Factors Affecting Organizational Design

Factors Affecting Organizational Design - organizations are...

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Factors Affecting Organizational Design Although many things can affect the choice of an appropriate structure for an organization, the  following five factors are the most common: size, life cycle, strategy,  environment, and technology. Organizational size The larger an organization becomes, the more complicated its structure. When an organization is  small — such as a single retail store, a two-person consulting firm, or a restaurant — its structure  can be simple. In reality, if the organization is very small, it may not even have a formal structure. Instead of  following an organizational chart or specified job functions, individuals simply perform tasks based  on their likes, dislikes, ability, and/or need. Rules and guidelines are not prevalent and may exist only  to provide the parameters within which organizational members can make decisions. Small 
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Unformatted text preview: organizations are very often organic systems. As an organization grows, however, it becomes increasingly difficult to manage without more formal work assignments and some delegation of authority. Therefore, large organizations develop formal structures. Tasks are highly specialized, and detailed rules and guidelines dictate work procedures. Interorganizational communication flows primarily from superior to subordinate, and hierarchical relationships serve as the foundation for authority, responsibility, and control. The type of structure that develops will be one that provides the organization with the ability to operate effectively. That's one reason larger organizations are often mechanistic—mechanistic systems are usually designed to maximize specialization and improve efficiency....
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This note was uploaded on 11/18/2011 for the course MGMT 4375 taught by Professor Eixmann during the Fall '11 term at Texas State.

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