Contingency organization design states those situational variables such as size, technology, strategy, and the employees available determine the best organization configuration for a given situation. Cross-functional team is a group chosen from different functions to work together across various departments to interdependently create new products or services. Departmentalization is the basis on which jobs are grouped. There are five traditional methods for grouping work activities. Division of labor , or work specialization, is the degree to which tasks in an organization are divided into separate jobs.
Flat organizations consist of only one or two levels of management.
Formalization is the extent to which the units of the organization are explicitly defined and its policies, procedures, and goals are clearly stated. Informal organization is the personal and social relationships that arise spontaneously as people associate with one another in the work environment. Learning organization is able to adapt and respond to change. Mechanistic organization has rigidly defined tasks, formalization, many rules and regulations, and centralized decision-making. Organic organization has few rules and regulations and decentralizes decision making to the employees performing the job.