Chapter 7 - Orginization Flashcards
Five Dimensions of Organizational Structure
1) Chain of Command
2) Job Specialization
3) Departmentalization
4) Delegation
5) Span of Management
Organization
A group of two or more people working together to achieve a common set of goals
Chain of command
The line of authority from the highest to the lowest levels in an organization
Job Specialization
Separating larger activities into smaller tasks and giving people different tasks to do
Increased productivity
Learn one specialize task and do it efficiently (Faster AND Better)
Drawbacks - Boredom, less productive, no diversity in skill
Solution; Job Rotation - Shifting of employes for one job to another
Departmentalization
Grouping jobs into manageable units;
a) By Function - All jobs relate to one activity
b) By Product - Group activities related to a particular product
c) By Location - Grouped by geographic area where they are formed
d) By Customer - Grouped by needs of different customers
Delegation
Assigning part of managers work to others
Less Delegation
Centralized, authority is at top
More delegation
Decentralized, authority spread to lower levels
Span of management
Number of workers who directly report to one manager
Wide Span
More workers report to one manager, so less managers (“flat” organization)
Narrow Span
Less workers reporting to one manager (“tall” organization)
Line structure
The chain of command goes directly from person to person
Line and Staff structure
Line structure with staff managers added
Matrix Structure
Combines vertical and horizontal lines of authority
