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Chapter 14

Chapter 14 _ Organizational Structure.pdf

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Department
Management (MGH)
Course
MGHB02H3
Professor
All Prof.
Semester
Winter

Description
Chapter 14Organizational Structure What is Organizational StructureOrganizational Structure The manner in which an organization divides its labour into specific tasks and achieves coordination among these tasksThe Division and Coordination of Labour Vertical Division of LabourConcerned with appointing authority for planning and decision making Autonomy and Control The domain of decision making and authority is reduced as the number of levels of the hierarchy increases holding other factors constantA flatter hierarchy pushes authority lower and involves people further down in the hierarchy in more decisions Communication Communication and coordination become harder to achieve as labour is divided vertically More levels in the hierarchy results in more filteringHorizontal Division of LabourHorizontal division of labour suggests some specialization on the part of the workforce This can promote efficiency up to a pointJob Design Eg A company has A work B work and C work Structures tasks like thiso Form an ABC Department in which all workers do ABC workProvides for enriched jobs and reduces the need for supervisiono Form an ABC Department in which workers specialize in A work B work or C workIncreased horizontal division of labour requires some coordinationo Form a separate A Department B Department and C Department Greatest horizontal division requires a lot of coordination o Horizontal division affects job design it has profound implications for the degree of coordination necessary and it has implications for the vertical division of labour and where control over work processes should logically resideDifferentiation More horizontal division results in more differentiation Natural and necessary consequence of horizontal division but coordination is neededo Differentiation The tendency for managers in separate units functions or departments to differ in terms of goals time spans and interpersonal stylesThe Dimensions of Division of Labour in a Manufacturing Firm Exhibit 141DepartmentationDepartmentation is the assignment of jobs to departments Represents one of the core aspects of the horizontal division of labour
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