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Principles of Management - Organizational Design and Structure

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Study GuidePrinciples of Management–Organizational Design andStructure1.Bureaucracy BasicsFor many years, most organizations were set up asbureaucracies. A bureaucracy is a way oforganizing work that focuses on logic, order, and the proper use of formal authority. The main goal isto be fair, organized, and efficient.Bureaucracies share several key features:•A clear division of labor, so everyone knows their job•A strict hierarchy, showing who reports to whom•Formal rules and procedures that guide behavior•Promotions based on skill and competenceWhen used correctly, bureaucracies can help organizations run smoothly and treat everyone equally.1.1Why Bureaucracies Can Be a ProblemOver time, people began to notice that bureaucracies also have weaknesses. When organizationsrely too heavily on rules and procedures, they can become slow and inflexible. Too much structurecan make it hard to adapt to new situations or respond to change. As a result, highly bureaucraticorganizations may struggle—or even fail—when their environment changes quickly.Because of this, management researchers started asking important questions:•When does a bureaucracy work well?•What kinds of structures work better when a bureaucracy does not?1.2Research That Changed How We Think About OrganizationsIn the early 1960s, researchersTom Burns and George Stalkerstudied industrial firms in England.They wanted to understand how an organization’s environment affects how it should be managed.

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Document Details

University
Texas A&M University
Course
Principles of Management
Subject
Management

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