Designing organization

span of control

the number of people who report to a manager

Narrow= `1:1

Wider = 1 manager, lots of people

logic of contingency design

the concept that there is no 1 best design for all companies and solutions, and teh best things are built on different conditions (burner and Stalker)

Mechanist contingency design

• clear chain of command

• low delegation

• high specialization

• vertical communication

• Ex. Cement family business

Organic contingency design

• broad reporting

• lateral communication

• decentralized authority

• high delegation

• low specificity

Functional structure

organizing workers into different units based on expertise

product structure

organizing workers into units based on producing certain goods

customer structure

organizing units for particular types of customers

geographic structure

organizing units based on geographic areas

matrix structure

2+ departmentalization structures combined

chain of command

vertical line of authority

line authority

the right to command immediate subordinate

staff authority

the right to advise (but not order) peers

delegation of authority

assignment of direct authority to a subordinate

delegation of authority transfers

1. full responsibility transfer

2. full control over resoruces/personelle

3. transfer of accoutnability

centralization of authority

the location of most authority at upper levels of organization

decentralization

location of a significant amount of power in lower levels