1. BA 5201 Organization and Management Perspectives on Organizations
Instructor: Çağrı Topal

2. Organizational design
The specific way the organization structurally or consistently operates in and responds to environmental contingencies or inconsistencies
Structural dimensions or internal characteristics including differentiation and coordination
Contingency dimensions or external boundaries including size, technology, environment, culture, and goals

3. Formal organization
The official design explicitly formulated in organizational documents and defining the way the organization is supposed to operate
President
Vice president
Department head

4. Informal organization
The unofficial design implicitly codified into the norms and behaviors of organizational members and indicating the way the organization actually operates
President
Vice president
Department head

5. Structure Differentiation Division of labor into tasks Specialization
Integration
Coordination of specialized tasks
Cohesiveness

6. Differentiation/complexity: horizontal
Division of work to be done into tasks and subtasks at the same organizational level
The number of different individuals or units at the same level of an organization
CEO
Marketing
Manufacturing
HRM
Finance

7. Differentiation/complexity: vertical
Division of work by level of authority, hierarchy, or chain of command
The number of different levels in an organization
President
Executive
HRM
Executive
Finance
V. P.
HRM
V. P.
Finance
Asst. V. P.
Asst. V. P.

8. Differentiation/complexity: spatial
Geographical location of different organizational activities
Typical in multinational companies
Geographical location of different organizational activities
CEO
North
American
Operations
Asian
Operations
European
Operations
African
Operations

9. Differentiation or complexity
High horizontal differentiation
High vertical differentiation
High spatial differentiation
Trend towards less complexity and more integration

10. Integration: formalization
Based on rules, policies, and procedures
Reliance on the written documents
Employees assumed to be not well-informed, no so knowledgeable, less skilled, and possess no good judgment
Related closely to spatial dispersion
Not the answer to high uncertainty

11. Integration: hierarchy of authority or span of control
The number of immediate subordinate positions a superior controls or coordinates
Related closely to the number of hierarchical levels: flat or tall
Depending on
the ability and experience of the supervisor
the ability and experience of subordinates
the nature of the task being performed
the spatial differentiation
the amount and type of interaction

12. Integration: centralization
Referring to the locus of decision making
Decision-making authority vested in top management
Lower-level employees assumed to lack awareness of general organizational goals and focus on localized concerns
Lower-level employees not having necessary skills and information to make decisions
Providing consistency operations and actions
Time-consuming

13. Integration: standardization
Setting consistent input, process, and output requirements to reduce uncertainty and unpredictability
Input standardization: standardizing material and human resources
Process standardization: standardizing the way a task is performed
Output standardization: standardizing products or services

14. Structure: additional dimensions
Professionalism: the ratio of employees with formal education and training
Personnel ratios: the number of employees in different functions and departments as compared to the total number in an organization

15. Contingency or environment
Internal environment
Size
Technology
Goals and strategies
Organizational culture
External environment

16. Mechanistic vs. organic design-1
Design type
Structural
characteristic
Mechanistic
Organic
Complexity
High
Low
Formalization
Centralization
Span of control
Narrow
Broad
Standardization

17. Mechanistic vs. organic design-2
Design type
Contingency
characteristic
Mechanistic
Organic
Size
Large
Small
Technology
Manufacturing
Service
Goals and strategies
Efficiency
Innovation
Organizational culture
Rigid
Adaptive
External environment
Stable
Changing