Organizational Design is a series of decisions made by management about the best organizational arrangements to achieve the goals in their strategic plans. Includes 4 aspects:
|
Division of
Labour |
The degree of job specialization in a work organization Type of work performed Work method or process to be used (accounting, production marketing) |
|
Allocation of
authority |
Delegation of authority – how much authority to give to a subordinate. 1)
For each responsibility given to an employee and equal amount of authority must be given. 2)
All decisions should be delegated to the lowest organizational level
possible. 3)
Practice management by exception. 4)
Managers should not simply tell what to do but how to do it. 5)
Manager responsible for the work of their subordinates. |
|
How work activities are
grouped together. See details Departmentalization |
|
|
Span of control |
Number of subordinates who report to a given manger. Influenced heavily by number and intensity of interpersonal relationships between the superior and his subordinates. Three factors effect span of control 1)
Required contact - R&D need for sustained and frequent co-ordination, self-directed
teams need flexible co-ordination. 2)
Degree of specialization – Manager
lower in organization can have wider span if he oversees many specialized
employees doing the same thing.
Higher-level jobs have much less specialization. Span of control
narrow further up the organization’s hierarchy. 3)
Ability to communicate. – Managers who can clearly and concisely
convey company polices, procedures and work expectations to subordinates will
be able to manage a wider span of control. |