Organization Structure Chapter Eight

Fundamentals of Organizing Organization chart The reporting structure and division of labor in an organization

Conventional Organization Chart Figure 8.1

Authority in Organizations The legitimate right to make decisions and to tell other people what to do.

Delegation Delegation Responsibility, Authority, and Accountability The assignment of new or additional responsibilities to a subordinate Responsibility, Authority, and Accountability

Steps in Effective Delegation Figure 8.2

The Functional Organization Departmentalization around specialized activities such as production, marketing, and human resources.

The Functional Organization Figure 8.3

Advantages of Functional Organizations Economies of scale can be realized Effective monitoring of the environment Performance standards better maintained Greater opportunity for specialized training and skill development Technical specialists are relatively free of administrative work Decision making and lines of communication are simple and clearly understood

Advantages of Divisional Organizations Information needs are managed more easily People have a full-time commitment to a particular product line Task responsibilities are clear People receive broader training

The Divisional Organization Figure 8.4

Matrix Organizational Structure Figure 8.5

The Network Organization Figure 8.7

Coordination by Standardization Establishing common routines and procedures that apply uniformly to everyone. Formalization The presence of rules and regulations governing how people in the organization interact.

Managing High Information- Processing Demands Figure 8.8