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 The

process of determining:

 The tasks to be done.
 Who will do them.
 How those tasks will be managed and

 Structuring working relationships in a way
that allows organizational members to
work together to achieve organizational

Review Plan & Objective

Establish Major Tasks

Divide Major Task to Subtask

Allocate resources for subtask

Evaluate result

 The chain of command and hierarchy of responsibility. .  Specifies its division of work activities and shows how different functions of activities are linked and also shows the level of specialization of work activities. Defines the primary reporting relationships that exist within an organization. authority. and accountability are established through organizational structure.

to show work to be done. .indicate line of promotion.  The purpose of the organization chart includes:  . . .Is defined as a formal diagram that shows the lines of coordinate the division of work and to make those division clear. .to indicate to each employee area of responsibility and to whom each employee reports.

Managers & subordinates 3. Grouping of work segments 5. Levels of management . Division of work 2. Type of work being performed 4.5 major aspects of an organization’s structure illustrated by the organization chart:1.

Wide/flat span of management 2.  Two types of span of control/management: 1.Refers to the number of subordinates who report directly to a given manager of supervision. Narrow/tall span of management  .


Decisions made by managers tend to be at bottleneck due to the burden of managing subordinates 3. Superior might loss control 2. Requires a high quality managers .Advantages: 1. Disadvantages: 1. Superiors have power to delegate 2. Policies are clear 3. Selection of employees to receive tasks.

Rapid communication between subordinates and superiors Disadvantages: 1. Close control 3. . So many levels of management – incur high costs 3. Will cause excessive distance between the lowest and top levels. Superiors tend to get too involved in subordinates’ work 2. Close supervision 2.Advantages: 1.

Traditional structure:  Functional  Divisional  Matrix Newly-emerged structure:  Network .

 Functional  Divisional  Matrix structure structure structure  Network structure .

geographic markets. . or consumer groups.  Appropriate when an organization’s greatest source of complexity comes from the diverse tasks that must be performed rather than from its products. Members of the organization are grouped according to the particular function that they perform within the organization.

Facilitates specialization Advantages Cohesive work groups Improved operational efficiency .

organizational issues Disadvantages Difficult to develop generalists needed for top-level management Only top-level management held accountable for profitability .Focus on departmental vs.


 Functional structure  Divisional  Matrix structure structure  Network structure .

 Members of the organization are grouped on the basis of:  Common products  Geographic markets  Customers served .

Customer divisional  Most appropriate for organizations that have separate customer groups with very specific and distinct needs. .   Product divisional  Most appropriate for organizations with relatively diverse product lines that require specialized efforts to achieve high product quality. Geographic divisional  Most appropriate for organizations with limited product lines that either have wide geographic coverage or desire to grow through geographic expansion.

 Duplication of resources.  Better assessment of manager performance and responsibility.  Disadvantages  Managers may lack expertise to operate in wide geographic areas.  Development of generalist managers. . Advantages  Enhanced coordination.


 May be difficult to manage diverse product lines.  .  Disadvantages  Duplication of product or product/technology efforts.  Good structure for growth along geographic lines.  Coordination and integration are difficult.Advantages  Allows for focus on specific new markets.  Adaptable to local needs.


 Functional  Divisional  Matrix structure structure structure  Network structure .

 Examples include:  Product/function  Product/geographic region .A structure in which the tasks of the organization are grouped along two organizational dimensions simultaneously.

resulting in more specific job skills .Can achieve simultaneous objectives Advantages Managers focus on two organizational dimensions.

leading to difficulties in implementation  Behavioral difficulties from “two bosses”  Time consuming from a planning/coordination perspective .Disadvantages  Complex.


 Functional  Divisional  Matrix structure structure structure  Network structure .

A contemporary organizational structure that is founded on a set of alliances with other organizations that serve a wide variety of functions. .

Stable network  A network structure that utilizes external  alliances selectively as a mechanism for gaining strategic flexibility. Dynamic network  A network structure that makes extensive use of outsourcing through alliances with outside organizations. . Internal network  A network structure that relies on internally  developed units to provide services to a core organizational unit.

Advantages  Maximizes the effectiveness of the core unit  Do more with less resources  Flexibility .

Disadvantages  Fragmentation makes it difficult to develop control systems  Success is dependent on ability to locate sources  Difficult to develop employee loyalty .


Accountability & Responsibility . Decentralization  Authority. Chain of command  Work/Job specialization  Centralization vs.

.Scalar principle  .Unity of command.  A clear and distinct line of authority among the positions in an organization  The continuous line of authority that extends from upper levels to lower levels and clarifies who report to whom.The line of authority and responsibility that flows throughout the organization.  Chain of command has two components: .

▪ To whom they can delegate ▪ Who can delegate them ▪ To whom they are accountable . supervisor. and only one. Unity of command:  A principle that each employee in the organization is accountable to one.  Scalar principle:  Suggest that there must be a clear and unbroken line of authority that links all person in an organization and show who report to whom i.e.

.staff D makes drinks .staff A takes orders.  Also known as the division of labor.  E. .staff C cooks .staff B cuts vegetables.A degree to which the overall task of the organization is broken down and divided into smaller component parts.staff E serves customers *outcome – can serve more customers at one time (rather than one staff doing all jobs at one time)  .g: restaurant :– .

The process of systematically delegating power and authority throughout the organization to middle.and lower-level managers.Centralization: . .The process of systematically retaining power and authority in the hands of upper-level managers. Decentralization: .

 Advantages of Centralization  Absolute controls over the organization  Administratively convenient  Common standards throughout the organization  Disadvantages of Centralization  Control can be autocratic and inflexible  Lead to frustration – staffs are forced to operate to inflexible rules  Upper level managers who give orders may not aware of what is needed .

staffs will become disorganize . Disadvantages of Decentralization  Upper level managers may lose control over the organization  Without coordination and leadership from the top. Advantages of Decentralization  Unburdening top managers of ordinary  task and freeing them for other activities  Flexibility and faster decision making  Enable subordinates to appreciate their action and activities  Improved decision making because decisions are made closer to the scene of action.

 .  Flows top down through the hierarchy. issue orders.Power that has been legitimized by the organization.  Right of a manager to make decisions. and allocate resources.

Line authority A form of authority in which individuals in management positions have the formal power to direct & control immediate subordinates. .2 types of authority: 1.Staff authority A form of authority granted to staff specialists in their area of expertise. 2.

. Employees’ justification for their decisions and actions with regard to the task they have been assigned.

Accountability & Responsibility are applied in Delegation Process. An obligation on the part of an employee to complete assigned activities. . * The concept of Authority.

 The process by which managers assign a portion of their workload to others. . and empowering that individual to accomplish the task effectively.  The process of transforming the responsibility for a specific activity or task to another member of the organization.

 To enable the manager to get more work done by utilizing the skills and talents of subordinates  To foster the development of subordinates by having them participate in decision making and problem solving that allows them to learn about overall operations and improve their managerial skills .

 Assigning


 Responsibility refers to the employee’s

obligation to complete the activities that
he or she has been assigned.
 Granting


 Authority is the formal right of an

employee to marshal resources and
make decisions necessary to fulfill work

 Establishing/creating


 Where there is accountability for

performance, employees understand
that they must justify their decisions and
actions with regard to the tasks for
which they have assumed responsibility.

. Principle 4: Choose the level of delegation carefully. Match the employee to the Principle 2: Be organized and communicate clearly.Principle 1: task. Principle 3: Transfer authority and accountability with the task.

difficult.Leads to a more involved and empowered workforce.  Provides opportunity for employee to develop analytical and problem solving skills.  Provides managers the opportunity to accomplish more complicated.  . or important tasks.  Improved response time as a result of decisions and information not needing to be passed up and down the organization.  Leads to better decision making.

. Is the process of linking the activities of the various departments of the organization. the more coordination is required.  The greater the interdependence between departments.

Reciprocal interpendence . Pooled interdependence 2. Three forms of interdependence: 1. Sequential interdependence 3.

 When units operate with little interaction. their output is simply pooled.  Represents the lowest interdependence .

 Moderate level of interdependence. . When the output of one unit becomes the input for another.

other departments will be affected.  The degree of interdependence is very high. When activities flow both ways between units.  If one department fails to do jobs properly. .

2.1. 3. The managerial hierarchy Rules and procedures Liaison roles Task forces Integrating departments . 5. 4.

..Organizations that use the hierarchy to achieve coordination place one manager in charge of interdependent departments or units.

Coordination is handled via rules and procedures.Not effective coordination problems are complex - .Useful in routine situations . .

.A manager in a liaison role coordinates interdependent units by acting as a common point of contact..

Temporary basis – when a project is completed.- - Created when the need for coordination is critical. Coordination function spread across several individuals – representative from each group. the representatives return to their original positions . When interdependence is complex and a single liaison person may not be sufficient.

Occasionally used. More permanent than Task Forces Members : combination of permanent and temporary .Has more authority than Task Forces - .