Lesson 5.4: Organizational Structures
Learning Goals: By the end of this lesson you will be able to
1. Compare the pros and cons three common types of organizational structures.
2. Explain the importance of organizational structure.
3. Explain trends in organizational structure.
1. What is organizational structure?
2. Why is it important for a business to choose an organizational structure carefully?
3. What are the pros and cons for functional, divisional, and matrix structures?
4. What are the pros and cons for hierarchical versus flat structures?
5. What type of organizational structure do you prefer to work in? Why?1.What type of organizational structure(s) does Patagonia use? Draw an organizational chart based on the information given.
2. How does Patagonia’s organizational structure influence the company culture?
3. How does Patagonia overcome the challenges of a decentralized structure?Do this quiz to check you know the vocabulary for this lesson.
Analyze the organizational structure for Sunnyside High School.
- What kind of organizational structure is it?
- How can the principal help teachers get their voice heard by upper management?
- How can the principal promote cross-department collaboration?
Terms
- Organizing arranges people and resources to work toward a goal
- Organization structure is a system of tasks, reporting relationships, and communication linkages.
- Centralization is the concentration of authority for most decisions at the top level of an organization.
- Decentralization is the dispersion of authority to make decisions throughout all organi- zation levels.
- The ability to respond quickly to shifting environmental challenges is characteristic of organizations with more organic designs, they use horizontal structures with decentralized authority, fewer rules and procedures, less precise division of labor, wider spans of control, and more personal means of coordination
- Span of control is the number of subordinates directly reporting to a manager.
- Job design is arranging work ,tasks for individuals and groups.
- Job simplification employs people in clearly defined and specialized tasks with narrow job scope.
- Automation is the total mechanization of a job.
- Delegation is the process of distributing and entrusting work to other persons.
- Three Steps in Delegation 1. Assign responsibility—explain task and expectations. 2. Grant authority—allow others to make decisions and act. 3. Create accountability—require others to report back on results
- Empowerment allows others to make decisions and exercise discretion in their work.
- Job rotation increases task variety by periodically shifting workers between different jobs.
- Job enlargement increases task variety by combining into one job two or more tasks previously done by separate workers.
- Job enrichment increases job depth by adding work planning and evaluating duties normally performed by the supervisor.