W&O ch13 Organizational structure Flashcards
Organizational structure
The division of labour as well as the patterns of coordination, communication, workflow, and formal power, that direct the organizational activities
Division of labour
Dividing work into separate jobs and activities assigned to different people
How can labour be divided?
Horizontally: more narrow tasks (job specialization)
Vertically: more layers (supervisor of employees, supervisor of that supervisor…)
Sometimes both, but not necessarily
Benefits of division of labour (job specialization)?
- Finish tasks more quickly
- Less waste of time when switching between tasks
- Training costs lower
- Easier to match people with the job they are best suited for
What is the condition for effectiveness of division of labour?
Only effective if activities are coordinated
Processes through which coordination of work activities can be achieved
- Informal communication
- Formal hierarchy
- Standardization
Informal communication
- sharing info on mutual tasks
- forming common mental models to synchronize work activities
- vital in non-routine, ambiguous situations
What is informal communication aided by?
- Direct communication
- Liaison roles (bridging two parties that don’t normally communicate)
- Integrator roles (similar to liaison but centralized around specific product or goal )
- Temporary teams (concurrent engeneering) - two-way feedback at all times of the product’s development
Formal hierarchy
- direct supervision, ‘‘chain of command’’ (manager)
- formal (legitimate) power over others to direct work processes and allocate resources
Problems with formal hierarchy
- Slow flow of information
- One manager can supervise only a limited number of people - growing company results in costly bureaucracy
- Limit employee autonomy and involvement - complaints of being micromanaged
Standardization and its three forms
Creating routine patterns of behaviour or output through 3 forms:
1. Standardized processes
2. Standardized outputs (inform employees what they are accountable for, e.g. number of products)
3. Standardized skills (train people)
Standardized processes
Works best for simple/routine tasks
- product or service can be improved through providing employees with job descriptions, procedures and safety rules
Elements of organizational structure
- Span of control
- Centralization
- Formalization
- Departmentalization
Span of control
Number of people reporting directly to the next hierarchical level, also called ‘direct reports’
Different levels of span of control
Wide - flat (fewer layers) vs Narrow - tall structure (few people report directly to a manager)
- Number of hierarchical levels in relation to number of employees
- For best performance, average of 38 employees per supervisor
- In times of growth often more layers are required which can result in problems