The document discusses factors that influence organizational structure and design, including the environment, strategy, size, life cycle, and technology. It describes two common models of organizational design: the mechanistic model, which is highly departmentalized and bureaucratic, and the organic model, which is flatter and more collaborative with cross-functional teams and participation in decision making across levels. Functional and divisional structures are also mentioned as ways to group employees.

1. Organizational
Structure & Design

10. Determinants/factors influencing
organizational design/Structure
• Environment -The environment is the world in which
the organization operates, and includes conditions that
influence the organization such as economic, social‐cultural,
legal‐political, technological, and natural environment
conditions
• Strategy -How an organization is going to position itself in
the market in terms of its product is considered its strategy
• Organizational size- The larger an organization becomes,
the more complicated its structure. When an organization is
small, its structure can be simple.

11. • Organization life cycle-Organizations, like humans,
tend to progress through stages known as a life cycle.
Birth, Growth, Maturity, Decline
• Technology-Technology is the way tasks are
accomplished using tools, equipment, techniques, and
human know‐how.

19. • A functional organizational structure is a
team structure that groups employees
into different departments based on areas
of expertise.

35. Models of organizational design
• Mechanistic model
• Organic model

36. Mechanistic model
• Extensive departmentalization
• High formalization
• Limited information network (downward commn)
• Low participation of low level members in decision
making
• Synonymous with bureaucracy.

37. Organic model
• Looks like horizontal organization
• It is flat, cross hierarchical and cross functional teams
• Low formalization
• Possesses comprehensive information network (
lateral, upward, downward)
• High participation in decision making.