In: Economics
Organizational Behavior
2) Why do the elements of structure, such as work specialization, formalization, span of control, chain of command, and centralization, have a tendency to change together? Please discuss which of the five do you feel is the most important?
3) Which is more important for an organization: the ability to be efficient or the ability to adapt to its environment? What does this say about how an organization’s structure should be set up?
2. As one of these elements of structure changes, the others must change as well. Take, for example, work specialization. As employees are given more and more specialized jobs to do, senior level managers are more and more likely to develop rules by which those jobs should be done, and the organization becomes more formalized and centralized. In addition, with increasing specialization, senior management may perceive an increased need to control employees, which will lead to hiring more managers and a decreased span of control.
3. Much of this depends on how dynamic the organization’s environment is. The more dynamic, the more adaptable a company needs to be. To some extent, increasing efficiency is one way in which organizations adapt to a changing environment. When the environment is characterized by high competition and decreasing prices, increased efficiency may be the only way in which the organization is able to compete.