Chapter 10: Creating effective organizational designs. After reading this chapter, you should have a good understanding of the following learning objectives: The growth patterns of major corporations and the relationship between a firm's strategy and its structure; each of the traditional types of organizational structure: simple, functional, divisional, and matrix; the implications of a firm's international operations for organizational structure. | Creating Effective Organizational Designs chapter 10 Organizational Structure Organizational structure refers to formalized patterns of interactions linking Tasks Technologies People Structure provides a balance between The need for division of tasks into meaningful groupings The need to integrate these groupings for maximum efficiency and effectiveness 10- Organizational structure = the formalized patterns of interactions that link a firm’s tasks, technologies, and people. Structures help to ensure that resources are used effectively in accomplishing an organization’s mission. Structure provides a means of balancing two conflicting forces: a need for the division of tasks into meaningful groupings, and the need to integrate such groupings in order to ensure efficiency and effectiveness. Structure identifies the executive, managerial, and administrative organization of a firm and indicates responsibilities and hierarchical relationships. It also influences the flow of information | Creating Effective Organizational Designs chapter 10 Organizational Structure Organizational structure refers to formalized patterns of interactions linking Tasks Technologies People Structure provides a balance between The need for division of tasks into meaningful groupings The need to integrate these groupings for maximum efficiency and effectiveness 10- Organizational structure = the formalized patterns of interactions that link a firm’s tasks, technologies, and people. Structures help to ensure that resources are used effectively in accomplishing an organization’s mission. Structure provides a means of balancing two conflicting forces: a need for the division of tasks into meaningful groupings, and the need to integrate such groupings in order to ensure efficiency and effectiveness. Structure identifies the executive, managerial, and administrative organization of a firm and indicates responsibilities and hierarchical relationships. It also influences the flow of information as well as the context and nature of human interactions. Organizational Structures 10- Exhibit Dominant Growth Patterns of Large Corporations Source: Adapted from . Galbraith and . Kazanjian. Strategy Implementation: Structure, Systems and Process, 2nd edition. Copyright © 1986. A firm’s strategy and structure change as it increases in size, diversifies into new product markets, and expands its geographic scope. Exhibit illustrates the common growth patterns of firms. The choice of structure has to do not only with the direction and magnitude of growth, but also with the degree of integration needed across businesses as this growth occurs. Organizational Structures: Simple Structure The simple organizational structure is the oldest & most common organizational form, where The organization is small, with a single or very narrow product line The owner-manager makes most of the decisions The staff is an extension of the top executive’s personality 10- .
