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3.1 The meaning of organization structure Organization's structure: The established pattern of relationships between the component part of an organization, outlining both communication, control and authority patterns. Structure distinguishes the parts of an organization and delineates the relationship between them. • Organizational design is the process of constructing and adjusting an organization's structure to achieve its goals. Organizational structure is the linking of departments and jobs within an organization 3.2 The dimensions of structure • Specialization • Standardization • Formalization • Centralization • Configuration • Traditionalism Four underlying dimensions: • Structuring of activities • Concentration of authority • Line control of workflow • Support component 3.2 The dimensions of structure 1. Specialization: the extent to which there are different specialist roles and how they are distributed. 2. Standardization: the extent to which an organization uses regularly occurring procedures that are supported by bureaucratic procedures of invariable rules and processes. 3. Formalization :the extent to which written rules, procedures, instructions and communications are set out for employees. 4. Centralization : the extent to which authority to make decisions lies with the apex (top) of the organization. Decentralization refers to attempts to push decision making down to lower levels in the hierarchy. 5. Configuration : the shape and pattern of authority relationships; how many layers there are and the number of people who typically report to a supervisor. 6. Traditionalism : how many procedures are ‘understood’ in contrast to being written; how commonly accepted is the notion of ‘the way things are done around this organization. 3.2 The dimensions of structure • It is clear from this that structure is a multi-dimensional concept such that organizations can be structured in many different ways according to where they fit on the dimensions above • Every organization has a unique structural finger-print. • There is also evidence to show that some types of structures are a better fit with environments than others 3.3 Models of structure 1. Bureaucratic structure 2. Flatter structure 3. Multifunctional structure 4. Multidivisional structure 5. Matrix structure 6. New organizational form (structures) : • Networks • Internal networks • Vertical networks • Dynamic, loosely coupled networks • The virtual organization
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