Organizational Design Flashcards
Six core elements of organizational structure
Specialization: To what extent are tasks divided into subtasks and individual positions?
Coordination: On what basis are subtasks and positions brought together again?
Configuration: To whom are the individuals or group subordinated?
Span of control: How many individuals can a manager lead efficiently and effectively?
Delegation: Where is decision-making competence located?
Formalization: To what extent are there rules and regulations that guide the work of employees
Differentiation and Integration MODEL
-
Reasons for the subdivision of tasks to positions:
o Efficient use of employee skills
o Achieve and exploit specialization effects
o Ensure efficient sequencing of activities
Bundling of the positions by department formation in organizational structure MODEL
-
2 Types of Line Systems
- Single line systems
- Multi-line systems
Single line systems
each point can only receive instructions from a single point
Multi-line systems
A position can receive instructions from several positions
Configuration: Advantages of the One-Line Organization
- Clear responsibilities and communication channels
- Clear mechanism for resolving conflicts
- Information compression on the way through the hierarchy
Configuration: Disadvantages of the One-Line Organization
- Demotivation of the lower level due to limited room for decisions
- Lengthy decision-making processes, labour-intensive hedging activities
- Information distortions on the way through the hierarchy
Span of Control Definition
The number of subordinates a manager can lead efficiently and effectively
Span of Control Types
o Broader spans of control increase organizational efficiency
o Tight spans of control increase:
Costs for additional management positions
Complexity of vertical communication
Tendency towards too close supervision and restriction of employee autonomy
Delegation Types
Centralisation
o Degree of decision concentration at one point in the organization
Decentralisation (Delegation)
o Degree of distributed decision-making authority over the organization
Formalization Definition
o The extent to which written organizational rules are applied
Elements of Decentralization
Decentralized structures result in flat hierarchies
Increase customer orientation
Decentralized = various approaches to solutions (framework regulation)
Organizational units = centers of responsibility
How do we restructure the organization?
Autonomy (Personnel, Financial, Service, Organizational, Operating Cost, Investment, Funding)
