There are four major parts in this chapter (see the study/lecture outline). Of those, only the first part (division of labour and coordination) can be separated from the rest. The remaining three are interdependent which makes identifying what the chapter is mainly about somewhat challenging. However, if I were pressed for the answer I would say the material in parts two and three are the main ones.

In part two, three essential elements of organizational structure are described and explained. There is a separate section (3) that deals exclusively with the fourth element of organizational structure. A short section discusses the differences between mechanistic and organic structures, but these are not considered elements. These are important descriptions of organizations, but don’t confuse them with the four elements. Departmentalization is an element and so are span of control, degree of centralization/decentralization, and formalization. There is so much material about the various forms of departmentalization that an entire part of the chapter was devoted to it (actually it’s about 14 - 15 pages which should give you a clue).

The departmentalization part refers to nothing more than how employees are grouped. This is typically illustrated in organizational charts. The forms these take are referred to as structures. Six types of structures are discussed in this part. Four are accompanied with diagrams to help you remember them. In each case, the various structures are analyzed for common weaknesses and applicability to certain situations. The functional structure is the one that comes to mind most often when we think of organizations. It’s the one where people are grouped according to their expertise or functions. Accountants go in the accounting department, sales people in the marketing department, engineers in …. Well, you get the picture.

The last part in the chapter discusses the contingencies of organizational design. These are considerations (factors) one needs to think about or that affect how an organization is designed or restructured. These contingencies impact how the organization is structured using the four elements (span of control, centralization, formalization, and departmentalization).