Lecture 10 - Structure of Organizations
Lecture 10 - Structure of Organizations ORSC 1109
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This 2 page Class Notes was uploaded by Leslie Ogu on Friday February 19, 2016. The Class Notes belongs to ORSC 1109 at George Washington University taught by Costanza, D in Fall 2015. Since its upload, it has received 24 views. For similar materials see Introduction to Organizational Sciences in Humanities and Social Sciences at George Washington University.
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Date Created: 02/19/16
Leslie Ogu ORSC 1109 02/22/2016 Structure of Organizations How are Organizations Set Up ● Division of Labor work is divided ○ Implies some Hierarchy ○ Creates need for rules and policies ○ Weber one of the first people to write about it ■ discussed the efficiency of structures What Does a Structure do for an Organization? ● Should help attain goals ● Minimizes individual variation ○ organizations want a person to do their job, and nothing else ● Sets the stage for other organization characteristics like influence, leadership, and interactions Characteristics ● Differentiation or Complexity the number and dispersion of unique tasks performed by the organization ○ More differentiation makes it harder to control ○ Sets up challenge of command and control ○ Challenge to keep integration with all the complexity ○ Different types of differentiation ■ Horizontal Differentiation not doing anything new, just more of whatever it is they are already doing ● Count the total number of jobs ● Maximum Specialization being really good at one aspect of the product or job ● Duplication more people doing it ● Why would an organization be this way? ○ Can happen unintentionally or intentionally depending on environmental pressures ■ Vertical Differentiation organizations that require a lot of levels of management ● Count number of levels ● Created to get control of complexity and differentiation ■ Geographical Differentiation opening branches in other cities, states, or countries ● Count different number of locations ■ All three kinds can work together ● Centralization ○ As organizations get bigger both horizontally and vertically, they tend to get less centralized ■ size = less ■ technology = less (more complicated technology makes organizations less centralized) ■ Environmental Dynamism can lead to less or more centralization (no one way) ○ Challenge of Centralization is balance ■ Have to give enough authority so managers can make some decisions but not too much or they will run rampant, or go crazy ● Formalization an organization following strict rules and guidelines ○ The more they follow, the more formalized the group is ○ Organizations tend to be formalized when there is a higher risk or cost of mistake ○ Two Types: ■ De jure written down rules and guidelines ● Risk or cost is more in effect ■ De facto way things work but no written guidelines ● Culture plays more in effect ○ Challenge is to balance formalization and flexibility