Professional Documents
Culture Documents
Management
Chapter 7
Organizational Structure
Organizational Structure – refers to
the levels of management and division
with in an organization
Top
Hierarchy of
Middle
Management
Lower
Organizational Structure
Advantages
Shows how everyone is link
Individuals see their position (who
they are under and above)
Shows link/relation between
departments
Gives sense of belonging
Job Description
Job Description – outlines the
responsibilities and duties to be
carried out by someone to do a
specific job
Delegation
Delegation – giving a subordinate the
authority to perform particular tasks
(final responsibility not given)
Reduction in Increasing
direct control
Delegation trust or
by supervisors must mean: workers by
and managers supervisors
and managers
Advantages to Managers
Takes pressure off
Less likely to make mistakes
Can measure staff success easily
Advantages to Subordinate
Work become more interesting
Feels trusted and important
Gives more career opportunities
Why a Manager won’t
Delegate?
May be scared that subordinate may
fail
May be insecure that subordinate will
do better
Chain of Command &
Span of Control
Chain of Command – structure in an
organization which helps to
communicate from top to lower levels
Span of Control – number of
subordinates working directly under a
manager
Chain of Command
Shorter chain of command results in
“shorter” and “wider” span of control
Longer chain of command results in
“taller” and “narrower” span of control
De-layering – when a whole level of
management is removed in order to
shorten chain of command
Short Chain of Command
Advantages
Communication quicker and accurate
Top managers are more in touch
Span of Control will be wider”
– Top will delegate more (more
people)
– Feel more trusted
Short Chain of Command
Disadvantages
Managers lose control
Subordinates may make mistakes
because of poor training
Functional Departments
Line Managers – have direct
authority over subordinates in their
departments. Able to take decisions
in their department.
Staff Managers – are specialist
advisers who provide support to line
managers and to board of directors
Functional Departments
Functionaldepartments (i.e. finance
and marketing) are responsible for
one important part of organization.
Regional Division – use specialist
knowledge to help them run stores
abroad
Advantages of Employing
Staff and Line Managers
Staffmanagers advice line managers
Give Line managers time to
concentrate on their department and
taking decisions
Disadvantages of Employing
Staff and Line Managers
Conflicts created because of different
views
Line employees get confused about
who to take orders from
Decentralization and
Centralization
Decentralization – systematic
delegation is followed at all the levels
of management in organization
Centralization – most decisions are
taken at the center, or higher levels
of management
Decentralization
Advantages
Managers are closer to action
Managers feel trusted and important
Decisions are made quickly
Functional Decentralization
Specialist
departments delegate
decision-making authority in 4
common ways:
– Human Resources
– Marketing
– Finance
– Production
Federal Decentralization
Authority is divided between the
different product line of the business
Regional Decentralization
When a multinational business has
bases in many different regions or
country. Each has authority over its
own operations
Project Team
Decentralization
When a project involves a team
involving people from all functional
areas.