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MGHB02H3 (269)
Chapter 14

Ch. 14 Notes

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Management (MGH)
Julie Mc Carthy

May 5, 2011 5:09 PM W11:Ch.14 OrganizationalStructure To achieve its goals, an organization has to do two very basic things: divide labour amount its mem- bers and then coordinate what has been divided. Organizational Structure: The manner in which an organization divides its labour into specific tasks and achieves coordination among these tasks. Division and Coordination of Labour There are two dimensions to the division of labour; a vertical dimension and a horizontal dimension. Once labour is divided it must be coordinated to achieve organizational effectiveness. Vertical Division of Labour The domain of decision making and authority is reduced as the number of levels in the hierarchy in- creases.As labour is progressively divided vertically, timely communication and coordination can be- come harder to achieve. Labour must be divided vertically enough to ensure proper control but not so much as to make vertical communication and coordination impossible. Horizontal Division of Labour The horizontal division of labour groups the basic tasks that must be performed into jobs and then into departments so that the organization can achieve its goals. This division of labour suggests some specialization on the part of the workforce. The horizontal division of labour strongly affects job de- sign (recallABC work).As organizations engage in increased horizontal division of labour, they usu- ally become more and more differentiated. Differentiated: The tendency for managers in separate units, functions or departments to differ in terms of goals, time spans and interpersonal styles (recall R&D manager vs. marketing manager). Departments Methods of departmentation (assigning jobs to departments): Functional Departmentation www.notesolution.com
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