Mechanistic Vs Organic Organization Structure Essay

3009 words - 12 pages

DESIGNINGORGANISATION STRUCTURES
John van Rijn INDEVELOPMENT

INDEVELOPMENT: Designing Organisation Structures
DESIGNINGORGANISATION STRUCTURES
Any part of this publication may be fully reproduced or translated provided that the source and author are fully acknowledged. Edition 2004.
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INDEVELOPMENT: Designing Organisation Structures
Table of Contents: 1 Introduction ............................................................................................................... 4 2 Typical Structures...................................................................................................... 5 3 Designing Structures ............................................................................................... 11
3.1 Locating authority ........................................................................................... 13
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INDEVELOPMENT: Designing Organisation Structures
1 INTRODUCTION The structure of the organisation describes the functions, tasks and
authorities of the departments, divisions and individual employees and the relationships between them (line of command, communication and procedures). It also describes the number of employees in each division, unit and department. On the one hand the structure divide departments, divisions and individuals on basis of tasks, functions and authorities. On the other hand the structure coordinates these units through lines of communication and command. Only when the different units work in conjunction, the organisation is able to function as a whole. The organisation structure has to facilitate the different processes in the organisation. A general rule of the thumb is that the organisation structure should enhance the progress of the processes. It is not recommendable to breakdown processes unnecessarily because of the structure of the organisation. The structure has to provide coordination mechanism if the process is divided over more units.
This document provides descriptions of typical structures and some guidelines for designing structures.
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INDEVELOPMENT: Designing Organisation Structures
2 TYPICAL STRUCTURES Organisations can be structured in different ways. Usually the structure
is based on splitting and grouping of tasks. The grouping of tasks can be done on basis of 6 different criteria and the final structure is often a combination of these six criteria:
1. Outputs (goods/services) 2. Functions 3. Target groups 4. Skills 5. Geographical areas 6. Work shifts
Grouping criteria The method of grouping depends on a number of issues. First of all the
grouping should facilitate the processes in the organisation and not disturb them. The faster the processes progress and the cheaper the organisation can produce the better. Progress may stagnate and result in cost overruns due to inappropriate coordination of activities. The structure should facilitate coordination to reduce problems between officers who needs each other's work. Ideally the structure would fully utilise every...

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