LO 17-1 Describe how organizational structure helps shape behavior in organizations.

Organizational structure is a framework of work roles that helps shape and support employee behavior. The structure of an organization has significant influence over the behavior of its employees. It groups and separates people geographically, hierarchically, or both; it builds and limits relationships by set­ting up lines of reporting and teams; and it defines employ­ees’ responsibilities by outlining their area of influence and accountability.

LO 17-2 Define basic organizing concepts such as division of labor, chain of command, and span of control.

Work specialization or the division of labor is the degree to which jobs are divided into specific tasks. Departmentalization is a process of grouping people with related job duties, skills, and experiences into the same areas. Some organizations fol­low a chain of command, the flow of authority and power from the highest to the lowest levels. The more direct reports under a manager, the wider the organization’s span of control. In a centralized structure, senior management makes decisions; in a decentralized organization, employees in the lower levels are given the power to make decisions and solve problems with­out seeking approval from senior management. The mechanis­tic model is a formalized structure based on centralization and departmentalization. The organic model is a less formalized structure based on decentralization and cross-functional teams; decision making is participative and distributed throughout the organization. Formalization is the degree to which rules and procedures are standardized in an organization. Bureaucracy is characterized by formalized rules and regulation, specialized routine tasks, division of labor, and centralized authority.

LO 17-3 Identify the types of organizational structures.

In simple structures one central authority figure, usually a busi­ness owner, tends to make decisions. Functional structures group employees according to the tasks they perform for the organization. Divisional structures (sometimes called multidi­visional structures) group employees by products and services, geographic regions, or customers. Matrix structures combine functional and divisional departmentalization, with dual lines of authority.

LO 17-4 Describe the organizational design process and its connection to organizational behavior.

Organizational design is the process of creating or changing a structure of an organization to integrate people, information, and technology. The steps in process are: understanding the busi­ness climate, setting the scene, gathering data, and transform­ing, implementing, and evaluating the design.

LO 17-5 Explain how technology can be integrated into organizational structure and design.

Technology is the development of scientific knowledge as applied to machinery and devices. Operations technology is the combina­tion of processes, knowledge, and techniques that creates prod­uct or service value for an organization. Information technology is a set of tools, processes, systems, and data communications based on microelectronic technology designed to disseminate information to provide support to individuals in an organization.