BUSI 3103 Chapter Notes - Chapter 8: Bureaucracy

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Large size organization: economies of scale, global reach, mechanistic structure, complex and stable market. Small size organization: responsive, flexible, regional reach, organic structure, simple and niche- finding. Big-small hybrid design: combines resources of large organization with simplicity and flexibility of a small one. Entrepreneurial (life cycle 1): informal, nimble, focus of owners on production of 1 product/service and survival. Collectivity stage (life cycle 2): organization begins to develop clear goals and direction. Lower-level employees may feel restricted by top mgmt. Formalization stage (life cycle 3): installation and use of rules, procedures, and control systems. More formal communication, top mgmt focus on strategy and planning. Elaboration (life cycle 4): more flexible in design, collaboration and teamwork within bureaucracy. cross functional teams and renewal might be needed after periods of decline. Weberian bureaucracy: rules/procedures, specialization and division of labor, hierarchy of authority, technically qualified employees, position and position holder separate, written communication.

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