Organizational Structures and Corporate Cultures

This text discusses the internal factors that affect how organizational structures are designed. These structures are important to managers because they establish lines of formal authority and configure other reporting arrangements. One thing to remember is that the industry type influences the chosen structure. The text also considers the system approach and examines how the internal dimensions of the firm, such as leadership and culture, change in response to the external business environment. Note that the organizational alignment is not set in stone permanently. It will change in response to the external business environment from time to time.

Organizational Designs and Structures

Summary

An understanding of Mechanistic vs Organic Structures and Systems and how they differ and how these major concepts help classify different organizational structures is crucial to recognizing organizational structures. Finally, the issue of organizational complexity and its impact on organizational structure needs to be understood.

You should be able to discuss the evolution of different types of Organizational Structures. You should understand and identify the six types of organizational structures, and the advantages and disadvantages of each: Functional, Divisional, Matrix, Geographic, Networked Team, and Virtual.