3 main definitions by; Structure importance;

• CIPD Factsheet
• Galbraith, Downey and Kates
• Ian Brooks
Organization +ve influence
-connect individuals (Albert et al.)

Approaches for structural

Design -no matter how good the individual
managers may be. To improve
organisation structure…will
design; therefore always improve
Star Model for Organization Design performance (Drucker)
• Bureaucratic approaches “ONE
Main element + 4 levers -ve influence (by Child) by 5 ways;
BEST WAY” By Max Weber
• Contingency approaches “FIT -Motivation and morale can fall if
TO PURPOSE” people are unclear about their role
Contingency approach was debated and responsibilities
by two schools -Decisions may be poor or slow if
1) Determinism there are too many layers
2) Strategic choice; criticism is given -Conflict and lack of coordination
by Child for role of leaders and their -Changing circumstances may not
values and preferences for setting be adapted to quickly or
structure “Political Process”. innovatively enough
-Rising costs may be a consequence
of too many expensive senior
Formal Vs Informal resources.
3 Key messages from star model;
1-structure follows strategy (no one size Trends in organization structure
fits all) 1- self-contained organizations
2-organisation design is more than just (clear boundaries between
structure (3 other levers) themselves and their suppliers,
3-organisation design is dynamic. customers, and competitors)
2- horizontal organizations (5
Structural influences principles)
1-Strategy - organized around complete work
-strategy will both influence, and be influenced by, organizational structure. processes, rather than departments
Stable Org —Easier to set strategy - flatten hierarchies and use teams to
Turbulent Org — Harder to emerge strategy. manage everything
2-Size - appoint process team leaders to
Small Org —no need for formal structure manage internal team processes
Larger Org —more formalized relationships and greater use of policies & SOPs - allow team members to interact
-challenges of structuring a large organization include how to: directly with customers and suppliers
•retain people’s active participation -bring in expertise from outside the
•motivate individuals when their work is controlled through job descriptions team, as and when required.
•ensure alignment between people’s individual and organizational goals. 3- hollow organisationm
3-Technology (outsourcing) by defining what’s core
Woodward Study; and non-core processes and
↑ technology complexity — ↑ level of authorities outsource the non-core.
↑ span of control — ↑ production size (mass > unit > process)
↑ ratio Mgr vs employee — ↓ production size.
Perrow Study; Key features for organization
-two major dimensions of technology; structure;
• the extent to which the work task is predictable or variable 1-Specialization ― more common in
• the extent to which technology can be analyzed and problems easily resolved large organizations(↑ ― ↓ size)
↓ technology for routine task — bureaucratic structure 2-Formalization (↑ ― ↑ Process)
↑ technology for complex task — flatter structure 3-Centralization (↑ ― ↓conflict for
Mukherji study; decision making)
technology can impact on structure by; 4-Departmentization (functional,
•Facilitating decentralization by enabling communication. geographical or product-based
•Increasing the routineness of some jobs. structures)
•Helping reduce the number of hierarchical levels. 5-Span of control ( between 5 to 15)
•Creating closer links with customers and suppliers. if <9 ― waste of resource)
•Making boundaries within and between organizations more blurred. if >9 ― improper management
4-Environment and formation of subgroups.
Study undertaken by Burns and Stalker and they identified two types of 6-Chain of commands
organization: the mechanistic organization that operates well in a stable ↓ ― ↑ decision making
environment; and the organic organization, which is better able to respond to ↑ ― empire building
unstable and changing business environments 7-Hierchary ― balance between
chain of commands and span of
control)
↓ layers—flat structure
↑ layers — tall structure
8-Differentation & Integration
(response to external environment)
↑ uncertainty of external
environment — ↑Differentiation —
↑Integration