MGHB02H3 Chapter Notes - Chapter 14: Flat Organization, Organizational Chart, Job Design
Document Summary
Organizational structure is the manner in which an organization divides its labour into specific tasks and achieves coordination among these tasks. It broadly refers to how the organization"s individuals and groups are put together or organized to accomplish work. Organizational structure intervenes between goals and organizational accomplishments and thus influences organizational effectiveness. Structure affects how effectively and efficiently group effort is coordinated. To achieve its goals, an organization has to divide labour among its members and then coordinate what has been divided. Labour has to be divided because individuals have physical and intellectual limitations. There are two basic 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: vertical division of labour. The vertical division of labour is concerned primarily with apportioning authority for planning and decision making. A couple of key themes or issues underlie the vertical division of labour.
