Basic Challenges of Organizational Design

1434 WordsOct 21, 20106 Pages
Reading Summary Basic Challenges of Organizational Design Basic Challenges of Organizational Design Differentiation:- It is the process by which organization allocates people and resources to organizational task and establishes the task and authority relationships that allow the organization to achieve its goals. Organizational Roles An organizational role is a set of task-related behavior required of a person by his or her position in an organization. Organizational structure is based on a system of interlocking roles, and the relationship of one role to another is defined by task-related behaviors. Authority:- is the power to hold people accountable for their actions and to make decisions about how to invest and use organizational…show more content…
However, when hierarchy exists, employees are looking for support of superiors for direction. When issues arise they prefer not to deal with it and pass it on to their superiors. This makes decision making difficult and slow. The solution involved decentralizing authority; that is, employees at lower levels in hierarchy were given authority to decide how to handle problems and issues that arouse while they performed their jobs. If authority is too decentralized, managers have so much freedom that they can pursue their own functional goals and objectives at the expense of organizational goals. On the other hand if authority is too centralized and top management makes all decisions, managers lower down in their hierarchy become afraid to make new moves and lack the freedom and respond to problems as they arise in their own groups and departments. Balancing standardization and mutual adjustment Standard operating procedures (SOPs) and unwritten
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