MGB1010 · Introduction To Management
Organising
Organising — the O of POLC — is arranging and structuring work so goals get met. The output is an organisational structure, built from six design decisions: work specialisation, departmentalisation, chain of command, span of control, centralisation/decentralisation and formalisation. Set those six dials one way and you get a mechanistic structure (rigid, efficient, best in a stable environment); set them the other and you get an organic one (flexible, adaptive, best when things change) — with the most organic form being the learning organisation. Per the contingency view, neither is “better”; the right one depends on the situation, above all the environment. The unit's principle — structure facilitates the leadership style — is why it pairs Organising with Leading. The quizzes here are pure recognition, and two pairs get swapped by accident: centralisation (who decides) vs formalisation (how rule-bound), and span of control vs chain of command.
What this chapter covers
- 015.1 Organising vs structure vs design
- 025.2 The six elements of structure
- 03Elements 1–3: specialisation, departmentalisation, chain of command
- 04Elements 4–6: span of control, centralisation, formalisation
- 055.3 Mechanistic vs organic — the grid
- 06The learning organisation (the organic extreme)
- 075.4 Common structure types
Worked example: read the structure, then place it on the grid
- +1(a) Narrow, fixed jobs. High work specialisation — work finely divided into single-task slices.
- +2(a) Many written rules / few people per manager / decisions at the top. High formalisation, a narrow span of control (so a tall structure), and centralisation.
- +1(b) Mechanistic or organic? High specialisation + high formalisation + tall, narrow + centralised = a mechanistic structure (bureaucratic, efficient).
- +1(b) Don't confuse the dials. Centralisation = who decides; formalisation = how rule-bound. A firm can be decentralised yet highly formalised — independent dials.
- +1(c) Best fit + caveat. Mechanistic fits a stable, predictable environment. The contingency caveat: neither type is better — in a dynamic environment an organic structure would fit instead.
Key terms
- The six elements of structure
- The six design decisions every structure answers: work specialisation (how finely work is divided), departmentalisation (the basis jobs are grouped on), chain of command (who reports to whom), span of control (how many one manager supervises), centralisation/decentralisation (where decision authority sits) and formalisation (how rule-bound jobs are).
- Span of control
- The number of employees a manager can effectively supervise. It drives the organisation's shape: a wide span means fewer layers and a flat, cheaper structure with more autonomy; a narrow span means more layers and a tall structure with tighter supervision but higher cost. Widening spans is a common downturn cost-cutting move.
- Centralisation vs formalisation
- Two independent dials people swap by accident. Centralisation is about who decides (authority at the top vs pushed down). Formalisation is about how much rulebook governs the job (high = explicit rules, little discretion; low = loose rules, room to improvise). A firm can be decentralised and highly formalised, or the reverse.
- Mechanistic vs organic
- The two ends of a structural spectrum. Mechanistic = high specialisation and formalisation, a rigid/tall chain, narrow spans, centralised authority — bureaucratic and efficient, best in a stable environment. Organic = broad flexible roles, few rules, a flat/fluid chain, wide spans, decentralised, team-based — adaptive and flexible, best in a dynamic environment.
- Learning organisation
- The most organic form: an organisation that has built the capacity to continually learn, adapt and change. Hallmarks are a boundaryless design, empowered teams, open and timely information sharing, strong relationships, a shared vision and a culture of collaboration.
Organising FAQ
What are the six elements of organisational structure?
Work specialisation (how finely work is divided into tasks), departmentalisation (the basis jobs are grouped on — functional, product, geographic, process or customer), chain of command (the line of authority, who reports to whom), span of control (how many people one manager supervises), centralisation/decentralisation (where decision authority sits) and formalisation (how standardised jobs are by rules). They are the backbone of the whole chapter.
What is the difference between centralisation and formalisation?
They are independent dials that students swap under time pressure. Centralisation is about who decides — authority concentrated at the top vs pushed down to lower levels. Formalisation is about how rule-bound a job is — high formalisation means explicit job descriptions, many rules and little employee discretion; low formalisation hands discretion back. A firm can be decentralised and highly formalised, or the reverse.
What is the difference between mechanistic and organic structures?
Mechanistic structures are high on specialisation and formalisation, with a rigid tall chain, narrow spans and centralised authority — bureaucratic and efficient, suited to a stable, predictable environment. Organic structures have broad flexible roles, few rules, a flat fluid chain, wide spans and decentralised, team-based decision-making — adaptive and flexible, suited to a dynamic, uncertain environment. By the contingency view, neither is universally better; the environment decides.
How does span of control shape the organisation?
A wide span (one manager over many people) means fewer layers, producing a flat, cheaper structure with more autonomy per employee — but it leans on capable, self-directed staff. A narrow span means more layers, producing a tall structure with tight supervision but higher cost. This is why downturns flatten firms: widening spans removes whole layers of middle management to cut cost.
Exam move
Pure recognition, so the win is clean definitions. Learn the six elements as a numbered list and be able to read each off a described firm or org chart. Burn in the two confused pairs — centralisation (who decides) vs formalisation (how rule-bound), and span of control (width) vs chain of command (length) — because the quiz targets exactly those mix-ups. Know that specialisation helps then hurts (human diseconomies), and that wide span → flat and cheap. Then the big picture: set the six dials one way for mechanistic (rigid/efficient/stable), the other for organic (flexible/adaptive/dynamic), with the learning organisation as the organic extreme — and remember the contingency caveat that the environment, not preference, picks the winner.
