Organizational structure and design is important for ensure effectiveness and efficiency of a organization. There are many organizational structure but individuals have to choose which one is perfect and effective for his own organization.
2. Organizational structure: how job tasks are
formally divided, grouped, and
coordinated.
Organizational design: The process an
organization is to be structured and
operated by it members in the most
efficient and effective way.
3. Six key elements of
Organizational structure:
Work specialization: describe the degree to which
tasks in the organization are subdivided into
separate jobs.
Departmentalization: The basis by which jobs are
grouped together. Ex: accounting, manufacturing.
Chain of command: A hierarchy of authority in
which each rank is accountable to the one directly
superior. It combination of authority and unity of
command. Ex: Militarily force
4. Span of control: The number of subordinates
a manager can efficiently and effectively direct.
5. Centralization: The degree to which
decision making is concentrated at a
single point in the organization.
Decentralization: Decision discretion is
pushed down to lower-level employees.
Formalization: The degree to which jobs
within the organization are standardized.
6. The Simple structure
Low degree of departmentalization,
Wide spans of control,
Authority centralized in a single person,
Less formalization.
The simple structure is a “flat” organization
Fast, flexible, inexpensive to maintain, and
accountability is clear.
7. The Bureaucracy
Highly routine operating tasks achieved through
specialization
Highly formalized rules and regulations
Tasks that are grouped into functional
departments,
Centralized authority,
Narrow spans of control
Decision making that follows the chain of
command.
8. The Matrix Structure
Dual lines of authority.
Combines functional and product
departmentalization.
It breaks the unity-of-command concept.