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Organization Structure and Effectiveness - Lesson Summary

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The key points from this module are: 
Organizational Effectiveness is defined as the degree to which an organization attain its short and long term goals.
Some criteria for measuring organizational effectiveness include:

Productivity
Planning and Goal setting
Information management and communication
Utilization of environment
Value of Human Resources

The four approaches to Organizational Effectiveness are:

The Goal-attainment approach
The Systems approach
The Strategic-constituencies approach
The Competing-values approach

The 3 core dimensions of Organization Structure are:

Complexity - refers to the degree of differentiation that exists within an organization.
Formalization - refers to the degree to which jobs within an organization are standardized. It is another form of standardization.
Centralization - refers to the degree to which decision making is concentrated at a single point in an organization.

Complexity is subdivided into:

Horizontal Differentiation
Vertical Differentiation
Spatial Differentiation

An increase in any of the above Complexity factors will increase an organization's complexity.
Importance of Formalization include:

It reduces variability in organizations especially large ones with several branches.
It improves coordination in an organization
The greater the formalization, the less discretion required for job incumbents. because discretion costs money.

The greater the professionalization of a job, the less likely it is to be highly formalized.
Techniques that organizations use to regulate the behaviour of employees are:

Rules - These are explicit statements that tell an employee what he/she ought to do or not to do.
Procedures - These are series of interrelated sequential steps that employees follow in order to accomplish their job tasks.
Policies - These are guidelines that set constraints on decisions that employees make.

The key to understanding the Complexity-Formalization relationship is to focus on the degree of horizontal differentiation and the way it is achieved.