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Chapter 8 - Structuring organizations for todays challenges, Fayol's…
Chapter 8 - Structuring organizations for todays challenges
Fayol's Principals of Organization
Chain of Command
Division of Labor
Subordination of individual interest to the general interest
Hierarchy of Authority - Knowing your authorities
Authority
Degree of Centralization
Clear Communication Channels
Order
Equity
Espirit de corps
Max Weber and Organizational Theory
Job Descriptions
Written rules, decision guidelines, and detailed records
Consistent procedures , regulations, and policies
Staffing and promotion based on qualifications
Centralized Authority & Decentralized Authority
Centralized Authority: An organization structure in which decision-making authority is maintained at the top level management
Decentralized Authority: An organization structure in which decision making authority is delegated to lower level managers more familiar with local conditions than headquarters management could be
Typical Organization
President
Manager A (Production)
First line supervisors
Manager B (Marketing)
First line supervisors
Manager C ( Finance)
First line supervisors