Organization structure

 defines how job tasks are formally divided, grouped, and coordinated

Element of organization structure

1. Works specialization
 the degree to which activities in the organization are subdivided into separate jobs.
 means the worker that have a higher skill in one work will specialized on that work fields.
 For example, the worker that have a higher skill on product designing, they will be specialized on production
fields work
 creates efficiency and productivity
 but can also result in boredom, fatigue, stress, low productivity, poor quality, increased absenteeism, and high
turnover
2. Departmentalization
 Departmentalization is the basis by which jobs are grouped together.
 Organizations may be departmentalized by function, product, geography, process, or customer.
3. Chain Of command
 an unbroken line of authority that extends from the top of the organization to the lowest level and clarifies
who reports to whom.
 The concept of chain of command is related to the concepts of authority and unity-of-command.
 Authority refers to the right of a manager to give orders and expect them to be obeyed.
 The unity-of-command principle states that a person should have only one supervisor to whom he or she is
directly responsible.
4. Span of Control
 Span of control refers to the number of employees that can be directed by one manager.
 Span of control refers to the number of employees that can be directed by one manager
5. Centralization and Decentralization
 Centralization is the degree to which decision making is concentrated at a single point in the organization.
 In a centralized organization, top management makes the key decisions with little or no input from lower-
level personnel.
 In contrast, decentralized organizations allow lower-level personnel or provide input or actually make
decisions.
 The recent trend has been towards decentralization.
6. Formalization
 Formalization refers to the degree to which jobs within the organization are standardized.
 If a job is highly formalized, individual employees have a minimum amount of discretion over what is to be
done, when it is to be done, or how it is to be done.
 The degree of formalization can vary widely between organizations and within organizations.
 Low formalization can be identified by loking for the job behaviors which is relatively non-programmed, and
employees have a great deal of freedom to exercise discretion in their work.
7. Boundary Spanning
 Boundary spanning occurs when individuals form relationships with people outside their formally assigned
groups.
 For examples, a Human Resources Executive who frequently engages with the InformationTechnology (IT)
group is engaged in boundary spanning, as is a member of an R&D team who implements ideas from a
production team.
 Positive results are especially strong in organizations that encourage extensive internal communication; in
other words, external boundary spanning is most effective when it is followed up with internal boundary
spanning.