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ACCT 301 Lecture Notes - Sociotechnical System, Be3, Adhocracy

Course Code
ACCT 301

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Authority, responsibility and delegation
Describe, recognize and understand the importance of organizational
Compare and contrast classical and modern approaches to organizational
o Burns and Stalks
o Contingency theory
o Fayol
o Mint berg
o Tryst and Bam forth
o Urwich
o Weber
o Woodward
Define the terms authority, responsibility and delegation
Explain the term legitimized power: Weber
Describe the process of determining authority and responsibility
Examine the case of responsibility without authority
Describe, recognize and understand the importance of organizational structure
Describe and recognize
Organizational structure means grouping people into departments or sections
and allocating responsibility and authority
The structure can be presented in organization charts, by position and job
descriptions and by rules and procedures
It is also concerned with patterns of authority, communication and workflow
The organizational structure will determine the direction of responsibility and
the rela6ti8onship between line, functional and staff organization
A structure may be analyzed by reference to the level at which decisions are
o Centralized: the upper level of an org hierarchy retain the authority
o Decentralized: the authority to take decisions is passed down to units and
people at lower levels in the organization’s hierarchy
o The choice between the two will depend on the preference of the
organization’s top management and the size and scale of the organization’s
the importance of the organizational structure
Entrepreneurial structure
Reflects the position of the owner-manager who makes all key decisions
All power and authority resides in one person
It has the benefits of quick decision making and short lines of communication
The success depends on the abilities of the owner/manager
Functional structure
It is the most widely used

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Specialization and the division of labor is based on the type of activities
taken by the staff
The organization may usually be divided into selling, production and finance
The benefits of this structure are:
o Employee’s work can be much more effectively controlled and coordinated
o Specialized departments can provide clear promotional and staff
Product-oriented structure
A variety of specialists grouped in a department that focuses on a product or
product range.
The main functions of production, sales, people and finance are apportioned
to the relative products
such an organization allows considerable delegation by top management and
clear profit accountability by division heads.
The benefits are:
o The focus of attention is on product performance and profitability
o Encourages growth and diversity of products
o A number of skills and abilities are combined together on the development of
a particular product.
o Its difficult to maintain centralization of services such as accounting and R&D
o Success is dependant on the ability of the people in charge of the product
Geographical structure
Divides the enterprise into regions or countries
The geographic unit can itself be organized by function or product
The benefits are:
o The organization can identify and respond quickly to local opportunities
o The profitability for each region can be clearly identified and managed
o The interaction with local communities
Matrix structures
Is a structure where employees from various departments form a group to
achieve a specific target, they usually have dual reporting roles.
It combines a job based group with a project based structure
Provides greater flexibility and coordination of tasks and people
Team members become customer oriented
Motivational, requires employees’ participation and control
Compare and contrast classical and modern approaches to organizational structure:
Classical writers looked at structure in terms of division of work, chain of command,
span of control and reporting relationships:
They focused on the requirements of the formal organization and the search
of a common set of principles applicable to all circumstances.
The organization structure was designed for the most efficient allocation and
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