Module 6.1: The Elements that Create Organizational Structure and Their Distinct Relationships Flashcards
Organizational Structure
defined structure as the arrangement and interrelationship of component parts and positions in an organization
What does the organizational structure provide structure on?
✓ Division of work into activities
✓ Linkage between different functions
✓ Hierarchy
✓ Authority Structure
✓ Authority Relationships
✓ Coordination with the Movement
Components of the Structure in an Organization
- Complexity
- Formalization
- Centralization
Complexity
Components of the Structure in an Organization
degree to which activities within org are differentiated
What are the 3 dimensions of complexity?
- Horizontal
- Vertical
- Spatial
Horizontal Complexity
based on the orientation of members,
the nature of tasks they perform and their education and training
Vertical Complexity
characterized by the number of hierarchical levels in the organization
Spatial Complexity
location of the org’s offices, facilities, and personnel are geographically distributed
Formalization
Components of the Structure in an Organization
extent to which jobs within org are specialized
Centralization
Components of the Structure in an Organization
where the decision-making is concentrated
Principles of Organizational Structure
- Specialization
- Coordination
- Departmentalization
- Decentralization and Centralization
- Line and Staff Relationship
Specialization
facilitates division of work into units for efficient performance
How does specialization help according to classical theories?
accdg. to classical theories, work can be performed much better if it is divided into components and people are encouraged to specialize by components
What does Specialization enable?
enables application of specialized knowledge which betters the quality of work and improves organizational efficiency
What can Specialization influence?
can also influence fundamental work attitudes, relationships, and communication
Coordination
integrating the objectives and activities of specialized departments to realize broad strategic objectives
What does a hierarchy facilitate in terms of coordination?
Hierarchy facilitates vertical coordination of various departments and their activities
Principles of Hierarchy
- Unity of command
- Scalar Principle
- Responsibility and Authority Principle
- Span of Control
Unity of command
Principles of Hierarchy
every person in an organization should be responsible to one superior and receive orders from that person only
Scalar Principle
Principles of Hierarchy
decision-making authority and the chain of command in an organization should flow in a straight line from the highest level to the lowest
Responsibility and Authority Principle
Principles of Hierarchy
responsibility must be accompanied by proper authority
Span of Control
Principles of Hierarchy
number of specialized activities or individuals supervised by one person
Departmentalization
process of horizontal clustering of different types of functions and activities on any one level of the hierarchy
What are the two types of departmentalization?
- Functional Departmentalization
- Product-Based Departmentalization
Functional Departmentalization
✓ Easier communication with sub-units
✓ Application of high technical knowledge for solving problems
✓ Greater group and professional identification
✓ Less duplication of staff activities
✓ Higher product quality
✓ Increased organizational efficiency
Product-Based Departmentalization
✓ Less conflict between major sub-units
✓ Easier communication between subunits
✓ Less complex coordination mechanisms
✓ Providing a training ground of top
management
✓ More customer orientation
✓ Greater concern for long-term issues
Line Authority
refers to the scalar chain or the superior-subordinate linkages that extend throughout the hierarchy
Line
achieve objectives
Staff
support the line employees
Type of Staff
- Specialized Staff
- General Staff
- Organization Staff
Specialized Staff
conduct technical work that is beyond the time or knowledge capacity of top management, such as conducting market research and forecasting
General Staff
consists of staff assistants to whom managers assign work
Organization Staff
provide services to organization as a whole; their role is to integrate different operations across departments
