Principles of Management - Creating Organizational Structure - Quick Guides | Management

Preview (3 of 9 Pages)

100%

Principles of Management - Creating Organizational Structure - Page 1 preview image

Loading page ...

Study GuidePrinciples of Management–Creating OrganizationalStructure1. Concepts of OrganizingOrganizing is all about how people and tasks are structured in an organization. How individuals andgroups relate to one another—both vertically (who reports to whom) and horizontally (howdepartments interact)—affects how work gets done. To organize effectively, managers rely on severalkey concepts:work specialization, chain of command, authority, delegation, span of control,andcentralization versus decentralization. Many of these ideas come from the managementprinciples developed by Henri Fayol.1.1Work SpecializationWork specialization (or division of labor) is the idea that people can work more efficiently when theyfocus on a specific task. Instead of doing many different jobs, employees concentrate on the tasksrelated to their role.•High specialization:Employees focus on a single task, like running one machine in afactory. This makes them very efficient at that task.•Low specialization:Employees do many different tasks, such as assembling an entireproduct. This can be less efficient.The downside:Too much specialization can make work boring and isolating. If a specializedemployee leaves, the organization loses their expertise.Modern approach:Many organizations now expand jobs to include more variety or create teamswhere employees rotate tasks. This increases engagement and flexibility.1.2Chain of CommandThe chain of command is the line of authority in an organization. It tells everyone who reports towhom.Unity of Command•Each employee should haveonly one direct supervisor.

Principles of Management - Creating Organizational Structure - Page 2 preview image

Loading page ...

Study Guide•Reporting to multiple bosses can cause confusion and conflicting instructions.Exceptions:Sometimes, employees report to more than one person, such as in project teams orwhen coordinating special initiatives. These are special cases, not the norm.Scalar Principle•This principle defines a clear, unbroken line of authority from the top manager down to allemployees.•Larger organizations tend to have taller structures (more management levels), which can slowdecision-making and increase costs.1.3AuthorityAuthority is the formal right to make decisions, give orders, and allocate resources to achieveorganizational goals.Key principles of authority:1.Based on position—people in the same position have the same authority.2.Accepted by subordinates—they comply because the authority is legitimate.3.Flows down the hierarchy—higher positions have more authority than lower ones.Types of Authority1.Line Authority:Directs employees and makes decisions related to core activities.2.Staff Authority:Advises and supports line managers but cannot issue orders that must befollowed.3.Functional Authority:Allows certain individuals to direct activities in other departmentswithin a limited scope.Why functional authority exists:It helps coordinate specialized skills. For example, separatingplanning from doing ensures experts focus on planning while workers focus on execution.1.4DelegationDelegation is when managers transfer authority to subordinates, letting them make decisions and takeactions within their responsibilities.Benefits of delegation:

Principles of Management - Creating Organizational Structure - Page 3 preview image

Loading page ...

Study Guide•Empowers employees•Improves job satisfaction•Increases overall productivitySteps for effective delegation:1.Assign tasks clearly to specific employees.2.Give enough authority to accomplish the tasks.3.Ensure employees accept responsibility for their tasks.4.Establish accountability—employees should answer for outcomes.Challenges managers face:•Time to explain tasks initially•Lack of confidence in subordinates•Dual accountability (for their work and their team’s)•Insecurity about their own valueTips for successful delegation:•Match tasks to capable and willing employees.•Communicate instructions clearly.•Transfer authority and accountability together.•Decide the level of control to maintain based on task importance and employee skill.1.5Span of ControlSpan of control refers to how many employees report to one manager.•Wide span:Manager supervises many employees. Works well if employees are skilled, tasksare standard, and few new problems arise.•Narrow span:Manager supervises few employees. Needed when workers are spread out,tasks are complex, frequent guidance is required, or problems arise often.Span of control can differ between departments based on needs.

Preview Mode

This document has 9 pages. Sign in to access the full document!

Report

Principles of Management - Creating Organizational Structure

Study Now!

Document Details

Related Documents

Principles of Management - Understanding Teams

Principles of Management - The Nature of Management

Principles of Management - The Evolution of Management Thought

Principles of Management - Staffing and Human Resource Management

Principles of Management - Productivity and Total Quality Management

Principles of Management - Organizational Planning

Principles of Management - Organizational Design and Structure

Principles of Management - Motivating and Rewarding Employees

Principles of Management - Managing Change

Principles of Management - Managerial Environments

Company

Explore

Study Tools