Chapter 10

Managing
Organizational
Structure and
Culture
Part 2 of 2
2 PowerPoint Files for this chapter
MGT230 Chapter 10 – Part 1 of 2
• Understand Organizing as a management
function and its components.
• Understand and apply ‘Job Design’ and
its methods.
• Understand ‘Departmentalization’ and
differentiate between
departmentalization bases/types.
MGT230 Chapter 10 – Part 2 of 2
• Understand the meaning and the
components of the ‘Hierarchy of
Authority' organizing step.
• Understand and apply ‘Distribution
of Power’ as an organizing step.
• Understand and apply ‘Integration’
as an organizing step.
Authority

Power Accountability Making-

Decisions
Authority

The power to hold people

accountable for their actions and to
make decisions concerning the use of
organizational resources.
Chain of Commands (CoA)

The line of authority

extending from the upper
organizational level to the
lowest levels, which clarifies
who reports to whom
Hierarchy of Authority (HoA)

An organization’s chain of
command, specifying the
relative authority of each
manager
 Span of Control
The number of subordinates that report directly to a manager

S upervisor

Subordinates 1 2 3 4 5
Types of Span of Control

Narrow Wide
More than 5
Up to 5

S upervisor

1 2 3 4 5
I would like to turn now to what“
is called in the public
administration the extent of
supervision or the scope of
supervision, which means the
number of subordinates who are
directly related to the manager. I
firmly believe that no Manager
can exercise effective supervision
of subordinates of more than six
”.or seven
Page 149 ‫صفحة‬
‫ الى ما‬،‫«أود أن أنتقل اآلن‬
‫يسمى فى اإلدارة العامة مدى‬
،‫اإلشراف أو نطاق اإلشراف‬
‫والمقصود به عدد‬
‫المرؤوسين الذين يرتبطون‬
‫ في إعتقادي‬.‫بالرئيس مباشرة‬
‫الراسخ آليستطيع أي رئيس أن‬
‫يمارس اشرافا فعاال على‬
‫مرؤوسين يزيد عددهم عن‬
.»‫ستة أو سبعة‬
Or
ga
niz
Types
ati
on The number of Flat Structure
He managerial levels
ig Tall Structure
in an
ht
organization.
Flat Structure Tall Structure
Up to 5 More than 5
Example: Span of Control & Organizational Height

1000 Non-Managers 1000 Non-Managers

Example: Span of Control & Organizational Height
1 Top
Level
Organizational Height – Tall
Manager
4 Level 5
Managers

16 Level 4
Average SOC = Total Non-Managers /
Managers
Total Managers
63 Level 3 Managers

80 Level 2 Managers Average SOC = 1000/334

170 Level 1 Managers = 3 per manager
1000 Non-Managers
Narrow SOC
Example
Organizational Height – Flat
Total Non-managers = 1000
1 Top
Level Total Managers = 111
Manager
10 Level 2
Managers
Average SOC = Total Non-Managers
/ Total Managers
100 Level 1 Managers

Average SOC = 1000/111

1000 Non-Managers = 9 per manager

Wide SOC
STEP 3 Allocating Authority

Sub-Topics Authority & Span of Organizational Differentiation:

Hierarchy of Control Height Line Managers
Authority Staff Managers
 Differentiation to Line or Staff Managers
• Line Managers
• Production • Head of
• Operation Missio Management and
n Marketing
Academic
Department
• Staff Managers
• Accounting
• Head of
• Human Resources Students
• Administration Admission
Differentiation to Line or Staff Managers
• Line Managers
• Production
• Operation Line Manager, Direct Chain of Command

• Staff Managers
• Accounting
• Human Resources
• Administration Staff Managers, Indirect Chain of Command
Line and Staff Jobs

• Line Manager • Staff Manager

• Managers in the direct
chain of command who
have formal authority
over people and resources
lower down
• Managers who manage a
specialist function that
provides support to the
line managers
Distribution of Power
Centralization of Power
Power is retained mainly in the top management positions.

Middle and first-line managers have minute level of authority.

Managers have low freedom of actions.

Suitable for small size organizations.

Which statement is correct
for Decentralization of power?

Power is distributed at every level of

management.

Authority is systematically divided at every level.

Managers have freedom of actions.

Suitable for large scale organizations.

Integration

Integrating mechanisms: Organizing

tools that managers can use to increase
communication and coordination
among functions and divisions
The greater the complexity of an
organization’s structure, the greater is
the need to increase communication
and coordination among functions and
divisions.
Integration

Integrating mechanisms: Organizing tools that managers can use

to increase communication and coordination among functions and
divisions
The greater the complexity of an organization’s structure, the
greater is the need to increase communication and coordination
among functions and divisions.
Integrating Mechanisms
 Liaison Roles

• Need to increase contact between two functions

• Give one manager in each function the responsibility for coordinating with the other.
• Each is called a liaison.
• Informal relationship
• The responsibility for coordination is a part of the liaison’s full-time job.
 Taskforce

• If two or more functions share common problems, and direct contact and liaison roles do not provide sufficient coordination, a
task force may be appropriate.
• One manager from each relevant function or division is formally assigned to a task force that meets to solve the specific, mutual
problem.
• Members are responsible for reporting back to their own departments on issues addressed and solutions recommended.
• Task forces are often called ad hoc committees because they are temporary. Once the problem is resolved, the task force is
disbanded.
Cross-Functional Teams

Cross-Functional Team Committee

• To address recurring problems effectively, managers are increasingly using

permanent integrating mechanisms such as cross-functional teams.
• Such an activity requires a great deal of integration among functions.
 Integrating Role

Coordination

Ahmed

An integrating role is a role whose only function is to increase coordination

and integration among functions or divisions to achieve performance gains
from synergies. Usually, senior managers who can envision how to use the
resources of the functions or divisions to obtain new synergies are chosen
to perform such roles.
Liaison Roles

• When the volume of contacts between two functions increases, one

way to improve coordination is to give one manager in each function
or division the responsibility for coordinating with the other. The
responsibility for coordination is a part of the liaison’s full-time job.
Usually an informal relationship forms between the people involved,
greatly easing strains between functions.
Task Forces

If two or more functions share common problems, and direct

contact and liaison roles do not provide sufficient coordination, a
task force may be appropriate. One manager from each relevant
function or division is assigned to a task force that meets to solve
the specific, mutual problem. Members are responsible for
reporting back to their own departments on issues addressed and
solutions recommended.

Task forces are often called ad hoc committees because they are
temporary. Once the problem is resolved, the task force is
disbanded.
Cross-Functional Teams

To address recurring problems effectively, managers are

increasingly using permanent integrating mechanisms such as
cross-functional teams. An example of a cross functional team is
a new product development committee that is responsible for the
choice, design, manufacturing, and marketing of a new product.
Such an activity requires a great deal of integration among
functions if new products are to be successfully introduced.
Using a complex integrating mechanism such as a cross-
functional team accomplishes this.
Integrating Roles

Integrating Roles
An integrating role is a role whose only function is to increase
coordination and integration among functions or divisions to
achieve performance gains from synergies. Usually, senior
managers who can envision how to use the resources of the
functions or divisions to obtain new synergies are chosen to
perform such roles.