9AuthorityFormal and legitimate right of a manager to make decisions, issue orders, and to allocate resources to achieve organizationally desired outcomes.Copyright (c) 2009 Nelson Education Ltd.
10Characteristics of Authority Characteristics of AuthorityAuthority is vested in organizational positions, not people.Authority is accepted by subordinates.Authority flows down the vertical hierarchy.Copyright (c) 2009 Nelson Education Ltd.
11AccountabilityMechanism through which authority and responsibility are brought into alignment.People are subject to reporting and justifying task outcomes to those above them in the chain of command.Can be built into the organization structure.Copyright (c) 2009 Nelson Education Ltd.
12DelegationProcess managers use to transfer authority and responsibility to positions below them in the organization.Organizations encourage managers to delegate authority to lowest possible level.Copyright (c) 2009 Nelson Education Ltd.
13Line and Staff Authority Line and Staff AuthorityLine authority means that people in management positions have formal authority to direct and control immediate subordinates.Staff authority includes the right to advise, recommend, and counsel in the staff specialist’s area of expertise.Copyright (c) 2009 Nelson Education Ltd.
14Span of Management The number of employees reporting to a supervisor. Span of ManagementThe number of employees reporting to a supervisor.Traditional view, seven or so per manager.Many organizations today, 30 or more per manager.Generally, when supervisors must be closely involved with employees, span should be small.Copyright (c) 2009 Nelson Education Ltd.
15Factors Associated with Large Spans of Control Factors Associated with Large Spans of ControlWork is stable or routine.Similar task is performed by everyone.A single location.Employees are highly trained.Rules and procedures are available.Support systems and personnel are available for supervisor.Little time is required in nonsupervisory activities.Personal preferences and styles of management favour a large span.Copyright (c) 2009 Nelson Education Ltd.
16Tall versus Flat Structure Tall versus Flat StructureSpan of control used in an organization determines whether the structure is tall or flat.Tall structure has a narrow span and more hierarchical levels.Flat structure has a wide span, is horizontally dispersed and fewer hierarchical levels.The trend has been toward wider spans of control.Copyright (c) 2009 Nelson Education Ltd.
17Copyright (c) 2009 Nelson Education Ltd. Ex Reorganization to Increase Span of Management for President of an International Metals CompanyCopyright (c) 2009 Nelson Education Ltd.
18Centralization versus Decentralization Centralization versus DecentralizationCentralization: decision authority is located near the top of the organization.Decentralization: authority is pushed downward to lower organizational levels.Copyright (c) 2009 Nelson Education Ltd.
19Figure 7.3 Five Approaches to Structural Design Copyright (c) 2009 Nelson Education Ltd.
20Figure 7.3 Five Approaches to Structural Design (Cont’d) Copyright (c) 2009 Nelson Education Ltd.
21Figure 7.3 Five Approaches to Structural Design (Cont’d) Copyright (c) 2009 Nelson Education Ltd.
22Team ApproachCross-functional teams consist of employees from various functional departments who meet as a team to solve problems.Permanent teams solve ongoing problems; employees come from several functional areas.Copyright (c) 2009 Nelson Education Ltd.34
23Virtual Network Structure Virtual Network StructureThe firm subcontracts most of its major functions to separate companies and coordinates their activities from a small headquarters organization.Copyright (c) 2009 Nelson Education Ltd.
24Figure 7.6 Evolution of Organizational Structures Copyright (c) 2009 Nelson Education Ltd.
25Structural DesignTask Force: a temporary team or committee formed to solve a specific short-term problem.Project Manager: a person responsible for coordinating the activities of several departments.Copyright (c) 2009 Nelson Education Ltd.
26Ex. 7.9 Relationship of Strategic Goals to Structural Approach Ex Relationship of Strategic Goals to Structural ApproachCopyright (c) 2009 Nelson Education Ltd.
27Structure Reflects the Environment Structure Reflects the EnvironmentIncreased differences occur among departments.Organizations need increased coordinationamong departments.Organizations must adapt to change.Copyright (c) 2009 Nelson Education Ltd.