Describes the degree of differentiation based on how many different types of either people or units are included in the organization
Vertical differentiation
Refers to the depth of the organizational hierarchy
Typically represented by an organizational char
Authority usually flows from top to bottom, with those at the bottom of the chart holding the least authority
Formalization
refers to the degree to which jobs in the organization are standardized
Includes the presence of rules, procedural specification, technical competence, and impersonality
The employee has little discretion with regard to when and how the job is completed
Centralization
Refers to the extent to which decision making is concentrated at a single point in the organization
Decision making and authority, in this context, refer to the rights inherent to the position that one holds in the organization
Usually, the very top levels of management make the most of the policy decisions in a centralized organization
Organization
“a group of individuals working to reach some common goal”
Backbone of management
Without it, no management can perform its functions smoothly
Organizational Behavior
systematic and scientific analysis of individuals, groups, and organizations, its purpose is to understand, predict, and affect human behavior to improve the performance of individuals, which ultimately affects the functioning and success of the organizations in which they work
Koontz&O'Donnel
“It is grouping of activities necessary to attain enterprise objectives and the assignment of each grouping to a manager with authority necessary to supervise it.”
Louis.A.Allen
“The process of identifying and grouping the work to be performed, defining and delegating responsibility and authority and establishing relationship for the purpose of enabling people to work more effectively together in accomplishing objects.”
Joseph.L.Massive
“The structure and process by which a cooperative group of human beings allocates its tasks among its members, identifies relationship, and integrates its activities towards common objectives.”
Organization as a process
is an executive function
becomes a managerial function
becomes the function of every manager
it is a continuous process and goes on throughout the life time of an enterprise
Organization as a structure or framework of relationships
organization is a network of internal authority, responsibility relationships
it is the framework of relationship of persons, operating at various levels, to accomplish common objectives
an organization structure is a systematic combination of people, functions and physical facilities
has to be first designed for determining the channel of communication and flow of authority and responsibility
Peter F. Drucker - types of analysis:
activities analysis
decision analysis
relations analysis
Organizational Structure
organizational theorists suggest that the structure of an organization encompasses three major aspects: differentiation, formalization, centralization
Authority
rights given to a certain position in an organization to give orders and the expectation that those orders are carried out
Organizational Chart
It depicts the reporting relationships and the hierarchy of authority in an organization
Authority usually flows from top to bottom, with those at the bottom of the chart holding the least authority
Presence of rules
the degree to which the behavior of organizational members is subject to organizational control
Procedural Specification
the extent to which organization members must follow organizationally defined techniques in dealing with situations they encounter
Technical Competence
the extent to which organizationally defined “universal” standards are used in the personnel selection and advancement process
Impersonality
the extent to which both organization members and outsiders are treated without regard to individual qualities
Spatial differentiation
Refers to the degree to which the location of an organization's units is in one place or spread across several locations
It is also related to the amount of horizontal and vertical differentiation
The more complex the organization, the greater is the extent of each of these will exist
Division of labor
Divides work tasks into specific parts
Unity of command
It is the concept that an individual reports to only one supervisor, to whom he/she is responsible
Span of control
Refers to how many people a manager effectively controls
Departmentalization
Refers to grouping individuals according to specific tasks
Informal organizational structure
Refers to the network of personal and social relationships which arise spontaneously when people working together interact on personal whims, likes and prejudices
Not created by the top management and not portrayed on organization charts and manual
It provides an opportunity to workers to come close to each other, develop a feeling of cooperation and coordination among themselves
Job satisfaction
Is either an emotional response or as a comparison between expectations and the perceived reality of the job as whole
Organizational commitment
Defined both as an emotional attachment (affective organizational commitment) and as accepting the organization’s goals and values, putting forth effort, and wanting to maintain membership
It reduces job turnover intention for pharmacists
Job stress
Can lead to burnout
Contributors include: Role conflict, Role ambiguity, Role overload, Work-home conflict, Job dissatisfaction
Job turnover
Refers to the number of workers who leave a company over a certain time period
Decreased productivity from voluntary turnover is very costly to an organization due to advertising, recruitment, and training a replacement employee
Emotions
“intense feelings that are directed at someone or something”
Moods
pervasive emotions not directed at any particular person or object
Emotional labor
is the emotional regulation in the workplace and particularly important to health care professionals
Differentiation (complexity)
refers to the degree to which units are dissimilar; can occur horizontally, vertically, or spatially