Organizational Structure and Design

Organizing

- assigning tasks, grouping tasks into departments, and allocating

resources to departments

-organizing systematically integrating resources to accomplish tasks

-the process of identifying and grouping of the works to be performed,

defining and delegating responsibility and authority and establishing
relationships for the purpose of enabling people to work most efficiently
Process of Organizing
organizational structure the sum of the ways an organization divides its labor into distinct
tasks and then coordinates them
organizational chart
illustrates relationships among units and lines of authority among supervisors
and subordinates through the use of labeled boxes and connecting lines

Example: Department Organizational Chart

organizational design the process of
assessing an organization’s strategy and
environmental demands and then determining
the appropriate organizational structures

-Organizational design is the administration

and execution of an organization’s strategic
plan.
Fundamental Forms of Structure in Building an Organization

Formal organization is an officially defined set of relationships,

responsibilities, and connections that exist across an organization

Informal organization is sometimes referred to as the invisible network of

interpersonal relationships that shape how people actually connect with one
another to carry out their activities.
Types of Formal Organizational Structure

• Bureacracy
. - developed by Max Weber, a 19th-century sociologist. Weber’s
central assumption was that organizations will find efficiencies when
they divide the duties of labor, allow people to specialize, and create
structure for coordinating their differentiated efforts, usually within a
hierarchy of responsibility.
- highly structured, formalized, and also an impersonal organization
- is a form of management that has a pyramidal command
structure.
Elements of Bureacracy
• Division of Work - Work specialization
• Command-and-Control
• Span of control
• Centralization
• Formalization
Division of Work - Work specialization
• division of labor, which means that the way a good or service is produced is
divided into a number of tasks that are performed by different workers, instead
of all the tasks being performed by the same person
• specialization e degree to which people are organized into subunits according to
their expertise
 Command-and-Control

• refers to the way in which people

report to one another or connect to
coordinate their efforts in
accomplishing the work of the
organization.
 Span of control
- refers to the number of subordinates under the manager’s direct
control.

- Wide span of control - with a larger span of control / a large number

of subordinates
- Narrow span of control - with a smaller span of control / has only a
few subordinates.
CENTRALIZATION vs. DECENTRALIZATION
• Centralized - organizations that restrict decision making to fewer
individuals, usually at the top of the organization
• Decentralized - organizations that tend to push decision-making
authority down to the lowest-possible level
Formalization
• refers to the degree of definition in the roles that exist throughout an
organization.
• highly formalized system (e.g., the military) has a very defined organization, a
tightly structured system, in which all of the jobs, responsibilities, and
accountability structures are very clearly understood.
• the degree to which fixed rules and procedures dictate how
employees should behave.
Organic Structure
is identified as having little job
specialization, few layers of management,
decentralized decision-making, and not
much direct supervision.
Mechanistic Structure
originated from the ideas of Max Weber
on bureaucracy at the turn of the 20th
century. The distinguishing feature of
mechanistic structures are that they are
tall structures with a clear chain of
command