Chapter 12: Organizational structure
Differences between formal and informal organizational structure: (2)
Formal organizational structure: provides a framework for defining managerial authority,
responsibility, and accountability. Roles and functions are defined and systematically arranged,
different people have different roles, and rank and hierarchy are evident.
Informal organization structure: A naturally forming social network of employees.
Communication is through the grapevine: the conversations that occur in the break room, down
the halls, during the car pool. Social media and text messages may be used in this structure.
Communication is fast and is upward, downward, and horizontally, it is hard to control or stop.
May become a source of rumor or gossip. People commonly go to this structure if formal
structure has stopped being effective.
Emphasis is on organizational positions and
Focus is on employees, their relationships,
and informal power in those relationships
Defines managerial authority, responsibility,
Naturally forming social network of
Roles and functions are defined
How employees network with one another to
get work done
Different people have differing roles
Rely on if formal structure is not effective,
which happens as organization grows
Rank and hierarchy are evident
Communication grapevine: convo in break
room, in halls, during carpool
Communication flows up
Social media can be used for informal
Communication is upward, downward, and
Evolves from social activities or from
relationships that develop outside the work
Board of directors
Nursing, PT, Resp, OT, Case Manager, etc
Organizational Theory and Bureaucracy: (1)
"Ideal Types" of Authority
Legal-Rational Authority- they will demand work out of you, you have a boss and
they tell you what to do, they can fire you, give you a day off, or give you a
promotion, obedience is owed to the legally established impersonal set of rules
rather than personal ruler