SBenegaL

Category: Differentiation

  • Complexity and Differentiation

    In the last byte, we discussed about spacial differentiation. In today’s byte, we look at the the different differentiation in combination. 

    Horizontal, Vertical and Spacial Differentiation indicates the amount of width, height and breadth an organizational structure needs. A lot of distribution on any one of these dimensions doesnt necessarily mean that it is distributed on all other dimensions as well. 
     
    As an example Imagine an university – one could find a very great horizontal differentiation, but relatively little vertical differentiation. On the other hand, consider the case of a large company like Coca-Cola: It would have a great level on all three dimensions.
     
    What one needs to remember is that the more structurally differentiated the organization is, the more complex it would be.
     
    We have used the term “complexity” a  lot. Complexity refers to the number of activities, subunits or subsystems with the organization. It has been suggested that organization’s complexity should mirror the complexity of the environment.
     
    As the complexity of an organization increases, its need for mechanisms to link and coordinate the different parts of the organization increases phenomenally. Failure to coordinate effectively could lead the orientation towards the organization goal to disappear
     
    With the need for linkage and coordination establish, we shall next move towards understanding integration.

  • 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

  • Differentiation and Integration:Definition

    In the last byte, we began our discussion on the larger concept of organizational design and structure. In today’s byte, we define the concepts of differentiation and integration.

    Definitions:
    • Differentiation is the process of deciding how to divide the work in an organization
    • Integration is the process of coordinating the different parts of an organization
    Differentiation is the design process of breaking the organizational goal into tasks and integration is the design process of linking the tasks together to forma a structure that supports goal accomplishments.
     
    These two processes are really the key to designing the organization successfully. Organization structure helps prevent chaos through an orderly set of reporting relationships and communication challenges.
     
    An understanding of the key design processes and organizational structure helps an individual understand the larger working environment and may prevent confusion in the organization.This organizational structure and the underlying components are represented through an organizational chart.