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Chapter 6 Basic Organization The elements of structure Contingency variables affecting structure Organization design applications Organization culture The Elements of Structure Work specialization Chain of command Span of control Authority and responsibility Centralization versus decentralization Departmentalization Work Specialization Definition: Work specialization is 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. Exhibit 6-1 Economies and Diseconomies of Work Specialization Exhibit 6-2 Chain of Command Span of Control Definition It is the number of subordinates a manager can direct efficiently and effectively. Contingency Variables The level in the organization The quality of employees Similarity of employee tasks The complexity of tasks The physical proximity of employees The degree of standardization of work procedures The strength of the organization’s value system The sophistication of the organization’s MIS The preferred managing style of managers Authority and Responsibility Definition Line authority and staff authority How do authority and power differ? The types of power Authority: It is the rights inherent in a managerial position to give orders and expect subordinates to be obeyed. Responsibility: It is an obligation to perform assigned activities. Power: It is an individual’s capacity to influence decisions. Line Authority and Staff Authority Line authority entitles a manger to direct the work of an employee. A manager with line authority has the right to direct the work of employees and to make certain decisions without consulting anyone Staff authority is used to support, assist, and advise the holders of line authority. Whether a manager’s function is classified as line or staff depends on the organization’s objectives. Exhibit6-3 Line Versus Staff Authority The Types of Power Coerci
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