7/29/2019 Module 3 Odod (b)

1/11

1

DIVISION OF LABOUR&

COORDINATION

Division of labour

Subdivision of work into

separate jobs assigned todifferent people

Coordination of work

Informal communication

Formal hierarchy

Standardization

Formalization

Goals/outputs

Training/skills

a system of organizing the manufacture of an article in a series of

separate specialized operations, each of which is carried out by adifferent worker or group of workers

7/29/2019 Module 3 Odod (b)

2/11

2

ORGANIZATIONAL STRUCTURE&DESIGN

7/29/2019 Module 3 Odod (b)

3/11

Division of Labour

Dimension Low HighDegree of specialization General tasks Highly specialized tasks

Typical organizational size Small Large

Economic efficiency Inefficient Highly efficient

DIVISION OF LABOUR: A SUMMARY

7/29/2019 Module 3 Odod (b)

4/11

4

Departmentalization "Departmentalization is the grouping of jobs, processes, and

resources into logical units to perform some organizational task."Indepartmentalization, similar activities are grouped together to formvarious departments.

For example, all the activities relating to accounts are groupedtogether to make the accounts department. Similarly, we havepurchase department, production department, salesdepartment, finance department, human resource (HR) department,etc.

http://kalyan-city.blogspot.com/2012/02/what-is-production-definition-meaning.htmlhttp://kalyan-city.blogspot.com/2011/11/what-is-finance-meaning-definition.htmlhttp://kalyan-city.blogspot.com/2011/11/what-is-finance-meaning-definition.htmlhttp://kalyan-city.blogspot.com/2012/02/what-is-production-definition-meaning.html

7/29/2019 Module 3 Odod (b)

5/11

5

EFFECTS OF DEPARTMENTALIZATION

How are employees and their activities grouped together?

Areas of common supervision.

Establishes teams work and supervision structure.

Encourages informal communication among people andsubunits.

Creates common resources, measures of performance,etc...

5 pure types of departmentalization

7/29/2019 Module 3 Odod (b)

6/11

6

Simple

Few employees reporting directly to one person (owner)

Owner

Employee Employee Employee

7/29/2019 Module 3 Odod (b)

7/117

Organizes employees around skills or otherresources (marketing, production)

Create subordinate goals

Functional Organizational Structure

President

Finance Production Marketing

7/29/2019 Module 3 Odod (b)

8/118

Organizes employees around outputs, clients, orgeographic areas

Divisionalzed Structure

PRESIDENT(Geographical Area)

ENTERPRISE SYSTEMS

(Area Managers)LASER JET SOLUTIONS CONSUMER PRODUCTS

7/29/2019 Module 3 Odod (b)

9/119

Project CManager

Project BManager

Project AManager

EngineeringManager MarketingManager SoftwareManager

Employees are temporarily assigned to a specific project team and

have a permanent functional unit

Project-Based Matrix Structure

President

7/29/2019 Module 3 Odod (b)

10/1110

HYBRID structuresA hybrid organization is an organization that mixes elements, value

systems and action logics of various sectors of society, i.e.the public sector, the private sector and the voluntary sector.

Parts are combined to maintain balance of power and effectivenessacross functional, product, geographic and client focused units

http://en.wikipedia.org/wiki/Public_sectorhttp://en.wikipedia.org/wiki/Private_sectorhttp://en.wikipedia.org/wiki/Voluntary_sectorhttp://en.wikipedia.org/wiki/Voluntary_sectorhttp://en.wikipedia.org/wiki/Voluntary_sectorhttp://en.wikipedia.org/wiki/Voluntary_sectorhttp://en.wikipedia.org/wiki/Private_sectorhttp://en.wikipedia.org/wiki/Private_sectorhttp://en.wikipedia.org/wiki/Private_sectorhttp://en.wikipedia.org/wiki/Public_sectorhttp://en.wikipedia.org/wiki/Public_sectorhttp://en.wikipedia.org/wiki/Public_sector

7/29/2019 Module 3 Odod (b)

11/1111

The degree to which organizations standardize

behavior through rules, procedures, formaltraining and related mechanisms.

FORMALIZATION