MAN 3025 Lecture Notes - Lecture 4: Departmentalization, Role Conflict, Job Satisfaction
Document Summary
Departmentalization: centralization: the degree to which decision-making authority is concentrated at higher levels in an organization. Decentralized companies give more authority to lower-level employees, resulting in a sense of empowerment. Caterpillar construction equipment became decentralized: formalization- the extent to whi(cid:272)h an organization"s poli(cid:272)ies, pro(cid:272)edures, jo(cid:271) descriptions, and rules are written and explicitly articulated. Combination of written rules and explicit regulations: hierarchal levels: Tall: several layers of management between frontline employees and the top level; fewer employees report to each manager; greater opportunities for manager to supervise and monitor employee activities. Flat: few management layers; large number of employees reporting to each manager; can lead to greater levels of freedom for each employee: departmentalization: either functional or divisional structures. Functional: marketing, manufacturing, finance, accounting, human resources, information technology. Advantages: increase communication and cooperation among departments, increase the frequency of informal and formal communication within the organization, quick responses to technical problems and customer demands.
