Textbook Notes (368,802)
Canada (162,170)
Commerce (1,696)
Chapter 14

OB - Chapter 14.docx

8 Pages
Unlock Document

Emad Mohammad

CHAPTER FOURTEEN: ORGANIZATIONAL STRUCTURE What Is Organizational Structure?  Organizational structure: the manner in which an organization divides its labour into specific tasks and achieves coordination among these tasks  Structure affects how effectively and efficiently group effort is coordinated The Division and Coordination of Labour Vertical Division of Labour  Concerned with who gets to tell whom what to do  Autonomy and Control: o Domain of decision making and authority is reduced as number of levels in hierarchy increases o Flatter hierarchy pushes authority lower and involves people further down hierarchy in more decisions  Communication: o Timely communication and coordination can be harder to achieve when labour is divided vertically o Filtering is more likely to occur as number of levels in hierarchy increases Horizontal Division of Labour  Horizontal division of labour groups basic tasks into jobs, then departments so organization can achieve goals  Horizontal division is likely as organization grows  Different groups of employees assigned to different tasks Job Design:  Horizontal division of labour strongly affects job design  Has implications for degree of coordination necessary  Form an ABC Department in which all workers do ABC work: o Enriched jobs in which each worker can coordinate own work o Reduces need for supervision o Requires highly trained workers o May not be possible  Form an ABC Department in which workers specialize in A work, B work or C Work: o Increased horizontal division of labour o Coordination of A work, B work, and C work becomes more critical  Form a separate A Department, B Department, and C Department: o Greates horizontal division of labour o Great control an accountability for separate tasks Differentiation  Differentiation: tendency for managers in separate units, functions or departments to differ in terms of goals, time spans and interpersonal styles  Managers develop different psychological orientation to ward organization and its products/services  Various organizational units tend to operate more autonomously  Departments need to be able to work together Departmentation Functional Departmentation:  Functional departmentation: employees with closely related skills and responsibilities are assigned to same department  Ex. those with skills in sales and advertising are assigned to marketing department  Employees grouped according to kind of resources they contribute to overall goals of organization  Advantages: o Efficiency o Enhances communication within departments o Enhances career ladders since everyone shares same view of career progression o Performance is easier to measure  Disadvantages: o High degree of differentiation between functional departments leading to poor coordination, conflict, etc. o Customers and clients can be ignored Product Departmentation:  Product departmentation: departments are formed on basis of a particular product, product line or service  Ex. a shampoo division and a cosmetics division each with own staff of production people, marketers and R&D personnel  Advantages: o Better coordination among people working on one product line o Flexibility since do not have to involve other parts of organization o Can serve customers better  Disadvantages: o Professional development suffers o Inefficiency if departments are not coordinated Matrix Departmentation:  Matrix departmentation: employees remain members of a functional department while also reporting to a product or product manager  Advantages: o Provides a degree of balance between demands of product and people who do the work, o Very flexible o Better communication because everyone is focused on one product/project  Disadvantages: o No guarantee that product managers will see eye-to-eye o Employees report to two managers (functional manager and product manager) o Causes role conflict, stress Other Forms of Departmentation  Geographic departmentation: o Relatively self-contained units deliver an organization’s products/services in a specific geographic territory o Shortens communication channels o Allows organizations to cater to regional tastes  Customer departmentation: o Relatively self-contained units deliver an organization’s products/services to specific customer groups o Goal is to provide better service to each customer group  Hybrid departmentation: o Some mixture of functional, product, geographic or customer departmentation Basic Methods of Coordinating Divided Labour  Coordination: process of facilitating timing, communication, and feedback among work tasks  Direct Supervision: o Traditional form of coordination o Chain of command o Supervisors/managers coordinate work of subordinates  Standardization of Work Processes: o Technology can provide means of coordination o Direct supervision not necessary o Ex. automobile assembly line o If workers do not have to interact, need minimal supervision  Standardization of Outputs: o Coordination can be achieved through standardization of work outputs o Concern shifts from how work is done to ensuring that work meets physical/economic standards o Ex. top management assigns each division a profit target  Standardization of Skills: o Coordination can be achieved through standardization of skills o Ex. technicians and professionals o Need minimal verbal communication because of high degree of training about what to expect from coworkers  Mutual Adjustment: o Informal communication coordinates tasks o Useful for coordinating most simple and most complicated decisions of labour o Necessary when standardization is not possible  Least Worker Discretion to Most Worker Discretion: Direct Supervision  Standardization of Work Processes  Standardization of Outputs  Standardization of Skills  Mutual Adjustment Other Methods of Coordination  Integration: process of attaining coordination across differentiated departments  Liaison Roles: o Liaison role: person who is assigned to help achieve coordination between his/her department and another department o Second department might nominate its own liaison partner as well  Task Forces and Teams: o Task forces: temporary groups set up to solve coordination problems across several departments o Liaison roles not effective for coordination problems that involve several departments o Task force disbands when integration is achieved  Integrators: o Integrators: organizational members permanently assigned to facilitate coordination between departments o Useful for dealing with conflict between departments that: (1)Are highly interdependent (2)Have diverse goals/orientations (3)Operate in very ambiguous environment o Has great responsibility but no direct authority in either department Traditional Structural Characteristics Span of Control  Span of control: number of subordinates supervised by a manager  Larger the span, the less potential there is for coordination by direct supervis
More Less

Related notes for COMMERCE 1BA3

Log In


Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.