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