Wednesday, April 16, 2014

Dimensions of Differentiation

In the last byte, we looked at the role an organization chart plays in designing organization structure. In today's byte, we look at differentiation in greater detail.
As mentioned earlier, differentiation is the process of deciding how to divide the work in an organization. It ensures that all essential organizational tasks are assigned to one or more jobs and that the tasks receive the attention they need.
There are 4 dimensions of differentiation that have to be considered in designing organization:
  1. Manager's goal orientation
  2. Time Orientation
  3. Interpersonal Orientation
  4. Formality of structure
Differentiation could be further classified into three different forms:
  • Horizontal
  • Vertical
  • Spatial

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