Organizational Structure Benchmarking Research

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OTA # 105428

Justification for Topic
During the early 1900s, Max Weber, one of the pioneers of modern sociology, designed a perfectly rational organizational form, called a bureaucracy. Among the characteristics of this "ideal" organization were specialization, division of labor, and a hierarchical organizational design. Division of labor is a form of specialization in which the production of a product or service is divided into several separate tasks, each performed by one person. According to Weber's design, inherent within the specialization and division of labor is knowledge of the precise limit of each worker's "sphere of competence," and the authority to perform individual tasks without overlapping others. Although specialization has enhanced productivity and efficiency, it has also led to conflict between specialized units, hindering achievement of the overall goals of the organization. Further, specialization can impede communication among units, as highly specialized units tend to "withdraw into themselves and not fully communicate with other units above, below, or horizontal to it. In addition, highly specialized jobs can lead to employee boredom and burnout (The Gale Group, Inc., 2001).

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