After studying this chapter you will be able to: Explain how differentiation and integration influence an organization’s structure, summarize how authority operates, define the roles of the board of directors and the chief executive officer, discuss how span of control affects structure and managerial effectiveness,. | Organization Structure Chapter Eight Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Learning Objectives LO 1 Explain how differentiation and integration influence an organization’s structure. LO 2 Summarize how authority operates. LO 3 Define the roles of the board of directors and the chief executive officer. LO 4 Discuss how span of control affects structure and managerial effectiveness. LO 5 Explain how to delegate effectively. 2 Learning Objectives (cont.) LO 6 Distinguish between centralized and decentralized organizations. LO 7 Summarize the ways organizations can be structured. LO 8 Identify the unique challenges of the matrix organization. LO 9 Describe important integrative mechanisms. 3 Fundamentals of Organizing Organization chart The reporting structure and division of labor in an organization Conventional Organization Chart Figure Fundamentals of Organizing Differentiation the organization is composed of many different units that work on different kinds of tasks, using different skills and work methods. Integration degree to which differentiated work units work together and coordinate their efforts Authority in Organizations Authority The legitimate right to make decisions and to tell other people what to do. Hierarchical Levels Hierarchy The authority levels of the organizational pyramid Corporate governance The role of a corporation’s executive staff and board of directors in ensuring that the firm’s activities meet the goals of the firm’s stakeholders Delegation Delegation The assignment of new or additional responsibilities to a subordinate Responsibility, Authority, and Accountability Steps in Effective Delegation Figure Decentralization Centralized organization An organization in which high-level executives make most decisions and pass them down to lower levels for implementation Decentralized organization An organization in which lower-level managers make important decisions The Functional Organization Figure The Divisional Organization Divisional organization Departmentalization that groups units around products, customers, or geographic regions. The Matrix Organization Matrix organization An organization composed of dual reporting relationships in which some managers report to two superiors—a functional manager and a divisional manager A Network Organization Figure | Organization Structure Chapter Eight Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Learning Objectives LO 1 Explain how differentiation and integration influence an organization’s structure. LO 2 Summarize how authority operates. LO 3 Define the roles of the board of directors and the chief executive officer. LO 4 Discuss how span of control affects structure and managerial effectiveness. LO 5 Explain how to delegate effectively. 2 Learning Objectives (cont.) LO 6 Distinguish between centralized and decentralized organizations. LO 7 Summarize the ways organizations can be structured. LO 8 Identify the unique challenges of the matrix organization. LO 9 Describe important integrative mechanisms. 3 Fundamentals of Organizing Organization chart The reporting structure and division of labor in an organization Conventional Organization Chart Figure Fundamentals of Organizing .
