Basic Challenges of organizational Design - Differentiation
8 important questions on Basic Challenges of organizational Design - Differentiation
Why does differentiation occur in an organization? Distinguish between vertical and horizontal differentiation.
Horizontal: The different subunits the organisation is divided into -> Grouping of organisational tasks.
Vertical: The hierarchy in the organisation -> Distribution of authority
When does an organization need to use complex integrating mechanisms? Why?
When the communication and coordination between the subunits is not working properly. It is important for the subunits to know when and to whom they need to report to.
What factors determine the balance between centralization and decentralization, and between standardization and mutual adjustment?
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What is centralisation? What are the advantages and disadvantages?
Advantage: Top managers are able coordinate organisational activities and keep the organisation focused on the goals
Disadvantage: Top managers can easily get overloaded with day-to-day issues when the organisation is too centralised.
What is decentralisation? What are the advantages and disadvantages?
Advantage: Promotes flexibility and responsiveness -> Lower level managers are able to make on-the-spot decisions. Managers are able to demonstrate their personal skills and competences
Disadvantage: If too much authority is delegated to all levels it becomes hard to plan for the overall organisation. The organisation may lose control of the decision-making process.
What are the different types of integration mechanisms?
Direct contact
Liaison role
Task force
Team
Integrating role
Integrating department
What is standardisation? Why is it used?
What is mutual adjustment?
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