What are the fundamental dimensions of organizations that are described by organ
ID: 461236 • Letter: W
Question
What are the fundamental dimensions of organizations that are described by organizational structure? What are the major ways that traditionally have been used to organize departments in organizations? What are the major differences between classical, neoclassical, and contingency approaches to organizational design? What are the five organizational forms identified by Mintzberg? What is meant by "the boundaryless organization" and what forms does it take? Think of the organization in which you currently work (or have worked). How would you characterize this unit with respect to division of labor, span of control, and centralization? Based on your own experiences, do you think that traditional, hierarchical organizations are giving way to less well-structured, boundaryless forms of organization?
Explanation / Answer
1. The fundamental dimensions of organizations that are described by organizational structure are following
a. Decision making –whether decision making is centralized or decentralized.
b. Reporting lines – how is the reporting structure organized. Whether there’s straight line reporting, dotted line or matrix reporting.
c. Rules and protocols – degree of formalization, management involvement and employee participation.
d. Information system – it defines how effectively the teams interact and collaborate, resolve common problems and exchange ideas on community platforms.
e. Size – hierarchical organizations are vertically oriented and large in size. Flatter organizations are relatively smaller in size.
f. Teams/ departments – teams can be cross functional, or specialized.
2. Traditionally departments have been organized on the bases of specialization of skills.
3. The major differences between classical, neoclassical, and contingency approaches to organizational design are following
a. Classical approach is impersonal and mechanical, neoclassical is a social system.
b. Classical approach is driven by autocratic management and strict rules; neoclassical is driven by democratic process.
c. Classical approach lays emphasis on discipline and rationality, neoclassical lays emphasis on personal security and social needs
d. Classical approach is mechanistic, neoclassical is organistic.
e. Classical approach is focused on functions and economic needs of employees; neoclassical is focused on human qualities and emotions of workers.
f. Classical approach recognizes worker’s goal as maximizing remuneration, as per neoclassical approach, it is attainment of organizational objectives.
While classical and neoclassical approaches are two extremes, Contingency approach states that the most effective structure is determined by the contingencies. According to contingency approach, relation between management techniques and situations can be categorized based on contingencies.
4. The five organizational forms identified by Mintzberg are following
a. Bureaucratic
b. Professional
c. Divisional
d. Entrepreneurial
e. innovative
5. The boundaryless organization is a contemporary approach to organization design, in that it is not limited to any external boundaries of predefined structure. It takes the form, as per needs to internal and external business environment.
6. I’d characterize the current organization as having divisional structure, in which labor is divided as per specialization of skills, with a wide span of control and moderate degree of centralized decision making.
7. Yes, traditional, hierarchical organizations are giving way to less well-structured, boundaryless forms of organization. This is primarily because of the rapidly changing and dynamic business environment, economic challenges, globalization, and emerging businesses such ecommerce and retailing growth.
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