Informal Structures:
The set of unofficial working relationships among organization members
Social Network Analysis (sociometric)
Identifies patterns of informal structures and social relationships in the organization
Advantages of informal structures
- Allow people to make contacts with others who can help them get things done
- Stimulate informal learning as people work and interact together
- Sources of emotional support and friendship that satisfy members’ social needs
Disadvantages of informal structures
- Susceptibility to rumor
- May carry inaccurate information
- Diversion of work efforts from important objectives
- Presence of in and out groups
Traditional Organization: Functional Structures
People with similar skills and performing similar tasks are grouped together into formal work units
Traditional organization: Divisional Structures
Group together people who work on the same product or process serve similar customers and/or are located in the same area and geographical region
Traditional Organization: Matrix Structures
Combine functional and divisional structures to gain advantages and minimize disadvantages of each (Create permanent, cross-functional teams to achieve goals)
Horizontal Organization: Team
Extensively use teams to solve problems, complete special projects, and accomplish day-to-day tasks (Often use cross-functional teams composed of members from different functional departments)
Horizontal Organization: Network
Use IT to link with networks of outside suppliers and service contractors (Own only core components)
Organizational design:
- Process of choosing and implementing structures for accomplishment and objectives
- An attempt to achieve a good match between structure and the context/environment
Alternatives of Organizational design:
- Mechanistic or bureaucratic
- Organic or adaptive
________ work in a stable environment
Bureaucratic
___________ work in a rapidly changing and uncertain environment
Organic/Adaptive
