11-10-2012, 04:35 PM
The Organizational System
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What is Structure?
The degree of complexity, formalization and centralization in the organization.
Complexity is the degree of vertical, horizontal and spatial differentiation in an organization
Formalization is the degree to which jobs within the organization are standardized.
Centralization is the degree to which decision making in concentrated at a single point in the organization
Classical View of Structure
Division of Labour – Specialization; breaking jobs down into simple and repetitions tasks
Unity of Command – a subordinate should have only one superior to whom he or she is directly responsible.
Responsibility - an obligation to perform
Line Authority – authority to direct the work of a subordinate
Chain of Command – the superior-subordinate authority chain that extends from the top of the organization to the lowest echelon
Staff Authority – positions that support, assist and advise line managers
Span of Control – the number of subordinates a manger can efficiently and effectively divert
Departmentation: grouping of activities on some common basis
The Mechanistic Structure……
High horizontal differentiation
Rigid hierarchical relationships
Fixed duties
High formalization
Formalized communication channels
Centralized decision authority
Work Specialization
It refers to the degree to which tasks in the organization are subdivided into separate jobs.
In work specialization...
The entire job is broken down into steps, each step completed by a separate individual.
Individual workers specialize in doing part of an activity
Involves repetitive performance of a few skills
can be viewed as a means to make the most efficient use of employee's skills
some task requires highly developed skills
others can be performed by the untrained
Span of Control
Span of management refers to the number of people reporting to a manager in an organization.
In a narrow span of management the number of people reporting to a manager is comparatively low.
The opposite of narrow span of management is a wide span of management, in which number of people reporting to a manager is comparatively high.
Narrow Span of management means a single manager or supervisor oversees few subordinates. This gives rise to a tall organizational structure.
While, a wide span of management means a single manager or supervisor oversees a large number of subordinates. This gives rise to a flat organizational structure.
There is an inverse relation between the span of management and the number of hierarchical levels in an organization, i.e., narrow the span of management , greater the number of levels in an organization.