"No topic under management has undergone as much change in the past few years as that of organizing and organizational structure."
Organizational Structure can be defined as formal pattern of how people and job are grouped in an organization. This is often presented by an organizational chart. When managers change or develop the organization structure they are involved in organizational design. This process involves six key elements: work specialization, departmentalisation, centralization and decentralization, and formalization.
Work specialization is the "the degree to which tasks in an organization are divided into separate jobs: also known as division of labour."
The success of Mayo Clinic, well-known for its expertise in every branch of medicine, is mainly due to the specialization of its 2,000 physicians and 35,000 allied health staff members biology, dermatology, medical genetics, oncology, radiology, surgery , and urology to name a few.
Division of labour is the method of breaking down huge tasks into small specialized ones, making it easy for the workers to perform efficiently and effectively. Before 1960s, the concept of specialization was widely used as phenomenon to increase the effectiveness and efficiency of workers. But afterwards the organizations faced more problems in productivity which counteracted the benefits it reaped. Then it was realized that the work productivity could be increased by enlarging work activity not narrowing it further. Today managers seek specializations as an important part of organization but not as a source of increasing productivity. McDonalds for example, uses high work specialization to efficiently make and sell its fast food products, and most employees are specialized in health care organization.
Every organization has its own way to classify the work activities. The basis by which jobs are grouped together is called departmentalisation. Each organiz...