Formal Structure Talking About An Organization example essay topic

The Organization: What is an organization? Subjective perspective: a social system, which is trying to reach a common goal through coordination of actions and means. Objective perspective: the structure of the organization. The structure of an organization depends on 4 head points: 1. Division of labor 2. Coordination of labor 3.

Authority system 4. Administration Flow chart (organizations schema): a partial graphic representation of the formal structure. Shows: - The relation ship of authority - Channels of communication - Formal working groups - Departments and divisions - Formal responsibilities Elements that forms the organizational structure: - The individual - The group - The formal structure Talking about an organization it is also worth mentioning three topics that represents the structure. 1.

Ambi to (area) a) Differentiation; horizontal or vertical Horizontal: division of labor en assignments in the same level organization level. Vertical: division of labor according to the level of authority (hierarchy). b) Integration, (coordination) se - Structural medium - In structural medium 2. Stability; an organization should always work in the direction of survival. 3. Character; - Formal; structure of the existent relationship between the members of the organization designed by the head staff (leaning). - Informal; the informal structure represents all the spontaneous relations and other existent relations (ej bestammda av ledningen) within an organization.

Integration Structural medium: 1. Formation (rules, politics and procedures) For example: Instruction manuals, job descriptions, and other documents that guide the employees. If a job depends on a lot of these things we say it as high level of standardization. 2.

Centralization An organization can either be centralized or decentralized. If the bosses are taking all the decisions we say its an centralized organization. It is called empowerment if you let the employers take the decisions. 3. Hierarchy / spans of control "the number of persons that are controlled efficiently by one supervisor". 4.

Standardization Establishment of standards which are used in the working process Input: characteristics of input Process: instructions and general principals for the process Outputs: inspections of the final product (Does it fulfill the requirements?) In structural medium: It's another way of trying to reach high levels of integration in an organization. The mediums that are being used are the following; formation of groups, company culture and information systems. INTEGRATION WITH OTHER COMPANIES Should I externalize or internalize certain activities? If I choose to buy it on the market I will have to pay for the service and I will also have to pay transaction cost and if I do it myself organization costs. Transaction costs; information, negotiation, guaranties etc Organization costs; costs for coordination and control, motivation costs "Criteria of Williamson" If I choose to make it my self or not, depends of the nature of the service / product. a) Asset specificity; an asset could be specific for its location, its usability, or for the knowledge that requires the product. (om det tex kr " avs specie lla maskiner som bara kan an vandas just till framstallningen av denna produkte n etc) b) Transaction Frequency (occasional / frequent) c) Uncertanity; if there is a lot of uncertain aspects it might be better to do it your self. "Criteria of Case" If it is cheaper to buy it on the market, do it!

The decision of making or buying only depends on the costs. MINTZ BERG The simple structure; The machine bureaucracy; The professional bureaucracy; The multi divisional structure The Adhoc racy; Organization: Mecanic or Organic Characteristics: Mecanic Organic Complexity: high low Formalization: high low Centralization: high low Span of control: reduced wide Standardization: high low Factors of Contingency Why does an organization choose to design their structure in a certain way? Which are the reasons? Woodward (1965) introduced the term contingency and according to him the effectiveness of an organization is the correspondences between this organization and its context. The factors are the following; - Size; - technology - environment - strategy.