(5) FACTOR~1.PDF - 1/25/2021 Factors of an Organizational...

This preview shows page 1 - 4 out of 8 pages.

1/25/2021Factors of an Organizational Structure | Organizational Behavior and Huma…1/8Module 14: Organizational StructureFactors of an Organizational StructureOrganizational Behavior and HumanRelations
1/25/2021Factors of an Organizational Structure | Organizational Behavior and Huma…2/8LEARNING OUTCOMESIdentify the factors that determine an organizationalstructureWhat elements in uence the design of an organization’s structure?Some organizations choose to be mechanistic, others choose to bemore organic. Why is that the case?For the most part, it’s about strategy, organization size, technology andenvironment. Let’s take a look at each of these elements and how theyin uence the organization’s structure.StrategyEvery organizationhas one (or at least,every organizationshould). If anorganization’sstructure is a meansby which thatorganizationachieves itsobjectives, thenstrategy and structure should be closely linked.An innovation strategy is one that emphasizes the introduction of majornew products and services. A company like 3M or Apple could becharacterized as organizations who would adopt innovative strategies.Ideally, an organic, loose organizational structure is more appropriate tosupport an innovative strategy.An organization that is controlling costs and refrains from unnecessary
1/25/2021Factors of an Organizational Structure | Organizational Behavior and Huma…3/8innovation or marketing expenses is probably practicing a cost-minimization strategy. These companies sell a basic product and keepprices low. Wal-Mart employs this strategy. A mechanistic strategy allowsfor tight control, extensive work specialization, high formalization andcentralization, and so it best ts this strategy.

Upload your study docs or become a

Course Hero member to access this document

Upload your study docs or become a

Course Hero member to access this document

End of preview. Want to read all 8 pages?

Upload your study docs or become a

Course Hero member to access this document

Term
Fall
Professor
N/A
Tags

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture