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OB chapter 14 notes.docx

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University of Ottawa

Organizational structureOrganizational structure The manner ni which an organization divides its labour into specific tasks and achieves coordination among these tasks The division and coordination of labourThere are two basic dimensions to the division of labour Vertical and horizontal Vertical division of labour Concerned with primarly apportioning authority for planning and decision making Vertical division include president VPs Middle managers supervisors workersTwo important concepts Chain of demand and span of controlmore than one person reporting to VPno perfect number for span of controlAutonomy and control Communication Hortizontal divison of labourdivison of basic groups the basic takss that must be performed into jobs and then into departments so that the org can achieve its goals Required workflow is the main basis for this division Includes making goods selling goods handling finances dealing with HR Job design Differentiation The tendency for managers in separate units functions or departments to differ in terms of goalstime spans and interpersonal stylesDepartmentaliztion Functional departmentation Employees with closely related skills and responbilities are assigned to the same departmentProduct departmentation Departments are formed on the basis of a particular product product line or service Matrix departmentation Employees remain members of a functional department while also reporting to a product or project manager Capitalize on strengths of functional and product Balance between both best in a mediumsized organization sharing resources Geographic departmentationrelatively selfcontained units deliver an organizations products or services in a specific geographic territoryCustomer departmentation Relatively selfcontained units deliver an organizations products or services to specific customer groups
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