Organisational Structure

6 Keys  Work Specialisation - Efficientof

Elements -degree which activities in organization are subdivided into employee skills
(Important separate jobs -Less btw job
for essay) downtime
 Departmentalisation Customer,
-basis by which jobs are groups tgt geographic, product,
process, function
 Chain of command
1. Authority=right inherent in managerial position to
give order and expect to be obeyed
2. Chain of command=unbroken line of authority frm
top to lowest and whom to report to whom
3. Unity of Command=a subordinate have one
superior to whom he direct responsible

 Span of control Advantage:

-the number of subordinates a manager effectively *wider=increase
&efficiently direct efficiency
-2 Types: Wide and Narrow Disadvantages:
*multiple layer of
management
* complexity of
vertical
communication
 Decision making
1. Centralisation=decision making concentrate at
single pt in organization
2. Decentralisation=decision making spread
throughout organisation
 Formalisation
1. High formalization=many rules to
follow,minimum worker decision
2. Low formalization=job behavior-non program,
maximum worker decision
Organization  Common
Design 1. Simple structure: low degree in
departmentalization,wide span control, authority
centralized and little formalization
Ex:Small business
2. Bureaucracy: organized properly,highly routine
avhieve through specailisation,formalized
rules&regulation, task group to functional
department and centralized authority,narrow span
of control and decision making via chain of
command
3. Matrix structure: dual line of authority,
functional+product departmentalization
  New Advantage
1. Virtual Organisation *maximum flexibility
- small,core organization outsource its major Disadvantage
business function *reduce control over
2. Boundaryless organization business
-eliminate chain of command
-limitless span of control
-no department-empowered team

Model  Organic structure(suitable for innovation strategy)

-flat structure
-cross hierarchical&cross functional
-low formalization
-comprehensive info network
-participative decision making
 Mechanic structure(suitable -cost-minimization
strategy)
-rigid departmentalization
-clear chain of command
-narrow span of control
-centralisation
-High formalization,specialised

Model:  Strategy
Determinant -innovation strategy:intro majar new product&services
-cost-minimization strategy:tight cost control
-imitation strategy(mechanistic+organic): move into
new products oni already been proven
 Size Large organization
-organization grows larger,more mechanistic *more specialization
-how size affect its structure *more vertical level
*more rules and
regulation
 Technology
-how organization transfer input into output
-routine technologies:tall departmentalization ,
formalization
-non-routine technology:delegate decision authority
 Environment
-forces outside affect organization performance
-Capacity:degree to support growth
Volatility:degree instability in environment
Complexity:degree of heterogeneity &concentration