BUS 432 Chapter Notes - Chapter 3: Forego, Social Capital, Occupational Safety And Health
11 May 2016
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The structure of any organization can be described by its degree of complexity, formalization, and centralization. Formalization: the extent to which rules and procedures govern the activities of organization members. Centralization: the extent to which decisions are made at one location, typically at headquarters by top management. There are any number numbers of ways that the three element of organizational structure can be combined, with two fundamental types organic and mechanistic at extremes. Mechanistic organizations are centralized and have high formality and high complexity. Organic organizations have low formalization and complexity, with decisions being made throughout the organization: culture and organizational structure (page 50) Two mechanisms through which culture can influence organizational structure have been identified: First, organizational structure can be seen as a manifestation or symptom of management"s cultural values. Second, national culture influences the extent to which different ways of organization are accepted by members of society.
