Organizational Structure:
-the division of labor as the patterns of coordination, communication, workflow, and formal power that direct organizational activities
4 Basic Elements of Organizational Structure
-span of control: number of people directly reporting to the next level in the hierarchy
-centralization: degree to which formal decision authority is held be a small group of people, typically those at the top of the organizational hierarchy
-formalization: degree to which organizations standardize behavior through rules, procedures, formal training, and related mechanisms
-departmentalization: organizational charts that specifies how employees and their activities are grouped together
-divisional structure groups employees around geographic areas, clients, or outputs
-accommodates growth and focuses employees attention on products or customers
-best organizational structure depends on the firm’s external environment, size, technology and strategy
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