MGMT Test 3- Ch 10: Designing Organization Strucuture
Less Supervision (large spans of control) depends on:
-Work is stable and routine - Subordinates perform similar work - Subordinates are in one location - Subordinates are highly trained - Rules and Procedures are defined - Support Systems and personnel are available - Few nonsupervisory activities - Managers prefer a large span of control
Organization structure includes:
1)the set of formal tasks assigned to individuals and departments; 2)formal reporting relationships, including lines of authority, decision responsibility, number of hierarchical levels, and span of managers' control; and 3)the design of systems to ensure effective coordination of employees across departments.
Authority is distinguished by 3 characteristics:
1. Authority is vested in organizational positions, not people 2. Authority flows down the vertical hierarchy 3. Authority is accepted by subordinates
Diverse departments are brought together to produce a single organizational output, whether it is a product, a program, or a service to a single customer.
Divisional
Positions are grouped into departments based on similar skills, expertise, work activities and resource use
Functional
Once people are departmentalized into separate departments
Need for Coordination
What are the two underlying principles associated with Chain of Command?
Unity of Command and ScaLAR pRINCIPLE
Scalar Principle
a clearly defined line of authority in the organization that includes all employees.
Project Manager is not
a member of one of the departments being coordinated
Staff authority
authority that includes the right to advise, recommend and counsel in the staff specialists area of expertise
Departmentalization
basis for grouping positions into departments ad departments into total organizations
Cross Functional Teams
consist of employees from various functional departments who are responsible to meet as a a team and resolve mutual problems
When organizations face new strategic issues, managers often
create new positions or departments to deal with them
decentralization
decision authority is pushed downward to lower organization levels.
Span of control
determines how closely a supervisor can monitor subordinates.
For organizations to function well:
everyone needs to know what they are accountable for and accept the responsibility and authority for performing it.
5 Approaches to Departmentalization
functional, divisional, matrix, team, virtual network
Team Approach
gives managers a way to delegate authority, push responsibility to lower levels, and be more flexible and responsive in a complex and competitive global environment - Cross Functional Teams
Centralization and decentralization pertain to the
hierarchical level at which decisions are made
Strategy
how to achieve goals, and organizing defines how it will be done in terms of resources
Authority
is the formal and legitimate right of a manager to make decisions, issue orders, and allocate resources to achieve organizationally desired outcomes.
Collaboration
joint effort between people from two or more departments to produce outcomes that meet a common goal or shared purpose and that are typically greater than what could be achieved working alone- to achieve synergy
Line Authority
managers have formal authority to direct and control immediate subordinates- connected via a line in the org chart
Centralization
means that decision authority is located near the top of the organization.
Unity of Command
means that each employee is held accountable to only one supervisor
Accountability
means that people with authority and responsibility are subject to reporting and justifying task outcomes to those above them in the chain of command.
Factors that influence centralization:
o Rapid change and uncertainty in the environment are associated with decentralization o Crisis requires centralization o Fits the strategy
The characteristics of vertical structure are portrayed in an
organization chart
Project Manager
person who is responsible for coordinating the activities of several departments for the completion of a specific project
Span of management is also called
span of control
Tall Structure
span of management is narrow and therefore has many hierarchical levels, many layers of management
Flat Structure
span of management is wide and therefore has few hierarchal levels, fewer layers of management
Task Force
temporary team or committee designed to solve a problem involving several departments
Division of Labor/Work Specialization
the degree to which organizational tasks are subdivided into separate jobs
Organizing
the deployment of organizational resources to achieve strategic goals
Responsibility
the duty to perform the task or activity as assigned
responsibility
the duty to perform the task or activity as assigned
Functional Structure
the grouping of activities by common function from the bottom to the top of the organization
Coordination
the managerial task of collaborating across departments
Span of management
the number of employees reporting to a supervisor
virtual network structure
the organization subcontracts most of its major functions to separate companies and coordinates their activities from a small headquarters organization.
Delegation
the process that managers use to transfer authority and responsibility down the hierarchy
Division of Labor: Employees within each department only perform tasks relevant to
their specialized function
Chain of Command
unbroken line of authority that links all employees in an organization and shows who reports to whom.
accountability
willingness or obligation to accept responsibility
managers are assigned authority commensurate
with their responsibilities
Matrix Approach
· combines both functional and divisional approaches simultaneously, in the same part of the organization - Improves coordination and information
Divisional Structure
· departments are grouped together based on similar organizational outputs such as product/service OR. could base on geographic