Exam 15: Organizational Structure and Controls

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.There are five coordinating mechanisms: Mutual adjustment,standardization of work processes,standardization of work skills,standardization of work output,and direct supervision. They cover a range of coordination possibilities from self-direction (mutual adjustment)to provided direction.
.Mutual adjustment can occur when everybody knows everything that is happening in the business and adjusts work patterns to fit the conditions at hand. This is more likely to be effective with small groups,when people are cross-trained,or when there is no clear road to success and a strong need for innovation.
.In an organization with too many people for mutual adjustment standardization of work processes can be used. Well-defined processes are easily understood by employees and supervisors manage the processes themselves rather than the employees.
.The standardization of work skills can be used in those cases where either an external or internal authority certifies employees as capable in some area. Accountants,physicians,or plumbers all offer examples of jobs where coordination by work skills is possible. Managers hire employees who are qualified by the appropriate standard and can expect a baseline level of performance.
.Jobs with clearly defined outcomes can be coordinated by the standardization of outputs. For instance,most sales jobs have output measures such as the number of sales opportunities that were successfully closed.
.Direct supervision may be required if work must be done in a certain way and must result in predictable,consistent output. If the other four methods for coordination have been considered and rejected,then direct supervision would seem to be the only alternative.