Why Does Differentiation Occur in Organization?.

Topics: Management, Unit, Organization Pages: 3 (867 words) Published: September 23, 2012
Why Does Differentiation occur in Organization?.

When ever organization grows in large size from small one , the managers must decide how to control and coordinate the activities that are required for the organizations to achieve their goals. The principle design challenge is how to differentiate this division of labor to control easily and coordinate efficiently. The Differentiation:

The differentiation is the process by which an organization allocates people and resources to organizational tasks This establishes the task and authority relationships that allow the organization to achieve its goals.

The Division of labor: the degree of specialization in the organization In a simple organization, differentiation is low because the division of labor is low Individuals typically perform all organizational tasks

In a complex organization, differentiation is high because the division of labor is high. Example is Bob and Amanda restaurant business, how they managed from small restaurant to large scale. The Organizational Roles : The basic building blocks of differentiation are organizational role.The set of task-related behaviors required of a person by his or her position in an organization. As the division of labor increases, managers specialize in some roles and hire people to specialize in others. The specialization allows people to develop their individual abilities and knowledge within their specific role. The Organizational structure is based on a system of interlocking roles. Here I would like to explain some important role in the organizations. The authority who has the power to hold people accountable for their actions and to make decisions concerning the use of organizational resources .The authority has the ability to coordinate and motivate people to work in the organization’s interests.

The organization and Subunits
The Sub units and their Functions and Divisions
The Function: a subunit composed of a group of people, working together,...
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