•Describesixkeyelementsinorganizationaldesign•Contrastmechanisticandorganicstructures•Discussthecontingencyfactorsthatfavoreitherthemechanisticmodelortheorganicmodeloforganizationaldesign•DescribetraditionalorganizationaldesignsOrganizing-arrangingandstructuringworktoaccomplishanorganization’sgoals.OrganizationalStructure-theformalarrangementofjobswithinanorganization.OrganizationalDesign-aprocessinvolvingdecisionsaboutsixkeyelements:WorkspecializationDepartmentalizationChainofcommandSpanofcontrolCentralizationanddecentralizationFormalizationWorkSpecializationThedegreetowhichtasksintheorganizationaredividedintoseparatejobswitheachstepcompletedbyadifferentperson.Overspecializationcanresultinhumandiseconomiessuchasboredom,fatigue,stress,poorquality,increasedabsenteeism,andhigherturnover.FunctionalGroupingjobsbyfunctionsperformedProductGroupingjobsbyproductlineGeographicalGroupingjobsonthebasisofterritoryorgeographyProcessGroupingjobsonthebasisofproductorcustomerflowCustomerGroupingjobsbytypeofcustomerandneedsChainofCommand-thecontinuouslineofauthoritythatextendsfromupperlevelsofanorganizationtothelowestlevelsoftheorganization—clarifieswhoreportstowhom.Authority-therightsinherentinamanagerialpositiontotellpeoplewhattodoandtoexpectthemtodoit.Responsibility-theobligationorexpectationtoperform.UnityofCommand-theconceptthatapersonshouldhaveonebossandshouldreportonlytothatperson.SpanofControl-thenumberofemployeeswhocanbeeffectivelyandefficientlysupervisedbyamanager.SkillsandabilitiesofthemanagerEmployeecharacteristicsCharacteristicsoftheworkbeingdoneSimilarityoftasksComplexityoftasksPhysicalproximityofsubordinatesStandardizationoftasksSophisticationoftheorganization’sinformationsystemStrengthoftheorganization’sculturePreferredstyleofthemanagerCentralization-thedegreetowhichdecisionmakingisconcentratedatupperlevelsintheorganization.Thisiscommoninorganizationsinwhichtopmanagersmakeallthedecisionsandlower-levelemployeessimplycarryoutthoseorders.Decentralization-whenanorganizationrelegatesdecisionmakingtomanagerswhoareclosesttotheaction.EmployeeEmpowermentIncreasingthedecision-makingauthority(power)ofemployeesFormalization-thedegreetowhichjobswithintheorganizationarestandardizedandtheextenttowhichemployeebehaviorisguidedbyrulesandprocedures.Highlyformalizedjobsofferlittlediscretionoverwhatistobedone.Lowformalizationmeansfewerconstraintsonhowemployeesdotheirwork.Structuraldecisionsareinfluencedby:OverallstrategyoftheorganizationSizeoftheorganizationTechnologyuseemployedbytheorganizationDegreeofenvironmentaluncertaintyStrategyFrameworks:InnovationPursuingcompetitiveadvantagethroughmeaningfulanduniqueinnovationsfavorsanorganicstructuringCostminimizationFocusingontightlycontrollingcostsrequiresamechanisticstructurefortheorganizationStrategyandStructureAchievementofstrategicgoalsisfacilitatedbychangesinorganizationalstructurethataccommodateandsupportchange.SizeandStructureAsanorganizationgrowslarger,itsstructuretendstochangefromorganictomechanisticwithincreasedspecialization,departmentalization,centralization,andrules/regulations.TechnologyandStructureOrganizationsadapttheirstructurestotheirtechnology.Woodward’sclassificationoffirmsbasedonthecomplexityofthetechnologyemployed:UnitproductionofsingleunitsorsmallbatchesMassproductionoflargebatchesofoutputProcessproductionincontinuousprocessofoutputsRoutinetechnology=mechanisticorganizationsNon-routinetechnology=organicorganizationsEnvironmentalUncertaintyandStructureMechanisticorganizationalstructurestendtobemosteffectiveinstableandsimpleenvironments.Theflexibilityoforganicorganizationalstructuresisbettersuitedfordynamicandcomplexenvironments.SimplestructureLowdepartmentalization,widespansofcontrol,centralizedauthority,littleformalizationFunctionalstructureDepartmentalizationbyfunctionOperations,finance,marketing,humanresources,andproductresearchanddevelopmentDivisionalstructureComposedofseparatebusinessunitsordivisionswithlimitedautonomyunderthecoordinationandcontroloftheparentcorporationorganizingorganizationalstructureorganizationalchartorganizationaldesignworkspecializationdepartmentalizationcross-functionalteamschainofcommandauthorityresponsibilityunityofcommandspanofcontrolcentralizationdecentralizationemployeeempowermentformalizationmechanisticorganizationorganicorganizationunitproductionmassproductionprocessproductionsimplestructurefunctionalstructuredivisionalstructureteamstructurematrixstructureprojectstructureboundarylessorganizationvirtualorganizationnetworkorganizationlearningorganization