List
and explain the six key elements in designing an organization’s structure.
Answer
a. Work specialization—this concept describes
the degree to which tasks in an organization are divided into separate jobs.
The essence of work specialization is that an entire job is not done by one
individual, but instead is broken down into steps, with each step completed by
a different person.
b. Departmentalization—the basis by which jobs
are grouped together is called departmentalization. The five common forms of
departmentalization include functional, product, geographical, process, and
customer departmentalization.
c. Chain of command—this is the continuous
line of authority that extends from upper organizational levels to the lowest
levels and clarifies who reports to whom. It helps employees answer questions
such as “Who do I go to if I have a problem?” or “To whom am I responsible?”
d. Span of control—this concept is important
because, to a large degree, it determines the number of levels and managers an
organization has. All things being equal, the wider or larger the span of control,
the more efficient the organization.
e. Centralization and
decentralization—centralization describes the degree to which decision making
is concentrated at a single point in the organization. If top managers make the
organization’s key decisions with little or no input from below, then the
organization is centralized. In contrast, the more that lower-level employees
provide input or actually make decisions, the more decentralization there is.
f. Formalization—this refers to the degree to
which jobs within the organization are standardized and the extent to which
employee behavior is guided by rules and procedures. If a job is highly
formalized, then the person doing that job has a minimum amount of discretion
over what is to be done, when it’s to be done, and how he or she could do it.
Source: Management,
11e (Robbins/Coulter)
