Organizing in Transition: Structural Evolution
Describe how organizations departmentalize to improve
coordination.
Departmentalization is the horizontal grouping of
activities. This grouping is normally accomplished through a
functional pattern of organization in which personnel with
similar technical skills and capabilities are gathered in
separate departments. Departmentalization by product, geographic
territory, and customer can emerge as companies grow.
Describe matrix organization and its implications for
management.
A
matrix organization is a temporary formation of teams or
projects using personnel drawn from existing departments, A
matrix creates a two&-boss system: a person assigned to a
matrix team reports both to a project manager within the matrix
and to his or her functional department supervisor. Matrix
management systems permit results to be achieved rapidly and
efficiently.
Explain how authority is being transformed in today's
organizations.
The traditional view of authority is that it is an
absolute right derived from ownership to make decisions and
direct subordinates in their work efforts. This viewpoint is
still customary in most Western organizations, but another view
of authority is emerging because today's employees expect to be
treated with respect for their abilities, to make many of their
own decisions, used to
guide
their own work. Thus, greater participation is being encouraged
among employee work groups in many organizations. In addition,
mangers are finding that although they may possess the formal
authority vested in their positions, it is the degree of
acceptance by their subordinates that determines whether or not
they will have the power to lead.
Describe why managers delegate authority and barriers that
often prevent them from doing so.
Delegation is the downward dispersal of authority to make
decisions, and it can occur through a partial distribution of
authority to individuals or to work groups. The most common
reason for delegation is to relieve managers of part of their
work load, but in complex organizations, most authority is
vested in individuals because of their particular expertise and
capabilities. Authority is also delegated to place decisions in
the hands of those in closest proximity to sensitive tasks and
to speed up decisions when time is of the essence. Delegation is
also done to help less&-experienced subordinates develop
their management skills, to encourage participation, and to help
build confidence among employees. Among the barriers to
delegation are resistance by managers who enjoy the power of
controlling decisions and rejection by employees
who do not want additional responsibility. Some managers
resist delegating because they do not believe their employees
are capable of making decisions. Finally, competition among
subordinates to gain power often thwarts management from
relinquishing authority.
Identify factors that influence centralization and
decentralization.
Centralization and decentralization relate to the
vertical organization of management authority. In a centralized
firm, a single executive or a small cadre of executives controls
the majority of decisions, delegating little authority to lower&-level
managers. Decentralized firms have more managers with greater
authority diffused to lower operational levels.
Explain what culture is with respect to organizations.
Organizational culture is the shared language, events,
symbols, rituals, and value systems of the organization's
members. The result is a pattern of behavior that affects work,
organizational relationships, perceptions of authority, and
employee expectations. These expectations span the scope of
human activity to include such things as compensation, benefits,
and compliance with socially accepted norms (i.e., environmental
protection). Management tries to develop a culture that
encourages innovation, reduces conflict, and ensures a high
degree of satisfaction among employees so that they want to
remain with the organization and be productive members of it.
