COMMERCE 1BA3 Chapter Notes - Chapter 14: Job Design, Cross Purposes, Bounded Rationality
12 Oct 2016
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Organizational structure: manner in which an organization divided its labor into specific tasks and achieves coordination among these tasks. The right hand does not know what the left is doing. Decision made with incomplete information. (i. e. further increase in bounded rationality) Vertical division of labor: concerned with apportioning authority for planning and decision making. Autonomy and control: domain of decision making and authority is reduced as the number of levels in the hierarchy increases (managers have less authority over fewer matters). On the other hand, a flatter hierarchy pushes authority lower and involves people further down the hierarchy in more decisions. As labor is progressively divided vertically, timely communication and coordination can become harder to achieve. As number of levels in a hierarchy increases, filtering is more likely to occur. Labor must be divided vertically enough to ensure proper control but not so much as to make communication impossible.
