The nature of organization structure

Lesson 3. Organizing

Lesson 3. Organizing. 1

1. The nature of organization structure. 1

Departmentalization. 2

Centralization vs. decentralization. 2

Delegation. 2

Line and staff positions. 2

2. Design of organizational structures. 2

Contingency factors. 3

Matching strategy and structure. 4

3. Personnel management 4

The nature of organization structure

Planning – crucial management function that charts major organizational directions. However, even the most carefully devised plans at the strategic, tactical and operational levels mean little if organization does not have effective means for carrying them out. – Organizing comes into play.

Organizational structure – to be developed in order to have subordinates, delegation of responsibilities, etc.

O.S. – The formal pattern of interactions and coordination designed by management to link the tasks of individuals and groups in achieving organizational goals

Four elements:

1. The assignment of tasks and responsibilities
2. Combining individual positions into units, and of units into departments and larger units – to form an organizational hierarchy
3. Various mechanisms required to facilitate vertical coordination, such as the number of individuals reporting to managerial position, delegation of authority
4. Various mechanisms needed to foster horizontal coordination – task forces

Organizational design – the process of developing an organization structure

Organizational chart – a line diagram that depicts the broad outlines of an organization’s structure.

Vary in detail, but typically show in a visual form the positions of departments, reporting relationships, official channels for communicating information. Some charts show titles associated with the positions, as well current holders.

Charts are helpful in providing visual map of the chain of command:

Ch.of Com. – the unbroken line of authority that links each individual with the top organizational position through a managerial position.

Classical management: unity of command – an individual should have only one boss at any given point in time.

The scalar principle – states there should be a clear line of authority from the position of ultimate authority at the top to every individual in the organization.

Organizational charts do not provide info on how work is divided – design of jobs:

Work specialization – the degree to which the work necessary to achieve organizational goals is broken down into various jobs.

Without specialization, it is difficult for org-n to function – impossible for every org-n member to have the entire range of skills necessary.

Job design – the specification of task activities associated with a particular job.

Approaches to job design:

Job simplification –the process of configuring jobs so that jobholders have only a small number of narrow activities to perform.

Job rotation – the practice of periodically shifting workers through a set of jobs in a planned sequence. Cross-training workers.

Feedback – the degree to which the job provides for clear, timely information about performance results. Autonomy.

Date: 2015-01-12; view: 947