Range of Organizational Design Outcomes
Remember that the organizational designer creates a structure to accomplish with the company’s objective and mission. The elements that a designer has to work with – chain of command, centralization/decentralization, formal authority, types of departments, and span of control – fit together to form an overall structure approach.
Depending on the balance of the elements, the design outcome can be very different. Some organizations see the need to use the formal, vertical hierarchy as a means of control and coordination.
Other organizations decentralize decision making, create teams, and provide managers with loosely structured jobs. The range of options can be described as tight/mechanistic structures or loose/organic structures.
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