6: Organizational Structure & Design

Exam 2

Core concepts

• Organizational Structure: Framework defining how work is divided and coordinated.

• Organizational Design: The process of creating or adjusting structures.

• Organizational Chart: Visual map of hierarchy and relationships.

• Differentiation & Integration:

• Differentiation: Dividing tasks into departments or units.

• Integration: Coordinating those units to achieve goals.

Types of Interdependence:

1. Pooled

2. Sequential

3. Reciprocal

Formalization vs. Informalization

Degree of written rules and procedures

Centralization vs. Decentralization

Where decision-making authority lies.

Authority Concepts:

• Line of Authority = chain of command

• Unity of Command = one boss per employee

• Span of Control = number of subordinates per manager

• Tall vs. Flat Structures:

• Tall = many layers, narrow span

• Flat = few layers, wide span

Common Structures

• Functional

• Divisional

• Matrix

• Team-based

• Network

Network Structures:

Use external alliances to perform business functions efficiently.

Environmental & Strategic Influence:

Dynamic environments require flexible, adaptive structures.