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Key Elements of Organizational Structure

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Key Elements of Organizational Structure
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Span of Control
 
- the number of subordinates a manager can efficiently and effectively direct
 
Concept:
 
 wider spans of management increase organizational efficiency
 
Narrow Span Drawbacks:
 
  • expense of additional layers of management
  • increased complexity of vertical communication
  • encouragement of overly tight supervision and discouragement of employee autonomy

 

Centralization

- the degree to which decision making is concentrated at a single point in the organization

 

Decentralization

- decision making and authority are pushed down to those closest to "the action"

  • lower-level personnel provide input or are given the discretion to make decisions
  • action can be taken quickly to solve problems
  • more people provide input into decisions
  • employees feel less alienated
  • provides more flexibility

 

Formalization

- the degree to which jobs within the organization are standardized

HIGH LEVELS
LOW LEVELS
  • minimum amount of discretion over what, when, and how
  • consistent output
  • explicit job descriptions
  • organizational rules
  • clearly defined procedures

 

  • unprogrammed behaviors
  • exercise discretion
  • great deal of freedom
  • less standardization
  • consider alternatives