5
17
Organisation structure (cont’d)
zFormalisation
The degree to which jobs within the organisation are
standardized and the extent to which employee behavior
is guided by rules and procedures.
Highly formalized jobs offer little discretion over what is to
be done.
Low formalization means fewer constraints on how
employees do their work.
18
Mechanistic versus organic organisation
Table 10.2
19
Structural contingency factors
zStructural decisions are influenced by:
Overall strategy of the organisation
organisational structure follows strategy.
Size of the organisation
Firms change from organic to mechanistic organisations as
they grow in size.
Technology use by the organisation
Firms adapt their structure to the technology they use.
Degree of environmental uncertainty
Dynamic environments require organic structures;
mechanistic structures need stable environments.
20
Structural contingency factors (cont’d)
zStrategy and structure
Achievement of strategic goals is facilitated by changes
in organisational structure that accommodate and
support change.
zSize and structure
As an organisation grows larger, its structure tends to
change from organic to mechanistic with increased
specialization, departmentalization, centralisation, and
rules and regulations.
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