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MGT 101
ORGANIZATION HANDOUT
Organizing: The management function concerned with assigning task, grouping tasks into department and allocating resources to departments.
Organization: A deliberate arrangement of people to accomplish some specific purpose.
An organizational structure is the formal arrangement of jobs within an organization.
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Organization design
A process in which managers develop or change their organization’s structure.
Work specialization
A component of organization structure that involves having each discrete step of a job done by a different individual rather than having one individual do the whole job.
Formalization
refers to the degree to which jobs within an organization are standardized and the extent to which employee behavior is guided by rules and procedures. In a highly formalized organization, employees have little discretion, and there’s a high level of consistent and uniform output. Formalized organizations have explicit job descriptions, lots of organizational rules, and clearly defined procedures.
Organizational Structure:
Chain of command
The continuous line of authority that extends from upper organizational levels to the lowest levels and clarifies who reports to whom.
Unity of Command
The management principle that no person should report to more than one boss.
Span of control
The number of subordinates a manager can direct efficiently and effectively.
Authority
The rights inherent in a managerial position to give orders and expect them to be obeyed.
Power
An individual’s capacity to influence decisions.
Responsibility
An obligation to perform assigned activities
Types of Organizational Authority
Line authority
The position authority (given and defined by the organization) that entitles a manager to direct the work of operative employees.
Staff authority
Positions that have some authority (e.g., organization policy enforcement) but that are created to
ORGANIZATION HANDOUT
Organizing: The management function concerned with assigning task, grouping tasks into department and allocating resources to departments.
Organization: A deliberate arrangement of people to accomplish some specific purpose.
An organizational structure is the formal arrangement of jobs within an organization.
.
Organization design
A process in which managers develop or change their organization’s structure.
Work specialization
A component of organization structure that involves having each discrete step of a job done by a different individual rather than having one individual do the whole job.
Formalization
refers to the degree to which jobs within an organization are standardized and the extent to which employee behavior is guided by rules and procedures. In a highly formalized organization, employees have little discretion, and there’s a high level of consistent and uniform output. Formalized organizations have explicit job descriptions, lots of organizational rules, and clearly defined procedures.
Organizational Structure:
Chain of command
The continuous line of authority that extends from upper organizational levels to the lowest levels and clarifies who reports to whom.
Unity of Command
The management principle that no person should report to more than one boss.
Span of control
The number of subordinates a manager can direct efficiently and effectively.
Authority
The rights inherent in a managerial position to give orders and expect them to be obeyed.
Power
An individual’s capacity to influence decisions.
Responsibility
An obligation to perform assigned activities
Types of Organizational Authority
Line authority
The position authority (given and defined by the organization) that entitles a manager to direct the work of operative employees.
Staff authority
Positions that have some authority (e.g., organization policy enforcement) but that are created to