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MGHB02H3 (269)
Chapter 14

Chapter 14 Notes

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Department
Management (MGH)
Course
MGHB02H3
Professor
Julie Mc Carthy
Semester
Fall

Description
Chapter 14 Organizational Structure Notes What is Organizational Structure? to achieve its goals, a firm has to do 2 things: divide labour among its members and then coordinate what has been divided organizational structure manner in which a firm divides its labour into specific tasks and achieves coordination among tasks The Division and Coordination of Labour Vertical Division of Labour vertical division of labour is concerned primarily with apportioning authority for planning and decision making separate departments, units, or functions within an organization will vary in the extent to which they vertically divide labour holding other factors constant, domain of decision making and authority is reduced as number of levels in hierarchy increases as labour is progressively divided vertically, timely communication and coordination can become harder to achieve these two themes illustrate that labour must be divided vertically enough to ensure proper control but not so much as to make vertical communication and coordination impossible, which varies across organizations and across their functional units 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 goalsrequired workflow is the main basis for this division as the firm grows, horizontal division of labour is likely, with different groups of employees assigned to perform each task the horizontal division of labour suggests some specialization on the part of the workforce, which can promote efficiency the horizontal division of labour is closely tied to job design(1) the horizontal division of labour strongly affects job design; (2) it has profound implications for the degree of coordination necessary; and (3) it also has implications for the vertical division of labour and where control over work processes should logically reside differentiation tendency for managers in separate units, functions, or departments to differ in terms of goals, time spans, and interpersonal styles; under high, various organizational units tend to operate more autonomously differentiation is a natural and necessary consequence of horizontal division of labour, but it points to the need for coordination Departmentation functional departmentation employees with closely related skills and responsibilities are assigned to the same department advantages include efficiency, enhanced communication, enhanced career ladders and training opportunities, and performance of functional specialis
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