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Functional Organization
Functional organization is a type of organizational structure that uses the principle of specialization based on function or role. It allows decisions to be decentralized since issues are delegated to specialized persons or units, leaving them the responsibility of implementing, evaluating, or controlling the given procedures or goals. See also * Departmentalization Departmentalization (or departmentalisation) refers to the process of "grouping the organizational activities and structure into departments". Division of labour creates Expert, specialists who need :wikt:coordination, coordination and the coordi ... * Organization design Types of organization {{org-stub ...
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Organizational Structure
An organizational structure defines how activities such as task allocation, coordination, and supervision are directed toward the achievement of organizational aims. Organizational structure affects organizational action and provides the foundation on which standard operating procedures and routines rest. It determines which individuals get to participate in which decision-making processes, and thus to what extent their views shape the organization's actions.Jacobides., M. G. (2007). The inherent limits of organizational structure and the unfulfilled role of hierarchy: Lessons from a near-war. Organization Science, 18, 3, 455–477. Organizational structure can also be considered as the viewing glass or perspective through which individuals see their organization and its environment. Organizations are a variant of clustered entities. An organization can be structured in many different ways, depending on its objectives. The structure of an organization will determine the mode ...
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Decentralisation
Decentralization or decentralisation is the process by which the activities of an organization, particularly those related to planning and decision-making, are distributed or delegated away from a central, authoritative location or group and given to smaller factions within it. Concepts of decentralization have been applied to group dynamics and management science in private businesses and organizations, political science, law and public administration, technology, economics and money. History The word "''centralisation''" came into use in France in 1794 as the post-Revolution French Directory leadership created a new government structure. The word "''décentralisation''" came into usage in the 1820s. "Centralization" entered written English in the first third of the 1800s; mentions of decentralization also first appear during those years. In the mid-1800s Tocqueville would write that the French Revolution began with "a push towards decentralization" but became, "in the e ...
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Delegation
Delegation is the process of distributing and entrusting work to another person.Schermerhorn, J., Davidson, P., Poole, D., Woods, P., Simon, A., & McBarron, E. (2017). ''Management'' (6th ed., pp. 282–286). Brisbane: John Wiley & Sons Australia. In management or leadership within an organisation, it involves a manager aiming to efficiently distribute work, decision-making and responsibility to subordinate workers in an organization. Delegation may result in creation of an accountable chain of authority where authority and responsibility moves down in an organisational structure. Inefficient delegation may lead to micromanagement. There are a number of reasons someone may decide to delegate. These include: * To free themselves up to do other tasks in the pace of their own * To have the most qualified person making the decisions * To seek another qualified person's perspective on an issue * To develop someone else's ability to handle the additional assignments judiciously and ...
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Departmentalization
Departmentalization (or departmentalisation) refers to the process of "grouping the organizational activities and structure into departments". Division of labour creates Expert, specialists who need :wikt:coordination, coordination and the coordination is facilitated by grouping specialists together in departments. Popular types of departmentalization * Functional departmentalization - Functional departmentalization is "characterized by the arrangement of a bank’s activities along functional lines such as accounting, marketing, human resource management, training and development, research and development, among others". * Product (business), Product departmentalization - Production, marketing, and often accounting activities related to one product are grouped under one department, with the product manager as the supervisor. * Customer departmentalization - Recognition of the unique needs of individuals, groups, or customers, coupled with management's commitment to reflecting th ...
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Organization Design
Organizational architecture, also known as organizational design, is a field concerned with the creation of roles, processes, and formal reporting relationships in an organization. It refers to architecture metaphorically, as a structure which fleshes out the organizations. The various features of a business's organizational architecture has to be internally consistent in strategy, architecture and competitive environment. It provides the framework through which an organization aims to realize its core qualities as specified in its vision statement. It provides the infrastructure into which business processes are deployed and ensures that the organization's core qualities are realized across the business processes deployed within the organization. In this way, organizations aim to consistently realize their core qualities across the services they offer to their clients. This perspective on organizational architecture is elaborated below. Content According to most authors org ...
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