaries. Downsizing- goal is to improve agility by creating a lean, focused, and flexible organization: investment, communication, participation, assistance. Strategy framework for structure: innovation, imitation, cost minimization.