Organizational Structure and

Design

Chapter 15

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Learning Objectives

1. Describe what is meant by organizational structure and how it is revealed by an organizational chart.

2. Explain the basic characteristics of organizational structure revealed in an organizational chart.

3. Describe different approaches to departmentalization.

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Learning Objectives

4. Distinguish between classical and neoclassical approaches to organizational design and between mechanistic organizations and organic organizations as described by the contingency approach to organizational design.

5. Describe the five organizational forms identified by Mintzberg.

6. Characterize two forms of interorganizational design.

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Organizational Structure

The formal configuration between

individuals and groups with respect

to the allocation of tasks,

responsibilities, and authorities

within organizations

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Organization Chart

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Tall vs. Flat Organizations

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Division of Labor

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Line vs. Staff Positions

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Decentralization

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Functional Organization

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Product Organization

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Matrix Organization

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Organizational Design

The process of coordinating the

structural elements of an

organization in the most

appropriate manner

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Classical vs. Neoclassical Organizational Design

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Contingency ApproachMechanistic vs. Organic

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Design Effectiveness

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Five Organizational Forms

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Vertically Integrated Organization

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Team-based Organization

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Boundary-less Organization

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Other Emerging Organizational Designs

Modular or network

Virtual

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Intraorganizational Designs

Conglomerates

Spinoff

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Strategic Alliances

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