Chapter 13 - 1 Chapter 13 Designing effective organizations...

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1 Chapter 13 – Designing effective organizations Structural dimensions of organizations The term organizational structure refers to the formal configuration between individuals and groups with respect to the allocation of tasks, responsibilities, and authority within organizations The connections between various clusters of functions of which an organizations is composed can be represented in the form of a diagram known as an organization chart Division of labor o The standard organization chart reflects the fact that the many tasks to be performed within an organization are divided into specialized jobs, a process known as the division of labor o The more the tasks are divided into separate jobs, the more those jobs are specialized and the narrower the range of activities that job incumbents are requires to perform o The degree to which employees perform specialized jobs is likely to depend on the size of the organization Hierarchy of authority o Organizations charts provide information about who reports to whom o Organizations may have many levels, in which case their structure is considered tall, or only a few in which case their structure is considered flat Span of control o When you look at an organization chart the number of people formally required to report to each individual manager is immediately clear – span of control o Those responsible for many individuals are said to have a wide span of control, whereas those responsible for fewer individuals are said to have a narrow span of control o When a manager’s span of control is wide, the organization itself has a flat hierarchy Line versus staff positions o People occupying line positions have decision-making power o Staff position-no decision making power, but can help make them Centralization versus decentralization o This process of delegating power from higher to lower levels within organizations is known as decentralization o Centralization, the tendency for just a few powerful individuals or groups to hold most of the decision-making power o The way people respond to the different levels of centralization is based on their perceptions
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This test prep was uploaded on 04/18/2008 for the course BUSINESS 2400 taught by Professor Deutch-salamon during the Winter '08 term at York University.

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Chapter 13 - 1 Chapter 13 Designing effective organizations...

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