Organizing

• Work specialization, Departmentalization, Chain of Command, Span of control, Centralization and Decentralization, and Formalization


  (6) elements of Organizational designs
• organizational chart


  a line that depicts the broad outline of an organization structure; show positions and titles.
• solid lines


  Reporting relationships are indicated by
• Horizontal layers


  indicates different levels of management
• Work specialization


  aka division of labor; degree to which the work necessary to achieve organizational goals is broken into various units
• Job Designing


  specification of task activities associated with a particular job
• Departmentalization


  The clustering of individuals into units and units into larger units to facilitate achievement of organizational goals.
• Simple structure


  little departmentalization, wide spans of control, centralized authority, and little formalization
• Functional structure


  The grouping of positions into departments based on similar skills, expertise, and resource use.
• Divisional Structure


  The grouping of positions into departments based on similar organizational outputs such as product, process and markets.
• Chain of Command


  unbroken line of authority extending from the top management to the lowest management level; Defines who reports to whom
• Authority


  rights inherent in a managerial position to tell people what to do and to expect them to do it
• Parity of Authority and Responsibility


  if a person is responsible for accomplishing a certain task in the organization, he should be given sufficient authority to accomplish that task
• Responsibility


  obligation to perform any assigned duties
• Absoluteness of Responsibility


  though a superior in an organization may delegate a portion of his authority to his subordinates, he does not reduce his responsibility or accountability for the performance of the tasks under his jurisdiction
• Unity of command


  A person should report to only one manager
• Span of control


  The number of employees a manager can effectively and efficiently handle.
• Tall structure


  narrow span, many hierarchical levels; Raise administrative cost, slow communication and decision-making
• Flat structure


  broader span, few hierarchical levels
• Downsizing


  significantly reducing the layers of middle management, expanding spans of control and shrinking the size of the workforce
• Restructuring


  making a major change in organization structure that often involves reducing management levels and possibly changing some major components of the organization through divestiture and acquisition
• Centralization


  Upper level makes decisions
• Decentralization


  Lower levels are also involved in decision making
• Employee empowerment


  giving employees more authority (power) to make decisions
• Formalization


  Standardization of organization's jobs; Job descriptions
• Highly standardized


  explicit job descriptions, numerous organizational rules, and clearly defined procedures covering work processes
• Low standardized


  employees have more discretion on how they do their work
• Line position


  a position that has authority and responsibility for achieving the major goals of an organization.
• Line authority


  Authority that follows the chain of command established by formal hierarchy; power to supervise, direct and evaluate the work of his subordinates
• Line units or departments


  Subdivisions or hierarchies which are directly involved in the production or distribution
• Staff position


  primary purpose is providing specialized expertise and assistance to line positions. Do not exercise authority and command power over other units in the organization
• Functional authority


  authority over other units in the organization in matters related directly to the staff department's functions.
• innovation, cost minimization, imitation


  Three dimensions of strategy
• Team structure


  an entire organization of work teams. Employee empowerment is crucial because no line of managerial authority flows from top to bottom.
• Matrix structure


  specialists from different functional areas are assigned to a project; Functional and divisional forms overlap
• Hybrid structure


  combines both functional and divisional structure but divides its activities into departments that can be either functional or divisional.
• Virtual organization


  small core of full time employees
• Network organization


  uses its own employees to do activities and network with outside employees to provide inputs and work processes.