Watch out for the way the information is presented and categorized. One of the toughest challenges, in this chapter, is figuring out what fits into what. For example, it’s easy to forget the last part (contingencies of organizational design) that deals with the determinants for creating or reorganizing the structure of an organization using the four elements. Because the discussion about the contingencies is presented last, there is a natural tendency to miss the fact that these contingencies are considered before the decision is made to have an organization with a wide or narrow span of control, a high or low degree of centralization, a high or low degree of formalization, or what structure will ultimately be.

Another common pitfall concerns the level of detail in some parts of the chapter. While this makes the discussion more complete, it also makes it easier for students to get lost in them. Part three, in particular, seems to be especially problematic. Try and remember that the departmentalization part is simply a highly detailed description of one of the four element of organizational structure.

Lastly, the concept of span of control isn’t overly difficult to comprehend once you read it. However, for some reason in an exam situation many students stumble over it. Equating narrow span of control with tall structures (many layers) and wide span of control with flat (few layers), will help your recall. The same stumbling block exists with the concept of formalization. It is quite understandable when you read it, but gets confusing later. When you come across the term “formalization” in this chapter, think of standardization which will lead you to remembering about rules and procedures. That’s really what we mean by the term “formalization,” in the context of organizational design. A highly formalized organization is highly bureaucratic with lots of rules and policies for everything.