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Organization Struct.
304
| Question | Answer |
|---|---|
| Organizational Structure: | This defines how job tasks are formally divided, grouped, and coordinated. |
| 1. Work Specialization | Also referred to as division of labor. It describes the degree to which activities in the organization are subdivided into separate jobs. Specific tasks are identified and individuals are assigned to work on that task |
| Work Specialization Pros | a. Employee skill through performing a task successfully increases through repetition. b. Increases productivity and efficiency. c. It is easier and less costly to find workers to do specific and repetitive tasks. |
| Work Specialization Cons | a. At a certain point, productivity falls and satisfaction decreases |
| 2. Departmentalization | The basis by which jobs within an organization are grouped. Once jobs have been divided through Work Specialization, they need to be grouped so that common tasks can be coordinated. |
| a. Functional Departmentalization | Grouping specialists based on the functions they perform. Seeks to achieve economies of scale by placing people with common skills and orientations into common units |
| b. Product Departmentalization: | Grouping jobs based on different products made the organization. This allows for increased accountability for product performance, since all activities are under the direction of a single manager. |
| c. Geographic Departmentalization | Grouping jobs based on geographical region or territory. Cultural differences, shipping needs, currency, and trade involve issues that may be handled best through this type of departmentalization. |
| d. Process Departmentalization | This involves grouping jobs into departments that specialize in one specific phase in the production process. This can be used for processing customers as well as products. |
| e. Customer Departmentalization: | The focus is on the needs of the customers. Customers’ problems and needs vary, and thus specialists must be in place to provide these different customers with various levels of attention and knowledge. |
| 3. Chain of Command: | A clear connection of authority and responsibility in an organization that defines who reports to whom. |
| COC a. Authority: | Refers to the rights inherent in a managerial position to give orders and expect the orders to be obeyed. |
| COC b. Unity of Command: | A concept which states that a person should have one and only one superior to whom they are directly responsible. |
| 4. Span of Control: | This determines the number of levels and managers an organization has. Usually, the wider or larger the span, the more efficient the organization is. The number of subordinates a manager can direct (Span of Control) is increased by tech |
| 5. Centralization/Decentralization | The degree to which decision making is concentrated at a single point in the organization. |
| a. Centralized Organization- | Top management makes their decisions with little or no input from lower-level personnel. At this level, organizations are less flexible and responsive |
| b. Decentralized Organizations | Lower- level personnel provide input and/or are given the discretion to make decisions. At this level, action can be taken more quickly to solve problems, and employees are less likely to feel alienated from upper management. |
| 6. Formalization: | the degree to which the jobs within an organization are standardized, and to what degree rules and policies are applied. |
| a. High Formalization: | The employee has a minimum amount of discretion over what is to be done, when it is to be done, and how they should do it. Inputs are handled exactly the same way, resulting in consistent and uniform output. There are lots of rules and clearly defined pol |
| b. Low Formalization: | Employees are granted a great deal of freedom to exercise discretion in their work. Standardization and the amount of rules are minimal. |
| Determinants of Structure | 1. Strategy 2. Size 3. Technology 4. Environment |
| 1. Strategy | an organization structure is a means to help management achieve its objective. As a result, an organization must first have a strategy before they can choose the structure that will complement best. |
| a. Innovation Strategy: | The Organic Model works best with this type of strategy. This strategy emphasizes the introduction of major new products and services. |
| b. Minimizing Cost | The Mechanistic Model works best with this type of strategy. This strategy emphasizes tight cost controls, avoidance of unnecessary innovation or marketing expenses, and price cutting. |
| c. Imitation Strategy: | The Organic model works best with this type of strategy. This strategy seeks to move into new products or new markets only after their viability has already been proven. |
| 2. Size | the organizations size can have a considerable effect on its structure. a. As and organization grows, it becomes more Mechanistic. |
| 3. Technology | Deals with how an organization transfers its inputs into outputs. The degree of task routines provides insight into the organizations structure |
| 3. Technology | a. If tasks in the organization are routine, then that organization is Mechanic b. Routine tasks are standardized and are associated with departmentalized structures. c. Routine tasks are strongly associated to formalization |
| 4. Environment | Refers to institutions or forces outside of the organization that potentially affect the organization’s performance. The degree of uncertainty provides insight into the organization structure. |
| Environment (Cont) | b. Capacity: the organizations environment can support growth c. Volatility: which an organization environment can deal with instability. d. Complexity: heterogeneity and concentration |
Created by:
austinrios