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Organizing – arranging and structuring work to accomplish a organization’s goals.
Org.Structure – the formal arrangement of jobs within an org.
Work specialization – the degree to which org. tasks are divided into separate jobs and with each step completed by a different person. (stitching, lacing)
- Makes efficient use of skills diversity
- Wages are allocated with acc- to specialization
- Increase productivity
Departmentalization- how jobs are grouped together.
- Functional – groups jobs according to a function(engeneeering,accounting,purchase,HR managers)
- Geographical – groups according to geographical region (e.g. allocating sales managers to different regions)
- Product – according to product line (mass transit vs. rail product sector)
- Process – group according to a customer flow
- Customer – groups on the basis of unique customers who have common needs
Chain of command – line of authority extending from upper org. level to lower levels, clarifies who reports to whom.
- Authority – rights to tell people what to do and what to expect from them. (could be line authority and staff authority)
- Responsibility – obligation/expectation to perform
- Unity of command – concept that one boss exists only
Spam of control – the number of employees who can be effectively and efficiently supervised by a manager. (no specific number, but too wide spans may decrease effectiveness)
Width of span is affected by:
- Skills and abilities
- Employee characteristics
- Work characteristics
- Tasks similarity/complexity
- Tasks standardization
- Info system sophistication
- Org. culture strength
- Manager style
Centralization – the degree to which decision making is concentrated at upper levels
Decentralization – when more lower – level employees provide imputs
- But org. structure is always smth in the middle
Formalization – the degree to which jobs are standardized and to which extent the employee behaviour is guided by rules.
(e.g lower formalization jobs provide more flexibility, whereas some rules are two restrictive)
Structures in org. design
An org. design that is tightly controlled
- High specialization
- Clear chain of command
- High formality
An org. design that is highly adaptable and flexible
- Cross-functional teams
- Free info flow
- Wide span of control
- Low formality
- Non- standardized
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