Manoj.ghadge_OTPR.course [Session 4]

7/23/2019 Manoj.ghadge_OTPR.course [Session 4]

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0TPR

Session 4 : Dimensions of Organization

Structure

COORDINATOR & FACILITATOR

Prof. Manoj Ghadge


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Structural Dimensions - Types

1. Complexity

2. Formalization

3. Centralization

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Differentiation

Differentiation is the degree to which task and the work of

individuals, groups and units are divided within an organization.

Differentiation helps the different unit within an organization to

concentrate on different part of the organization. For example

universities have their departments to cope with various functions.

These departments have their own norms and values to share.

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Integration

Integration is the coordination of the work of previously

performed under various departments. So as university

differentiate the department, there is a need to integrate the work

of various departments to achieve high quality research, teaching

and consultancy funds.

As the environmental uncertainty is low, we need to differentiate

less and vice versa. As the environment become uncertain,

organization need to respond by differentiating more and more.

When we differentiate more; we need to integrate also more.

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1. Complexity

Complexity is the degree of differentiation and

integration within an organization.

Horizontal differentiation

Vertical differentiation

Spatial differentiation

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A. Horizontal Differentiation

Degree of differentiation between units based on

Nature of the task

Education and training

Orientation of members

Specialization and Departmentation

Specialization is particular grouping of activities

performed by an individual Specialization functional specialization ( division of

labor) and social specialization

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What it means!

It means if we have more number of jobs within an

organization that requires skills and knowledge, than more

complex that organization is.

Example - if the organization requires to focus more on R & D

as well as marketing than there is more complexity

Increase specialization results in increased complexity

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Functional specialization

Jobs are broken down into simple and repetitivetask

Why does division of labor still work ?

No one person can perform all the task

Limiting knowledge act as a constraint

Poor usage resources in paying individuals

Efficiency

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Departmentation

The process of grouping together activities and employees

who share a common supervisor and resources, who are

jointly responsible for performance, and who tend to

identify and collaborate with each other.

Coordinate activities that have been horizontally

differentiated.

How is Departmentation different that of Teams

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B. Vertical Differentiation

Refers to depth in the structure

Tall and Flat organization

Hierarchy number of levels of authority to be found in anorganization

Span-of-control - number of subordinates who report to a

single supervisor or manager and for whose work that personis responsible

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Flat Organization

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Tall Organization

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Span of Control

Factors determining the choice of span-of-control

Similarity of task

Geographic proximity

Subordinate characteristics

Interaction requirement

Standardized procedures

New problems

Knowledge gap

Task complexity

Managers job

Planning and co-ordination

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C. Spatial Differentiation

Spatial Differentiation is degree to which the location of

an organizations office, plants and personnel are

dispersed geographically.

Why complexity is important for managers ?

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Line staff and functional relationship

Authority

Responsibility

Accountability

Line employees directly responsible for manufacturinggoods and services

Staff employees take advisory position and use specialized

expertise to support

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Line Staff Functional Relationship

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2. Formalization

The extent to which jobs within organization are standardized

Formalization can be explicit or implicit

Range of formalization can vary within and among

organization

Depends on nature of skill required for the job, level withinthe organization

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Why to have Formalization

Why to have formalization?

To regulate employee behavior

To promote coordination

Formalize job or people?

Externalize behavior

Professionalization

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Formalization Techniques

Selection

Role Requirement

Rule, Procedures and Policies

Trainings

Rituals

Complexity and Formalization : Nature of

relationship ?

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3. Centralization

The concentration of authority and responsibility for

decision-making power in the hands of managers at

the top of an organizations hierarchy.

The degree to which the formal authority to make

discretionary choices is concentrated in an

individual, unit, or level (usually high in

organization), thus permitting employees (usually

low in organization) minimum input into their work.

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Why is Centralization Important

Managers have limited ability to give attention to

every detail

Decentralization can provide detail input into the

decision Facilitates speedy action

Provide motivation to employees

Create training opportunity

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Nature of Relationships!

Complexity and Formalization

Centralization and Complexity

Centralization and Formalization

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Manoj.ghadge_OTPR.course [Session 4]

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