Fundamentals of Organizational Designs and Studies
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The document discusses organizational structure and classical organizational theory. It defines organizational structure as the hierarchical arrangement of lines of authority and communication within an organization. Classical organizational theory deals with essential elements like division of labor, delegation, authority, and specialization. The document also describes concepts like scalar principle, span of control, line and staff functions, and criticisms of hierarchical structures.
![ Classical Organization Theory
◦ "the study of organizations for the benefit of identifying
common themes for the purpose of solving problems,
maximizing efficiency and productivity, and meeting the
needs of stakeholders."[1] Organizational theory
contains three subtopics: classical perspective,
neoclassic perspective and environmental perspective.[2]
It complements the studies of organizational behavior
and human resource studies.
◦ Deals with essential elements in an institution:
Division of Labor
Delegation
Authority
Specialization
Interdependence of Parts](https://image.slidesharecdn.com/organizationalstructure-mdm-130112232453-phpapp01/85/Fundamentals-of-Organizational-Designs-and-Studies-4-320.jpg)
Fundamentals of Organizational Designs and Studies
- 1. ORGANIZATIONAL STRUCTURE BY ABIGAIL PUGAL-SOMERA
- 2. Introduction Division of Labor Scalar Principle Authority, Responsibility and Accountability Span and Control Line and Staff Function Hierarchical or Horizontal Common Criticisms of Classical Organization Theory
- 3. Organizational Structure ◦ The typically hierarchical arrangement of lines of authority, communications, rights and duties of an organization. ◦ determines how the roles, power and responsibilities are assigned, controlled, and coordinated, and how information flows between the different levels of management ◦ depends on the organization's objectives and strategy Centralized vs Decentralized Structure ◦ Depending on organization’s objectives and strategies
- 4. Classical Organization Theory ◦ "the study of organizations for the benefit of identifying common themes for the purpose of solving problems, maximizing efficiency and productivity, and meeting the needs of stakeholders."[1] Organizational theory contains three subtopics: classical perspective, neoclassic perspective and environmental perspective.[2] It complements the studies of organizational behavior and human resource studies. ◦ Deals with essential elements in an institution: Division of Labor Delegation Authority Specialization Interdependence of Parts
- 5. • Primary vehicle for translating the organization’s strategy into productive action • Partly determines the power of people in organizations, and affects perception of their roles. Can have a strong impact on job satisfaction. Construction vs Analysis ◦ Construction: Parts of a whole ◦ Analysis: Process of analysis
- 6. Narrow specialization of tasks within a production process so that each worker can become a specialist in doing one thing, especially on an assembly line. In traditional industries, division of labor is a major motive force for economic-growth. In the era of mass customization (which requires multiple skills and very short machine change- over time), division of labor has become much more flexible. Also called specialization of labor.
- 7. The manner by which work is divided ◦ Scalar Process Provides a scale, or grading, of duties according to level of authority and responsibility. ◦ Functionalization Work must be divided into different kinds of duties.
- 8. Classical-management rule that subordinates at every level should follow the chain of command, and communicate with their seniors only through the immediate or intermediate senior. According to its proponent, the French management pioneer Henri Fayol (1841-1925), a clear understanding of this principle is necessary for the proper management of any organization. Exists as long as there are at least two people in a supervisor-subordinate relationship.
- 9. Head Head 1 Of Of Department Department 2 Supervisors Supervisors 3 Employee Employee Scalar Process Scalar and Functional division
- 10. Authority ◦ Power that is delegated formally. It includes a right to command a situation, commit resources, give orders and expect them to be obeyed, it is always accompanied by an equal responsibility for one's actions or a failure to act. Responsibility ◦ A duty or obligation to satisfactorily perform or complete a task (assigned by someone, or created by one's own promise or circumstances) that one must fulfill, and which has a consequent penalty for failure.
- 11. Accountability ◦ The obligation of an individual or organization to account for its activities, accept responsibility for them, and to disclose the results in a transparent manner. Delegation Assignment of duties, authority and responsibility to others
- 12. Acceptance Theory of Authority ◦ Delegation gives authority to a lower manager; however, the power of a manager to use that authority depends on the willingness of employees to accept it. ◦ Subordinate controls response to authority
- 13. The number of subordinates that a manager or supervisor can directly control. This number varies with the type of work: complex, variable work reduces it to six, whereas routine, fixed work increases it to twenty or more.
- 14. Line Function ◦ Decision making areas of an organization associated with its daily operations such as purchasing, manufacturing, and selling. Staff Function ◦ Advisory, analysis, and support functions such as accounting, planning, transportation provided to production (line) employees.
- 15. Hierarchical ◦ Common, pyramid-like organization where one person is in charge of a functional area (engineering, finance, marketing) with one or more subordinates handling the sub-functions. ◦ In an hierarchical organization (whether business, military, political, or religious) higher levels imply greater superiority and domination than the lower ones, and the chain of command extends straight from the top to the bottom.
- 16. Horizontal ◦ A decentralized power structure within an association or business. ◦ A business that is structured as a flat or horizontal organization where power is shared more broadly tends to allow more staff more control over business matters according to their expertise, and it is often supportive of considerable collaboration between employees.
- 17. May lead to a work environment in which: ◦ Employees have minimal power over their jobs and working conditions ◦ Subordination, passivity and dependence are expected ◦ Work to a short term perspective ◦ Employees are lead to mediocrity ◦ Working conditions produce to psychological failure as a result of the belief that they are lower class employees performing menial tasks
- 18. Organizational Behavior: Human Behavior at Work 9th Edition by John W Newstrom and Keith Davis Classical Organizational Theory powerpoint presentation by Vincent Myers and Nina Presuto http://www.businessdictionary.com http://www.wikipedia.com