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MGHB02H3 (268)
Chapter 14

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University of Toronto Scarborough
Management (MGH)
Julie Mc Donald

• Job Design • Form ABC department in which all works do ABC work  requires enriched jobs in which each worker can coordinate own A work B work and C work. Reduce supervision and self managed teams ; requires very skilled workers • For ABC department in which workers specialize in A work B work or C work  increased horizontal in which employees specialize in tasks and in which coordination of A work B work and C work become more critical • Form a separate A department B department and C department greatest horizontal, provides for great control and accountability for separate task but also suggests that someone above the department head will have to get involved in coordination • Horizontal greatly division of labor strongly affects job design • Profound implication for the degree of coordination is necessary • Some vertical might be needed sometimes Other Forms of Departmentation • Two are very like product departmentiation • Geographic departmentation – relatively self contained units deliver an organization’s products or service in a specific geographic territory • This shortens communication channels • Allows the organization to cater to regional tastes and gives some appearance of local control to customers • e.g. oil company, national retailers • Customer departmentation- relatively self contained units deliver an organization’s products or service to specific customer groups • Goal here is to provide better service to customer through specialization • e.g. having a graduate and undergraduate division at university to serve better • Advantages and disadvantages of geographic and customer departmentation parallel those for product departmentation • Hybrid departmentation – (unusual to see) a structure based on some mixture of functional, product, geographic or customer departmentation • e.g. manufacturing firm might retain human resources, finance and legal service in a functional form at headquarters but use product departmentation to organize separate production and sales staffs for each product • hybrid attempt to capitalize on the strengths of various structures while avoiding the weakness of others Basic Methods of Coordinating Divided Labor Coordination – A process of facilitating timing, communication and feedback among work tasks • 5 methods to help with coordination: • Direct Supervision o very traditional form of coordination o Working through the chain of command, designated supervisors coordinate the work of their subordinates o e.g. supervisor coordinate with subordinates and superintendent coordinates with supervisors • Standardization of work Processes o some jobs are so routine that the technology itself provides a means of coordination o Little direct supervision is necessary o e.g. automobile assembly line o Work process can also be standardized by rules and regulation o e.g. McDonald stringent routine for constructing a burger is such an example • Standardization of output o Concern shifts from how the work is done to ensuring that the work meets certain physical or economic standards o e.g. valve might take drilling, lathe work etc the physical specifications of the valves will dictate how this work is to be coordinated o Standardization of outputs is often used to coordinate the work of separate product or geographic divisions o Also can consider division with profit target as standardization of output • Standardization of skill o Very common in case of technicians and professionals o e.g. a large surgery team often coordinate its work with minimal verbal communication because of its high degree of interlocked training – all know what to expect from each other because of standard training • Mutual adjustment o Relies on informal communication to coordinate tasks; useful for coordinating the most simple and the most complication division of labor o e.g. florist shop with owner, assistant and delivery person; Likely for individuals to coordinate their work through informal processes, mutually adjusting to each other’s need o Also for organization with lots of change, mutual adjustment would be used since standardization would not be possible • Direct supervision permits little discretion • Standaridization of processes and ougput permits successively more dictretion • Strandardization of skills and mutal adjustment put even more control into the hands of those who are doing work • Jobs enriched from left to right ( look at picture) • Improper coordination strategy can destroy the intrinsic motivation of a job • Professional can coordinate themselves, if get managed feel like mangers doing work they’re suppose to do • Method of coordination varies through organization • Difference in coordination stem form the way labor has been divided • Upper management relies heavily on mutual adjustments for coordination • Routine is either standardization or direct supervision and professional rely on combination of skill standardization and mutual adjustment • Methods of coordination may change as task demand change Other Methods of Coordination • Some coordination are more customized so elaborate mechanisms are necessary to achieve coordination; especially true for lateral coordination across highly differentiated departments • Use integration – the process of attaining coordination across differentiated departments • Good integration achieves coordination without reducing the differences that enable each department to do its won job well • There are three ways of achieving integration Liaison Roles • Liaison role – a person who is assigned to help achieve coordination between his or her department and another department • One person serves as a part time link between two departments; sometimes a second department might reciprocate and pick its own liaison person • e.g. librarian might have a liaison person that helps other department and these department might have a member to touch bade back with its liaison in library Task forces and teams • Liaison is not effective when coordination problems arise involving several departments simultaneously • Task force – temporary groups set up to solve coordination problems across several departments • Representatives from each department are included, when adequate integration is achieved the task force is disband • Self managed/cross functional teams require interaction among employees who might otherwise operate in an independent vacuum • Cross functional teams are especially useful in achieving coordination for new product development and introduction Integrators • Integrators – organizational members permanently assigned to facilitate coordination between departments (for departments in clear need of coordination) • Good for dealing with problems: • Highly interdependent departments • Very diverse goals and orientations • Ambiguous environment ( always making new product) • Integrators usually report directly to the executive to whom the heads of the two departments report • They have great responsibility and must be unbiased and rely heavily on expert powers Traditional Structural characteristics • Characteristics that summarize the structure of organization Span of Control • Span of control - the number of subordinates supervised by a manager • The larger the span, the les potential there is for coordination by direct supervision • As the span increases the attention that supervisors can devote to each subordinate decreases • In routine work, standardization of work processes or output often substitutes for direct supervision • So at lower level, sometimes uou may see spans of control ranging over 20 • Less routines and adequate time is necessary for informal mutual adjustment • Spans at upper levels tend to be smaller Flat Versus Tall • Flat organization – an organization with relatively few levels in its hierarchy of authority • Tall organization – an organization with relatively many levels in the hierarchy of authority (these are indication of vertical division of labour) • Flatness and tallness are associated with control span • Taller has smaller control span (good) and flatter has bigger control span (bad) • Flatter structure tend to push decision making powers downward in the organization because a given number of decisions are apportioned among few levels ( fewer levels – lower level have decision power) also general enhance vertical communication and coordination • Some argues that flatter make decisions more quickly and get new products to market faster Formalization • Formalization – the extent to which roles are highly designed by an organization • A very formalized organization tolerates little variability in the way members perform their tasks • Some formalization stems from the nature of the job itself e.g. assembly line or jobs with procedure manual • Very complex tasks dictate high formalization • Formalization may sometimes seem excessive e.g. ignore the hairnet rule Centralization • Centralization- the extent to which decision making power is localized in a particular part of the organization • In the most centralized organization the power for all key decisions would rest in a single individual such as the president • Decentralized organization, decision making power would be dispersed down through the hierarchy and across departments • More participative climate (managers want centralize) • Information processing capacity of executives is not the only factor that dictates the degree of centralization • Sometimes pursue more participative climate through decentralization • Proper degree of centralization should put decision making power where the best knowledge is located • Decentralize with direct customers and centralize with internal orientation Complexity • Complexity – the extent to which an organization dived labor vertically, horizontally and geographically • A simple one would have few management levels and not may separate job titles with one physical location VICE VERSA • The essential characteristic of complexity is variety; as the organization becomes more complex
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