Chapter 4
Chapter 4
ORGANIZATIONAL STRUCTURE
Functional Organization- this is a form of departmentalization in which
everyone engaged in one functional activity, such as engineering or
marketing, is grouped into one unit.
Product or Market Organization- refers to the organization of a company
by divisions that brings together all those involved with a certain type of
product or customer.
Matrix Organization- an organizational structure in which each employee
reports to both a functional or division manager and to a project or group
manager.
TYPES OF AUTORITY
Line Autority- a manager's right to tell subordinates what to do and then
see that they do it.
Staff authority- a staff specialist's right to give advice to a superior.
Functional authority- a specialist's right to oversee lower level personnel
involved in that specialty, regardless of where the personnel are in the
organization.
Line departments focus on the organization's primary goals,like negotiatin
g contracts and managing construction in a construction firm.
Staff departments support line departments with specializedskills, includin
g strategic planning, labor relations, research, accounting, and personnel.
Functional authority is granted to individuals or work groups to make deci
sions based on their expertise, affecting other departments.
Personal staff those individuals assigned to a specific manager to provide
needed staff services.
Specialized staff those individuals providing needed staff services for the
whole organization.
Committee- are formal groups formed for specific purposes.
Committees are particularly useful in engineering and manufacturing firms.
For issues like product development, committees provide the expertise nee
ded to achieve objectives.
Ad hoc committee one created for a short-term purpose and have a
limited life.
Standing committee it is a relatively permanent committee that deals with
issues on an ongoing basis.