Podcast
Questions and Answers
What type of environment is most suitable for mechanistic organizational structures based on Woodward's findings?
What type of environment is most suitable for mechanistic organizational structures based on Woodward's findings?
Which type of technology is associated with mechanistic organizations according to Woodward's classification?
Which type of technology is associated with mechanistic organizations according to Woodward's classification?
In which type of environment are organic organizational structures better suited?
In which type of environment are organic organizational structures better suited?
Which traditional organizational design emphasizes low departmentalization, wide spans of control, and centralized authority?
Which traditional organizational design emphasizes low departmentalization, wide spans of control, and centralized authority?
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What type of structure is composed of separate business units or divisions with limited autonomy under the coordination of the parent corporation?
What type of structure is composed of separate business units or divisions with limited autonomy under the coordination of the parent corporation?
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Which contemporary organizational design involves the entire organization being made up of work groups or self-managed teams of empowered employees?
Which contemporary organizational design involves the entire organization being made up of work groups or self-managed teams of empowered employees?
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Which type of organizational structure is favored when pursuing competitive advantage through unique innovations?
Which type of organizational structure is favored when pursuing competitive advantage through unique innovations?
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What type of environment favors a mechanistic organizational structure?
What type of environment favors a mechanistic organizational structure?
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In Woodward's classification, which type of technology would typically require an organic organizational structure?
In Woodward's classification, which type of technology would typically require an organic organizational structure?
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What effect does increased size typically have on an organization's structure?
What effect does increased size typically have on an organization's structure?
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When focusing on cost minimization, which type of organizational structure is preferred?
When focusing on cost minimization, which type of organizational structure is preferred?
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In a mechanistic organization, how would you describe the level of formalization?
In a mechanistic organization, how would you describe the level of formalization?
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What is necessary for an organization to accommodate and support change for achieving strategic goals?
What is necessary for an organization to accommodate and support change for achieving strategic goals?
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What type of structure does an organic organization typically have?
What type of structure does an organic organization typically have?
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In the context of organizational design, what is the impact of size on the degree of decentralization?
In the context of organizational design, what is the impact of size on the degree of decentralization?
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Which type of technology is associated with an organic organization?
Which type of technology is associated with an organic organization?
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What is the relationship between technology and organizational structure according to Woodward's classification?
What is the relationship between technology and organizational structure according to Woodward's classification?
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Which factor influences the choice of organizational structure according to contingency theory?
Which factor influences the choice of organizational structure according to contingency theory?
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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.
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Description
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.
