ORGANIZATIONAL STRUCTURE

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Bachelors Business 260 (Organizational Processes) Mind Map on ORGANIZATIONAL STRUCTURE, created by Mohammad Noufil on 25/06/2013.
Mohammad Noufil
Mind Map by Mohammad Noufil , updated more than 1 year ago
Mohammad Noufil
Created by Mohammad Noufil almost 11 years ago
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Resource summary

ORGANIZATIONAL STRUCTURE
  1. Coordinating mechanisms in Organizations
    1. Informal Communication
      1. Sharing information of mutual tasks; forming common mental models to synchronize work activities
        1. Direct communication
          1. Liason roles
            1. Integrator roles
          2. Formal hierarchy
            1. Assigning legitimate power to individuals, who then use this power to direct work process and allocate resources
              1. Corporate structure
                1. Direct supervision
              2. Standardization
                1. Creating routine patterns
                  1. Standardized skills
                    1. standardized processes
                      1. Standardized output
                  2. Span of control
                    1. The number of people directly reporting to the next level of hierarchy. Tall and Flat more preferable.
                    2. Centralization and Decentralization
                      1. Means the degree to which formal decision authority is held by a small group of people, typically those at the top of the organizational hierarchy
                      2. Mechanistic and Organic Structure
                        1. Mechanistic Structure: An organization structure with a narrow span of control and a high degree of formalization and centralization
                          1. Organic Structure: An organizational structure with a wide span of control, little formalization, and decentralized decision making
                            1. Mechanistic structures work better in stable environments because they rely on efficiency and routine behaviours, whereas the organic structures work better in rapidly changing environments because they are more flexible and responsive to these changes.
                            2. Six forms of Departmentalization
                              1. Simple structure
                                1. They employ only a few people and typically offer only one distinct product or service
                                2. Functional Structure
                                  1. This is type of departmentalization that organizes employees around specific knowledge or other resources
                                    1. Creates specialized pools of talent, provides more economies of scale, increases employee identity
                                  2. Divisional Structure
                                    1. A type of departmentalization that groups employees around geographic areas, outputs (product/services) or clients
                                      1. GS organizes employees around distinct regions of the country or globe
                                        1. PS organizes work around distinct outputs
                                          1. CS is in which employees are organized around specific customer groups
                                            1. Building block structure, accommodates growth easily and focuses employee attention of products or customers
                                          2. Team-based Structure
                                            1. A type that is built around self directed teams and that complete an entire piece of work
                                              1. More flexible and responsive to the environment, reduces cost as team rely less on formal hierarchy
                                            2. Matrix Structure
                                              1. A type that overlays two organizational forms in order to leverage the benefits of both
                                                1. Optimizes the use of resources and expertise
                                              2. Network Structure
                                                1. Is an alliance of several organizations for the purpose of creating a product or serving a client
                                                  1. flexible in re-aligning the structure with changing environmental requirements
                                              3. Four Characteristics of External Environment
                                                1. Dynamic vs Stable Env.
                                                  1. DE - high rate of change, leading to novel situations and lack of identifiable patterns (OS more suited)
                                                    1. SE - steady changes of supply and demand for inputs and outputs
                                                    2. Complex vs Simple Env
                                                      1. The more CE the more decentralized the organization with increasing complexity
                                                      2. Diverse vs Integrated Env
                                                        1. DE - greater variety of products or services, clients and regions
                                                          1. IE - only one client product and geographic area
                                                          2. Hostile vs Munificent Env
                                                            1. HE - Face resource scarcity and more competition in the marketplace
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