Textbook Notes - Chapter 14

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Management (MGH)
Course Code
Joanna Heathcote

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MGTB27 01 Week 12 Chapter 14 Organizational Structure (pg. 460 487) - Flight Centre has adopted an organizational structure into hunter-gatherer groups - This proved to be effective since it led to quality decision making as well as performance What is Organizational Structure? - 7J,3L],9L43,O897:.9:70.,3-008.7L-0-K4Z,347J,3L],9L438L3L;L:,O8,3J74:58 are put together or organized to accomplish work - Organizational structure is the manner in which an organization divides its labour into specific tasks and achieves coordination among these tasks - E.g. a university divides its labour: some members teach, some run the graduate program, some handle registration. Within the registrar subunit, there is a director, secretaries, clerks, and so on who all perform different tasks The Division and Coordination of Labour - Labour must be divided since individuals have physical and intellectual limitations - There are two basic dimensions to the division of labour: vertical and horizontal Vertical Division of Labour - The vertical division of labour is concerned primarily with apportioning authority for planning and decision making (who gets to tell who what to do) - E.g. in a manufacturing firm: president, manager, supervisor - Organizations can differ greatly in the extent to which labour is divided vertically (Army has 18 levels of command while Wal-Mart has 5 levels) - Separate departments or units can also vary in how labour is divided vertically - Autonomy and Control o Domain of decision making and authority is reduced as the number of levels in the hierarchy increases (managers have less authority over matters) o A flatter hierarchy pushes authority lower and allows people further down to make more decisions - Communication o As labour is divided vertically, timely communication and coordination can become harder to achieve (there is more filtering, acts as barrier to communication) - The proper degree of such division will vary across organizations as to how labour should be divided in order to make communication and coordination most effective Horizontal Division of Labour - 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 goals - Organizations differ in the extent to which they divide labour horizontally as well - In a small business, owner may perform all the tasks (e.g. deliver servicekeeping the books) - As business grows, horizontal division is likely where there are different groups of employees assigned to perform each tasks (suggest some specialization of workforce) - Key themes that underlie the horizontal division of labour: - Job Design o Horizontal division of labour is closely tied to job design, examples: Form an ABC Department in which all workers do ABC work N Provides for enriched jobs where workers can coordinate their work N Reduces need for supervision and allows for self-managed teams www.notesolution.com
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