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OB Chapter 8 - Organisational Structure & Design - Part 2 (Categories…
OB Chapter 8 - Organisational Structure & Design - Part 2
Specialisations
Vertical
Hierarchical division of labour & decision-making
Unity of command
Each worker has 1 supervisor
Minimises ambiguity, limits flexibility
Span of control
Refers to no. of ppl reporting to a supervisor
Wide span = more worker autonomy
Narrow span = closer control
Horizontal
Departmentalisation
Divide labour across work units
Line personnel
Work groups conduct core business
Staff personnel
Specialist work groups support line groups
Departmentalisation
By Function
Grouping of ppl & resc. to match major functions of organisation
By Division
To match product, service, or client
By Matrix
Functional + Divisional
Individual is assigned to more than 1 unit
More flexibility in reaction
Source of conflict :red_cross:
2x 'bosses'
Categories of Organisational Design
Divisional
Establishes separate structure for each autonomous biz unit/division
Conglomerate
Orgs that own several unrelated businesses
Bureaucratic
Ideal form of organisation
Hierarchical control
Promotion by merit
Division of labour
Administration by rule
Emerging Designs
Core ring organisation
Downsize to minimal levels w/ capacity to expand when required
Adhocracy
Shared decentralised decision making
Flat structure
Extreme horizontal specialisation
Few formal controls
Strategic alliances
Common agreement/joint venture between 2 or more independent organisations
Simple
Small organisations :check: :check:
Advantages :check:
Simple
Flexible
Responsive to central management
Disadvantages :red_cross:
Only as effective as senior manager :red_cross: