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A Hierarchy of Authority Emerges in An Organization
A Hierarchy of Authority Emerges in An Organization
INTRODUCTION
To protect shareholders goals, managers must constantly analyze
organizational structure. Organizational design refers to the way in which a
company functions. Good organizational design aligns the company's
processes and management functions with its overall goals. It can be defined
as decisions about such configurations as formal and informal structures,
systems and processes.
This study examines the vertical dimension of the structure, the hierarchy of
authority created to control an organizations members. Why does vertical
differentiation occur in the organizational? The hierarchy emerges when an
organization faces coordination and motivation problems due to increased
horizontal differentiation indicated by Richard (2008:17).
Individual assignment 1
BSITY4S1 2017
Faculty of Information and Communication Technology
BBG1114 Concept of Organization
Sello Hlabeli 901006823
How to balance authority is not a design decision that can be made once and
forgotten, it is made on an ongoing basis and is an essential part of the
managerial task.
The design challenge facing managers is to find a way of using rules and
norms to standardize behavior while at the same time allowing for mutual
adjustment to provide employees with the opportunity to discover new and
better ways of achieving organizational goals. Managers facing the challenge
of balancing the heed for standardization against the need for mutual
adjustment need to keep in mind that, in general, people at higher levels in
the hierarchy and in functions that perform complex, uncertain tasks rely
more on mutual adjustment than on standardization to coordinate their
actions.
Individual assignment 4
BSITY4S1 2017
Faculty of Information and Communication Technology
BBG1114 Concept of Organization
Sello Hlabeli 901006823
doing things. Managers can also promote norms and values that emphasize
change rather than stability. For all organizational roles, however, the
appropriate balance between these two variables is one that promotes
creative and responsible employee behavior as well as organizational
effectiveness.
Michael & Eugene (2011) states that the design challenge for managers is to
decide on the correct balance between centralization and decentralization of
decision-making in an organization. If authority is too decentralized,
managers have so much freedom that they can pursue their own functional
goals and objectives at the expense of the organizations.
On the other hand, if authority is too centralized and top management makes
all-important organizational decisions, managers lower down in the hierarchy
become afraid to make new moves and lack the freedom to respond to
problems as they arise in their own groups and departments.
Individual assignment 5
BSITY4S1 2017
Faculty of Information and Communication Technology
BBG1114 Concept of Organization
Sello Hlabeli 901006823
CONCLUSION
Hierarchy is such a prevalent form of social organization because it is
functionally adaptive and enhances a groups changes of survival and success.
We identified five ways in which hierarchy facilitates organizational success
being created a psychologically rewarding environment, motivates
performance through hierarchy-related incentives, capitalizes on the
complementary psychological effects of having versus lacking power, supports
division of labor, and as result, coordination, and reduces conflict and
enhances voluntary cooperation.
According Richard (2010:132) there are some factors considered for the
betterment of the company involves, maintaining control over the various
functions in an organization the need to create the role of the director,
manager, and an employee in respect to their tasks. For example manager
would report to director and would supervise lower level employees, this role
adds a level to the hierarchy.
Individual assignment 6
BSITY4S1 2017
Faculty of Information and Communication Technology
BBG1114 Concept of Organization
Sello Hlabeli 901006823
REFERENCES
1. James L. Gibson, John M. Ivancevich, James H. Donnelly, Jr.
Robert Konopaske. 2012. Organisations: Behavior, Structure,
Processes. 14th edition. New York: McGraw-Hill.
2. Michael, C. Ehrhardt, & Eugene, F. Brigham., 2011. Business
Management: Theory and Practice.13th edition. USA: Cengage
Learning.
3. Paramasivan, C. & Subramanian, T., (2007) .Financial Management.
New Age International Publishers.
4. Richard, L. Daft., 2008.Organisational Theory and Design. 10th edition.
USA: Cengage Learning.
5. Richard, L. Daft.,2010. Management. 9th edition. USA: Cengage
Learning.
Individual assignment 7
BSITY4S1 2017
Faculty of Information and Communication Technology