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FUNCTION
Chapter 4
Organizations Objectives
Span of Control
Leadership style
Latitude extended to subordinates in decision
making
Nature of interpersonal
relationships inherent in
each situation
Interrelated Functions
Chain of Command
Unity of Command
Unity of Command
Work Assignment
Each employees work assignments should be
based on his/her special strengths and talents.
Absence of clearly
defined job duties and
responsibilities makes
it more difficult to
hold an employee
accountable
for unsatisfactory
performance.
Commensurate
CommensurateAuthority
Authority and
and Responsibility
Responsibility
Employee Empowerment
Empowered employees
are encouraged to
participate as much as
possible in making
decisions that affect all
aspects of their job tasks.
Organizational Structures
Line
Line and staff
Functional
Product
Committee
Matrix
Line Structure
Is the oldest and simplest of structures.
Has direct authority flowing
vertically from the top.
Is generally found in small organizations
because support staff is needed once they
begin to grow.
F o re m e n
S u p e rv i s o rs
V i c e P re s i d e n t
S a le s
S a le s M a n a g e r
A d v e rti s i n g
V i c e P re s i d e n t
C o rp .A ffa i r s
H u m a n R e s o u rc e s O ffi c e S e rv i c e s
O ffi c e W o rk e rs
Line Employees
Staff Employees
Functional Structure
Tends to parallel the departments in
many organizations.
Line managers have both line and
functional authority.
Most commonly found in small-and
medium-sized organizations. It tends to
centralize decision making at top levels
of the organization.
Product Structure
Companys products provide a basis
for its structure.
Each major product is given division status.
Incorporates line and staff structure into
these divisions.
Each product tends to operate independently
of other divisions.
Committee Structure
Is often used in conjunction with line,
line and staff, and functional
structures.
Some committees perform
important managerial functions;
others are advisory.
Matrix Structure
Is often used by organizations undertaking
complex projects.
Results in the formation of temporary
new units to accommodate the
undertaking of a new project.
Involves temporarily borrowing employees
from other areas of the organization and
assigning them to the new temporary unit.
Project A
Manager
Project B
Manager
Matrix Structure
Centralization
Decentralization
Nature of Organization
Informal Organization
Refers to the
spontaneous personal
and social relationships
that exist within
organizations.
The End