Organizational Structure
         An organization’s success often depends on 
             the way work and responsibilities are 
             organized.
         This chapter focuses on organization 
             structure.
         Organizational Structure
               The vertical and horizontal configuration of 
                departments, authority, and jobs within a 
                company.
                 • Is concerned with questions such as, ”Who reports to 
                   whom?”  and “Who does what?” and “Where is the 
                   work done?”.
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                                                                             7-3
               Fundamentals of Organizing
      Organization chart 
            The reporting structure 
              and division of labor in 
              an organization
                • The box represents 
                  different work
                • The titles in the boxes show 
                  the work performed by 
                  each unit.
                • Reporting and authority 
                  relationships are indicated 
                  by solid lines
                • Levels of management are 
                  indicated by the number of 
                  horizontal layers int eh 
                  chart.                                                                    7-4
         Conventional Organization Chart
  Figure 7.1
                                                                                       7-5
             Fundamentals of Organizing
     
          The organization chart represents the 
          structure of the organization
           Mechanistic organization
              • Formal, centralized, rigid organizations intended to 
                promote internal efficiency
           Organic organization
              • Less formal, decentralized organizations that are more 
                flexible
                                                                             7-6
                                                                                7-6
                                  Department Design
                                         Organic Structure
                                1.  Low formalization
                                2.  Low centralization 
                                3.  Training plus experience
                                4. Moderate to narrow span of 
                                      control
                                5.  Horizontal communications
                                          meetings
                                     
                                       Mechanistic Structure
                                 1.  High formalization
                                 2.  High centralization 
                                 3.  Little training or experience
                                 4.  Wide span of control
                                 5.  Vertical, written
                                          communications
                                            
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                                                                                            7-7