Organizing
arranging and structuring work to accomplish an organization’s goals.
Organizational Structure
the formal arrangement of jobs within an organization.
Organizational chart
the visual representation of an organization’s structure.
Organizational Design
a process involving decisions about six key elements:
- Work specialization
- Departmentalization
- Chain of command
- Span of control
- Centralization and - decentralization
- Formalization
Work specialization
dividing work activities into separate job tasks.
(Overspecialization can result in human diseconomies such as boredom, fatigue, stress, poor quality, increased absenteeism, and higher turnover.)
Departmentalization
the basis by which jobs are grouped together.
Cross-functional team
a work team composed of individuals from various functional specialties.
Chain of command
the continuous line of authority that extends from upper levels of an organization to the lowest levels of the organization—clarifies who reports to whom.
Authority
the rights inherent in a managerial position to tell people what to do and to expect them to do it.
Acceptance theory of authority
the view that authority comes from the willingness of subordinates to accept it
Line authority
authority that entitles a manager to direct the work of an employee
Staff authority
positions with some authority that have been created to support, assist, and advise those holding line authority
Responsibility
the obligation or expectation to perform.
Unity of command
the management principle that each person should report to only one manager.
Span of control
the number of employees who can be effectively and efficiently supervised by a manager.
Centralization
the degree to which decision-making is concentrated at the upper levels of the organization.
Decentralization
the degree to which lower-level employees provide input or actually make decisions.
Employee empowerment
giving employees more authority (power) to make decisions.
Formalization
the degree to which jobs within the organization are standardized and the extent to which employee behavior is guided by rules and procedures.
- Highly formalized jobs offer little discretion
- Low formalization means fewer constraints on how employees do their work.
Mechanistic organization
an organizational design that’s rigid and tightly controlled.
Organic organization
an organizational design that’s highly adaptive and flexible.
Unit production
single units or small batches
Mass production
large batches of output
Process production
continuous process of outputs.
Simple structure
an organizational design with low departmentalization, wide spans of control, centralized authority, and little formalization.
Functional structure
an organizational design that groups together similar or related occupational specialties.
Divisional structure
an organizational structure made up of separate, semiautonomous units or divisions.
six key elements in organizational design.
- Work specialization
- Chain of command
- Span of control
- Departmentalization
- Centralization-decentralization
- Formalization