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MGCR 222 (39)


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Management Core
MGCR 222
Patricia Hewlin

Ch14: FOUNDATIONS OF ORGANIZATION STRUCTURE WHAT IS ORGANIZATIONAL STRUCTURE?  Definition o How job tasks are formally divided, grouped and coordinated  6 elements o Work specialization  Also division of labor  The degree to which act in org are subdivided into separate jobs  Into a nb of steps  Specialized in part of act only o Departmentalization  On what basis will jobs be grouped together o Chain of command  To whom individuals and groups report o Span of control  Nb of individuals a manager can efficiently/effectively direct o Centralization & decentralization  Where decision making authority lies o Formalization  The degree to which there are rules/regulations to direct employees COMMON ORG DESIGNS  The Simple Structure o Used in small businesses  Inadequate when E grows o Characteristics  Low degree of departmentalization  Wide spans of control  Authority centralized in a single person  Little formalization o Strengths  Fast  Flexible  Inexpensive to operate  Clear accountability o Weaknesses  Only for small businesses  Risky bcs 1 person = authority  The Bureaucracy o Characteristics  Highly routine tasks achieved thru specialization  Very formalized rules/regulations  Tasks grouped into functional dept.  Centralized authority  Narrow span of controls  Chain of command = decision making o Strengths  Perform ++ standardized act  Less costly  Little need for innovative and experienced decision makers o Weakness  Obsessive concern with rules  The Matrix Structure o 2 forms of departmentalization  Functional  Strength o Specialists put together  Weakness o Difficulty of coordination of diverse specialists  On time  With budget  Product  Strength o Coordination among spe o Clear responsibility
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