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
http://tools2succeed.com/