Organization Design: Functions, Centralization, Decentralization, and Technology's Impact, Exercises of Organization Behaviour

Download Organization Design: Functions, Centralization, Decentralization, and Technology's Impact and more Exercises Organization Behaviour in PDF only on Docsity! Organizational Behavior - MGT502 VU © Copyright Virtual University of Pakistan 147 Organization Design Options Functional Design Pooled Simple Complex ReciprocalTechnological Factors En vi ro nm en ta l Fa ct or s Place Design Product Design Multidivisional Design Multinational Design Network Design Virtual Design employee tasks, the complexity of those tasks, the physical proximity of subordinates, the degree to which standardized procedures are in place, the sophistication of the organization's information system, the strength of the organization's culture, and the preferred style of the manager. The trend in recent years has been toward larger spans of control. Wide spans of control are consistent with managers' efforts to reduce costs, speed up decision making, increase flexibility, get closer to customers, and empower employees. However, to ensure that performance doesn't suffer because of these wider spans, organizations are investing heavily in employee training. Managers recognize that they can handle a wider span when employees know their jobs inside and out or can turn to co-workers if they have questions. Centralization and Decentralization • The concentration of authority and responsibility for decision making in the hands of managers at the top of an organization’s hierarchy (the degree to which decision making is concentrated at a single point in the organization) Decentralization • Distribution of authority and responsibility for decision making to managers at all levels of an organization’s hierarchy (decision discretion is pushed down to lower -level employees) Formalization • The degree to which jobs within the organization are standardized. The Effect of Technology on Structure • The more the technology requires interdependence between individuals and/or groups, the greater the need for coordination • “As technology moves from routine to non-routine, subunits adopt less formalized and centralized structures” docsity.com