Ch. 10

span of management

# of employees reporting to a supervisor.

Organizational Structure 3 parts

1) the set of formal tasks assigned to individuals and depts. 2) formal reporting relationships, including lines of authority, decision responsibility, # of hierarchical levels, and span of managers' control 3) the design of systems to ensure effective coordination of employees across depts.

Scalar principle

a clearly defined line of authority in the org. that includes all employees

flat structure

a wide span, horizontally dispersed, and has fewer hierarchical levels

Vertical Functional structure (U-form) (Unity

activities are grouped together by common function from the bottom to the top of the org. Similar skills, expertise, resource use and work activities. Chain of command converges at the top

Chain of command

an unbroken line of authority that links all employees in an org. and shows who reports to who.

Centralization

decision authority is located near the top of org

decentralization

decision authority is pushed downward to lower org levels

Advantages of Functional structure

efficient use of resources; economies of scale; in-depth skills specialization & development; top manager direction & control.

Staff depts

include all those that provide a specialized skill in support of line depts.

Tall structure

narrow span and more hierarchial levels

Staff authority

narrower and includes the right to advise, recommend, and counsel in the staff's specialists area of expertise.

Line depts

perform task that reflect the organizations primary goal and mission.

Disadvantages of functional structure

poor comm across depts; slow response to external changes; lagging innovation; decisions concentrated at the top of hierarchy, creating delay

Line authority

ppl in mngmt postions have the formal authority to direct and control immediate subordinates

Unity of command

report only to one supervisor

Work Specialization

sometimes called division of labor, is the degree to which organizational tasks are subdivided into separate jobs. Only perform tasks relevant to their specialized functions.

Organizing

the deployment of organizational resources to achieve strategic goals.

Responsibility

the duty to perform the task as assigned

Authority

the formal and legitimate right of a manager to make decisions, issue orders and allocate resources to achieve organizationally desired outcomes. 1)Vested in organizational postions, not ppl 2)flows down the vertical hierarchy 3) accepted by subordinates

Accountability

the ppl with authority and respondsibility are subject to reporting and justifying task outcomes to those above them in the chain of command.

Delegation

the process that managers use to transfer authority/responsibility to positions below them.

departmentalization

which is the basis for grouping positions into depth and depth into the total org.