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Chapter 13

Accountability for product performance since all

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Advantage: inc. accountability for product performance (since all activities related to a specific product line are under direction of single manager) Geographic - on basis of geography / territory - e.g. departments for BC, the Prairies, Central Canada, Atlantic Canada - Advantage: good for org’s whose customers scattered over large Process - by processing (of customers/products) that occurs - e.g. an aluminum tubing manufacturer: casting, press, tubing, finishing, inspecting/packing/shipping - each department specializes in one specific phase in production of aluminum tubing Customer - on basis of particular type of customer - e.g. sales in a supply firm: service retail, wholesale, gov’t customers - e.g. Dell Canada: Individual systems vs. Business systems (Small VS. Medium/large business users VS. Gov’t, education, health care) - customers of each department have a common set of problems & needs that can be best met by having specialists for each Chain of Command = unbroken line of authority that extends from the top of the org. to the lowest echelon and clarifies who reports to whom - Authority – who has the right to give orders and expect them to be obeyed - Unity of Command – subordinates should have only 1 superior Delegation = assignment of authority to another person to carry out specific duties, allowing the employee to make some of the decisions - today, managers often delegate → employees are empowered - , multiple bosses→ less chain-of-command Span of Control = # of employees/subordinates that report to a manager - Large/Wide span → more cost-efficient, empowers workers, speeds up decisions *BUT can reduce effectiveness (when span is too large, employee performance↓ b/c managers have no time to provide necessary leadership/support) - Small/Narrow span (5-6 ppl) → manager can maintain close control BUT… 1) expensive (add levels of management) 2) vertical communication more complex (added levels of hierarchy slow down decision making & tend to isolate upper management)
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P ART 5: R EORGANIZING THE W ORKPLACE 3) encourage overly tight supervision & discourage employee autonomy - today’s trend: wider span of control employee training so managers can handle wider span *reduce costs *cut overhead *speed up decision making *inc. flexibility *get closer to customers *empower employees - Research: NO relationship btwn span of control & employee performance (due to Individual Differences: some prefer to be left alone, others quickly available managers) *manager’s job satisf’n ↑ as # of employees he supervises ↑ Centralization / Decentralization (Are decisions concentrated at top or pushed to lower levels?) Centralization = degree to which decision-making is concentrated at a single point in org - formal authority - top management makes org’s key decisions w/ lil/no input from lower-level employees Decentralization = degree to which decision making is distributed to lower-level
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accountability for product performance since all activities...

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