Organization Structure

Formal system of task & authority relationships that controls how people are to cooperate
& use resources to achieve organization goals
Importance
• Controls coordination & motivation : shapes behavior of people®
• Response to contingencies involving environment, technology & human resources©
Factors affecting Structure
• Authority & Control: How much decision making powers allotted to top management
vis-à-vis middle & lower management
1. Flat structures 2. Tall structures
1
1 Organization with few levels 2 Organization with many levels
2 Less control | more decision 3 High control |Standardized
3 making | work requiring ad- 4 work
5
hoc solutions
 Organization Structure
Types of Structures
Functional Divisional Matrix
Grouping people on Support functions are People & resources
the basis of their placed in self are grouped in two
common expertise & contained divisions ways simultaneously :
experience (Product/geography) by function & product
CEO CEO
CEO
S&M Ops HR
Division A Division B
Human
S&M Operations
Resources
Prod A

S&M HR S&M
Prod B

Evolution with growth

With growth, the following aspects of an organization changes :
1. Specialization 2. Departmentalization 3. Formalization