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COMMUNICATION IN ORGANIZATIONS. ENVIRONMENT AND THE TYPE TWO ORGANIZATION Lecture 5 c. THE ISSUE OF OVERLOAD LEADS TO TYPE TWO STRUCTURE. TOO MUCH INFORMATION AND DECISIONS AS ORG. GROWS UNLESS BOSS BEGINS TO SEPARATE FUNCTIONS
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COMMUNICATION IN ORGANIZATIONS ENVIRONMENT AND THE TYPE TWO ORGANIZATION Lecture 5c
THE ISSUE OF OVERLOAD LEADS TO TYPE TWO STRUCTURE • TOO MUCH INFORMATION AND DECISIONS AS ORG. GROWS • UNLESS BOSS BEGINS TO • SEPARATE FUNCTIONS • NEW STRUCTURE - DIFFERENTIATED BY FUNCTION - SPECIALIZATION IS EFFICIENT • AND AS SIZE INCREASES • DELEGATE SOME AUTHORITY TO ASSISTANTS TO MANAGE EACH FUNCTION • VERTICAL DECENTRALIZATION • THE ORG. BEGINS TO FAIL
THE ISSUE OF OVERLOAD LEADS TO TYPE TWO STRUCTURE • VERTICAL DECENTRALIZATION - OR DELEGATION - OF AUTHORITY- LIMITED TO A PARTICULAR FUNCTION • NO LONGER AN ASSISTANT BUT A MANAGER • CAN CONTROL AND COORDINATE WITHIN FUNCTION
TYPE TWO ORGANIZATION STRUCTURE IS EFFICIENT • DIFFERENTIATION BY FUNCTION: SPECIALIZATION IS EFFICIENT • VERTICAL DECENTRALIZATION - OR DELEGATION - OF AUTHORITY (MANAGER CAN CONTROL AND COORDINATE WITHIN FUNCTION) IS ALSO EFFICIENT • BOTH CONTRIBUTE TO ORGANIZATIONAL GROWTH • ORG. BEGINS TO DO FEWER THINGS BETTER - MORE GROWTH MEANS ENVIRONMENT CONTROL • CHANGES ENVIRONMENTAL PERCEPTION FROM MODERATELY HIGH UNCERTAINY TO LOW UNCERTAINTY
BECOMING A MACHINE ORGANIZATION FROM A SIMPLE STRUCTURE PRES. ASST ASST ASST DIRECT SUPERVISION - MUTUTAL ADJUSTMENT NO FUNCTIONAL DIFFERENTIATION LOW SPECIALIZATION OF WORK
BECOMING A MACHINE ORGANIZATION AUTHORITY-COMMUNICATION FLOW PRES. Mgr. Sales Mgr. Fin. Mgr. Mfg. Asst Asst Asst Asst Asst Asst * - - - - - = FUNCTIONAL D.O.L * VERTICAL DELEGATION OF AUTHORITY FROM STRATEGIC APEX * MUTUAL ADJUST. WITHIN FUNCTIONS
THE MACHINE ORGANIZATION AUTHORITY-COMMUNICATION FLOW PRES. Mgr. Sales Mgr. Fin. Mgr. Mfg. Asst. Asst. Asst Asst. Asst. Asst. Asst. Asst. Asst. ADD MORE PEOPLE AND BEGIN JOB SPECIALIZATION WITHIN FUNCTIONS
THE MACHINE ORGANIZATION AUTHORITY-COMMUNICATION FLOW PRES. Mgr. Sales Mgr. Fin. Mgr. Mfg. Asst. Asst. Asst Asst. Asst. Asst. Asst. Asst. Asst. MFG. MIGHT INCLUDE 1. RECEIVING PARTS 2. ASSEMBLY 3. SHIPPING
THE MACHINE ORGANIZATION AUTHORITY-COMMUNICATION FLOW PRES. Mgr. Sales Mgr. Fin. Mgr. Mfg. Asst. Asst. Asst Asst. Asst. Asst. Asst. Asst. Asst. MFG. INCLUDE 1. RECEIVING PARTS 2. ASSEMBLY 3. SHIPPING IF MORE WORK MEANS MORE PEOPLE - ALSO MEANS LESS CERTAINTY - SO BEGIN WRITTEN JOB DESCRIPTIONS AND ADD MORE DIRECT SUPERVISION
THE MACHINE ORGANIZATION AUTHORITY-COMMUNICATION FLOW PRES. Vp. Sales Vp. Fin. Vp. Mfg. Mgr. Mgr. Mgr. S S S - - - - - = FUNCTIONAL D.O.L. SPECIALIZ’ TION FORMAL JOB DESCRIPS. ADDING LAYERS FORMAL COMMUNIC.
SUMMARY: FUNCTIONS AND ORGANIZATION SIZE AND AGE • IN SMALLER, YOUNGER ORGS. - BOSS DOES • MANAGERIAL FUNCTION PLUS ALL OTHERS. • INDIVIDUAL STAFF CAN DO SOME AS LONG AS • BOSS AGREES. • IN GROWING, MATURING ORGS. FUNCTIONS • ARE SEPARATED INTO HIGHLY SPECIALIZED DEPARTMENTS OR UNITS • (DIFFERENT PEOPLE GROUPED TOGETHER BY FUNCTION) • DELEGATION OF AUTHORITY COMES WITH NEW STRUCTURE.