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Differentiation & integration roles in building organization

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Why is differentiation necessary to build a formal organizational structure? Is differentiation limited to large organizations? How is the concept of span of control related to both integration and differentiation?

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Solution Summary

This solution identifies why differentiation is necessary in building a formal organizational structure and whether it is limited only to large organizations. It discusses also how the concept of span of control is related to both integration and differentiation.

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What is differentiation?

As the organization grows, the more complex it is to manage. To simplify this Adam Smith suggested 'division of labor'. Division of work involves more than individual work duties such as managing a warehouse or writing advertising copy. It also influences the way employees perceive the organization and their role in it, as well as the way individuals relate to others. These differences - which can be called differentiation can complicate the tasks of effectively coordinating work activities.

Source:
Smith, Adam. "An Inquiry Into the Nature and Causes of the Wealth of Nations".

Rao, VS Rama. "Differentiation and Integration in Organizations". http://www.citeman.com/4675-differentiation-and-integration-in-organizations/. Accessed March 31, 2011.

Why is differentiation necessary to build a formal organizational structure?

Organizational structures have been used by man since time immemorial. Right from the early days of hunter-gatherers, to tribal warlords, one man would be given the task of leading the pack and assigning tasks to each member of his team. Right from the oldest kingdom to the papacy, hierarchical ...

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