MHR 505 Lecture Notes - Lecture 3: Departmentalization, Cost Leadership, Role Conflict

• School: Ryerson University
• Department: Human Resources
• Course: MHR 505
• Professor: Jonathan Hughes

Document Summary

Organizational structure defined: division of labour and pattern of coordination, communication, workflow, and formal power that direct organizational activities, relates to many ob topics, job design, teams, power. Other coordinating mechanisms: formal hierarchy, direct supervision, assigns legitimate power to manage others, necessary in most firms, but has problem, standardization routine behaviour/output, standardization processes (ex. job description, standardized output (ex. sales target, standardized skills (ex. training) Number of people directing to the next level of hierarchy. Wider span of control is possible when: As companies grow they, build a taller hierarchy, widen span or both. Poorer upward information, overhead costs, focus power around managers, so staff feel less empowered. Centralization/ decentralization: centralization formal decision making authority is held by a few people, usually at the top, decentralization increases as companies grow. Varying degrees of centralization in different areas of the company. Less organizational flexibility, discourages organizational learning/creativity, less work efficiency, increases job dissatisfaction and work stress, rules/procedures become focus of attention.