MAN 111-BHCC CUSTOM-W/MY MGMT.LAB>CI<
MAN 111-BHCC CUSTOM-W/MY MGMT.LAB>CI<
14th Edition
ISBN: 9781323859735
Author: Robbins
Publisher: PEARSON
Question
Book Icon
Chapter 11, Problem 1RDQ
Summary Introduction

To determine:

The traditional and contemporary views of the six key element of organizational design.

Introduction:

Organizational design is the process of establishing a structure in which the jobs are assigned in the organization. The reason to design an organizational structure is to help the employees or working to perform their job efficiently and effectively. The six key elements of organizational design are chain of command, span of control, departmentalization, work specialization, centralization or decentralization, and the degree of formalization.

Expert Solution & Answer
Check Mark

Explanation of Solution

The traditional and contemporary views of the six key elements of organizational designs are as follows:

  1. Chain of Command: Chain of command is the order of the command or line of authority from top to the bottom. It outlines to whom an employee has to report. In traditional view, the chain of command was considered essential for easy management of the employees. It provides a regular direction in which the command has to flow. Whereas in contemporary view a fixed structure in today’s business is not essential.
  2. Span of control: It is the ability to supervise number of employees in the organization efficiently and effectively. It defines the number of employees a manager is supervising. In traditional view, number of employees a manager supervises must be fixed so that the efficiency and the productivity can be maintained. Whereas contemporary view state that employee can work better without supervision.
  3. Departmentalization: It classifies the job into various categories such as function, geographical, process, product, marketing and customer relation. Traditional view state that any organization can be classified according to the above-mentioned departments. Contemporary views, on the other hand, state that only marketing and sales units can use geographical and functional forms of departmentalization but retail stores or super markets may use product, functional, process and customer departmentalization.
  4. Work Specialization: Dividing the work into separate tasks that can be done by separate individuals. It helps to differentiate each and every job according to its function and required skill level. Contemporary view state that work specialization should be enforced up to a point only. Every employee should be given tasks according to both specialization and general duties so that employees can progress in all duties.
  5. Centralization/decentralization: Centralization is when decision making authority is only one person such as the owner of the company or CEO. While in decentralization the authority of making decision is decentralized. Traditional views are that decision should be made by the top most authority. Contemporary views are that organizations required flexibility and that each department has authority of making decisions for themselves.
  6. Degree of formalization: Degree of formalization is the standard for each job in the organization. In traditional view the Company designs all their jobs in a standardized form. As per contemporary view, subjective changes in jobs are permitted to an extent.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!
Students have asked these similar questions
d. Reflect on the impact of infrastructure on entrepreneurial ventures like Savannah Organics. What improvements could help reduce barriers? (3 marks) e. How important was Thato's ability to innovate and adapt in overcoming environmental challenges? Provide examples from the case to support your answer. (3 marks)
accreditation. Thato had to work with international bodies, adding complexity and expense to her operations. Despite these challenges, Thato capitalized on the strengths of the entrepreneurial environment. She formed partnerships with local agricultural cooperatives and NGOs, enabling her to access shared resources, knowledge, and training programs. She also collaborated with the government to participate in a public-private initiative promoting sustainable farming, which provided her with a modest grant. Thato leveraged digital platforms to connect directly with customers, eliminating intermediaries and offering competitive pricing. Her ability to innovate and adapt proved critical in sustaining her business, even during economic disruptions caused by the COVID-19 pandemic. By the end of 2023, Savannah Organics had expanded its operations to 15 hectares, supplying produce to supermarkets across the country and partnering with health-focused restaurants. Thato's journey highlights both…
A sharing economy can be described as an economic model in which goods and resources are shared by individuals and groups in a collaborative way such that physical assets become services. The sharing economy enables people and organisations to earn profits from underutilised resources. Discuss using relevant example and referencing the impact of sharing economy. (20 marks)
Knowledge Booster
Background pattern image
Similar questions
SEE MORE QUESTIONS
Recommended textbooks for you
Text book image
Principles of Management
Management
ISBN:9780998625768
Author:OpenStax
Publisher:OpenStax College
Text book image
Understanding Management (MindTap Course List)
Management
ISBN:9781305502215
Author:Richard L. Daft, Dorothy Marcic
Publisher:Cengage Learning
Text book image
Management, Loose-Leaf Version
Management
ISBN:9781305969308
Author:Richard L. Daft
Publisher:South-Western College Pub