Professional Documents
Culture Documents
Gareth R. Jones
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Learning Objectives
1. Explain why a hierarchy of authority emerges in an organization, and the process of vertical differentiation 2. Discuss the issues involved in designing a hierarchy to coordinate and motivate organizational behavior most effectively 3. Discuss the way in which the design challenges discussed in Chapter 4 provide methods of control that substitute for the direct, personal control that managers provide and affect the design of the organizational hierarchy
Copyright 2007 Prentice Hall
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Tall organization: an organization in which the hierarchy has many levels relative to the size of the organization Flat organization: an organization that has few levels in its hierarchy relative to its size
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Figure 5-2: Relationship Between Organizational Size and Number of Hierarchical Levels
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Figure 5.4: Relationship Between Organizational Size and The Size of the Managerial Component
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Argues that the number of managers and hierarchies are based on two principles
An official wants to multiply subordinates, not rivals Officials make work for one another
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Principle of minimum chain of command: an organization should choose the minimum number of hierarchical levels consistent with is goals and the environment in which it operates Span of control: the number of subordinates a manager directly manages
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Most important factor limiting span of control is the managers inability to supervise increasing number of subordinates adequately There seems to be a limit to how wide a managers span of control should be Dependent on the complexity and interrelatedness of the subordinates tasks Complex and dissimilar tasks small span of control Routine and similar tasks (e.g., mass production) large span of control
Copyright 2007 Prentice Hall
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Figure 5-6: Increasing Complexity of Managers Job as the Span of Control Increases
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Horizontal differentiation is the principal way an organization retains control over employees without increasing the number of hierarchical levels
Copyright 2007 Prentice Hall
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Rational-legal authority: the authority a person possesses because of his or her position in an organization Hierarchy should be based on the needs of the task, not on personal needs
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Role conflict: the state of opposition that occurs when two or more people have different views of what another person should do, and as a result, make conflicting demands on that person Role ambiguity: the uncertainty that occurs for a person whose tasks or authority are not clearly defined
Copyright 2007 Prentice Hall
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Organizations should be arranged hierarchically so that people can recognize the chain of command
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Rules and SOPs are written instructions that specify a series of actions intended to achieve a given end Norms are unwritten Rules, SOPs, and norms clarify peoples expectations and prevent misunderstanding
Copyright 2007 Prentice Hall
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Bureaucratic structure provides an organization with memory Organizational history cannot be altered
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Advantages of Bureaucracy
It lays out the ground rules for designing an organizational hierarchy that efficiently controls interactions between organizational members Written rules regarding the reward and punishment of employees reduce the costs of enforcement and evaluating employee performance It separates the position from the person It provides people with the opportunity to develop their skills and pass them on their successors
Copyright 2007 Prentice Hall
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Management by Objectives
Management by objectives (MBO): a system of evaluating subordinates on their ability to achieve specific organizational goals or performance standards and to meet operating budgets
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