When a work group is very small and face-to-face communication is frequent, formal structure may be unnecessary, but in a larger organization decisions have to be made about the delegation of various tasks. Thus, procedures are established that assign responsibilities for various functions. It is these decisions that determine the organizational structure.
Organizational Design is a process that Organizational chart departmentalization decisions about the following six key elements: This section is presented by: Work Specialization Describes the degree to which tasks in an organization are divided into separate jobs.
The main idea of this organizational design is that an entire job is not done by one individual. It is broken down into steps, and a different person completes each step. Individual employees specialize in doing part of an activity rather than the entire activity.
Departmentalization It is the basis by which jobs are grouped together. For instance every organization has its own specific way of classifying and grouping work activities. There are five common forms of departmentalization: As shown in the Figureit groups jobs by functions performed.
It can be used in all kinds of organizations; it depends on the goals each of them wants to achieve. Figure Functional Departmentalization example Different aspects on this type of departmentalization: Positive Aspects Efficiencies from putting together similar specialties and people with common skills, knowledge, and orientations Coordination within functional area Poor communication across functional areas Limited view of organizational goals Product Departmentalization.
It groups jobs by product line. Product Departmentalization example Source: Bombardier Annual Report Different aspects on this type of departmentalization: Positive Aspects Allows specialization in particular products and services Managers can become experts in their industry Closer to customers Limited view of organizational goals Geographical Departmentalization.
It groups jobs on the basis of territory or geography. Geographical Departmentalization example Different aspects on this type of departmentalization: Positive Aspects More effective and efficient handling of specific regional issues that arise Serve needs of unique geographic markets better Duplication of functions Can feel isolated from other organizational areas Process Departmentalization.
It groups on the basis of product or customer flow. Process Departmentalization example Different aspects on this type of departmentalization: Positive Aspects More efficient flow of work activities Can only be used with certain types of products Customer Departmentalization.
It groups jobs on the basis of common customers Figure Customer Departmentalization example Different aspects on this type of departmentalization:The different elements making up organizational structures in the form of formalization, centralization, number of levels in the hierarchy, and departmentalization often coexist.
As a result, we can talk about two configurations of organizational structures, depending on how these elements are arranged. Departmentalization is an aspect of organizational design where a business divides its staff into smaller units based on tasks within the company.
Most companies, including restaurants, are likely. We will write a custom essay sample on Organization Structure: What is functional departmentalization?
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Figure 1 - Original Hierarchy Assume the above organizational chart roughly represents the U.S. intelligence community. Node is the President and nodes to are various intelligence agencies. Span of control in management has implications for work flow, communications, and opportunities for promotion in a company.
Read on to learn what it is and how it impacts a company's results. Departmentalization. Departmentalization refers to how the organizational structure groups the company's functions, offices and teams.
Those individual groups are typically referred to as departments.