1 Division of Labour & Division of Labour & Coordination Coordination J. Player, New York Times Division of labour – Subdivision of work into separate jobs assigned to different people Coordination of work – Informal communication – Formal hierarchy – Standardization • Formalization • Goals/outputs • Training/skills
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1 Division of Labour & Coordination J. Player, New York Times Division of labour –Subdivision of work into separate jobs assigned to different people Coordination.
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Division of Labour & CoordinationDivision of Labour & CoordinationDivision of Labour & CoordinationDivision of Labour & Coordination
J. Player, New York Times
Division of labour– Subdivision of work into
separate jobs assigned to different people
Coordination of work– Informal communication– Formal hierarchy– Standardization
Elements of Organizational StructureElements of Organizational StructureElements of Organizational StructureElements of Organizational Structure
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Span of ControlSpan of ControlSpan of ControlSpan of Control
• Number of people directly reporting to the next level
• Assumes coordination through direct supervision
• Wider span of control possible when:– with other coordinating
methods– employees perform similar
tasks– tasks are routine
Tall versus Flat Organizations: ComparisonTall versus Flat Organizations: ComparisonChief
Executive
ChiefExecutive
Tal
l hie
rarc
hy
Fla
t h
iera
rch
y
Relatively narrowspan of control
Relatively widespan of control
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• Organizational crisesOrganizational crises• Management desire for controlManagement desire for control• Increase consistency, reduce costsIncrease consistency, reduce costs
CentralizationCentralization
• Complexity — size, diversityComplexity — size, diversity• Desire for empowermentDesire for empowerment
DecentralizationDecentralization
Forces for (De)centralizationForces for (De)centralizationForces for (De)centralizationForces for (De)centralization
Low Decentralization High decentralization(High centralization) (low centralization)
Eliminates the additional respon- Can eliminate levels of management,sibility not desired by people making a leaner organizationperforming routine jobs
Permits crucial decisions to be Promotes greater opportunities formade by individuals who have decisions to be made by people closestthe “big picture” to problems
DECENTRALIZATION: BENEFITSDECENTRALIZATION: BENEFITSWHEN LOW AND WHEN HIGHWHEN LOW AND WHEN HIGH