In a short essay, list and explain three key elements in designing an organization's structure

What will be an ideal response?

Answer: (any three of the following)

Work specialization
This concept describes the degree to which tasks in an organization are divided into separate jobs. The essence of work specialization is that an entire job is not done by one individual, but instead is broken down into steps, with each step completed by a different person.

Departmentalization
The basis by which jobs are grouped together is called departmentalization. The five common forms of departmentalization include functional, product, geographical, process, and customer departmentalization.

Chain of command
This is the continuous line of authority that extends from upper organizational levels to the lowest levels and clarifies who reports to whom. It helps employees answer questions such as "Who do I go to if I have a problem?" and "To whom am I responsible?"

Span of control
The question of how many employees a manager can efficiently and effectively supervise is important because, to a large degree, it determines the number of levels and managers an organization has. Trends in today's organizations show wider spans of control that reflect better-trained employees who are more independent and accountable.

Centralization and decentralization
Centralization describes the degree to which decision making is concentrated at a single point in the organization. If top managers make the organization's key decisions with little or no input from below, then the organization is centralized. In contrast, the more that lower-level employees provide input or actually make decisions, the more decentralized the organization is.

Authority, responsibility, and power
Authority is the right to give directions and expect them to be obeyed within an organization; the amount of authority for a given position is inherent in that position, not related to the individual who fills that position. Responsibility is the obligation to perform assigned tasks. While authority is a right given by position, power is an ability to change things that is independent of position. For example, a low-level employee with a particular skill has considerable power in an organization if that skill is valuable to the organization.