Determinants
of organizational structure
dr. hab. Jerzy Supernat
Institute of Administrative Studies
University of Wrocław
Determinants of organizational structure
Organizational structure is
a consequence of the simultaneous
impact of many factors.
Fundamental
determinants
context (situation in
which an organization
operates)

design (organizational
actions in regard to
structure; decisions made
in an organization about
how the organization is to
be structured)

Determinants of organizational structure
Contextual determinants

internal




organizational size
technology
organizational culture
external


environment
national culture
dr. hab. Jerzy Supernat
Determinants of organizational structure
Organizational design
strategic choice (designing a structure by the
organization itself)

institutional isomorphism (making
already existing organizational forms)

use
of
dr. hab. Jerzy Supernat
Determinants of organizational structure
Size of an organization




the number of people in an organization
the physical capacity of an organization
organizational inputs and outputs
financial resources
dr. hab. Jerzy Supernat
Determinants of organizational structure
Technology
Technology involves acting on and/or
changing an object from one state to
another. The object can be a living
object, a symbol, or an inanimate
object.
dr. hab. Jerzy Supernat
Determinants of organizational structure
Types of technology (based mainly on research by Joan
Woodward, 1916-1971):
•
•
•
•
•
project technology
jobbing/unit/one-off technology
batch technology
 small-batch technology
 large-batch technology
line/mass production technology
continuous-process technology
J. Woodward, Industrial Organization: Theory and Practice, Oxford University
Press 1965:
Many of the variations found in the organizational structure of the firms
studied did […] appear to be closely linked with differences in manufacturing
techniques. Different technologies imposed different kinds of demands on
individuals and organizations, and these demands had to be met through an
appropriate structure.
dr. hab. Jerzy Supernat
Determinants of organizational structure
Organizational culture
Chester I. Barnard:
One of the main functions of the executive is to
set the tone for the entire organization.
dr. hab. Jerzy Supernat
Kontekstowe uwarunkowania struktury organizacyjnej
Chester I. Barnard
(1886-1961)
dr hab. Jerzy Supernat
Determinants of organizational structure
Organizational culture – definition
Edgar H. Schein (born 1928):
A pattern of shared basic assumptions that the group learned as it
solved its problems of external adaptation and internal integration,
that has worked well enough to be considered valid and, therefore, to
be taught to new members as a correct way to perceive, think and
feel in relation to those problems
dr. hab. Jerzy Supernat
Determinants of organizational structure
Problems related to external adaptation concern views of
an organization’s tasks and objectives as well as the
means to implement and assess them. A solution has to
be found for them so that the organization can function
and succeed in its environment.
Problems related to internal integration concern the creation of a common language and concepts, defining group
limits, the level of authority relationships and interaction,
as well as methods of reward and punishment. A solution
has to be found for these so that members of the
organization can function together in an organized and
predictable working community.
dr. hab. Jerzy Supernat
Determinants of organizational structure
Environment
Of primary interest is the social environment of an organization, but the physical environment (e.g. climate or geography)
can also be important, particularly for the organization that
utilizes or affects that physical environment.
Determinants of organizational structure
PEST analysis – analysis of a general (indirect) environment of the organization, usually taking into account four
dimensions:
- p olitical
- e conomic
- s ocial
- t echnological
Show me a friend in need and I’ll show you a pest 
dr. hab. Jerzy Supernat
Determinants of organizational structure
National culture
 the national culture is the main factor determining organizational culture – culture bound view
 organizational characteristics are based on
factors other than the national culture – culture
free view
Samurai of the Satsuma Clan, circa 1867.
dr. hab. Jerzy Supernat
Determinants of organizational structure
National culture and
organizational culture
overlap.
For some issues national
culture is most important,
whilst for other issues the
organizational culture is more
important.
An analysis of Japanese
companies located in the
United States by William G.
Ouchi and Alfred M. Jaeger,
has found the following
general differences between
Japanese and American
firms:
American organization
Japanese organization
1.
Short-term employment.
1. Lifetime employment.
2.
Individual decision
2. Consensual decision
making.
making.
3.
Individual responsibility.
3. Collective responsibility.
4.
Rapid evaluation and
4. Slow evaluation and
promotion.
5.
6.
promotion.
Explicit, formalized
5. Implicit, informal control.
control.
6. Nonspecialized career
Specialized career path.
path.
William G. Ouchi
Alfred M. Jaeger
Determinants of organizational structure
Strategic choice
The importance
of strategic decisions
concerning
an organizational
structure emphasized
Alfred D. Chandler.
According to his famous
statement: structure
follows strategy.
Projektowe uwarunkowania struktury organizacyjnej
Alfred D. Chandler
(1918-2007)
dr hab. Jerzy Supernat
Determinants of organizational structure
The idea of bounded rationality by Nobel laureate Herbert
A. Simon (1916-2001) means that strategic decisions are
not necessarily optimal decisions. Nevertheless the concept of equifinality stresses that decisions and decision
making are important.
Ludwig von Bertalanffy (1901-1972):
In any closed system, the final state is unequivocally determined by
the initial conditions: e.g. the motion in a planetary system where the
positions of the planets at a time t are unequivocally determined by
their positions at a time t°. This is not so in open systems. Here, the
same final state may be reached from different initial conditions and
in different ways. This is what is called equifinality.
dr. hab. Jerzy Supernat
Projektowe uwarunkowania struktury organizacyjnej
Herbert A. Simon
dr hab. Jerzy Supernat
Determinants of organizational structure
In concrete example an organization faces the
choice between:

outsourcing (outside resource using)

insourcing (inside resource using)
dr. hab. Jerzy Supernat
Projektowe uwarunkowania struktury organizacyjnej
Model T
Year 1915
dr hab. Jerzy Supernat
Projektowe uwarunkowania struktury organizacyjnej
Model T
dr hab. Jerzy Supernat
Projektowe uwarunkowania struktury organizacyjnej
Henry Ford
next to his Model T in 1921.
dr hab. Jerzy Supernat
Determinants of organizational structure
Institutional isomorphism
Paul J. DiMaggio, Walter W. Powell:
[…] organizations are becoming increasingly homogeneous
within organizational fields. […] By organizational field, we
mean those organizations that, in the aggregate, constitute a recognized area of institutional life: key suppliers
resource and product consumers, regulatory agencies and
other organizations that produce similar services and
products. The virtue of this unit of analysis is that it directs
our attention […] to the totality of relevant actors.
dr. hab. Jerzy Supernat
Projektowe uwarunkowania struktury organizacyjnej
Paul J. DiMaggio
Walter W. Powell
dr hab. Jerzy Supernat
Determinants of organizational structure
Types of isomorphism:
coercive isomorphism (there are coercive forces from
the environment, such as government regulations and
cultural expectations, which impose standardization on
organizations)

mimetic isomorphism (organizations mimic or model
each other)

normative isomorphism (takes place as the workforce,
and especially management, becomes more professionalized)

dr. hab. Jerzy Supernat
Influence of different factors makes that an organizational
structure takes different forms and is dynamic. Nevertheless one
shouldn’t forget that an organizational structure is for a purpose
and that the purpose is to be as effective as possible.
Concluding remark
The achievements of an organization are the
results of the combined effort of each individual.
Vince Lombardi (1913-1970)
dr. hab. Jerzy Supernat