Organization Structure

Centralization
Diversity Interdependency Unity of efforts
Departments
Formalization
Specialization

---------------------------------------------Structure----------------------------------------------

Departments, divisions and functions are means of using diversity. For example, finance department,
sales and marketing, HR department.

Rules and regulations – formalization: a mean to ensure that after diversity, we are moving towards
unity of efforts

Structure is just a facilitator of strategy. Often there’s is no right structure. It is dependent on the
strategy – what one wants to do?

However, structure is much more rigid.

Vega Zeta
Quality ? 
Cost  X
Flexibility  
Delivery  
Prototype delivery X 
Past performance  X
Why the case is included in the OB class?
Vega Zeta
Specialization H L
Formalization H L
Centralization H L
Mechanistic Organic
Efficient Solving new problems
“Innovative”
Suggested reading: The machine that changed the world!