Sessions 9/10/12- Org Design (functional,divisional, etc) Flashcards
Function
a subunit composed of people working working together who possess the same or similar techniques, knowledge, or skills to perform their jobs
Division
a subunit composed of a collection of functions or departments that share responsibility in producing a particular good or service
Organisational complexity
the number of different functions and division present in an organisation
Function types
Support Maintenance Productive Adaptive Managerial
Vertical differentiation
the way an organisation designs its authority hierarchy and the links to which the reporting relationships happen
Establishes the distribution of authority between levels
Horizontal differentiation
the way an organisation groups its tasks into roles and roles into subunits (functions and divisions)
roles differentiated according to their main task responsibilities
Integration
the process of coordinating different tasks and roles in the organisation for the purpose of goal achievement
Differentiation
process of establishing the division of labor and tasks throughout the organisation
Division of labor
aka specialisation the process of assigning different tasks to different people in the organisation
Advantages of Division of Labor
Efficient use of labor
Reduced training costs
Increased standardisation and uniformity of output
Increased expertise from repetition of tasks
Disadvantages of Division of labor
Routine can lead to demotivation
Reduced job satisfaction
Decreased worker involvement and commitment
Increased worker alienation
Possible incompatibilities with computer technologies
Departmentalisation
process by which tasks are managed and allocated to different work groups
Functional Structure
is an org design that groups people on the basis of the same skills, techniques used, products produced and resources they use. it is the basis of horizontal differentiation
Pros of a functional structure
economies of scale
people become more specialised on what they’re working on
norms and values are developed which allow more control over behaviour therefore better and more coherent quality of products is produced
high level of delegation (functional manager)
Cons of functional structure
organization politics: each function builds its own empire
importance to titles
trade off between differentiation and integration
diminished will to innovate
Divisional Structure
group of functions organised around a particular geographical area, product/service, or market
Matrix Structure
when employees report to 2 managers they are working in a matrix structure. for example, a product team manager and a functional manager
team-based structure
organisations with a team-based structure create horizontal and vertical teams that can define part of or all the organization
lattice structure
in such a a structure, cross-level and cross-functional teams are formed and dissolved to get a particular task done
network structure
collection of autonomous units or firms that act as a single entity using social mechanisms for coordination and control