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Topic 7: Designing Organization Structure - Coggle Diagram
Topic 7: Designing Organization Structure
Organizing the Vertical Structure
Organizing Structure
Organizing Chart
Division of Labor and Chain of Command
Division of labor
the degree to which organizational tasks are subdivided into separate jobs
Chain of command
an unbroken line of authority that links all employees in an organization and shows who reports to whom
Authority, Responsibility, and Delegation
Responsibility
the duty to perform the task or activity as assigned
Accountability
the mechanism through which authority and responsibility are aligned
Authority
formal and legitimate right of a manager to make decisions, issue orders, and allocate resources to achieve organizationally desired outcomes
Delegation
the process that managers use to transfer authority and responsibility down the hierarchy
Line and Staff Authority
Line Authority
managers have formal authority to direct and control immediate subordinates
Staff Authority
narrow authority that includes the right to advise, recommend, and counsel in the staff specialists’ area of expertise
Span of Management
Tall Structure
span of management that is narrow and has many hierarchical levels
Flat Structure
span of management that is wide and has few hierarchical levels
Centralizationand and Decentralization
Centralization
decision authority is located near the top of the organization
Decentralization
decision authority is pushed downward to lower organization levels
Departmentalization
Matrix Approach
combines both functional and divisional approaches simultaneously, in the same part of the organization
Matrix Boss
Top leader
Two-boss employees
Team Approach
Permanent Teams
Cross-functional teams
Team-based structure
Divisional Approach
departments are grouped together based on similar organizational outputs
Virtual network Approach
Outsourcing
Virtual network structure
Vertical Functional Approach
the grouping of activities by common function from the bottom to the top of the organization