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MGHB02H3 Study Guide - Final Guide: Absenteeism

Management (MGH)
Course Code
Anna Nagy
Study Guide

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Organizational Structure
Work Specialization/division of labor
Organizational Structure the manner in
which an organization divides its labor in to
specific tasks and achieves coordination among
these tasks. Divide labor among members and
Coordinate what has been divided
Vertical Division of Labor concerned
primarily with apportioning authority for
planning and decision making
o Autonomy and Control holding
other factors constant, the domain of decision
making and authority is reduced as the number
of levels in the hierarchy increases. A flatter
hierarchy pushes authority lower and involves people further down the hierarchy
in more decisions
o Communication as labor is progressively divided vertically, timely
communication and coordination can become harder to achieve. As the number of
levels in the hierarchy increases, filtering is more likely to occur.
Horizontal Division of Labor groups the basic tasks that must be performed into jobs
and then into departments so that the organization can achieve its goals. Required
workflow is the main basis for this division
o Job Design horizontal division of labor is closely tied to consideration of job
Department where all workers do ABC work enriched jobs with reduced
supervision and allows for self-managed teams but needs highly trained
workers; horizontal division strongly affects job design
Department with workers specializing in A, B or C work involves
increased horizontal division of labor in which employees specialize in
work and coordination is critical but can be handled by properly designing
the head of each job; profound implications for degree of coordination

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Separate A, B and C Departments - greatest horizontal division of work,
great control and accountability for separate tasks but someone above the
department heads should supervise; also has implications for vertical
division of labor and where control over work processes should logically
o Differentiation the tendency for managers in separate units, functions, or
departments to differ in terms of goals, time spans and interpersonal styles
Departmentation the assignment of jobs to departments
o Functional Departmentation employees with closely related skills and
responsibilities are assigned to the same department. Employees are grouped
according to the kind of resources they contribute to achieving the overall goals of
the organization
Advantages: Main one is efficiency
Communication within departments should be enhanced
Career leaders and training opportunities within the function are
enhanced because all parties will share the same view of career
The performance of functional specialists should be easier to
measure and evaluate when they are all located in the same
Disadvantages: stem from specialization within departments leads to
high degree of differentiation; lead to poor coordination and slow
response to organizational problems, lead to open conflict between
o Product Departmentation departments are formed on the basis of a particular
product, product line or service. Each can operate fairly autonomously because it
has its own set of functional specialists dedicated to the output of the department
Better coordination among the functional specialists which leads to
fewer barriers for communication
Flexibility since product lines can be added or deleted without
great implications for the rest of the organization
Evaluated as profit centers since they have independent control
over costs and revenues
Often serves the customer or client better since client can see more
easily who produced the product
Professional development might suffer without a critical mass of
professional working in the same place or the same time
Economies of scale may be threatened and inefficiency might
occur if relatively autonomous product-oriented departments are
not coordinated
Might not actually work at cross purposes
o Matrix Departmentation employees remain members of a functional department
while also reporting to a product or project manager. Most variations boil down
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