Our definition of organization recognizes the need for formally
coordinating the interaction patterns of organization members.
Organization structure defines how task are to be allocated, who
reports to whom, and the formal coordinating mechanisms and
interaction patterns that will be followed.
We define an organization's structure as having three components:
complexity, formalization, and centralization. We review
each in detail in Chapter 4.
Complexity considers the extent of differentiation within the
organization. This includes the degree of specialization or division
of labor, the number of levels in the organization's hierarchy, and
the extent to which the organization's units are dispersed geographically.
As tasks at Celestial Seasonings became increasingly
specialized and more levels were added in the hierarchy, the organization
became increasingly complex. Complexity, of course, is
; relative term. Celestial Seasonings, for instance, has a long way
10 go to approach the complexity of a General Electric or an IBM,
where there are hundreds of occupational specialties, nearly a dozen level between production workers and the chief execuctive officer and organizational unit dispersed in countries thought the word
Our definition of organization recognizes the need for formally
coordinating the interaction patterns of organization members.
Organization structure defines how task are to be allocated, who
reports to whom, and the formal coordinating mechanisms and
interaction patterns that will be followed.
We define an organization's structure as having three components:
complexity, formalization, and centralization. We review
each in detail in Chapter 4.
Complexity considers the extent of differentiation within the
organization. This includes the degree of specialization or division
of labor, the number of levels in the organization's hierarchy, and
the extent to which the organization's units are dispersed geographically.
As tasks at Celestial Seasonings became increasingly
specialized and more levels were added in the hierarchy, the organization
became increasingly complex. Complexity, of course, is
; relative term. Celestial Seasonings, for instance, has a long way
10 go to approach the complexity of a General Electric or an IBM,
where there are hundreds of occupational specialties, nearly a dozen level between production workers and the chief execuctive officer and organizational unit dispersed in countries thought the word
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