Download - Organizational sructure
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ORGANIZATIONAL SRUCTURE
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BureaucracyIn the first place, bureaucracies
are characterized by impersonality.Race, gender, ethnicity, and other
ascribed characteristics should have no bearing on one’s interaction with a bureaucracy and the outcomes it produces.
characteristics are also irrelevant when it comes to filling positions
workers who are chosen according to their ability to perform the tasks assigned to them, or at least their capacity to learn to do these tasks.
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formal recruiting process. In traditional China, officials (often referred to
in the West as “mandarins”) were selected on the basis of their performance in official examinations that tested their knowledge of the Confucian classics. 9 Absorption of Confucian ideals gave these officials a common cultural mooring, but it had little relevance to the actual performance of their duties.
In modern societies, government bureaucracies generally employ civil service examinations to recruit new employees, and many private organizations use job-specific tests for the same purpose. In similar fashion, promotion is sup- posed to be based on objective assessments of performance
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bureaucratic impersonality, coupled with the use of rationally derived procedures, produces a “meritocracy” in which positions are staffed and jobs are done in accordance with the employees’ capabilities.
on merit and expertise of some sort also ties in with another key characteristic of bureaucratic organization, an elaborate division of labor.
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occupational specialties:
A single organization may have dozens or even hundreds of specialized job titles. At the organizational level, these specialized tasks are often incorporated into formal roles that define an employee’s area of responsibility
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Defining Organizational StructureOrganizational StructureThe formal arrangement of jobs within an
organization.
Organizational DesignA process involving decisions about six key
elements: Work specialization Departmentalization Chain of command Span of control Centralization and decentralization Formalization
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Purposes of Organizing
• Divides work to be done into specific jobs and departments.
• Assigns tasks and responsibilities associated with individual jobs.
• Coordinates diverse organizational tasks.• Clusters jobs into units.• Establishes relationships among
individuals, groups, and departments.• Establishes formal lines of authority.• Allocates and deploys organizational
resources.
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Organizational StructureWork SpecializationThe degree to which tasks in the organization
are divided into separate jobs with each step completed by a different person.
Overspecialization can result in human diseconomies from boredom, fatigue, stress, poor quality, increased absenteeism, and higher turnover.
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What Is Organizational Structure? (cont’d)
Grouping Activities By:
• Function
• Product
• Geography
• Process
• Customer
Grouping Activities By:
• Function
• Product
• Geography
• Process
• Customer
Departmentalization
The basis by which jobs are grouped together.
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Departmentalization by TypeFunctional
Grouping jobs by functions performed
ProductGrouping jobs by
product lineGeographical
Grouping jobs on the basis of territory or geography
Process Grouping jobs on the
basis of product or customer flow
CustomerGrouping jobs by type
of customer and needs
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Functional Departmentalization
• Advantages• Efficiencies from putting together similar specialties and people with common skills, knowledge, and orientations
• Coordination within functional area• In-depth specialization
• Disadvantages• Poor communication across functional areas• Limited view of organizational goals
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Geographical Departmentalization
• Advantages• More effective and efficient handling of specific regional issues that arise
• Serve needs of unique geographic markets better
• Disadvantages• Duplication of functions• Can feel isolated from other organizational areas
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Product Departmentalization
+ Allows specialization in particular products and services
+ Managers can become experts in their industry+ Closer to customers– Duplication of functions– Limited view of organizational goals
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Process Departmentalization
+ More efficient flow of work activities
– Can only be used with certain types of products
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Customer Departmentalization
+ Customers’ needs and problems can be met by specialists
- Duplication of functions
- Limited view of organizational goals
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Organization Structure (cont’d)Chain of Command
The continuous line of authority that extends from upper levels of an organization to the lowest levels of the organization and clarifies who reports to who.
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Organization Structure (cont’d)Authority
The rights inherent in a managerial position to tell people what to do and to expect them to do it.
ResponsibilityThe obligation or expectation to perform.
Unity of CommandThe concept that a person should have one
boss and should report only to that person.
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Organization Structure (cont’d)Span of Control
The number of employees who can be effectively and efficiently supervised by a manager.
Width of span is affected by: Skills and abilities of the manager Employee characteristics Characteristics of the work being done Similarity of tasks Complexity of tasks Physical proximity of subordinates Standardization of tasks
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Contrasting Spans of Control
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Organization Structure (cont’d)Centralization
The degree to which decision-making is concentrated at a single point in the organizations. Organizations in which top managers make all the
decisions and lower-level employees simply carry out those orders.
DecentralizationOrganizations in which decision-making is pushed
down to the managers who are closest to the action.Employee Empowerment
Increasing the decision-making authority (power) of employees.
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Factors that Influence the Amount of Centralization
• More Centralization Environment is stable. Lower-level managers are not as capable or
experienced at making decisions as upper-level managers.
Lower-level managers do not want to have a say in decisions.
Decisions are relatively minor. Organization is facing a crisis or the risk of company
failure. Company is large. Effective implementation of company strategies
depends on managers retaining say over what happens.
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Factors that Influence the Amount of Centralization
• More Decentralization Environment is complex, uncertain. Lower-level managers are capable and experienced at
making decisions. Lower-level managers want a voice in decisions. Decisions are significant. Corporate culture is open to allowing managers to have
a say in what happens. Company is geographically dispersed. Effective implementation of company strategies
depends on managers having involvement and flexibility to make decisions.
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Organization Structure (cont’d)Formalization
The degree to which jobs within the organization are standardized and the extent to which employee behavior is guided by rules and procedures. Highly formalized jobs offer little discretion over
what is to be done. Low formalization means fewer constraints on how
employees do their work.
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Line organization Structure Line organization is the most oldest and
simplest method of administrative organization. According to this type of organization, the authority flows from top to bottom in a concern.
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Line and Staff Organizational Structure Line and staff organization is a
modification of line organization and it is more complex than line organization. Specialized and supportive activities are attached to the line of command by appointing staff supervisors and staff specialists who are attached to the line authority.