MG 100 Ch. 6
Organizational Structure
specification of the jobs to be done within an organization and the ways in which they
relate to one another
Organization Chart
diagram depicting a company's structure and showing employees where they fit into
its operations
What are the determinants of organizational structure?
Mission, strategy, size, internal environment, and external environment
Specialization
determining who will do what
Departmentalization
determining how people performing certain tasks can best be grouped together;
process of grouping jobs into logical units: product, process, functional, customer,
and geographic
Centralized Organization
organization in which most decision-making authority is held by upper-level
management; centralized authority is most commonly found in companies that face
relatively stable and predictable environments and is also typical of small
businesses; during times of uncertainty, businesses have a tendency to move toward
greater degrees of centralization (COVID 19)
Decentralized Organization
organization in which a great deal of decision-making authority is delegated to levels
of management at points below the top; decentralization is typical in firms that have
complex and dynamic environmental conditions; it is also common in businesses that
specialize in customer services; decentralization makes a company more responsive
by allowing managers increased discretion to make quick decisions in their areas of
responsibility
Flat Organization Structure
Organizational Structure
specification of the jobs to be done within an organization and the ways in which they
relate to one another
Organization Chart
diagram depicting a company's structure and showing employees where they fit into
its operations
What are the determinants of organizational structure?
Mission, strategy, size, internal environment, and external environment
Specialization
determining who will do what
Departmentalization
determining how people performing certain tasks can best be grouped together;
process of grouping jobs into logical units: product, process, functional, customer,
and geographic
Centralized Organization
organization in which most decision-making authority is held by upper-level
management; centralized authority is most commonly found in companies that face
relatively stable and predictable environments and is also typical of small
businesses; during times of uncertainty, businesses have a tendency to move toward
greater degrees of centralization (COVID 19)
Decentralized Organization
organization in which a great deal of decision-making authority is delegated to levels
of management at points below the top; decentralization is typical in firms that have
complex and dynamic environmental conditions; it is also common in businesses that
specialize in customer services; decentralization makes a company more responsive
by allowing managers increased discretion to make quick decisions in their areas of
responsibility
Flat Organization Structure
