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Organization

A. Differentiation
Differentiation occurs in large companies when different departments, sections or branch offices create their own corporate
culture within the parent company's overall structure. For instance, the sales staff at a differentiated company will have a different
approach to their tasks than the accounting department. Companies also can be differentiated based on product lines. A
highly-differentiated brewery will have sections that brew pilseners, lagers and ales, each with its own production, accounting and
marketing operations, while operating under the same corporate umbrella.

B. Integration
Integration relates to how the different areas of the company coordinate their operations. A highly-integrated company
has strong connections between departments and product lines, with each section working under a cohesive set of rules and
strategies. Integrated companies are highly vertical and hierarchical in nature. These companies operate from a "top-down" mindset,
where the management dictates the structure of each department rather than allowing the individual departments to set their own
agendas.
Authority in the Organization/Board
The seven points below outline the major responsibilities of the board of directors.

1) Recruit, supervise, retain, evaluate and compensate the manager. Recruiting, supervising, retaining, evaluating and compensating
the CEO or general manager are probably the most important functions of the board of directors. Value-added business boards need to
aggressively search for the best possible candidate for this position. Actively searching within your industry can lead to the
identification of very capable people. Don’t fall into the trap of hiring someone to manage the business because he/she is out of work
and needs a job. Another major error of value-added businesses is under-compensating the manager. Managerial compensation can
provide a good financial payoff in terms of attracting top candidates who will bring financial success to the value-added business.

2) Provide direction for the organization. The board has a strategic function in providing the vision, mission and goals of the
organization. These are often determined in combination with the CEO or general manager of the business.

3) Establish a policy based governance system. The board has the responsibility of developing a governance system for the business.
The articles of governance provide a framework but the board develops a series of policies. This refers to the board as a group and
focuses on defining the rules of the group and how it will function. In a sense, it’s no different than a club. The rules that the board
establishes for the company should be policy based. In other words, the board develops policies to guide it own actions and the actions
of the manager. The policies should be broad and not rigidly defined as to allow the board and manager leeway in achieving the goals
of the business.

4
4) Govern the organization and the relationship with the CEO. Another responsibility of the board is
to develop a governance system. The governance system involves how the board interacts with the
general manager or CEO. Periodically the board interacts with the CEO during meetings of the
board of directors. Typically that is done with a monthly board meeting, although some boards have
switched to meetings three to four times a year, or maybe eight times a year. In the interim between
these meetings, the board is kept informed through phone conferences or postal mail.

5) Fiduciary duty to protect the organization’s assets and member’s investment. The board has a
fiduciary responsibility to represent and protect the member’s/investor’s interest in the company. So
the board has to make sure the assets of the company are kept in good order. This includes the
company’s plant, equipment and facilities, including the human capital (people who work for the
company.)

6) Monitor and control function. The board of directors has a monitoring and control function. The
board is in charge of the auditing process and hires the auditor. It is in charge of making sure the
audit is done in a timely manner each year.
CEO
1. Board Administration and Support
Supports operations and administration of Board by advising and informing Board members, interfacing between Board and staff, and
supporting Board's evaluation of chief executive

2. Program, Product and Service Delivery


Oversees design, marketing, promotion, delivery and quality of programs, products and services

3. Financial, Tax, Risk and Facilities Management


Recommends yearly budget for Board approval and prudently manages organization's resources within those budget guidelines
according to current laws and regulations

4. Human Resource Management


Effectively manages the human resources of the organization according to authorized personnel policies and procedures that fully
conform to current laws and regulations
CEO
5. Community and Public Relations
Assures the organization and its mission, programs, products and services are consistently presented in strong, positive image to
relevant stakeholders

6. Fundraising (nonprofit-specific)
Oversees fundraising planning and implementation, including identifying resource requirements, researching funding sources,
establishing strategies to approach funders, submitting proposals and administrating fundraising records and documentation
CEO
http://www.sterling-resources.com/docs/RolesAndRespCEO.pdf

Click the link for more definition


Top Level
Top-level managers
The board of directors, president, vice-president, and CEO are all examples of top-level managers.
These managers are responsible for controlling and overseeing the entire organization. They develop goals, strategic plans, company
policies, and make decisions on the direction of the business.

In addition, top-level managers play a significant role in the mobilization of outside resources.

Source: Boundless. “Management Levels: A Hierarchical View.” Boundless Business. Boundless, 08 Aug. 2016. Retrieved 28 Oct. 2016
from
https://www.boundless.com/business/textbooks/boundless-business-textbook/management-8/types-of-management-61/management-l
evels-a-hierarchical-view-293-7468/
Middle Level
Middle-level managers
General managers, branch managers, and department managers are all examples of middle-level managers. They are accountable to
the top management for their department's function.
Middle-level managers devote more time to organizational and directional functions than top-level managers. Their roles can be
emphasized as:

● Executing organizational plans in conformance with the company's policies and the objectives of the top management;
● Defining and discussing information and policies from top management to lower management; and most importantly
● Inspiring and providing guidance to low-level managers towards better performance.
Some of their functions are as follows:
● Designing and implementing effective group and intergroup work and information systems;
● Defining and monitoring group-level performance indicators;
● Diagnosing and resolving problems within and among work groups;
● Designing and implementing reward systems supporting cooperative behavior.

Source: Boundless. “Management Levels: A Hierarchical View.” Boundless Business. Boundless, 08 Aug. 2016. Retrieved 28 Oct. 2016
Low Level
Supervisors, section leads, and foremen are examples of low-level management titles. These managers focus on controlling and
directing.

Low-level managers usually have the responsibility of:

● Assigning employees tasks;


● Guiding and supervising employees on day-to-day activities;
● Ensuring the quality and quantity of production;
● Making recommendations and suggestions; and
● Upchanneling employee problems.
Also referred to as first-level managers, low-level managers are role models for employees. These managers provide:
● Basic supervision;
● Motivation;
● Career planning;
● Performance feedback; and
● Staff supervision.

Source: Boundless. “Management Levels: A Hierarchical View.” Boundless Business. Boundless, 08 Aug. 2016. Retrieved 28 Oct. 2016
Span Of Control
http://www.forbes.com/sites/mikemyatt/2012/11/05/span-of-control-5-things-eve
ry-leader-should-know/#351020a71e36
Span of Control
Span of Control means the number of subordinates that can be managed efficiently and effectively by a superior in an
organization. It suggests how the relations are designed between a superior and a subordinate in an organization. Span of
control is of two types:

1. Narrow span of control: Narrow Span of control means a single manager or supervisor oversees few subordinates. This
gives rise to a tall organizational structure.
2. Wide span of control: Wide span of control means a single manager or supervisor oversees a large number of
subordinates. This gives rise to a flat organizational structure.
Delegation
Delegation is the process of giving decision-making authority to lower-level employees. For the process to be successful, a
worker must be able to obtain the resources and cooperation needed for successful completion of the delegated task.
Empowerment of the workforce and task delegation are closely intertwined. Empowerment occurs when upper-level
employees share power with lower-level employees. This involves providing the training, tools and management support
that employees need to accomplish a task. Thus, an enabled worker has both the authority and the capability to accomplish
the work. Although authority can be delegated, responsibility cannot-the person who delegates a task is ultimately
responsible for its success. The assigned worker is therefore accountable for meeting the goals and objectives of the task.

Read more: http://www.referenceforbusiness.com/management/De-Ele/Delegation.html#ixzz4OLNuaK5y


Authority,Responsibility,Authority
Responsibility is defined as an obligation to perform or complete the assigned task. It is the duty of the
subordinate to complete the delegated task adequately. It is generated out of a superior-subordinate relationship,
where the junior is bound to perform the task assigned to him by the senior. Hence, the flow of responsibility is
bottom-up, as the subordinate is responsible to his/her senior. The word responsibility describes a person or
group who is complete in charge of something and will ensure the work will be done properly.

Read more:
http://keydifferences.com/difference-between-responsibility-and-accountability.html#ixzz4OLOXGYeH
Key Differences Between Responsibility and Accountability
The following points are noteworthy so far as the difference between responsibility and accountability is
concerned:
1. The state of having the duty, to do whatever it takes to complete the task, is known as responsibility. The
condition, wherein a person is expected to take ownership of one’s actions or decisions, is called
accountability.
2. Responsibility refers to the obligation to perform the delegated task. On the other hand, answerability for
the consequence of the delegated task.
3. Responsibility is assigned whereas accountability is accepted.
4. The origin of responsibility is the assigned authority. On the contrary, accountability arises from
responsibility.
5. Responsibility is delegated but not completely, but there is no such thing like delegation of accountability.
The performance of a person is not necessarily measured when he/she is responsible. Unlike, accountability,
wherein the person’s performance is measured.
Responsibility is something, wherein a person is held responsible before or after task. In contrast to,
accountability where a person can only be accountable after the task is performed or not performed satisfactorily.

Read more:
http://keydifferences.com/difference-between-responsibility-and-accountability.html#ixzz4OLPMZz5T
Authority
The person has the power to and the right to make decisions,give orders,draw on
resources and do whatever is necessary to fulfill the responsibility
Decentralization
A decentralized company business structure is one in which company executives place important
decision-making authority in the hands of front line and local managers versus reserving all critical
decisions at the top. Decentralized business structures have pros and cons relative to more centralized
operations and each company must decide which approach works best.
Vertical structure
Horizontal
Organizational
Departmentalization : Approaches
Functional

Divisional

Matrix

Network
Integration and Coordination
1. Coordination by standardization
2. Coordination by Plan
3. Coordination by Mutual Adjustment
4. Coordination by communication
Matrix organization
What is Network Organizational Structure?
https://www.hierarchystructure.com/toyota-company-hierarchy/

https://www.hierarchystructure.com/toyota-company-hierarchy/

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