Learning Outcomes

• Describe the four basic dimensions of organizational structure.
• Explain the difference between closed and open systems.
• Describe the four generic organizational effectiveness criteria.
• Explain what is involved in the contingency approach to organizational design.
• Discuss Burns and Stalker's findings regarding mechanistic and organic organizations.

Chapter Summary

1. Describe the four basic dimensions of organizational structure. They are coordination of effort (achieved through policies and rules), a common goal (a collective purpose), division of labour (people performing separate but related tasks), and a hierarchy of authority (the chain of command).

2. Explain the difference between closed and open systems. Closed systems, such as a battery-powered clock, are relatively self-sufficient. Open systems, such as the human body, are highly dependent on the environment for survival. Organizations are said to be open systems.

3. Describe the four generic organizational effectiveness criteria. They are goal accomplishment (satisfying stated objectives), resource acquisition (gathering the necessary productive inputs), internal processes (building and maintaining healthy organizational systems), and strategic constituencies satisfaction (achieving at least minimal satisfaction for all key stakeholders).

4. Explain what is involved in the contingency approach to organizational design. The contingency approach to organization design calls for fitting the organization to the demands of the situation.

5. Discuss Burns and Stalker's findings regarding mechanistic and organic organizations. British researchers Burns and Stalker found that mechanistic (bureaucratic, centralized) organizations tended to be effective in stable situations. In unstable situations, organic (flexible, decentralized) organizations were more effective. These findings underscored the need for a contingency approach to organization design.