Chapter 10 - Chapter 10 – Designing Adaptive...

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Unformatted text preview: Chapter 10 – Designing Adaptive Organizations • Organizing the Vertical Structure o Organization Structure Set of formal tasks assigned to individuals and departments Formal reporting relationships • Lines of authority, decision responsibility, hierarchical levels, etc. Design of systems to ensure effective coordination across departments Organizational Chart • Page 309 o Work Specialization (or division of labor) Degree to which organizational tasks are subdivided into separate jobs 1 Employees w/in each department perform only tasks relevant to their specialized function (maintenance, quality, bottling) Makes everything much more efficient • Ex: Car assembly line • Can also make things boring o Chain of Command Line of authority that links all people and shows who reports to who 2 Principles • Unity of Command o Each employee is held accountable to only one supervisor • Scalar Principle o Clearly defined line of authority that includes everyone o Ex: Payroll clerk reports to chief accountant Authority, Responsibility, and Delegation • Chain of command illustrates authority structure • Authority o Formal and legitimate right of manager to make decisions o 3 Characteristics Authority is vested in organizational positions, not people • Your position, not WHO you are Authority is accepted by subordinates • Subordinates comply b/c they believe managers have right to issue orders • Acceptance theory of authority o Subordinates choose to obey Gives managers power or not Authority flows down the vertical hierarchy 2 • Top, have more authority o Accountability The people w/ authority and responsibility are subject to reporting to those above them o Delegation Managers transferring authority to those below them Line and Staff Authority • Line Departments o Perform tasks that reflect company’s primary goal and mission • Staff Departments o Provide specialized skills in support of line departments • Line Authority o People in management positions have formal authority to direct and control immediate subordinates • Staff Authority o Includes right to advise, recommend, counsel in staff spets’ area of expertise Ex: Advising manager in technical area...
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This note was uploaded on 04/19/2008 for the course BUS 251 taught by Professor Nakhai during the Spring '08 term at Millersville.

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Chapter 10 - Chapter 10 – Designing Adaptive...

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