Functional Specialization and Internal Differentiation
In this chapter the issues relating to the development of functional specialization in organizations will be considered as an extension both of the general theoretical framework and of the ideas considered in Chapter 5 regarding the division of labour in organizations. We noted there that the division of labour is a characteristic of organizations in general. It will also be remembered that it was suggested in Chapter 3 that social and economic progress in human society generally would seem to be associated with the development of an increasing division of labour. It follows, then, that the issue of the division of labour within organizations, and also between them and other organizations and agencies in their environment, is of key importance. If our theoretical knowlege of the functioning of organizations is to be enhanced, it is clear that this must, in part, be based on an understanding of the processes by which the division of labour proceeds, and their implications. The main issues considered in the present chapter relate to problems of organizational design and deal with the questions relating to the intra-organizational division of labour. Those relating to the inter-organizational division of labour, which mainly concern strategic issues will be dealt with in Chapter 9. It will then be observed that the analytical principles involved are analogous in the two cases.