Chapter 7 Style of OrganizationThe elements of structureContingencyvariables affecting structureOrganizationdesign applications
Chapter 7 Style of Organization The elements of structure Contingency variables affecting structure Organization design applications
Executive-LineauthorityDirectorAssistant to the.....StaffauthorityExecutiveDirectorDirector ofDirector ofDirector ofOtherHumandirectorsOperationsPurchasingResourcesUnit 2Unit 1ManagerManager:HumanHumanOtherOtherOperationsPurchasingOperationsPurchasingresourcesresourcesExhibit7-1 Line Versus Staff Authority
Exhibit7-1 Line Versus Staff Authority Other Executive Director Assistant to the Executive Director Director of Human Resources Director of Operations Director of Purchasing Other directors Unit 1 Manager Unit 2 Manager Human resources Operations Purchasing Other Human resources Operations Purchasing Line authority Staff authority
How do authority and power differ?Authority is a part of the larger concept of powerAuthority is a two-dimensional conceptIts scope of influence is defined by the horizontaldimension, its greatness is defined by the verticaldimension.(Exhibit7-4)Power is athree-dimensional conceptIt includes not only the functional and hierarchicaldimensions but also a third dimension called centralityPower is made up of both one's vertical position and one'sdistance from the organization's power core or center(Exhibit7-5)
How do authority and power differ? Authority is a part of the larger concept of power. Authority is a two-dimensional concept. Its scope of influence is defined by the horizontal dimension; its greatness is defined by the vertical dimension. (Exhibit 7-4) Power is a three-dimensional concept. It includes not only the functional and hierarchical dimensions but also a third dimension called centrality. Power is made up of both one’s vertical position and one’s distance from the organization’s power core or center. (Exhibit 7-5)
Exhibit 7-2 AuthorityChiefExecutiveOfficerHumanR&DFinanceAccountingMarketingProductionResources
Exhibit 7-2 Authority Chief Executive Officer Finance Accounting Marketing Production R&D Human Resources
PlantManagerManager,Manager,Manager,Manager,Manager,InformationHumanEngineeringAccountingPurchasingSystemResourcesExhibit 7-3 FunctionalDepartmentalization
Exhibit 7-3 Functional Departmentalization Plant Manager Manager, Engineering Manager, Accounting Manager, Information System Manager, Human Resources Manager, Purchasing