Organizational culture is a reflective view of the inner workings of an organization. This culture reflects hierarchical arrangements as it pertains to the lines of authority, rights and obligations, duties, and communication processes. Organizational structure establishes the manner in which power and roles are coordinated and controlled amongst the varying levels of management. The structure of an organization is dependent upon their goals, objectives, and strategy. Determining organizational structure best suited for an organization is generally found within the six key elements of organizational structure and choosing those to implement those best suited for the organization. The six key elements include:
1) Work Specialization – The level in which duties are subdivided into distinct jobs within the organization taking into account efficiency gains and efficiency losses.
a. Efficiency gains
i. Relation of payment to skill level
ii. Increased performance
iii. Encouragement of creativity
b. Efficiency losses
iv. Absenteeism and turnover
2) Departmentalization – The foundation for determining the way jobs will be grouped, which can include: function, process, geography, product, or customer.
3) Chain of Command – This establishes the level of authority from the bottom to the top within the organization and the level of authority each managerial position will hold. Additionally, the chain of command will outline the reporting process.
4) Span and Control – This element pertains to such issues as the number of subordinates under the direct supervision of a manager. It is extremely important to take into consideration a larger pool of subordinates can equate to efficient cost, but to...
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...y their mission statement.
Abilla, P. (n.d.). The Mind of Jeff Bezoa. Retrieved from: http://www.shmula.com/the-mind-of-jeff-bezos/395/
Blandino, S. (2012). Amazon’s Culture: How to Shape an Enduring Organizational Culture. Retrieved from: http://www.faithvillage.com/article/81939068ed36450197491582db1d7b21/amazon
Deutschman, A. (2004, August). Inside The Mind Of Jeff Bezos. Fast Company, 85, 52-58. Retrieved from: http://www.fastcompany.com/50106/inside-mind-jeff-bezos
Distinguin, S. (2011). Amazon.com: the Hidden Empire. Retrieved from: http://www.slideshare.net/faberNovel/amazoncom-the-hidden-empire
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