BUS 272 Chapter Notes - Chapter 13: Absenteeism

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Ch. 13 – Organizational Structure
- org structure determines what gets done in an org & who does it
- org structure = defines how job tasks formally divided, grouped & coordinated
- 6 key elements
1) work specialization = division of labour = degree to which tasks subdivided into separate jobs
 indivs specialize in doing part of an activity rather than whole
 v efficient, improve thru repetition
 easier & less costly for org for find & train employees to do specific & repetitive tasks
efficiency & productivity by encouraging creation of special inventions & machinery
 can lead to boredom, fatigue, stress, low productivity, poor quality, increased
absenteeism, high turnover
2) departmentalization = basis on which jobs grouped together
 but can become silos w/in org
 often, departments start protecting own turn & not interact well w/ other departments
 can lead to narrow vision w/ respect to org goals
 functional departmentalization = grouped by functions performed
 i.e. engineering, accounting, manufacturing, etc
 major advantage: obtaining efficiencies from putting ppl w/ common skills &
orientations together into common units
 product departmentalization = type of product org produces
 major advantage: increased accountability for product performance, since
everything under direction of single exec
 geographical departmentalization = basis of geography/territory
 valuable if org’s customer scattered over large geographical area & have similar
needs based on location
 customer departmentalization = basis of particular type of customer org seeks to reach
 i.e. consumers, suppliers, etc
3) chain of command = continuous line of authority that extends from upper org levels to lowest
level & clarifies who reports to whom
 unity of command = person should have only 1 superior to whom he/she is responsible
 if broken, employee may have to cope w/ conflicting demands/priorities from
several superiors
 delegation = assignment of authority to another person to carry out specific duties,
allowing employee to make some decisions
4) span of control = # of employees who report to manager
 adv of wide span
 reduce costs, cut overhead
 speed up decision making
 increase flexibility
 get closer to customers
 empower employees
 but if supervisor no longer has time to provide necessary leadership & support, wider
span reduces effectiveness & has negative effect on employee performance
 to ensure performance doesn’t suffer b/c of wider span, orgs invest in employee training
 adv of narrow span
 manager can maintain close control
 disadv of narrow
 expensive b/c add levels of management
 make vertical communication in org more complex
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