Chapter 8

Review

ORGANIZATION STRUCTURE

A . Fundamentals Of Organization

Differentiation 

Differentiation is created through division of labor and job specialization .

Division of labor : The assignment of different tasks to different  people or groups. 

Specialization : A process in which different tasks to different individuals and units perform different tasks

Integration 

Achieved through structural mechanism that enhance collaboration and coordination. The degree to which differentiated work units work together and coordinate their efforts.

B. The Vertical Structure

Authority in Organizations

At the most fundamental level, the functioning of every organization depends on the use of authority, the legitimate right to make decisions and to tell other people what to do. In private business enterprises, the owners have ultimate authority.

Hierarchical Levels

The authority levels of the organizational pyramid. The keys responsibilities at this top level include corporate governance-a term describing the oversight of the firm by its executive staff and board of director.

Span of Control

is the number of subordinates who report directly to an executives or supervisor. the optimal span of control can maximizes effectiveness.

Delegation

is the assignment of authority and responsibility to a subordinate at a lower level. delegation is perhaps the most fundamental feature of management because it entails getting work done through others.

Decentralization

more decisions are made at lower level. Ideally, decision making occurs at the of the people who are most directly affected and have the most intimate knowledge about the problem.

C . The Horizontal Structure

The Functional Organization : Departmentalization around specialized activities such as production, marketing, human resources.

The Divisional Organization : Departmentalization that groups  unit around product, customer, or geographic regions.

The Matrix Organization : An organization composed of duel reporting relationship in which some employees report to two supervisor a functional manager and a divisional manager.

The Network Organization : A collection of independent, mostly single function firms that collaborate on a good or service.

D. Organizational Integration

Coordination by Standardization

Standardization is establishing common routines and procedure that apply uniformly to everyone. Standardization constrain actions and integrates various units by regulating what people do. To improve coordination, organizations may also rely on formalization-the presence of rules and regulations governing how people in the organization interact.

       

Coordination by Plan

Interdependent units are required to meets deadlines and objectives that contribute to a common goal. Interdependent units are free to modify and adapt their actions as long as they meet the deadlines and targets required for working with others.

       

Coordination by Mutual Adjustment

Units interact with one another to make accommodation to achieve flexible coordination. Particularly during crises, in which rules and procedures don't apply, mutual adjustment is likely to be the most effective approach to coordination.

       

Coordination and Communication

Huge amounts of organizations flow from the external environment to the organization and back to the environment. To function effectively, organizations need to develop structures for processing information