Lecture 5

Question 1

Line authority

Answer 1

• Within the chain of command, gives orders to

subordinates EX Army officer

Question 2

Staff authority (army medical officer)

Answer 2

• Advisory rather than “command” position

Question 3

Line departments

Answer 3

responsible for the main functions of the firm (those that directly or indirectly bring in revenue to the firm) – Manufacturing, marketing, etc.

Question 4

Staff departments

Answer 4

• support, department that make the work of

the other departments possible – Accounting, HR, etc

Question 5

Board of Directors

Answer 5

• appointed by the shareholders. The board’s three main jobs include:
  1. Selecting, evaluating and replacing the CEO
  2. Determining a strategic direction for the firm and criteria
  for its evaluation
  3. Overseeing its ethical and legal behavior

Question 6

CEO (Chief executive officer) :

Answer 6

-runs the firm, reports to board of directors

Question 7

• Hierarchy:

* Span of control

Answer 7

– Tall: many hierarchical levels
– Flat: few hierarchical levels

– Broad (or wide) span: many subordinates
– Short (or narrow) span: few subordinated

Question 8

How many subordinates should each manager manage?

Answer 8

1. Level of employee training and manager’s training
2. Geographic distribution of work/workers
3. Volume of manager’s work beyond supervision
4. Similarity of jobs and criteria for evaluation
5. Standardization or routine in work
6. Legal requirements: ratio of workers to managers
7. Worker preferences for independence or close
   supervision

Question 9

Steps in delegating :

Answer 9

Define the goal
Select the individual
Solicit input, opinions on how to do the job
Allocate time, authority and resources (money, workers, etc)
Establish timeline for evaluation
Perform periodic evaluations

Question 10

Sufficiently specific and narrow definition

Sufficiently specific and narrow definition

Answer 10

allows for specialization and creation of
expertise

creates boredom, reduces job
satisfaction and increases turnover

Question 11

Components of Org. Culture

Answer 11

Norms- unwritten rules of conduct
2. Values- belief in what is good and bad (or good
and better)
3. Organizational climate- climate in organization
as employees experience it
4. Management style- style in which managers
conduct themselves and exercise authority
5. Structure and systems- degree of flexibility or
procedural inflexibility in organization