MacroStructure and Linkages (6) Flashcards
9 parameters
4 and 5: MacroStructure
6 and 7: Lateral Linkages
- Specialization
- Formalization of behavior
- Training and indoctrination
- Unit grouping
- Unit size
- Planning and control systems
- Liaison devices
- Vertical decentralization
- Horizontal decentralization
Sequential clustering
After jobs are designed, they are grouped into units; then, units are grouped into larger units
Why cluster positions
Clustering aids 3 coordination mechanisms
1. Direct supervision (each units gets one manager, linking managers creates system of authority )
- Mutual adjustment (sharing of common facilities, spatial proximity, frequent informal communication, creation of group identity: motivation)
- Standardization of outputs (same resources, equipment, budget, common measures of performance)
Unintended consequences
- Reduces btw-unit coordination
communication remains within clusters
differentiation of goals, time horizon - Sometimes this is advantageous
formalization of behavior different for each unit
organic units in mechanized structures - Usually it is not
formation of “silos”
Criteria for unit grouping
- Function (work processes or purpose)
- Output (final product or service)
- Place (area of operation)
- Customer (targeted market segment)
- Knowledge (skills)
- Time (timing of activities)
Function (knowledge, skills, processes) Market (output, customer, place)
Reminder
Pooled: if workers only share resources
Sequential: if they take previous outputs as inputs
Reciprocal: if they iterate and give feedback
Interdependence in workflow
- Mostly of reciprocal nature
- heavy reliance on informal commun.
- creates “psychologically complete” tasks - Clustering according to cycles of operation
- takes care of problems arising in workflow (most are solved by mutual adjustment, many of the rest are solved by direct supervision)
- reflects natural clustering of activities
- protects task identity: motivation - Not only relevant to the operating core
- also in staff units (for example filing a patent: content developed by R&D department, application overseen by legal department)
Other sources of interdependence
- Work processes
arises when there is specialization of knowledge, as in the case of railroad and road transport specialists - Scale economies
arise when numbers are needed for efficiency, as in the case of repairmen for different assembly lines - Social relationships
arises when work is dull or dangerous, as in the case of coal mining crews and relay assemblers
Functional Structure
- Similar job in same unit regardless of output
- coordination by formalization
- better in simple or stable environment
- process coordination at expense of workflow - Favors specialization and technical excellence
- mutual learning and knowledge spillover
- sense of belonging, peer evaluation, career paths - Creates problems of adaptability
- reduces attention to a broader purpose
- difficult to track responsibility and performance
- difficult to adjust btw different specialists
- lets problems rise to higher levels of the hierarchy
Divisional Structure
- Same output in unit regardless of job similarity
- workflow coordination at expense of process/scale
- coordination by adjustment and supervision
- better in uncertain or diversified environments - Favors responsiveness and accountability
informal communication btw specialists
easier to supervise and standardize outputs
modular, easier to add tasks, units, or sububits
line develops general management skills - Generally more expensive and wasteful
- less learning by repetition
- duplication of personal and equipment
- diminished sense of professional worth
Combining grouping criteria
- High middle line
mostly pooled
market grouping - Low middle line
mostly sequential
function grouping - Operating Core
mostly reciprocal
function grouping
What about staffers?
Functional and horizontally specialized by definition; centrally directed even when dispatched to divisions
Unit Size (span of control)
Evidence from industrial organizations: chief executives have up to 18 subordinates, manufacturing foremen have 50 on average, top manager of Bank of America has 600
Small size faciliates supervision/adjustment
Increasing size is easier after standardization
- of processes and skills: supervision unnecessary
- of outputs: “Carbon-copy” units
Flat vs. tall structures
Flat: more time spent on direct supervision, fewer distortions and interruptions of flows, decisions take longer and are less accurate, more opportunities for trial and error, resonates with workers’ need for autonomy
Tall: more time spent on other managerial duties, interruptions are needed to aggregate information, decisions are improved by intermediate reviews, fewer chances to learn from one’s own mistakes, resonates with workers’ need for security
Determinants of unit size
Usually high in core and lower middle line; small in staff, apex, higher line
Increases with need to reduce information distortion, need for self-actualization, task similarity, any kind of standardization
Decreases with need to perform non-supervisory duties, need to have a supervisor nearby, task complexity
