SECTION 3 Flashcards
What are the dimensions of organizational structure?
SPECIALIZATION
labor devision regulations, determination of subtasks
COORDINATION
labor devision regulations, orientation to overall goal
CONFIGURATION
regulation for hierarchical order
Superordiniation, Subordination and parataxis of tasks and enforcing persons
DELEGATION
regulation for distributing decision authority, permitting individual to make mandatory decisions
FORMALIZATION
regulation of communication among themselves, written specifications of relations
What is the concept of specialization?
particular forms of labor devision in which subtasks of different manner emerge
- distribution of activities to other employees or units
- protection of rational target achievement
- increasing profitability in fulfilment of tasks
How is the devision of labor distinguished (specialization concept)
MANNER (disparate tasks)
- vertical labor devision (specialization) - manner / scope
SCOPE (similar task) - horizontal labor division
Advantages and disadvantages of specialization?
ADVANTAGES
decreasing requirements for employees: short training periods, employment comfortable to aptitude
low employee qualification (inexpensive workforce)
low endeavour and tiredness
(high quality)
learning effect (increasing quantities and quality of outcome)
clear allocation of responsabilities (adjustment of reasons for inadequate outcome)
DISADVANTE
high level of specialization leads to psychic stress, high sickness absence rate, additional employees and costs, low attractiveness, higher wages in times of full employment
labor monotony leads to decreasing concentration and quality
coordination costs depressing production profit
What is reengineering?
includes a reduction of specialization and prerequisite the empowerment of workforce and delegation of responsibilities.
Formation of process teams as interdependently operating units.
Autonomously (process teams largely align themselves)
Describe the reengineering cycle of effects
Reduction of interfaces and lower labor devision Simplified coordination Quality improvement Acceleration of processes Trimming of hierarchy (cost saving)
What are the guidelines of designing labor tasks to emerge intrinsic motivation?
Variety of challenges (prevention of one-sided stress)
Possibilities for social interaction (reduction of stress due to social support)
Autonomy (reduction, but not sacrifice of formal requirements)
Learning development potentialities (possibility to continuously expand knowledge)
Feedback (response about performance of an employee)
Holistic (horizontal & vertical expansion)
Types of departmentalization
PERFORMANCE/FUNCTION
situations of equal relate performance or function to b consolidated, departmentalisation based on training and qualification
OBJECTS/PRODUCTS
situation of equal objects, products or services to be consolidated, departmentalisation based on performance
CUSTOMER GROUPS/ REGIONS
situations of equal customer characteristics or customer groups to be consolidated, based on country of origin, region
What is the recommended design of departmentalisation?
most widely autonomous, interdependent (solidar), low level of department overlapping coordination
What are the forms of organizational structure? (specialization)
Functional organization:
focus on optimal resource application evaluation of managers due to level of target achievement of functional department)
Divisional organization:
focus on coordination of products and services, simplified coordination of department and sub-department, accountable oney for one product line)
Difference between functional and divisional structure in specialization?
FUNCTIONAL
devision based on performance/function on second level, largest organizational units be named as areas of activity
Example: departmentalisation based on procurement, production, marketing & sales and administration
Third level: product lines
DEVIISIONAL
devision based on objects, regions, or customer groups at 2nd level, largest orga. units named as sectors and devisions, example: departmentalisation based on product lines
3rd level functions
Types of coordination
Forward coordination
in terms of stepwise process -increasing substantiation
pooling of coordination activities (temporary storage)
— anticipatory coordination
Feedback coordination
incurrence in times of discrepancies, coordination of adjustments of workplaces/machines —- reaction to disruption
Types of coordination principles
Departmentalization
loose linkage of individual units and pooling of coordination activities
Buffer
creation of buffer (temporary storage)
Slack resources (employment of flexible resources & provision of excess resources)
Management by Exception
(restriction of coordination to limited number of sizes to define standards and ranges)
Name the 7 instruments of coordination inside organization
- Personal instruction
- Self-coordiniation
- Programs
- Plans
- Organizational internal markets
- Organizational culture
- Standardization of roles
How does coordination of personal instruction work?
Forward coordination (increasing disaggregation of targets and instructions while increasing concretisation each time) Feedback coordination (escalation of targets and information to superior. instance and seek instructions) Evaluation (disadvantage): Overload of instances, conscious decision-making essential: mostly difficult to overlook consequences, impossible in times of. wide margins of administration, institutionalised hierarchy
