Ch. 2 Managing within an Organization Flashcards
Organization
A systematic arrangement of people to accomplish a specific purpose
3 Components of an Organization
- People - both managers and workers
- Structure - framework within which people work
- Purpose - mission, philosophy, or goals
What is Management?
planning, organizing, leading and controlling the use of resources to achieve objectives
5 Elements of Organizational Structure
- Hierarchy
- Span of control
- Line/staff relationships
- Centralization/decentralization
- Departmentalization
Hierarchy
- Vertical reporting relationships in an organization
- The chain-of-command (lines of authority) is related to the level of authority and power
Line managers
- Managers whose reporting relationships are up and down
- Distinct chain of command (only 1 boss)
Top-level managers
direct large segments of the organization
Middle managers
report to upper-level managers and supervise frontline managers
Frontline managers
direct workers who produce the product
Span of Control (Span of Management)
- Level of influence of a manager.
- Measured by the number of individuals who report directly to that manager.
- Trend toward managers to have a larger span of control:
- Flattened organization (fewer levels of middle management)
- Termed downsizing or rightsizing
Line/Staff Relationships
- Managers may not have vertical reporting relationships.
- They may manage departments that support the entire organization, without being directly involved in the actual work of the organization (e.g. HR, Public Relations, Training)
Staff Managers
- Managers who oversee supportive departments or groups (HR, Training, etc.)
- They report laterally, not vertically
Centralization
Concentration of decision making at the upper levels of an organization
Decentralization
- Ability for individuals at lower levels of an organization to make decisions appropriate to their area of responsibility
- Becoming more popular/common - more involvement from employees
Departmentalization
- The specialization of groups within an organization
- May be based on product, function, clients, location, or work processes
- Potential problems: lack of coordination between groups, competition, laying blame
Matrix Management Model
- Helps overcome potential problems of departmentalization
- Improve interdepartmental, lateral communication
- In contract management situations, managers report to two organizations, the contracting facility and the management company
- In this case, a two-way reporting matrix management model may be used
Organization Chart
A graphic of an organization’s structure:
- Hierarchical relationships: Working & Reporting relationships
- Levels in an organization
- Departmentalization
Span of Control
What is not apparent from an organizational chart?
- Non-vertical work of the manager (committee work, special projects, networking)
- Centralization (or decentralization) of power/decision making
- Division of labor