Schein's Common Elements of an OrganizationThe four common elements of an organization include common purpose, coordinated effort, division of labor, and hierarchy of authority. Show
Learning Objectives Describe the common elements that define an organizational structure, according to Edgar Schein Key TakeawaysKey Points
Key Terms
Common Elements of OrganizationsOrganizational psychologist Edgar Schein proposes four common elements of an organization's structure:
From a manager's point of view, operations are made successful by instilling a common purpose to create a coordinated effort across the organization and organizing resources based on tasks and decision making. Each of the four elements is relatively straightforward in theory but represents a critical component of an effective structure. Video of Edgar Schein speaking about corporate culture Common PurposeAn organization without a clear purpose or mission soon begins to drift and become disorganized. A common purpose unifies employees or members and gives everyone an understanding of the organization's direction. Ensuring that the common purpose is effectively communicated across organizations (particularly large organizations with many moving parts) is a central task for managers. Managers communicate this purpose by educating all employees on the general strategy, mission statement, values, and short- and long-term objectives of the organization. Coordinated EffortCoordinating effort involves working together in a way that maximizes resources. The common purpose is achieved through the coordinated effort of all individuals and groups within an organization. The broader group's diverse skill sets and personalities must be leveraged in a way that adds value. The act of coordinating organizational effort is perhaps the most important responsibility of managers because it motivates and distributes human resources to capture value. Division of LaborDivision of labor is also known as work specification for greater efficiency. It involves delegating specific parts of a broader task to different people within the organization based upon their particular abilities and skills. Using division of labor, an organization can parcel out a complex work effort for specialists to perform. By systematically dividing complex tasks into specialized jobs, an organization uses its human resources more efficiently. Hierarchy of Authority Hierarchy of authority is essentially the chain of command—a control mechanism for making sure the right
people do the right things at the right time. While there are a wide variety of organizational structures—some with more centralization of authority than others—hierarchy in decision making is a critical factor for success. Knowing who will make decisions under what circumstances enables organizations to be agile, while ambiguity of authority can often slow the decision-making process. Authority enables organizations to set directions and select strategies, which can in turn enable a common
purpose. Characteristics of Organizational StructuresImportant characteristics of an organization's structure include span of control, departmentalization, centralization, and decentralization. Learning Objectives Outline the departmentalization options available to corporations from an organizational structure perspective and differentiate between centralized and decentralized decision-making, and the resulting structural
implications Key TakeawaysKey Points
Key Terms
Organizational structures provide basic frameworks to help operations proceed smoothly and functionally. Types of organizational structures include functional, divisional, matrix, team, network, and horizontal structures. Each of these structures provides different degrees of four common organizational elements: span of control, departmentalization, centralization, and decentralization. Span of Control Span of control—or the number of subordinates a supervisor has—is used as a means of ensuring proper coordination and a sense of accountability among employees. It determines the number of levels of management an organization has as well as the number of employees a manager can efficiently and effectively manage. In the execution of a task, hierarchical organizations usually have different levels
of task processes. Workers at various levels send reports on their progress to the next levels until the work is completed. DepartmentalizationDepartmentalization is the process of grouping individuals into departments and grouping departments into total organizations. Different approaches include:
Centralization Centralization occurs when decision-making authority is located in the upper organizational levels. Centralization increases consistency in the processes and procedures that
employees use in performing tasks. In this way, it promotes workplace harmony among workers and reduces the cost of production. Centralization is usually helpful when an organization is in crisis and/or faces the risk of failure. Centralization vs. decentralization: This diagram compares visual representations of a centralized vs. decentralized organizational structure. Notice how the representation of the centralized organization looks like one large asterisk with many spokes, whereas the representation of the decentralized organization looks like many small interconnected asterisks. Decentralization Decentralization occurs when decision-making authority is dispersed among the lower organizational levels. With decentralized authority, important decisions are made by middle-level and supervisory-level managers. Because there are fewer hierarchical layers
to navigate, this kind of structure helps to enable adaptability, quick reactions to lower level issues, and more empowered employees. However, making organization-wide changes that are implemented homogeneously can become quite difficult in this system. Licenses and AttributionsCC licensed content, Shared previously
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Which of the following basic components is typically included in organizational behavior OB?Organizational behavior (OB) typically includes the study of which of the following basic components? a. designing jobs, grouping jobs into units, and establishing patterns of authority between jobs and units.
What are the main components of organizational behavior?The four elements of organizational behavior are people, structure, technology, and the external environment.
What are the 3 levels of organizational behavior?The most widely accepted model of OB consists of three interrelated levels: (1) micro (the individual level), (2) meso (the group level), and (3) macro (the organizational level). The behavioral sciences that make up the OB field contribute an element to each of these levels.
What are the types of organizational behavior?In management, the focus is on the study of the five organizational behavior models:. Autocratic Model.. Custodial Model.. Supportive Model.. Collegial Model.. System Model.. |