Professional Documents
Culture Documents
Chapter 6 Basic Organization
Chapter 6 Basic Organization
Chapter 6 Basic Organization
High
Impact from
Impact from human
Productivity
economies of diseconomies
specialization
Low
Low High
Work Specialization
CEO
Executive Executive
President
Vice President Vice President
Definition
It is the number of subordinates a
manager can direct efficiently and
effectively.
Contingency Variables
The level in the organization
The quality of employees
Similarity of employee tasks
The complexity of tasks
The physical proximity of employees
The degree of standardization of work procedures
The strength of the organization’s value system
The sophistication of the organization’s MIS
The preferred managing style of managers
Authority and Responsibility
Definition
Line authority and staff authority
How do authority and power differ?
The types of power
Authority:
It is the rights inherent in a managerial position
to give orders and expect subordinates to be
obeyed.
Responsibility:
It is an obligation to perform assigned activities.
Power:
It is an individual’s capacity to influence decisions.
Line Authority and Staff Authority
Line authority entitles a manger to direct the work
of an employee.
A manager with line authority has the right to direct the
work of employees and to make certain decisions without
consulting anyone
Staff authority is used to support, assist, and
advise the holders of line authority.
Whether a manager’s function is classified as line
or staff depends on the organization’s objectives.
Executive
Line authority
Director
Staff authority Assistant to the
Executive Director
Director of
Director of Director of Other
Human
Operations Purchasing directors
Resources
Unit 1 Unit 2
Manager Manager
Functional departmentalization
Product departmentalization
Customer departmentalization
Geographic departmentalization
Process departmentalization