Differentiation:
The process by which an organization allocates people and resources to
organizational tasks and establishes the task and authority relationships that
allow the organization to achieve its goals.
Division of labor:
The process of establishing and controlling the degree of specialization in the
organization.
Support functions: functions that facilitate an organization’s control of its
relations with its environment and its stakeholders
Production functions: Functions that manage and improve the efficiency of an
organization’s conversion processes so more value is created.
Maintenance functions: Functions that enable an organization to keep its
departments in operation.
Adaptive functions: Functions that allow an organization to adjust to changes in
the environment.
Managerial functions: Functions that facilitate the control and coordination of
activities within and among departments.
Vertical differentiation: The way an organization designs its hierarchy of authority
and creates reporting relationships to link organizational roles and subunits.
Horizontal differentiation: The way an organization groups organizational tasks
into roles and roles into subunits (functions and divisions).
Figure 4.4 organizational design challenges
Differentiation balancing integration
Centralization balancing decentralization
Standardization balancing Mutual adjustment
Subunit orientation: a tendency to view one’s role in the organization strictly from
the perspective of the time frame, goals and interpersonal orientations of the
one’s subunit.
, Integration: The process of coordinating various tasks functions and divisions so
that they work together and not at cross purposes
Table 4.1 types and examples of integrating mechanisms
Integration Mechanism Description Example
(in order of increasing
complexity)
Hierarchy of authority A ranking of employees Salesperson reports to
integrates by specifying Diaper division sales
who reports to whom manager
Direct contact Managers meet face to Diaper division sales and
face to coordinate manufacturing managers
activities meet to discuss
scheduling
Liaison role A specific manager is A person from each of
giver responsibility for J&J’s production,
coordinating with marketing and R&D
managers from other departments is given
subunits on behalf of his responsibility for
or her subunit coordinating with the
other departments
Task force Managers meet in A committee is formed to
temporary committees to find new ways to recycle
coordinate cross- diapers
functional activities
Team Managers meet regularly A permanent J&J
in permanent committee is established
committees to coordinate to promote new-product
activities development in the
Diaper division
Integrating role A new role is established One manager takes
to coordinate the responsibility for
activities of two or more coordinating Diaper and
functions or divisions Baby Soap divisions to
enhance their marketing
activities
Integrating department A new department is A team of managers is
created to coordinate the crated to take
activities of functions or responsibility for
divisions coordinating J&J’s
centralization program to
allow divisions to share
skills and resources.
The process by which an organization allocates people and resources to
organizational tasks and establishes the task and authority relationships that
allow the organization to achieve its goals.
Division of labor:
The process of establishing and controlling the degree of specialization in the
organization.
Support functions: functions that facilitate an organization’s control of its
relations with its environment and its stakeholders
Production functions: Functions that manage and improve the efficiency of an
organization’s conversion processes so more value is created.
Maintenance functions: Functions that enable an organization to keep its
departments in operation.
Adaptive functions: Functions that allow an organization to adjust to changes in
the environment.
Managerial functions: Functions that facilitate the control and coordination of
activities within and among departments.
Vertical differentiation: The way an organization designs its hierarchy of authority
and creates reporting relationships to link organizational roles and subunits.
Horizontal differentiation: The way an organization groups organizational tasks
into roles and roles into subunits (functions and divisions).
Figure 4.4 organizational design challenges
Differentiation balancing integration
Centralization balancing decentralization
Standardization balancing Mutual adjustment
Subunit orientation: a tendency to view one’s role in the organization strictly from
the perspective of the time frame, goals and interpersonal orientations of the
one’s subunit.
, Integration: The process of coordinating various tasks functions and divisions so
that they work together and not at cross purposes
Table 4.1 types and examples of integrating mechanisms
Integration Mechanism Description Example
(in order of increasing
complexity)
Hierarchy of authority A ranking of employees Salesperson reports to
integrates by specifying Diaper division sales
who reports to whom manager
Direct contact Managers meet face to Diaper division sales and
face to coordinate manufacturing managers
activities meet to discuss
scheduling
Liaison role A specific manager is A person from each of
giver responsibility for J&J’s production,
coordinating with marketing and R&D
managers from other departments is given
subunits on behalf of his responsibility for
or her subunit coordinating with the
other departments
Task force Managers meet in A committee is formed to
temporary committees to find new ways to recycle
coordinate cross- diapers
functional activities
Team Managers meet regularly A permanent J&J
in permanent committee is established
committees to coordinate to promote new-product
activities development in the
Diaper division
Integrating role A new role is established One manager takes
to coordinate the responsibility for
activities of two or more coordinating Diaper and
functions or divisions Baby Soap divisions to
enhance their marketing
activities
Integrating department A new department is A team of managers is
created to coordinate the crated to take
activities of functions or responsibility for
divisions coordinating J&J’s
centralization program to
allow divisions to share
skills and resources.
