Traditional theories

Divisional

- Organization design is made up of separate business divisions or units.

- Parent corporation acts as overseer to coordinate and control divisions and provide financial
and legal support services.

Modern theories include:

Team design

- The entire organization is made of work groups or teams.

- - advantages is empowerment of team members and reduced barriers.

Martix-project design

Boundary-less design

- Modern organizational design is not defined or limited by vertical, horizontal and external
boundaries.
- There are no hierarchical levels that separate emloyees

Delegation

- Refers to assigning a new or additional task to a subordinate.

Steps in delegation

1. Defining the goal clearly.

2. Selecting the person who will be given the task.
3. 3. Assigning responsibility.
4. Asking the person assigned about his or 0her planned approaches to accomplish the task
objectives.
5. Granting the assigned person to authority to act.
6. Giving the assigned person enough time and resources to do the task, white at the same time
emphasizing his or her accountability.
7. Checking the task accomplishment progress.
8. Making sure that the task objective has been achieved.

Advantages

1. Prevents work overload

2. Provides opportunities for employees assigned to do task.
 3. Leads empowerment of employees
4. Increase job satisfaction among assigned employees.

Disadvantages

1. It may cause laziness among organization managers

2. Encourage too much dependance on others
3. It may cause lack control over priority management problems
4. It may cause low self-confidence among managers.

Formal and informal organization

Formal organizations

- It is formed by the company owner or manager to help the firm accomplish its goals.

Informal organizations