Monday, July 30, 2018

Organizational Structure Part 1

An organization is “a collection of interacting and interdependent individuals who work towards common goals and whose relationships are determined according to a certain structure”  (Duncan, 1981) 
  • Key Concepts
    • Division of Labor
      • How activities within the organization are allocated into different jobs or tasks performed by different individuals
      • Division of Labor - Advantages
        • Most Efficient Utilization of Labor
        • Increased Standardization
        • Uniformity of Output
        • Reduction in Training Costs
        • Heightened Expertise
      • Division of Labor - Disadvantages
        • Routine & Repetitive Tasks
        • Low Job Satisfaction
        • Low Motivation and Employee Satisfaction
    • Span of Control
      • The amount of individuals who report either directly or indirectly to a manager
      • Managers who have a small span of control are able to develop closer relationships with employees and greater control over daily operations
    • Optimal Span of Control
      • The coordination requirements within the unit
      • The type of information required by the unit
      • The similarity of tasks within the unit
      • The extent to which individuals require direct access to the supervisor
      • Differences in members’ need for autonomy
    • Configuration
      • The shape of the organization reflecting the division of labor and the coordination of tasks
    • Administrative Hierarchy
      • Reporting Relationships from the lowest level to the highest in the organization
      • An administrative hierarchy is inversely related to the Span of Control
        • Organizations with a large span of control have a small amount of managers in the hierarchy
        • Organizations with a small span of control have a large administrative hierarchy
Until next time...

Sheryl Tuchman, SPHR, SHRM-SCP

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