Lecture 2 - BA 310: Organizational Structure II...

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1 BA 310: Organizational Structure II Coordination and Design
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2 The second pillar of structure: Coordination Specialization means dividing things: Jobs divide work Departmentalization divides organizations. Coordination keeps things _________in synce__________: Job descriptions Managers (Hierarchy ) Task Forces (Integrating Mechanism ) The paradoxical twist: More specialization => more coordination
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3 Roadmap: Coordination Why do we need coordination in organizations? Hierarchy has been vilified by guru after guru. Why does it still persist? What is a “flat” structure? Why is it popular? What are centralization and decentralization, and their pros and cons? What are integrating mechanisms? Why do we need them?
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4 Different components of coordination in organizations: Within the job Formalization Professional Standards ____________vertically_______: Up and down the organization Chain of Command Span of Control Centralization / Decentralization ________horizontally__________: Across departments Integrating Mechanisms
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5 Coordinating at the job level: Formalization Formalization: the degree to which jobs are guided by standardized rules & procedures. Higher formalization means: More explicit job descriptions More clearly defined procedures Less discretion for workers High formalization is appropriate when: Jobs are relatively simple and routine (Charlie Chaplin) Importance of consistency is high (safety, legal, equity) Example: Department of motor vehicles, Red October next slide Low formalization is usually coupled with mutual adjustment Mutual adjustment – workers agree between themselves how to coordinate their work Example: Jazz band, basketball, product development
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6 Red October - Helicopter pilot won’t use reserve fuel Pro – Enhances safety. You’ll consistently return to base Con – Limits flexibility. (May not be able to adjust to changing environment) Lightning during transfer Pro – Formalization incorporates learning so the job can be done quickly, consistently, safety
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7 Coordinating Vertically : Hierarchy Hierarchy: An organization’s chain of command, that defines the relative authority each manager has. Authority: The power to hold people accountable for their actions and to decide how to use of organizational resources. _________________chain of command: The continuous line of authority from top to bottom of an organization Unity of command - a person should report to only one manager Hierarchy is powerful but inherently limited Managers don’t have time or knowledge to make all decisions “Silos” – hierarchies lead to vertical information flows Reports of the death of hierarchy are greatly exaggerated
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This note was uploaded on 02/12/2010 for the course BADM 310 taught by Professor Staff during the Spring '08 term at University of Illinois, Urbana Champaign.

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Lecture 2 - BA 310: Organizational Structure II...

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