Structural Characteristics of Organizations

There are six basic structural characteristics of an organization. Each characteristic can affect an organization's success and efficiency. These issues include authority, accountability and responsibility, division of labor, span of control, delegation, and centralization versus decentralization.

When structuring the organization for success and efficiency, leaders must decide on a centralized or decentralized structure. These issues each have advantages and disadvantages. When considering centralization versus decentralization, organizations must consider whether top management should retain greater control. When considering departmentalization, leaders must consider the gains in efficiency versus less communication and groupthink.

Select which option is best illustrated by each organization.

App$-$el Games: Programmers at App$-$el Games monitor online gamer communities for fresh ideas. If they find a great idea, they start work on it immediately to be first to market.

$$ Advantage of a centralized structure

Disadvantage of a centralized structure

Advantage of a decentralized structure

Disadvantage of a decentralized structure

BigAir Boards: Because each department chooses its own parts suppliers, BigAir Boards often experiences delays in getting snowboards from the plants to the stores.

Advantage of a centralized structure

Disadvantage of a centralized structure

Advantage of a decentralized structure

Disadvantage of a decentralized structure