Ch 14: Organizational Structure & Design
About This Chapter
Organizational Structure & Design - Chapter Summary and Learning Objectives
The way in which organizations are structured and designed has a large influence on their operations. When designing an organization's structure, managers must take into account many factors, including how the chain of command should work or what departments should exist. Our instructors describe these considerations and much more in this chapter. Watch this chapter's engaging video lessons to learn about the design and structure of organizations. Quizzes, located in each lesson, will help you evaluate your knowledge. In this chapter, you'll find topics including:
- The theory and principles of organizational design
- Different kinds of organizational business structures
- The different organizational designs that businesses use
- The advantages of boundaryless organizations
- What informal organizations are
- How size impacts the structure and design of an organization
- How organizations use the internet for their business
- Business case studies involving organizational design and structure
Video | Objective |
---|---|
Organizational Design: Theory, Principles & Definition | Select the most essential principles of organizational design. |
Organizational Design and Structure | Classify the six elements that managers must address when designing an organizational structure. |
Strategy and Organizational Structure | Explain what organizational strategy is, and choose the key words associated with it. |
Mechanistic & Organic Organizational Business Structures | Differentiate between mechanic and organic organizational structures. |
Types of Traditional Organizational Designs: Simple, Functional & Divisional Designs | Compare the types of traditional organizational designs. |
Types of Contemporary Organizational Designs: Matrix, Team & Network Designs | Summarize the contemporary organizational designs. |
The Boundaryless Organization: Structure and Advantages | Deduce why boundaries are created in organizations and how to eliminate them. |
Characteristics of Informal Organizations: The Grapevine & Informal Groups | Evaluate informal organizations and the terminology that goes along with them. |
Organizational Size: Impacts on Structure and Design of an Organization | Analyze the impact that an organization's size has on the structure and design of the organization. |
Lean Organizational Structure | Dissect lean organizational structure. |
E-Business Enhanced and E-Business Enabled Organizations | Differentiate between e-business enabled businesses and e-business enhanced businesses. |
Behavioral Implications of Different Organizational Designs | Estimate how organizational design impacts the behavior of an organization. |
Business Case Study: Toyota's Organizational Structure | Analyze Toyota's journey with organizational design. |
Business Case Study: Lego's Organizational Structure | Appraise Lego's organizational structure and design. |

1. Organizational Design: Theory, Principles & Definition
What rules do people follow when planning a new business or organization? Find out by learning about organizational design: what it is, some theories that relate to it, and some important principles.

2. Organizational Design and Structure
There is a relationship between organizational design and structure because of different factors. Organizational size, organizational life cycle, strategy, environment and technology work together to form a complete organization.

3. Strategy and Organizational Structure
In this lesson you will learn the three different elements to organizational strategy and which organizational structures work best for each of these elements.

4. Mechanistic & Organic Organizational Business Structures
Different organizations require different structures. This lesson describes the differences between mechanistic and organic organizational structures by looking at the specifics of organizations.

5. Types of Traditional Organizational Designs: Simple, Functional & Divisional Designs
Choosing an organizational structure is an ongoing design process. In this lesson, you will learn to identify types of traditional organizational designs, including simple, functional and divisional designs.

6. Types of Contemporary Organizational Designs: Matrix, Team & Network Designs
Choosing an organizational structure is an ongoing design process. In this lesson, you will learn to identify types of contemporary organizational designs, including matrix, team and network designs.

7. The Boundaryless Organization: Structure and Advantages
In this lesson, you will learn how the structure of an organization can create barriers that have a negative impact on its operations. Find out why managers want to reduce or eliminate these barriers and create a boundaryless organization.

8. Characteristics of Informal Organizations: The Grapevine & Informal Groups
Have you ever thought about how important the relationships you have with your coworkers are to your organization? This lesson will discuss the common elements of informal organizations including their characteristics, informal groups, and the grapevine.

9. Organizational Size: Impacts on Structure and Design of an Organization
In this lesson, you will learn how the size of an organization impacts the structure and design of that organization in the areas of work specialization, departmentalization, and formalization.

10. Lean Organizational Structure
In this lesson, you will learn how the structure of a lean organization differs from the structure of a traditional organization and the benefits organizations with lean structures have over organizations with traditional structures.

11. E-Business Enhanced and E-Business Enabled Organizations
Businesses use the Internet in different ways. Some use it as a part of their business, while some use it to run the entire business. In this lesson, we will discuss the differences between e-business enhanced and e-business enabled businesses.

12. Behavioral Implications of Different Organizational Designs
Organizational culture influences how employees behave and the design of an organization can affect its culture, thereby also impacting how employees act. In this lesson, we'll discuss the impact organizational structure can have on employee behavior.

13. Business Case Study: Toyota's Organizational Structure
Toyota has long been praised for its efficiency and effectiveness, but there were some glitches in the early 21st century that caused the company to reexamine its organizational structure, which we'll explore in this lesson.

14. Business Case Study: Lego's Organizational Structure
Walk into your local toy store and you'll likely find an entire aisle, or section, for Legos. In the early 2000s, that wasn't the case, as Lego appeared to be dying a slow death. In this lesson, we'll find out what changed the outlook for Lego.
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Other Chapters
Other chapters within the Business 307: Leadership & Organizational Behavior course
- Overview of Organizational Behavior
- Leadership in Organizations
- Management Process & Strategy
- Diversity & Social Issues in Leadership
- Personality in Organizations
- Attitudes & Values in Organizations
- Perception & Attribution in Organizations
- Employee Morale & Motivation
- Motivation Theory
- Types of Workplace Communication
- Work Teams & Group Behavior
- Team Decision Making
- Conflict in Organizations
- Job Design in Organizations
- Organizational & Company Culture
- Business Ethics & Issues
- Change in Organizations
- Globalization & Organizational Behavior
- Required Assignments for Business 307
- Studying for Business 307