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The 4 IF contingency variables by Alfred Chandler,”Strategy -> structureStructure should facilitate goal achievementWorks best with different organizational strategiesPursuit of innovation ->organicPursuit of cost control->mechanistic.Size -> structureSize affects structureWhen 2000 limit is reached, size is less influential< 2000 employees -> organic, > 2000 -> mechanistic Technology -> structureTechnology converts inputs into outputsEnvironment -> structureEnvironment is a constraint on managerial discretionThis is why managers restructured their organizations to be lean, fast and flexible.Stable environment -> mechanistic structure

Management

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Types of organizational designs (traditional and contemporary),”Traditional:-The simple structure: is an organizational design with low departmentalization, wide spans of control, authority centralized in a single person, and little formalization. Mostly applied in smaller businesses. It is risky because all decisions depend on one person. -The functional structure: is an organizational design that groups similar or related occupational specialties together. It emphasizes work specialization but, the organization frequently loses sight of its best interest in the pursuit of functional goals. -The divisional structure: is an organizational structure made up of separate business units or divisions. The advantage is its focus on results and allows the headquarter to focus on long-term strategic planning. However, there might be duplication of activities and resources. Contemporary:-Team structures: is a structure in which the entire organization is made up of work teams. It often complements a functional or divisional structure. Employees are involved and empowered, but there is no clear chain of commands and there is pressure to perform.- Matrix project structure: is a structure in which employees continually work on projects, they return to their functional areas when the project is completed. It is fluid and flexible to respond to fast environmental changes, but it is complex to assign people to projects.- Boundaryless structure: is an organization whose design is not defined by or limited to boundaries imposed by a predefined structure. It is flexible and responsive and uses talent. However

Management

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