Organizational structure

Organizational Structure

• Definition: Manages individual and team work, achieving goals, outlines reporting relationships, formal communication channels, and links actions.

• Advantages/Disadvantages: Different structures have unique pros and cons.

Building Blocks of Structure

• Key Elements:

  • Centralization: Centralized decision-making vs. decentralized empowerment of lower-level employees.

    • Decentralization: Promotes quicker decisions and encourages job candidates, but may lead to inefficiencies.

  • Formalization: Refers to organization’s formal policies, procedures, job descriptions, and rules.

    • Impact: Reduces ambiguity and provides direction but may limit innovativeness, motivation, and decision-making speed.

Hierarchical Level

• Structure Types:

  • Tall structures: Multiple management layers, allowing for more supervision.

  • Flat structures: Fewer management layers, granting greater employee autonomy.

Departmentalization

• Types:

  • Functional Structures: Group jobs based on function similarity (e.g., marketing, finance, IT) and handle large transactions.

  • Divisional Structures: Group departments by unique products, services, customers, or geographic locations.

GSIS Organizational Structure

• Configurations:

  • Mechanistic Structure: Bureaucratic, rigid, and resistant to change, limits individual autonomy. Suitable for stable environments (e.g., McDonald's).

  • Organic Structure: Flexible, decentralized with low formalization; encourages innovation and job satisfaction.