A. Organizational structure is the formal system of task and job reporting relationships that result in creating an organizational structure.

B. Organizational design is the process of making decisions regarding structure.

C. An organization's design and structure are aligned with its strategy and culture

A. Job design is the process to decide how to divide tasks into specific jobs, resulting in a division of labour.

1. Job simplification is reducing the number of tasks that each worker performs. Too much makes jobs boring and may reduce efficiency.

B. Job enlargement – increasing the number of tasks in a job Job enrichment – increasing the responsibility of the worker by

1. empowering employees to find new ways

2. encouraging employees to learn new skills

3. allowing employees to make certain decisions

4. allowing employees to monitor and measure their own performance.

C. Job Characteristics Model (Hackman & Oldham): 5 dimensions to make jobs more interesting and motivating.

1. Skill Variety, Task Identity (involved in part or whole process), Task Significance (relevance and importance), Autonomy and Feedback (built into the job)

A. Functional Structures are structured by the departments required to make a product. Creates specialist groups, easy to monitor and evaluate but difficult to coordinate and departmental goals can overtake organizational goals.

B. Divisional Structures: Product, Geographic and Market - separate business units that are each a collection of departments that work together. Creates experts that are better able to serve their area's needs and frees corporate managers from day-to-day operations.

1. Product Structure – each product line is placed in its own division

2. Geographic Structure – divisions are assigned by geographic region

3. Market Structure – functions are grouped by the type of customer

C. Matrix and Product Team Designs

1. Matrix Structure – managers group people in two ways: by function and by product team. Employees have two bosses. Provides flexibility and maximizes usage of human resources. May use virtual teams.

2. Product Team Structure – no "two-boss" relationships, and workers are permanently assigned to a cross-functional team of workers from different departments

D. Hybrid Structures The structure of a large organization that has many divisions and simultaneously uses many different organizational structures.

E. Strategic Alliances and Network Structures.

1. Strategic alliance - two or more companies exchange or share their resources in order to produce and market a product.

2. Network Structure is a series of strategic alliances that an organization creates with suppliers, manufacturers, and distributors to produce and market a product.

3. Outsourcing is using outside suppliers and manufacturers to produce goods and services.

4. Boundaryless organization - people linked by communications technology

5. Business-to-business (B2B) networks - group of organizations that use the same software to link themselves together and to access global suppliers.

A. Allocating Authority – the power to hold people accountable and make decisions about the use of resources

1. Hierarchy of authority is an organization's chain of command that specifies relative authority

2. Span of control – the number of subordinates who report to a manager

B. Tall and Flat Organizations

1. Tall – many levels of managers in the organization

2. Flat – few levels of managers in the organization

3. Taller hierarchies are generally less flexible and respond more slowly

C. Minimum Chain of Command – use the fewest levels of authority necessary

D. Centralization and Decentralization of Authority – whether authority is concentrated "at the top" or dispersed down through the organization.

1. Complex organizations need more integrating mechanisms.

2. Must balance need for control versus flexibility and responsiveness.

A. Mechanistic Structures (centralized authority, close supervision, clear tasks & roles) maximizes efficiency and control when the environment is stable.

B. Organic Structures (authority decentralized to lower-level managers to encourage cooperation & quick action) maximizes flexibility in a rapidly changing environment, but is more expensive. C. Factors Affecting Choice of Organizational Structure

1. The Organizational Environment – the more quickly the external environment is changing and the greater the uncertainty within it, the greater the problems facing managers in trying to obtain scarce resources. In rapidly changing and uncertain environments, structures need to be more flexible. In stable environments, structures can be more formal.

2. Strategy – different strategies require different structures. A differentiation strategy requires flexibility, but a low cost strategy needs formality. A vertically integrated or diversified enterprise requires a flexible structure.

3. Technology – the skills, knowledge, tools, machines, computers, and equipment that are used to design, produce, and distribute products. Complex technology (non-routine, high task variety, low task analyzability) requires flexibility, routine technology (with non-varying problems solved by programmed decisions) fits with a formal structure.

4. Human resources – more flexible structure for a highly skilled workforce