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Topics: Organizational structure, Structure, Organizational studies and human resource management Pages: 5 (797 words) Published: October 30, 2013
MGT 101
ORGANIZATION HANDOUT
Organizing: The management function concerned with assigning task, grouping tasks into department and allocating resources to departments.

Organization: A deliberate arrangement of people to accomplish some specific purpose.

An organizational structure is the formal arrangement of jobs within an organization.

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Organization design
A process in which managers develop or change their organization’s structure. Work specialization
A component of organization structure that involves having each discrete step of a job done by a different individual rather than having one individual do the whole job. Formalization
refers to the degree to which jobs within an organization are standardized and the extent to which employee behavior is guided by rules and procedures. In a highly formalized organization, employees have little discretion, and there’s a high level of consistent and uniform output. Formalized organizations have explicit job descriptions, lots of organizational rules, and clearly defined procedures.

Organizational Structure:
Chain of command
The continuous line of authority that extends from upper organizational levels to the lowest levels and clarifies who reports to whom. Unity of Command
The management principle that no person should report to more than one boss. Span of control
The number of subordinates a manager can direct efficiently and effectively.

Authority
The rights inherent in a managerial position to give orders and expect them to be obeyed. Power
An individual’s capacity to influence decisions.
Responsibility
An obligation to perform assigned activities

Types of Organizational Authority
Line authority
The position authority (given and defined by the organization) that entitles a manager to direct the work of operative employees. Staff authority
Positions that have some authority (e.g., organization policy enforcement) but that are created to support, assist, and advise the holders of line authority

Line Versus Staff Authority

Centralization And Decentralization
Centralization
A function of how much decision-making authority is pushed down to lower levels in an organization; the more centralized an organization, the higher the level at which decisions are made Decentralization

The pushing down of decision-making authority to the lowest levels of an organization

Types of Departmentalization
Functional departmentalization
The grouping of activities by functions performed
Product departmentalization
The grouping of activities by product produced
Customer departmentalization
The grouping of activities by common customers
Geographic departmentalization
The grouping of activities by territory
Process departmentalization
The grouping of activities by work or customer flow

Contingency Variables Affecting Structure
Mechanistic organization
The bureaucracy; a structure that is high in specialization, formalization, and centralization Organic organization
An adhocracy; a structure that is low in specialization, formalization, and centralization
Rigid hierarchical relationships
Fixed duties
Many rules
Formalized communication channels
Centralized decision authority
Taller structures

Collaboration (both vertical and horizontal)
Adaptable duties
Few rules
Informal communication
Decentralized decision authority
Flatter structures
Organization Design Applications
Simple structure
An organization that is low in specialization and formalization but high in centralization Functional structure
An organization in which similar and related occupational specialties are grouped together Divisional structure
An organization made up of self-contained units

Functional structure

Divisional Structure

OTHER ORGANIZATIONAL STRUCTURES
Matrix structure
An organization in which specialists from functional departments are...
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