Differentiation Assignment

Differentiation Assignment

Question 1

When the service organization or company is in a highly competitive market, it is important to use the tool of differentiation, which helps as a strategy for the development and success of an organization. For the health or any other sector, it is important to note that this sector is in a highly competitive environment. Product or service differentiators should be exploited as feasible to establish this service as a strategic business unit within an organization. However, the organization should be taken into account and provide this service, this means growth and development of organization and customers may decide to request service and thus successfully implement (Jones 2006). Daft has emphasized the importance of differentiation and explains that the commodities do not vary from one place to another does not exist as each company offers them in a different way, adapted to the needs of its clients, which are all different. Horizontal differentiation is the duplication and specialization of tasks and activities, in professions (division of labor associated) and training paths, as well as lifestyles. Whereas, vertical differentiation occurs if social positions with a hierarchical evaluation got connected one speaks of vertical differentiation. The most important distinctive case of vertical differentiation is the formation or breakdown of power - and power structures (Daft et al. 2010).

Jones, in his book, suggest that when there are limits on the usefulness of direct, personal supervisory by managers, organizations should find different wats for controlling their activities. Therefore, it must be kept in mind that successful organizational designs require managers to meet all of those challenges, as mentioned in the following figure, presented in the book.

Figure 1: Factors Affecting the Shape of the Hierarchy (Jones 2006)

Question 2

The structure of an organization is all the means used to divide the work among independent tasks and whose purpose is to ensure coordination between these tasks. Mechanistic organization takes place if there is rigid and tightly controlled structure. It gets characterized by high specialization, rigid low standards of control, high formalization, a limited exchange of information (and information transfer occurs mainly by tunneling, that is, from the top down) and a low degree of participation of the rank and file employees in the decision making process (Jones 2006).

The direct opposite of the mechanistic organization is an organic organization that is as adaptable and flexible as a rigid, mechanistic organization. Flexibility enables these organizations when necessary to change quickly. In organic organizations also used the division of labor, but the work tasks not standardized. Employees of these organizations well taught, and endowed with greater powers in dealing with a variety of production issues. In addition, organizations of this type often gets used such structural organizational form as a team. Employee's organic organizations need not all formal rules and a minimum of direct supervision; a high level of skill and training, as well as support from other team members, makes it unnecessary to formalize and tight control on the part of managers (Daft et ...