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| Why Learn Organizational Stucture? | a poor organizational structure will cripple a firm; the most immediate and perment way to revitalize a firm is to redesign its organizational structure for the better |
| Organization | open social system that consists of patterned activities |
| Purpose of Org. Structure | regulate patterned activities and reduce variability in human performance |
| Organizational Structure | refers to the relatively fixed relationships among jobs in an organization |
| Organizational Design | the preocess of creating the ORG. Structure and making decisions about the benefits of alternative structures |
| 2 Issues Involved in Creating Org. Structure | 1) Differentiation 2) Integration (basically how you divide the tasks, but coordinate them to reach a common goal) |
| 5 Major Design Decisions | Division of Labor, departmentalization, span of control, delegation of authority, coordinating mechanisms |
| Division of Labor | (Major Design Decision) Specialization: this is good because it increases productivity but bad because it increases boredom and lower coordination |
| Departmentalization | (Major Design Decision) Combining different jobs into groups (Functional, Product, Costomer, Geographic) |
| Span of Control | (Major Design Decision) How many people does MGMT control (4-6 is often recommended, but there is no magic number, depends on contact required, level of subordinate education and training, ability to communicate, nature of the task) |
| Delegation of Authority | Determining who has the authority in an organization (centralized or decentralized) |
| Coordinating Mechanisms | keeping lower level employees' and upper level employees' goals consistent (direct supervision, standardization of work processes, standardization of outputs, standardization od skills, mutual adjustment) |
| Authority | power that has been legitimized by an organization |
| Delegation | process by which mgmt assigns a portion of total workload to others |
| Matrix Organization | overlap functional and product departmentalization stragtegies to capitalize on advantages of each (get out new products fast but maintain functional stucture benefits) |
| Mechanistic Structure | occurs in very stable environments; management is very centralized and there are clear rules and hierarchies |
| Organic Structure (virtual work-place) | this stucture occurs in unstable environments; rules are either unwritten or ignored, people are spontaneous and find their own way through the system |
| Bureacratic Organizational Design | a logical, rational, and efficent organization design based on a legitimate and formal system of authority |
| The Peter Principle | Satiric principle that, since in bureacracies you are promoted by merit, you will be promoted to the position where you are no longer competent |
| System Four Organizational Structure | Rensis Likert: (opposite of Bureaucracy) Proposed that there are four management systems ranging from exploitive-authoritative (System 1) to participative-group oriented (System 4) |
| Likert's 3 Universal Principals | 1. supportive relationships 2. group decision making 3. creation of high performance goals |
