Professional Documents
Culture Documents
Chapte
r
Organizat
ion
Design
and
Structure
Organization DesignDefinition
Organizing is the management function
that
creates
the
organizations
structure. When managers develop or
change the organizations structure,
theyre engaging in organizational
design, which is the process of making
decisions about how specialized jobs
should be, the rules to guide
employees behaviors, and the level at
which decisions will be made.
Elements in Organizational
Design
The Six basic elements of
organizational structure are:
1. Work specialization
2. Departmentalization
3. Chain of command
4. Span of control
5. Centralization and decentralization
6. Formalization
1. Work Specialization
Work specialization is defined as the degree to
which tasks in the organization are subdivided
into separate jobs.
At the Wilson Sporting
Goods factory, workers making footballs
specialize in job taskssuch as shaping,
stitching and lacing to increase work output.
When first introduced, work specialization
almost always generated higher productivity. But
at some point, the human diseconomies
fatigue, stress, low productivity, poor quality,
increased absenteeism, and high turnover
exceed the economic advantages.
Work Specialization
2. Departmentalization
Early management writers argued that
common work activities needed to be
grouped together to get them done in a
coordinated and integrated way. How
jobs are grouped together is called
departmentalization. There are five
common forms of departmentalization,
although an organization may use its
own unique method.
3. Chain of Command
Chain of Command
Authority
Unity of Command
Sources of Power
4. Span of Control
The number of subordinates a manager can efficiently and effectively
direct
5. Centralization and
Decentralization
Centralization
The degree to which decision making is
concentrated at a single point in the
organization.
Decentralization
The degree to which decision making is
spread throughout the organization.
6. Formalization
The degree to which jobs
organization are standardized.
within
the
High formalization
Employees have minimum freedom of choice in how to
get the job done
Employees are required to follow many rules and
procedures
Low formalization
Employees have maximum freedom of choice in how to
get the job done
Job behaviors are nonprogrammed
Functional Structure
Divisional Structure By
Geographic Area
an
depends
strategy,
organization
on
variables
size,
environment.
is
structured
such
technology,
as
and
organizations
structure
should
facilitate
goal
work
best
with
different
organizational
Research findings
Work specialization contributes to higher employee
productivity, but it reduces job satisfaction.
The benefits of specialization have decreased rapidly as
employees seek more intrinsically rewarding jobs.
The effect of span of control on employee performance is
contingent upon individual differences and abilities, task
structures, and other organizational factors.
Participative decision making in decentralized organizations is
positively related to job satisfaction.
Impact of Technology
Makes it easier to change structure to fit
employee and organizational needs