Which of the following defines how tasks are divided grouped and coordinated in organizations?

Organizational Structure

Defines how job tasks are formally divided, grouped, and coordinated
Organizational structure depicts how job tasks are formally divided, grouped, and coordinated. The key elements of organizational structure include work specialization, departmentalization, chain of command, span of control, centralization, decentralization, and formalization.

Work specialization

Describes the degree to which activities in the organization are subdivided into separate jobs
Also known as division of labor
Benefits
Greater efficiency and lower costs
Costs
Human costs when carried too far
Job enlargement, i.e. an increase in job tasks and responsibilities (but only horizontal expansion) to make a position more challenging, a as a solution
The division of labor is helpful in creating the most efficient way to utilize employee skills, increase their skills, and maximize their input.

Work specialization can cause greater economies, but in some cases it can cause diminishing returns due to repetition, which can lead to boredom. Job enlargement can be more effective at creating greater efficiencies than work specialization

Work specialization economies diagram

Departmentalization

Basis by which jobs are grouped together so that common tasks can be coordinated
Common bases:
Function
Product or service
Geography
Process
Customer type

Chain of command

Unbroken line of authority that extends from the top of the organization to the lowest level and clarifies who reports to whom
Authority: positional rights
Unity of command: one boss
Fewer and fewer organizations find the concept relevant

Unity of command

one boss
Unity of command is the idea that a subordinate should have only one superior to report to so that directions and the chain of command are clear.

Authority

positional rights

Span of control

The number of employees a manager is expected to effectively and efficiently direct
Determines the number of levels and managers an organization has
Trend is toward wider spans of control
Wider span depends on knowledgeable employees
Affects speed of communication and decision making

Wider span allows for more efficiency because you need fewer managers. However, it can also limit the amount of time and direction managers can give to their employees. A narrow span can allow for more direction but can add layers of management, increase the complexity of the vertical communication, and encourage overly tight supervision, limiting employee autonomy.

Contrasting Spans of Control Diagram

Centralization

Degree to which decision making is concentrated at a single point in the organization
Only includes formal authority: positional rights
Highly centralized when top managers make all the decisions
Decentralized when front-line employees and supervisors make decisions
Trend is toward increased decentralization

Formalization

Degree to which jobs within the organization are standardized
Formal: minimum discretion, i.e. choice, over what is to be done, when it is done, and how
Informal: freedom to act is necessary

Informal

freedom to act is necessary

Formal

minimum discretion, i.e. choice, over what is to be done, when it is done, and how

What are the Three common organizational designs?

Simple structure
Bureaucracy
Matrix structure

Simple Structure

Low degree of departmentalization
Wide spans of control
Authority centralized in a single person
Little formalization
Difficult to maintain in anything other than small organizations

Bureaucracy

Highly routine operating tasks achieved through specialization
Formal rules and regulations
Centralized authority
Narrow spans of control
Tasks grouped by functional departments
Decision making follows the chain of command

Another type of organizational design is bureaucracy. In a bureaucratic organization there will be a great deal of structure. The tasks will be completed through specialization, and they tend to be formalized through rules and regulations. Departments will be highly defined by function and authority is centralized. Decision making will follow a strict chain of command and there will be narrow spans of control. The bureaucratic organization will be one that is highly defined and very controlled.

Matrix Structure

Combines two forms of departmentalization
Functional
Product
Dual chain of command

The matrix structure is another common organizational design. This structure creates dual lines of authority and combines functional and product departments in a way to effectively meet organizational goals.

The key element of the matrix structure is that it gains the interactions between the functional and product departments by coordinating complex and interdependent activities in order to help reach the goals set forth in an efficient manner, opening up avenues for new ideas to achieve the company's mission. The matrix structure also breaks down the unity-of-command concept as the lines of authority are blurred.

What are the advantages and disadvantages of the matrix structure?

Advantages:
Facilitates coordination and efficient allocation of specialists
Disadvantages:
Possible confusion, fosters power struggles, stress

Virtual Organization

A small core organization that outsources its major business functions
Highly centralized with little or no departmentalization
Provides maximum flexibility while concentrating on what the organization does best
Reduced control over key parts of the business

Boundaryless organization

Eliminates the chain of command
Has limitless spans of control
Replaces departments with empowered teams
Breaks down geographical barriers

Boundaryless organizations are set up to reduce the structure and tight control over work. They organize in a way to try to empower teams. They eliminate vertical and horizontal boundaries, as well as geographic boundaries. Boundaryless organizations also try to break down external barriers to customers and suppliers through their structure and style of communication. These organizations also break down geographical barriers.

Downsizing

A systematic effort to make an organization leaner by selling off business units, closing locations, or reducing staff
Controversial because of the negative impact on employees
Impact on organizational performance has been very controversial

In the midst of tough economic times and the need for companies to be leaner, downsizing has been on the rise.

What are the two models of organizational design?

Mechanistic and Organic

Innovation strategy

introduce new offerings - prefer organic structures

Cost-minimization strategy

cost control - prefer mechanistic structures

Imitation strategy

minimal risk and maximum profit - both structures used

What are the three types of Organizational strategy?

Innovation strategy
Cost-minimization strategy
Imitation strategy

Organization Size

Move toward mechanistic structure as size increases

Technology

Routine activities prefer mechanistic structures, non-routine prefer organic structures

What are the four determinants of structure?

Organizational Strategy
Environment
Technology
Organization Size

Environment

Dynamic environments lead to organic structures

Describe how the four determinants of structure contribute to either a mechanistic or an organic structure.

Structures differ for a number of reasons. The first is that structure is set up to facilitate the strategy of the organization. If your organization is focusing on innovation as a key value, then it may be best served by an organic structure. Whereas, if the strategy emphasizes minimizing costs, a mechanistic structure will work better. Strategy should always dictate structure instead of structure dictating strategy.

Structures will also differ by organization size - the larger the organization, the more likely it will be mechanistic. Technology also influences structure. The more routine the activities, the more mechanistic the structure should be. Structures will also differ based on the environment in which they exist. The more dynamic the environment, the more organic the structure will need to be to facilitate quick decisions and fast turnaround.

Organizational Designs and Employee Behavior

Cannot generalize any link between structure and performance
Too much individual variance
Consider employee preferences for:
Work specialization
Span of control
Centralization
National culture influences organizational structure
High power distance cultures accept mechanistic structures

Organizational designs are not a good predictor of employee behavior. Research has shown that work specialization can lead to increased productivity but lower job satisfaction. Specialization has not been popular as employees are seeking more intrinsically rewarding jobs. Span of control has mixed results depending on individual differences in employees and organizational factors. Centralization can facilitate different employee responses.
Research suggests that national culture may influence organizational structure. In particular, organizations with people form high power-distance cultures typically find that employees are more accepting of mechanistic structures than employees from low power-distance countries.

Various factors will influence workers in their job satisfaction and their willingness to stay with an organization.

What defines how tasks are divided grouped and coordinated in organizations?

Is the way in which tasks in an organization are divided?

When common tasks are grouped together it is called?

How are tasks grouped together into a job?