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Organizational structure
Formally dictates how jobs and tasks are divided and coordinated between individuals and groups within the company
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Elements of Organizational Structure
- Work specialization
- Chain of Command
- Span of Control
- Centralization
- Formalization
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Work Specialization
- The way in which tasks in an organization are divided into separate jobs.
- Also known as division of labor.
- Assembly line worker
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Chain of Command
- In an organization essentially answers the question “Who reports to whom?”
- Specific flow of authority down through the levels of an organization’s structure
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Span of Control
- Represents how many employees the manager is responsible for in the organization.
- Narrow spans of control allow managers to be much more hands-on with employees
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Centralization
Refers to where decisions are formally made in organizations
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Formalization
When there are many specific rules and procedures used to standardize behaviors and decisions
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Mechanistic organizations
- Efficient, rigid, predictable, and standardized organizations that thrive in stable environments
- Rigid and hierarchical chain of command, high degrees of work specialization, centralization of decision making, and narrow spans of control.
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Organic organization
- Flexible, adaptive, outward-focused organizations that thrive in dynamic environments
- Low levels of formalization, weak or multiple chains of command, low levels of work specialization, and wide spans of control
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Simple structures
The most common form of organizational design, primarily because there are more small organizations than large ones
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Bureaucratic structure
An organizational form that exhibits many of the facets of the mechanistic organization
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Functional structure
An organizational form in which employees are grouped by the functions they perform for the organization
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Multi-Divisional
Structures are bureaucratic organizational forms in which employees are grouped into divisions around products, geographic regions, or clients
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Geographic structures
Generally based around the different locations where the company does business
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Matrix structures
A more complex form of organizational design that tries to take advantage of two types of structures at the same time
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Organizational Culture
The shared social knowledge within an organization regarding the rules, norms, and values that shape the attitudes and behaviors of its employees
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Three Major Components of Organizational Culture
- Observable Artifacts
- Espoused values
- Basic underlying assumptions
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Observable artifacts
- The manifestations of an organization’s culture that employees can easily see or talk about
- Symbols can be found throughout an organization, from its corporate logo to the images it places on its Web site to the uniforms its employees wear
- Physical structures are the organization’s buildings and internal office designs
- Language reflects the jargon, slang, and slogans used within the walls of an organization.
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Espoused values
The beliefs, philosophies, and norms that a company explicitly states.Published documents, verbal statements made to employees by managers
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Basic underlying assumptions
Taken-for-granted beliefs and philosophies that are so ingrained that employees simply act on them rather than questioning the validity of their behavior in a given situation
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Four Types of General Culture Types
- Fragmented Culture
- Mercenary Culture
- Communal Culture
- Networked Culture
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Fragmented Culture
An organizational culture type in which employees are distant and disconnected from one another
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Mercenary Culture
An organizational culture type in which employees think alike but are not friendly to one another
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Communal Culture
An organizational culture type in which employees are friendly to one another, but everyone thinks differently and does his or her own thing
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Networked Culture
An organizational culture type in which employees are friendly to one another and all think alike
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