SHP-R 311 1nd Edition Lecture 6 Outline of Last Lecture I. Organization Culture and Change A. Organizational Cultures B. Multicultural Organizations C. Organizational change Outline of Current Lecture I. Organizational Structure II. Six Elements of Formal Structure A. Work SpecializationB. Departmentalization C. Chain of CommandD. CentralizationE. Span of ControlF. Formalization III. Design of Formal Structure Current LectureI. Organizational Structure - Process of arranging people and other resources to work together to accomplish a goal - Formal organization structure is a system of tasks, reporting relationship and communication linkages- Organizational chart: defines how job tasks are formally divided, grouped and coordinated II. Six Elements of Formal Structure A. Work Specialization- Describes how narrow the focus of the job is B. Departmentalization - Jobs are grouped according to function, product, location or customer- Functional departmentalization—most basic form, employees who do the same or similar jobs are brought together in one department - Product departmentalization—good for large organizations - Location departmentalization—based upon geographic areas - Customer departmentalization—based upon identifiable targetmarkets C. Chain of Command- Describes lines of authority and who answer to whom in the organization D. Centralization- Extent to which decision making is concentrated at one or few points in the organization- Top managers make all the decisions- Less delegation of authority E. Span of Control- The number of people or operations that a manager can control effectively- Example: small span=small number of employeesE. Formalization - The level of standardization in a job- High standardized job=little control - Less formalized structure=freedom and creativity flourish - Work formalization—number of tasks performed - Formalization—how tasks are performed III. Design of Formal Structure - Configuration—taller structures tend to be more centralized and formalized with narrower span of control, flat structures tend to be more decentralized with wider span of control - Flexibility—ability to accommodate change, organizations that are more likely formalized, standardized and centralized tend to be less flexible - Bureaucracies-highly