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Canada (158,217)
MGHB02H3 (268)
Chapter 14


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University of Toronto Scarborough
Management (MGH)
Samantha Montes

Chapter 14-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 Interest: causes and consequences of organizational structure How an organizations indiv and groups are put together or organized to accomplish work To achieve goals, organizations must: 1. Divide labour among members; 2. Coordinate what has been divided Contemporary Organization Design Challenges: Current Challenges o Global competition o Ethics and social responsibility o Speed of responsiveness o The digital workplace o Diversity The Division and Coordination of Labour Labour must be divided bc indiv have physical and intellectual limitations 1. Vertical dimensions 2. Horizontal dimensions Vertical Division of Labour Primarily w apportioning authority for planning and decision making-who does what President Vice Presidents Middle Managers Supervisors Workers Autonomy and Control The domain of decision making and authority is reduced as the number of levels in the hierarchy increases Managers have less authority over fewer matters A flatter hierarchy pushes authority lower and involves people further down the hierarchy in more decisions Communications As labour is divided vertically. Timely communication and coordination become harder to achieve As number of levels in the hierarchy increases, filtering is more likely to occur Horizontal Division of Labour www.notesolution.com As organization grows, horizontal division of labour is more likely, w diff employees assigned to perform each of these tasks Horizontal division suggests some specialization on the part of the workforce Increased specialization can promote efficiency Job Design Form ABC department in which all workers do ABC work o Provides enriched jobs which workers can coordinate their A, B, and C work o Reduces the need for supervision and allows for self managed teams o Requires highly trained workers, could be impossible if A, B and C work are complex specialties that requires ie. Engineering, accounting and legal skills Form ABC department which workers specialize in A, B, or C work o Increased horizontal division of labour in which employees specialize in tasks and in which coordination of A, B and C work becomes more critical o Coordination must be handled by properly designing the head of the departments job Form separate A, B, and C department o The greatest horizontal division of labour bc A, B C are performed in separate departments o Provides great control and accountability for the separate tasks o Suggests that someone above the department heads will have to get involved in coordination Horizontal division of labour strongly affects job design Has profound implications for the degree of coordination necessary Implications for vertical division of labour and where control over work processes should logically reside Differentiation Differentiation-the tendency for managers in separate units, functions, or departments to differ in terms of goals, time spans and interpersonal styles Managers would often develop their own distinct psychological orientations towards the organization and its products or services Ie: problems with marketing and research and development Departmentation The assignment of jobs to departments A core aspect of horizontal division of labour Functional Departmentation Functional departmentation-employees with closely related skills and responsibilities are assigned to the same department Ie. Those w skills in sales and advertising are assigned to the marketing department Employees are groups according to the kind of resources they contribute to achieving the overall goals of the organization Work best in small to medium sized firms that offer few product lines or services Effective for organizing smaller divisions of large corporations When scale gets bigger and the output of organization gets more complex, more firms gravitate towards product departmentation Advantage: o EFFICIENCY ie. When all the engineers are located in one department rather than scattered through the org, it is easier to be sure that they are either overloaded nor underloaded w work www.notesolution.com
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