MGHB02H3 Chapter Notes - Chapter 14: Absenteeism, Diminishing Returns, Dic Entertainment
5 May 2011
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To achieve its goals, an organization has to do two very basic things: divide labour amount its mem- bers and then coordinate what has been divided. Organizational structure: the manner in which an organization divides its labour into specific tasks and achieves coordination among these tasks. There are two dimensions to the division of labour; a vertical dimension and a horizontal dimension. Once labour is divided it must be coordinated to achieve organizational effectiveness. The domain of decision making and authority is reduced as the number of levels in the hierarchy in- creases. As labour is progressively divided vertically, timely communication and coordination can be- come harder to achieve. Labour must be divided vertically enough to ensure proper control but not so much as to make vertical communication and coordination impossible. The horizontal division of labour groups the basic tasks that must be performed into jobs and then into departments so that the organization can achieve its goals.
