18 Questions
What type of environment is most suitable for mechanistic organizational structures based on Woodward's findings?
Stable and simple environments
Which type of technology is associated with mechanistic organizations according to Woodward's classification?
Routine technology
In which type of environment are organic organizational structures better suited?
Dynamic and complex environments
Which traditional organizational design emphasizes low departmentalization, wide spans of control, and centralized authority?
Simple structure
What type of structure is composed of separate business units or divisions with limited autonomy under the coordination of the parent corporation?
Divisional structure
Which contemporary organizational design involves the entire organization being made up of work groups or self-managed teams of empowered employees?
Team structures
Which type of organizational structure is favored when pursuing competitive advantage through unique innovations?
Organic
What type of environment favors a mechanistic organizational structure?
Stable environments
In Woodward's classification, which type of technology would typically require an organic organizational structure?
Non-routine technologies
What effect does increased size typically have on an organization's structure?
Transition from mechanistic to organic
When focusing on cost minimization, which type of organizational structure is preferred?
Mechanistic
In a mechanistic organization, how would you describe the level of formalization?
High formalization, with many written rules and regulations
What is necessary for an organization to accommodate and support change for achieving strategic goals?
Changes in organizational structure
What type of structure does an organic organization typically have?
Highly flexible and adaptable structure
In the context of organizational design, what is the impact of size on the degree of decentralization?
Smaller organizations tend to be more decentralized
Which type of technology is associated with an organic organization?
Non-standardized jobs and fluid team-based structure
What is the relationship between technology and organizational structure according to Woodward's classification?
Technology determines the appropriate organizational structure
Which factor influences the choice of organizational structure according to contingency theory?
Overall strategy of the organization
Study Notes
Classifying Firms Based on Technology
- Firms can be classified into three categories based on the technology employed: unit production, mass production, and process production.
- Routine technology is associated with mechanistic organizations, while non-routine technology is associated with organic organizations.
Technology, Structure, and Effectiveness
- Mechanistic organizational structures are most effective in stable and simple environments.
- Organic organizational structures are better suited for dynamic and complex environments.
Traditional Organizational Designs
- Simple structure: low departmentalization, wide spans of control, centralized authority, and little formalization.
- Functional structure: departmentalization by function.
- Divisional structure: composed of separate business units or divisions with limited autonomy.
Contemporary Organizational Designs
- Team structure: the entire organization is made up of work groups or self-managed teams of empowered employees.
- Matrix and project structures: specialists from different functional departments are assigned to work on projects led by project managers.
Organizational Design Factors
- Size of the organization: firms tend to change from organic to mechanistic organizations as they grow in size.
- Technology use: firms adapt their structure to the technology they use.
- Degree of environmental uncertainty: dynamic environments require organic structures; mechanistic structures need stable environments.
Strategy and Structure
- Innovation pursuit: favors an organic structure.
- Cost minimization: requires a mechanistic structure.
- Imitation: requires both organic and mechanistic elements in the organization's structure.
Size and Structure
- As an organization grows larger, its structure tends to change from organic to mechanistic with increased specialization, departmentalization, centralization, and rules and regulations.
Technology and Structure
- Organizations adapt their structures to their technology.
Organizational Design Decisions
- Mechanistic organization: rigid and tightly controlled structure with high specialization, non-standardized jobs, rigid departmentalization, and limited information network.
- Organic organization: highly flexible and adaptable structure with fluid team-based structure, narrow spans of control, minimal formalization, and open communication network.
Contingency Factors Affecting Structural Choice
- Overall strategy of the organization: organizational structure follows strategy.
Explore Woodward's classification of firms based on technology complexity, along with findings on technology, structure, effectiveness, and environmental uncertainty. Understand the differences between mechanistic and organic organizational structures.
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