Chapter 15 MGT

Chapter 15 MGT - Chapter 15 Organizational design: the...

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Chapter 15 Organizational design: the process of constructing and adjusting an organization’s structure to achieve its goals. Organizational structure: the linking of departments and jobs within an organization. Contextual variables: a set of characteristics that influence the organization’s design process. Key organizational design processes The two processes of differentiation and integration are keys to successful organizational design. Differentiation Differentiation: the process of deciding how to divide the work in an organization. There are four dimensions of differentiation: 1. Manager’s goal orientation 2. Time orientation 3. Interpersonal orientation 4. Formality of Structure Horizontal differentiation: the degree of differentiation between organizational subunits and is based on employees’ specialized knowledge, education, or training. - Increases with specialization and departmentation Vertical differentiation: the difference in authority and responsibility in the organizational hierarchy. Spatial Differentiation: the geographic dispersion of an organization’s offices, plants, and personnel. Complexity: refers to the number of activities, subunits, or subsystems within the organization. **P521 Integration: Integration: the process of coordinating the different parts of an organization. Vertical linkages are used to integrate activities up and down the organizational chain Rules/ procedures, adding positions to the
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Chapter 15 hierarchy, and management information systems serve as vertical linkages. In general, the flatter the organization, the more necessary are horizontal integration mechanisms. Basic Design Dimensions 1. Formalization: the degree to which an employee’s role is defined by formal documentation (procedures, job descriptions, manuals, and regulations.) 2. Centralization: the extent to which decision-making authority has been delegated to lower levels of an organization. An organization is centralized if the decisions are made at the top of the organization and decentralized if decision-making is pushed down to lower levels. 3. Specialization: the degree to which organizational tasks are subdivided into separate jobs. The division of labor and degree to which formal job descriptions spell out job requirements indicate the level of specialization in the organization 4. Standardization: the extent to which work activities are described and performed routinely in the same way. Highly standardized organizations have little variation in the defining of jobs. 5. Complexity: the number of activities within the organization and the amount of differentiation needed within the organization 6. Hierarchy of authority: the degree of vertical differentiation through reporting relationships and the span of control within the structure of the organization An organization that is high on formalization, centralization, specialization, standardization, and complexity and has a tall hierarchy of authority is said to be highly bureaucratic. An organization that is on
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This note was uploaded on 08/30/2011 for the course MGT 3305 taught by Professor Reed during the Fall '08 term at Baylor.

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Chapter 15 MGT - Chapter 15 Organizational design: the...

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