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Organizational Design and Structure
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Organizational Design and Structure
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organizational hierarchy), and spatial differentiation (geographic dispersion of anorganization’s offices, plants, and personnel).B.IntegrationIntegrationis the process of coordinating the different parts of an organization. Verticallinkages integrate activities up and down the organizational chain of command. Horizontallinkages provide for communication and coordination across jobs and departments. Theflatter the organization, the more necessary horizontal integration linkages become.III.BASIC DESIGN DIMENSIONSThere are five basic design dimensions.Formalizationis the degree to which the organization hasofficial rules, regulations, and procedures. An organization may have a formal structure, but mayoperate informally.Centralizationis the degree to which decisions are made at the top of theorganization. The quality movement and programs that stress delegating responsibility anddecision making to lower levels result in decentralization. At the same time, reductions inorganizations have altered the middle management tier of the organization by eliminating part ofthe central reporting structure. Typically, the larger and longer the organization has been inexistence, the more centralized its structure will be.Specializationis the degree to which jobs arenarrowly defined and depend on unique expertise.Standardizationis the extent to which workactivities are accomplished in a routine fashion.Complexityrefers to the number of differenttypes of activities that occur in the organization. Thehierarchy of authorityis the degree ofvertical differentiation across levels of management.Organizations that are highly specialized, formalized, and centralized, typically have a tallhierarchy of authority, are highly bureaucratic, and have a mechanistic structure. The termbureaucracy has not always had the negative connotation that it carries today.Max Weber coinedthe term to mean a complex organization based on hierarchy of authority and adherence to rules.IV.FIVE STRUCTURAL CONFIGURATIONSMintzberg proposes five structural configurations for organizations.A.Simple Structure43
Chapter 15:Organizational Design and StructureThesimple structureis a centralized form of organization that emphasizes the upperechelon and direct supervision. Most organizations pass through the simple structure intheir formative years. It is the riskiest structure because success is often based on whims.B.Machine BureaucracyThemachine bureaucracyis a moderately decentralized form of organization thatemphasizes the technical staff and standardization of work processes. Its strength isefficiency of operation in stable, unchanging environments.C.Professional BureaucracyTheprofessional bureaucracyis a decentralized form of organization that emphasizes theoperating core and standardization of skills. Hospitals and universities are examples ofprofessional bureaucracies.
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