Differentiation

In the theory of organization design differentiation is the process by which an Organization allocates people and resources to organizational tasks and establishes the tasks and Authority relationships that allow the organization to achieve its goals.

Managerial implications:

1. No matter what your position in an organization, draw an organizational chart so you can identify the distribution of Authority and the Division of labor
2. Analyze each persons role and relationships among roles to make sure that the Division of labor is best for the task performed.
3. If you supervise more than one Function or Department analyze relationships among departments to make sure the Division of labor best suits the organization's mission.

See also:

• Vertical differentiation
• Horizontal differentiation