Leavitt defined an organization as a particular pattern of structure, people, task and techniques. Rewards based on obeying supervisors. Emphasizing horizontal and lateral organizational relationships as much or more than vertical ones. Observe that organizations have different blends of centralization and de-centralization. Improving motivation and commitment—offers more opportunities to participate in key decisions. This does little harm as long as everyone knows what is happening and the organizational climate is otherwise healthy and trusting. In a hotel, the rooms and food and beverage departments account for most revenue.
Disadvantages of specialization would include adverse effects on fundamental work attitudes, relationships and communication. Individuals typically perform all organizational tasks. The relationships between dimensions of organizational structures and the four design decisions are summarized below Key Design Questions and Answers for Designing the Proper Organization Structure 1. How to divide the task into successively smaller jobs. Organizational Design is a process that involves decisions about the following six key elements: This section is presented by: Claudia Gardea I.
Decisions to be made when designing an organization. To whom do the individual and group report to? While a manager may perform well within one department, he or she may be unprepared to address problems that require a hotel wide knowledge and perspective. This is a logical and practical solution. Performance of common tasks allows for work specialization, which increases overall productivity. Balancing authority is an ongoing managerial task. Communication An unstructured approach to coordinating activities in horizontal organizations is to promote informal communication among employees.
Leavitt 1962 defines it as a specific configuration of structure, people, task and techniques. Since this is not always desirable or possible, employees could also relate with each other on a 'gang plank. Specialists in safety or accounting, personnel, data processing, and so on often do have authority, in their specialty area, over workers who do not report directly to them through the chain of command. Microbiology clearly is a discipline, but what about plant protection? Freeing top management for long-range planning—enables top management to delegate ongoing decision making. Define Organizational Structure and Design. Neither the mechanistic or organic model is best in all situations; both have strengths and weaknesses. Proper coordination is ensured through detailed planning, scheduling, and standardization.
Meetings must be scheduled frequently in such an environment, or their effectiveness is lost. Lines show the management structure: Who reports to whom, how the boxes relate to each other in the hierarchy. Efficient use of resources—involves sharing rather than duplicating specialized resources. Nystrom and Starbuck 1981 have defined structure as the arrangement and interrelationship of component parts and positions in an organization. You can form teams to address temporary problems or create permanent teams whose members retain the positions in their respective departments but are also members of a group that continues to perform specific tasks.
If you put in place standardized policies and procedures describing the output required from each department, you can achieve a coordinated approach without explicit coordinating activity. · What is the project manager's role in performance evaluation of functional specialists? Direct communication and group meetings are needed to ensure proper coordination when activities involve reciprocal interdependence. It provides structure in an organization by setting forth a system of subordinate-superior accountability for everyone. Figure 4 illustrates an adhocratic type of organizational structure. Such differentiations may be horizontal, vertical or spatial. Managerial efficiency, of course, can greatly influence the effectiveness or lack of effectiveness of a project. It refers to grouping of tasks and is necessary for coordination.
What are the empowerment styles in Indian perspective. Organizations of the future—likely to be flatter, less hierarchical, and more decentralized and design are driven by technology and its capacity. Virtual Organization A small, core organization that outsources its major business functions Highly centralized with little or no departmentalization Concepts Advantage: Provides maximum flexibility while concentrating on what the organization does best Disadvantage: Reduced control over key parts of the business A. Line executives have responsibility for business units that provide products or services to customers and account for the revenues of the business. A convention uses small function rooms for separate meetings, larger rooms for general sessions, and even larger facilities for banquets. Next discuss the disadvantages of a matrix organization.
However, specialization often limits communication between subunits as people develop subunit orientation. It requires the dispersal of responsibility and decision making to local subsidiaries. Specialization Specialization facilitates division of work into units for efficient performance. The duties and responsibilities of groups can be spelled out in detail or left ambiguous. At one extreme, line executives could be given total authority. Line employees are responsible for achieving the basic or strategic objectives of the organization, while staff plays a supporting role to line employees and provides services. Matrix Adding a matrix organizational structure to the conventional hierarchy allows for additional coordination.