Organizational structure and designn Flashcards
Organizational structure
Formal arrangement of jobs within the organization
Organizational structure helps employees work together effectively by
Assigning human and other resources to task
Letting employees know of what is expected from them through rules, operating procedures and performance standards
Elements of organizational culture
Standardization
Specialization
Coordination
Specialization
The process of identifying specific tasks and assigning them to individuals or teams who have been trained to do them
Standardization
Refers to uniform and procedures that employees follow when doing their jobs
Coordination
Formal and informal procedure and controls that synchronize and integrates activities of the teams, individuals, department in the organization to achieve objectives
Basic principles of coordination
- The unity of command principle
- The scalar principle
- The span of control principle
Unity of command
The employee should have only one superior to whom he/she is directly responsible
The scalar principle
the clear and unbroken chain of command should link everyone in the organization with someone at the higher level, all the way to the top management
The span of control principle
The number of people reporting directly to the manager should be limited because one manager cannot supervise many subordinates effectively
Authority
The right to decide and act
Accountability
A point where authority meets responsibility and is essential for effective performance
The belief that employees will accept credit or blame for the results of their work
Responsibility
The obligation of employees to perform assigned tasks
Delegation of authority
The process by which the managers assign subordinates to make decisions and the right to act in certain situations
Six principles that are useful to improve the delegation of authority
- Establish goals and standards in conjunction with subordinates
- Define authority and responsibilities for delegated tasks to ensure accountability for results
- Select the appropriate candidates and involve these subordinates in decision-making.
- Require that employees complete delegated tasks
- Provide training for when the need arises to build strength an overcome deficiencies
- Establish adequate controls to measure the performance of subordinates
Line authority
Belong to managers who have the right to direct and control the activities of subordinates who perform essential tasks to achieving organizational goals
Staff authority
Belongs to those who support line functions through advice, recommendations, research
Highly centralized
Top managers make all the decisions and lower-level managers simply carry out their directives
Centralized
Concentration of decision-making at the top level management of the organization with little delegation to middle and lower management
Advantages of decentralized
Decentralized
An approach that requires the manager to decide what and when to delegate, select, and train personnel carefully and to formulate adequate controls.
Decision-making is pushed down to managers who are closest to the action
Factors affecting centralizing and decentralizing
Availability of managers
Environmental influences
Organizational culture
Organizational Design
Process of aligning the structure of the organization with it’s objectives, with the aim of improving efficiency and effectiveness
The organizational chart
Provides a pictorial presentation of the overall shape and structural framework of the organization or group of organization
4 important pieces of organizational structure are shown in the organizational chart
Task
Subdivision
Lines of authority
Levels of management
