Organization structure & design in dynamic environment is shown using the principles, of management.

1. Design of Organization Structure in Dynamic Environment
Strategic Business
Unit
Departmentation
Span of
Control
Functional / Work
specialization
Centralized
Decentralized
Matrix
Bureaucratic
Chain of Command
Types of Design
Elements of Design
7/15/2015 1
Design Tools or Variables
Formalization
1
2
3
Integration of Skills, Coordination

2. Bureaucratic
Hierarchy
Rules
& Procedures
Work
specialization
Division
of Labor
Authority,
Authority & Work Flow
Autonomy
& Work Flow
ORGANIZATION
Vision , Assumptions,
Beliefs & Artifacts
Senior
management
Middle
Management
Lower
Management
7/15/2015 2
Expert Committee
Change agent
Core Professional/
Competent workers
• Products,
• Process,
• Departments
• Geographic Location
Superior
Subordinates Peers
• Task & Skill Significance
• Resources & Action plans
Feedback
OrganizationWorkFlow
OrganizationProcessFeedback
Strategic Management

3. 7/15/2015 3
Matrix
Departments/ManagementLevel
Products / Geographic Location / Industry / Management Level
X XY XYZ
Marketing
Human
Resources
Production
Finance
Projects
ORGANIZATION
(ABC Inc)
Span of Control
Chain of Command
Vision, Objectives,
Assumptions,
Beliefs, Artifacts
Marketing manager
HR Manager
Production Manager
Finance Manager
Project Manager
• Resource
allocation
• Action plans
• Strategic
Resources
• Action plans

4. 7/15/2015 4
Strategic Business Unit & Formalization
ORGANIZATION
Business Unit, A Business Unit, B Business Unit, C Business Unit, D
Product Manufacturing Process Manufacturing Finance Management Operations / HR
CEO, Managing
Director …
CEO, Managing
Director …
CEO, Managing
Director …
CEO, Managing
Director …
Vision, Objectives,
Artifacts
Business
Environment
Integration, &
Adaptation
Vision, Objectives,
Artifacts
Vision,Objectives,
Artifacts
Vision,Objectives,
Artifacts
Departments
Geography
Customer base
Departments
Geography
Customer base
Departments
Geography
Customer base
Departments
Geography
Customer base
High Formalization
Low Formalization