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Organizational Structure 1

Organizational Structure 1 - U nderstanding and Managing...

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Understanding and Managing Organizational Structure Structure: o Allocation of responsibilities o Formal reporting channels o The systems that coordinate effort o The way a company is put together Becoming an organization: o Complexity: Vertical/ how big? Horizontal/ span of control o Centralization: Who makes decisions? o Formalization: Levels of written rules and regulations Contingencies of structure/ design: o Environment Does it want efficiency/ cheapness, or flexibility/ responsiveness/ higher price? o Industry/ legitimacy Des structure look like those of other companies in your industry? o Strategic choice/ goals o Organizational size o Technology
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Mass production or custom made products? o All must fit! Structuring work (a craft approach): o DMS Corporation: Design, Make, Sell product To produce more, add additional employees Advantages: Close supervision Experts doing all the tasks High quality Disadvantages:
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  • Fall '10
  • Blackburn
  • structuring work, Managing Organizational Structure, Formal reporting channels, Des structure look, Strategic choice/ goals

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