BUS 2090 Chapter Notes - Chapter 14: Job Design, Intellectual Property

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16 Aug 2016
March 24th, 2016. BUS2090 Unit 11-Part 1-Chapter 14
Organizational Structure
14.1 What is Organizational Structure?
oThe manner in which an organization divides its labour into specific tasks and
achieved coordination among these tasks.
oDivision/Coordination of Labour: Vertical is concerned with apportioning
authority for planning and decision making-who tells who what to do? Signified
by titles like president, manager and supervisor. Autonomy and control (power
reduced with more levels) Communication (coordination of levels) Horizontal is
the basic tasks that must be performed into jobs then departments to achieve
goals, main basis is required work flow. Job design is crucial (nothing inherently
superior) and differentiation is the tendency for managers in separate units,
functions or departments to differ in terms of goals, time spans and interpersonal
14.2 Departmentation
oIn its functional form, is defined as employees working with closely related skills
and responsibilities are assigned to the same department. Advantages include
efficiency and easily shared resources, communication enhanced, performance
easier to measure.
oProduct departmentation is when departments are formed on the basis of a
particular product, product line or service. Each operates autonomously, better
coordinated, evaluated as profit centres.
oMatrix departmentation is when employees remain members of a functional
department while also reporting to a product or project manager. Produces
balance between abstract demands and the people who do the work.
oGeographic departmentation is relatively self contained units deliver an
organization’s products or services in a specific geographic territory.
oCustomer departmentation is relatively self contained units deliver an
organization’s products or services to specific customer groups.
oHybrid departmentation is a structure based on some mixture of functional
product, geographic or customer departmentation.
14.3 Organizational Coordination
oCoordination refers to a process of facilitating timing, communication and
feedback among work tasks. Direct supervision is traditional, working through the
chain of commands with managers coordinating needs. Standardization of work
processes refers to the routineness of some jobs requiring little supervision to be
coordinated. Standardization of outputs is ensuring that coordination is met to
meet physical and economic standards. Standardization of skills is to allow
employees to become more diverse.
oMutual adjustment relies on informal communication to coordinate tasks, used for
the simplest and most complex divisions of labour. This is necessary went
standardization is not possible. Method of coordination overall affects the job,
varying across different parts of the organization itself. They may change as task
demands change.
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