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Ch#14 NOTES.docx

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Ryerson University
Human Resources
MHR 505
Genevieve Farrell

Chapter 14 Organizational Structure and DesignLearning Objectives1 Explain organizational structure and the key concepts of differentitation and integration and discuss why it is important to understand these conceptsOrganizational design the process of constructing and adjusting and orgs structure to match its environment and achieve its goalsOrganization structure OS is the manner in which an organizations work is designed as well as how departments divisions and the overall org are designed3 main reasons for studying OS and design are1To help entrepreneurs start and grow their business2To help EE recognize the different dimensions of structure and their impact on bhvr3To help mgrs assess the effectiveness of their current organizational designs and restructure based on the contextual variableDifferentiation and IntegrationDifferentiationthe process of deciding how to divide the work in an orgEnsures that all essential organizational tasks are assigned to one or more jobs and that the tasks receive the attention they needThe more structurally differentiated to the org is the more complex it isMany dimensions of differentiation are identified as 4 most commonly studied are managers goal orientation time orientation interpersonal orientation and formality of structureIntegrationthe process of coordinating the different parts of an orgThe dual task of differentiation and integration remain central to our understanding of OS and design for organizations large and small2 Explain key concepts related to the organizational hierarchy as well as the concepts of centralization and decentralizationThe organization hierarchy is what is typically represented in an organizational chart and depicts how jobs and roles are divided up both vertically up and down the hierarchy and then horizontally by departmentVertical Differentiation and the Hierarchy of AuthorityThe organizational hierarchy OR hierarchyof authorityis the degree is vertical differentiation through reporting relationships and the span of control within the structure of the orgThe organizational chart is the most visible representation of the vertical differentiation and hierarchy of authorityVertical differentiation is the difference in authority and responsibility in organizational hierarchyVertical differentiation can rangein degree from very large to very smallSpan of ControlTall and Flat Structures Span of controltheof ppl directly reporting to a managerSpans of control are referred to as either wide meaning a manager has a largeif ppl directly reporting to himher OR smallmeaning that the mgr has relatively fewer ppl reporting to himherTall organizational structures have many layers of mgt and narrow spans of controlCommunication becomes more burdensome since info must be passed through more layersFlat organizational structures have fewer layers of mgt and wide spans of controlFlat structures result in simpler communication chains and people are supervised less closelyAKA delayering which is he planned vertical compression of the managerial levels of he hierarchyCentralization and Decentralization Decentralization is the extent to which decisionmaking authority has been delegated to lower levels of an orgAn organization is centralized if the decision are made at the topof the org and decentralized is decision making is pushed down to lower levels in the orgThe wider the span of control and the flatter the org structure the more decentralized the decisionmaking tends to be3 Describe the various ways organizational subunits are grouped into department and the impact of each type of grouping on OB
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