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Chapter 8

MGTA03 – Chapter 8

2 Pages
103 Views

Department
Management (MGT)
Course Code
MGTA01H3
Professor
Chris Bovaird

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2009/11/16
MGTA03 – Chapter 8: Organizing the Business Enterprise
Prof. Chr is Bovaird
Structure of the Business
Structure follows the purpose of the business
Centralized organizations focus on discipline and obedience relating to the hierarchy of power in the business
Decentralized organizations focus on creativity and independent thinking for every member of the business
Chain of Command
Traditional Hierarchical Organizations
Large number of worker bees
Small number of bosses
Bosses had authorit y and delegated responsibility to subordinates
A subordinates completion of assigned tasks = progression
Aut hor ity, Responsibility, and Accountability
Authority: the power to make the decisions necessary to complete a task
Responsibility: the duty to perform an assigned task
Accountability: liability of subordinates to accomplish the assigned task
Delegation and Fear of Delegation
Delegation: the assignment of a task, a responsibility, or author ity by a manager to a subordinate
Managers have a fear of delegation because:
Employees cant do it as well as me”
I havent got time to show them how
They’ll make me look bad if they do a superior job”
Tall vs. Flat Organization
Tall organizations have many layers, a small span of control, and a need for a lot of delegation
Since the 1990s, big businesses have been shedding jobs (downsizing) and making their tall-structured
organization more flat
Flat organizations have fewer layers, a much larger span of control, and a need for less delegation
These organi zations are better suited to businesses where people work autonomously
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Description
20091116 MGTA03 Chapter 8: Organizing the Business Enterprise Prof. Chris Bovaird Structure of the Business Structure follows the purpose of the business Centralized organizations focus on discipline and obedience relating to the hierarchy of power in the business Decentralized organizations focus on creativity and independent thinking for every member of the business Chain of Command Traditional Hierarchical Organizations Large number of worker bees Small number of bosses Bosses had authority and delegated responsibility to subordinates A subordinates completion of assigned tasks = progression Authority, Responsibility, and Accountability Authority: the power to make the decisions necessary to complete a task Responsibility: the duty to perform an assigned tas
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