BUS 2090 Lecture Notes - Lecture 1: Flat Organization, Organizational Chart, Ambidexterity
11 Dec 2015
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Document Summary
Organizational structure: the manner in which an organization divides its labour into specific tasks and achieves coordination amoung these tasks. Labour must be divided because individuals have physical and intellectual limitations. There are two dimensions to the division of labour: vertical division: concerned with appropriating authority for planning and decision making. The domain of decision making and authority is reduced as the number of levels in the hierarchy increases. The more levels, the harder it is to maintain timely communication and coordination. Filtering of communication is more likely to occur: horizontal division: groups the basic tasks that must be preformed into jobs and then into departments so the organization can achieve its goals. Differentiation: the tendency for managers in separate units, functions, or departments to differ in terms of goals, time spans and interpersonal styles. Under high differentiation, various units tend to operate more autonomy.
