Organizing: The management function concerned with assigning task, grouping tasks into department and allocating resources to departments.
Organization: A deliberate arrangement of people to accomplish some specific purpose.
An organizational structure is the formal arrangement of jobs within an organization.
A process in which managers develop or change their organization’s structure. Work specialization
A component of organization structure that involves having each discrete step of a job done by a different individual rather than having one individual do the whole job. Formalization
refers to the degree to which jobs within an organization are standardized and the extent to which employee behavior is guided by rules and procedures. In a highly formalized organization, employees have little discretion, and there’s a high level of consistent and uniform output. Formalized organizations have explicit job descriptions, lots of organizational rules, and clearly defined procedures.
Chain of command
The continuous line of authority that extends from upper organizational levels to the lowest levels and clarifies who reports to whom. Unity of Command
The management principle that no person should report to more than one boss. Span of control
The number of subordinates a manager can direct efficiently and effectively.
The rights inherent in a managerial position to give orders and expect them to be obeyed. Power
An individual’s capacity to influence decisions.
An obligation to perform assigned activities
Types of Organizational Authority
The position authority (given and defined by the organization) that entitles a manager to direct the work of operative employees. Staff authority
Positions that have some authority (e.g., organization policy enforcement) but that are created to support, assist, and advise the holders of line authority
Line Versus Staff Authority
Centralization And Decentralization
A function of how much decision-making authority is pushed down to lower levels in an organization; the more centralized an organization, the higher the level at which decisions are made Decentralization
The pushing down of decision-making authority to the lowest levels of an organization
Types of Departmentalization
The grouping of activities by functions performed
The grouping of activities by product produced
The grouping of activities by common customers
The grouping of activities by territory
The grouping of activities by work or customer flow
Contingency Variables Affecting Structure
The bureaucracy; a structure that is high in specialization, formalization, and centralization Organic organization
An adhocracy; a structure that is low in specialization, formalization, and centralization
Rigid hierarchical relationships
Formalized communication channels
Centralized decision authority
Collaboration (both vertical and horizontal)
Decentralized decision authority
Organization Design Applications
An organization that is low in specialization and formalization but high in centralization Functional structure
An organization in which similar and related occupational specialties are grouped together Divisional structure
An organization made up of self-contained units
OTHER ORGANIZATIONAL STRUCTURES
An organization in which specialists from functional departments are...
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