Contemporary Management（Second Edition） 6 Organizational Structure.docVIP

Contemporary Management（Second Edition） 6 Organizational Structure 6 Organizational Structure 11.Concept of Organization 2.Principle of Org. Design 3. Structure 4. Trend amp; Issue of Org. Designing Organizational Structure Organizing: the process by which managers establish working relationships among employees to achieve goals. Principle of Organizational Design Vertical dimension Unity of Command Centralization amp; Decentralization Authority amp; Responsibility Span of Management/control Horizontal dimension Division of Labor Departmentalization Principle-Unity of Command The principle that a subordinate should have one n only one superior to whom he or she is directly responsible. Embarrassing Situation Authority amp; Responsibility Authority : The rights inherent lie in a managerial position to give orders and expect them to be obeyed. Responsibility: An obligation to perform assigned activities. Authority Line authority: the authority that entitles a manager to direct the work of a subordinate. Staff authority: authority given to individuals who support ,assist ,and advise others who have line authority. Chain of command : the flow of authority from the top to the bottom of an organization. Executive Director Assistant to the Executive Director Director of Personnel Director of Purchasing Director of Operation Other Directors Unit 1 Manager Unit 2 Manager Personnel Operation Purchasing Other Theory of Authority Acceptance theory of authority: The theory that authority comes from the willingness of subordinates to accept it. The classical 5view: The rights inherently lie in one’s formal organizational position, if an order is given , it would be obeyed. Responsibility Equating responsibility and authority When managers delegate authority, responsibility must be given as well. Centralization Centralization :lower managers are not capable at making decisions. Validity : More stable environment. Decision is significant.