Organization Structure and Design

ORGANIZATION STRUCTURE AND DESIGN


                                                                                         
1.   INTRODUCTION.

    The right organizational structure can play an important role in an organization's evolution.
      This chapter introduces the elements of organizational structure.

2.   DEFINING ORGANIZATION STRUCTURE AND DESIGN.

    There are several definitions that must be understood as a precursor to understanding
      organizational structure and design.

    A.   Organizing is the process of creating an organization's structure.

    B.   Organization structure is an organization's framework as expressed by its degree
          of complexity, formalization, and centralization.

    C.   Complexity is defined as the amount of differentiation in an organization.  
                                                                               
    D.   Formalization is the degree to which an organization relies on rules and
          procedures to direct the behavior of employees.
                                                                               
    E.   Centralization is defined as the concentration of decision-making authority in
          upper management.   Decentralization is the handing down of decision-making
          authority to lower levels in an organization.
                                                                               
    F.   Organization design is the development or changing of an organization's
          structure.

3.   BUILDING THE VERTICAL DIMENSION OF ORGANIZATIONS.

    In the first chapter, we discussed the fact that organizations consist of both operatives and
      managers. How are these organizational categories determined and how is the interaction
      among these levels defined? These are just a few of the issues that are discussed in this
      section.

    A.   Unity of command is defined...