Chapter 6 REVIEW QUESTIONS 1-5 - 3 What is the di±erence...

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Chapter 6: Organizing the Business REVIEW QUESTIONS 1-5 Page 160 1. What is an organization chart? What purpose does it serve? Diagram depicting a company’s structure and showing employees where they fit into its operations. It serves as a clarification purpose. 2. Explain the significance of size as it relates to organizational structure: Organizing is part of management process and most companies change their structure on continues basis. Larger firms develop more complex organizational structures. Describe the changes that are likely to occur as an organization grows: As a firm’s size increases, job specialization becomes increasingly important, followed by departmentalization, and a more definitive decision-making hierarchy.
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Unformatted text preview: 3. What is the di±erence between responsibility and authority? Responsibility is the duty to perForm an assigned task and authority is the power to make the decisions necessary to complete that task. 4. Why do some managers have di²culTes in delegaTng authority? Because they Feel that others can’t do anything as well as they can, Fear that that employee will “show up” the manager, like to be in control, or don’t know how to delegate. 5. Why is a company’s inFormal organizaTon important? InFormal structure among employees can exceed Formal job-related rela±onships, crea±ng a powerFul dynamic that can either support or disrupt a frm’s e²ec±veness....
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