MSCI211 Lecture Notes - Lecture 11: Departmentalization, Management Consulting, Flat Organization
12 Apr 2018
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Module 11 global: environment, strategy, and structure (part 1) A mechanistic structure is characterized by high specializing, rigid departmentalization, clear chain of command, narrow spans of control, centralization and high formalization. It is less costly since standardized operations and high formalization allow decision making to be centralized. There is little need for innovative and experience decision makers. This structure is suitable for organizations with standardized activities in a highly efficient manner, such as government offices, enforce health regulations, local fire departments, etc. In contrast, an organic structure is consisted of cross-functional team, cross-hierarchical team, free flow of information, wide spans of control, decentralization and low formalization. It seeks to eliminate the chain of command, have limitless spans of control, and replace departments with empowered teams. Group where the automaker uses virtual tools such as computer-aided design and simulation models and a flexible global production network to respond quickly to fluctuations in the market and individual customer preferences.
