Organizational Design refers to the structure and culture of an
organization, aspects that are key to determining organizational behavior.
For example, is the organizational structure formal or informal,
centralized or decentralized' What is the chain of command and how does it
An organization's structure determines job functions, role
responsibilities, and accountability. As such, the manner in which an
organization is structured determines whether decision making is
centralized or decentralized. In highly centralized organizations, the
chain of command is vertically structured, whereas flatter organizational
structures, on the other hand, emphasize far more on teamwork, and
integrated decision making. Thus, it is evident that organizational
structure determines the authority and power accorded to both job functions
and individuals. Organizational structure and culture also plays a role in
determining the type of power exerci
Management can departmentalize activities on the basis of functions,divisions, product, customers or geographies. For instance, flatter or boundary less organizations are morelikely to see an exercising of expert or referent power, whereas formal,centralized organizations use more of a coercive or reward type of power. The source of an organization's culture is a shared system of values,beliefs, philosophies, experiences, and behavioral norms. This implies a rather fluidstructure, which is made possible by teams coming together for specificprojects or tasks. A boundaryless organization is sometimes also referred to as the network,learning or virtual organization because its main characteristic is aflexible structure, which is able to respond quickly to changes in theenvironment or business opportunities. I believe our classroom's culture is both structured as well as informal. sed by individuals in positions ofauthority. Thus, the choice of method really depends on the type ofmarket and business an organization is in. Leaving aside the question oflearning goals though, I would say that our classroom enjoys an open,friendly culture. The centralized structure is alsolikely to cause coordination problems for large organizations. The human relations aspect, on the other hand, can beexperienced in the sharing of philosophies and experiences as well as inthe highly interactive nature of discussions. I disagree with the statement that "an organization can have no structure,"for the simple reason that, at the end of the day, all organizations mustpossess the ability to clearly articulate its goals, values, and strategy. The channels thatare key to disseminating and perpetuating an organization's culture are astated mission and vision, policies and procedures, and training amongothers. Service intensive businesses such as management consultancies, on the otherhand, may necessarily need to departmentalize by customer specialization.