Basic Challenges of Organizational Design
Reading Summary
Basic Challenges of Organizational Design
Basic Challenges of Organizational Design
Differentiation:- It is the process by which organization allocates people and resources to organizational task and establishes the task and authority relationships that allow the organization to achieve its goals.
Organizational Roles
An organizational role is a set of task-related behavior required of a person by his or her position in an organization.
Organizational structure is based on a system of interlocking roles, and the relationship of one role to another is defined by task-related behaviors.
Authority:- is the power to hold people accountable for their actions and to make decisions about how to invest and use organizational resources.
Subunits: Functions and divisions
In organizations, people with similar and related roles are grouped into a sub unit. The main subunits that develop in organizations are functions or departments. A function is a subunit composed of a group of people, working together, who possess similar skills or use the same kind of knowledge, tools, or techniques to perform their jobs. A division is a subunit that consists of a collection of functions or departments that share responsibility for producing a particular good or service.
The number of different functions and divisions that an organization possesses is a measure of organizations complexity – its degree of differentiation. As organizations grow in size, they differentiate kinds of functions.
Support functions: - facilitate an organizations control of its relations with its environment and its stakeholders. Eg. Sales and marketing, public relation and legal affairs.
Production functions: - manage and improve the efficiency of an organizations conversion process so that more value is created. Eg. Production operations, production control and quality control.
Maintenance functions: - enables an organization to keeps its departments in organization. Eg.
Basic Challenges of Organizational Design
Basic Challenges of Organizational Design
Differentiation:- It is the process by which organization allocates people and resources to organizational task and establishes the task and authority relationships that allow the organization to achieve its goals.
Organizational Roles
An organizational role is a set of task-related behavior required of a person by his or her position in an organization.
Organizational structure is based on a system of interlocking roles, and the relationship of one role to another is defined by task-related behaviors.
Authority:- is the power to hold people accountable for their actions and to make decisions about how to invest and use organizational resources.
Subunits: Functions and divisions
In organizations, people with similar and related roles are grouped into a sub unit. The main subunits that develop in organizations are functions or departments. A function is a subunit composed of a group of people, working together, who possess similar skills or use the same kind of knowledge, tools, or techniques to perform their jobs. A division is a subunit that consists of a collection of functions or departments that share responsibility for producing a particular good or service.
The number of different functions and divisions that an organization possesses is a measure of organizations complexity – its degree of differentiation. As organizations grow in size, they differentiate kinds of functions.
Support functions: - facilitate an organizations control of its relations with its environment and its stakeholders. Eg. Sales and marketing, public relation and legal affairs.
Production functions: - manage and improve the efficiency of an organizations conversion process so that more value is created. Eg. Production operations, production control and quality control.
Maintenance functions: - enables an organization to keeps its departments in organization. Eg.