In: Operations Management
Identify and discuss the three building blocks of organizational structure.
Answer:-
The three building blocks of an organizational structure are;
1)Division of labor:- It is the process of splitting up a task into several smaller tasks each of which is performed by a specialist on that specific field which is aimed at improving efficiency and production of quality work. A good organizational structure is that which defines how tasks are assigned and grouped together with formal reporting relationships.
2)Vertical and horizontal linkages: - Most organizations use a diagram called an organizational chart which shows how a firm's structure are built using the vertical and horizontal linkages. A vertical linkage ties subordinate and supervisors together. It shows the lines of responsibility through which a supervisor delegates authority to the subordinates,oversees their activities, evaluates their performance and guides them towards improvement when necessary. The horizontal linkages are the relationships between equals in an organization. They take form of committees, teams, and task forces which forms the basis of major organizational decisions are considered for cross-departmental and the general impact.
3)Informal linkages; - This refers to unofficial relationships such as rivals, personal friendships etc. They may not appear in the chart but they can affect on how a firm operates.