CHAPTER THREE. STRUCTURE
CHAPTER THREE STRUCTURE 54 Chapter Three Key terms and definitions Theory Practical tips A selection of theories and beliefs Structure as a tool for strategy Structure as a resultant of power play Fayol’s bridge Case Studies Specialization and division of labor in a pin factory Optimal span of control Club network The Polish Underground State Little Computer Organizational structure changes in the company Vario Structure: Crossword Supplementary reading Structure “A person’s rank is in inverse relation to the speed of his speech” Wilson’s Law Key terms and definitions Structure is a particularly important element of formalization, because it defines the rules for the division of tasks, authority, responsibility and information. Structure is the architecture of an organization – it determines the organization’s associations with its environment, the way it stands out in its environment and the pattern of cooperation among the internal units. Structure answers questions such as: • Who is allowed contact and collaborate with whom? • Who decides the conditions under which people report to each other? • Who is responsible for what? • Who knows what, from whom, and how should knowledge be used? • How are benefits and privileges distributed among members of the organization? Structure is composed of organizational units made up of teams of members or employees, based on their role in the organization. The teams report to one manager. Line units, for example production units, fulfill the mission and goals of the organization. Staff units perform an analytical and advisory function. Support units enable the functioning of both the...
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