SMG OB 221 Chapter Notes - Chapter 2: Hierarchical Organization, Departmentalization, Railways Act 1921

• School: Boston University
• Department: Organizational Behavior
• Course: SMG OB 221
• Professor: Christopher Pearce

Document Summary

Organizational structure: refers to the division of labor as well as the patterns of coordination, communication, workflow, and formal power that direct organizational activities. Two fundamental processes in organizational structure: division of labor and coordination. Four main elements of organizational structure: span of control, centralization, formalization and departmentalization. Includes reporting relationships, relates to job design, information flow, work standards and rules, reliance on teams, and power relationship. Reconfigures power, communication patterns and the company"s culture in the long term. Refers to the subdivision of work into separate jobs assigned to different people. Work cycles are very short, less time is wasted, training costs are reduced. Makes it easier to match people with specific aptitudes or skills to the jobs for with they are best suited. Coordinating mechanisms are needed to ensure that everyone works in concert. Uses one or more of the following coordinating mechanisms: informal communication, formal hierarchy and standardization. Informal communication is coordinating mechanism in all organizations.