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Category: Business and Industry
Date Submitted: 10/27/2015 07:29 PM
Foundations of Organization
Structure
What is Organizational Structure ?
An organizational structure defines how job tasks are
formally divided, grouped, and coordinated.
6 (Six) Key Elements design of organization’s structure:
1. Work Specialization
2. Departmentalization
3. Chain of Command
4. Span of Control
5. Centralization and Decentralization
6. Formalization
Work Specialization
Work Specialization defines the degree to which tasks in an organization are
subdivided into separate jobs
Advantages
At the beginning, Increases employee skills through repetition
Less between-job downtime increases productivity
Specialized training is more efficient
Allows use of specialized equipment Increases efficiency and productivity
Weakness
When not widely practiced, Human diseconomies likes boredom, fatigue, stress,
low productivity, poor quality, increased absenteeism, and high turnover
HOW TO SOLVE HUMAN DISECONOMIES ?
• GIVING EMPLOYEES A VARIETY OF ACTIVITIES TO DO
• ALLOWING TO DO A WHOLE AND COMPLETE JOB
• PUTTING INTO TEAMS WITH INTERCHANGEABLE
SKILLS OFTEN TO ACHIEVE SIGNIFICANTLY HIGHER
OUTPUT AND INCREASE SATISFACTION.
Departmentalization
Departmentalization defines the basis by which jobs in an
organization are grouped together.
The ways to grouped activities by :
1. Functions Performed (engineering, accounting, marketing,
purchasing, personnel and etc. departments)
2. The type of product or service (Tide, Pampers, Meats, etc.)
3. The Basis of Geography or Territory (Western, southern, or
Midwestern regions etc.)
4. Process (Validating, processing, payment collection etc,.)
5. Type of Customers (Large Corp. , small businesses, etc.)
Chain of Command
Chain of Command is an unbroken line of authority that extends from the
top of the organization to the lowest echelon and clarifies who reports to
whom.
Chain of Command related to :
Authority, the right inherent in managerial position to give orders...