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Lecture 11

ADM 1100 Lecture Notes - Lecture 11: Organizational Architecture, Flat Organization

Course Code
ADM 1100
Alan O' Sullivan

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Lecture 11 - Organization design
Basic principles
The specification of the jobs to be done and of how those jobs relate to
each other
What is the best mix of specialization and integration (or,
"departmentalization") to get the jobs done?
What is the best distribution of decision-making power that goes with
Decision-making units
Job specialization: dividing work into narrower jobs
Positive impact on performance? Practice makes perfect
Classic e.g. : assembly line
Job integration = grouping of labour
Performance impact: effectiveness through coordinated effort
At the individual level (for motivational reasons)
We are now interested in how to group individuals
Bring people doing similar jobs together
For ease of supervision
Bring people doing related jobs together
For ease of coordination
As you go down the organization the work becomes more specialized
Consumer product guys are specialized
Profitability depends on how we divide the product
E.g. Vice-president marketing - specialization by activity
Specialization - Kind of product, geographic region and activity
Relative to the president the level of work is more specialized
Specialization is always relative
The level below is more specialized than the level above
The pressure points are where we need coordination
Integration is the opposite of specialization
Integration - pull it together
Span of Control
Span of control: the number of direct reports of a given manager
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