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MGHB02H3 (268)
Chapter 14

Chapter 14 - Organizational Structure

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University of Toronto Scarborough
Management (MGH)
Joanna Heathcote

Chapter 14Organizational Structure What is Organizational StructureRefers to how an organizations individuals and groups are put together or organized to accomplish workOrg structure intervenes between goals and organizational accomplishments and influences org effectiveness affects how effectively and efficiently group effort is coordinatedTo achieve goals org has to do two basic things divide labour among its members and then coordinate what has been dividedOrganizational structurethe manner in which an organization divides its labour into specific tasks and achieves coordination among these tasksThe Division and Coordination of LabourVertical Division of LabourConcerned primarily with apportioning authority for planning and decision makingUsually signalled by titles such as president manager and supervisorSeparate departments units or functions within an org will often vary in extent to which they vertically divide labourTwo issues or themes underlie vertical division of labourAutonomy and controldomain of decision making and authority is reduced as the number of levels in the hierarchy increaseFlatter hierarchy pushes authority lower and involves people further down in decisionsCommunicationtimely communication and coordination can become harder to achieveAs level in hierarchy increase filtering is more likely to occurLabour must be divided vertically enough to ensure proper controlHorizontal Division of LabourGroups the basic tasks that must be performed into jobs and then into departments so that org can achieve its goalsRequired workflow is the main basis for this divisionIncrease specialization can promote efficiency some key themes and issues areJob designdifferent ways in which an org can structure tasksThe most horizontal division of labour occurs when a separate department is responsible for different work provides great control and accountability for tasks Differentiationincreased horizontal division of labour become more differentiatedDifferentiationthe tendency for managers in separate units functions of departments to differ in terms of goals time spans and interpersonal stylesUnder high differentiation org tend to operate more autonomouslyDepartmentationAssignment of jobs to departments is called Departmentation and represents one of the core aspects of horizontal division of labourSeveral methods of DepartmentationFunctional Departmentationemployees with closely related skills and responsibilities are assigned to the same departmentEmployees are grouped according to the kind of resources they contribute to achieving the overall goals of the org1
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