EXERCISE FOR MANAGING IN THE TWENTY-FIRST CENTURY

SKILL BUILDING

UNDERSTANDING
ORGANIZATION STRUCTURE
 Manager carry out the Organising
function effectively need to have a firm
grasp of the organizational structure
concept.

• The significant issue pertaining to how

organization is structured are indicated in left
column match these with examples indicated in
the right column.
ORGANIZATIONAL ISSUE DEFINITION/EXAMPLES
• Written Policies, Procedures (rules for purchasing equipments)
• Provide reasons for significant deviations( Explain change in
4. Chain of command production from 40 to 90)
• 1st 2nd 3rd 4th levels working together (4 levels of manager in
5. Organizational Chart manufacturing meet to discuss possible new technology)
6. Job simplification • A cushion of resources used to meet unprogrammed requirements
( addition trucks to deliver unusual numbers of orders.
7. Jo rotation • Work for 10-hour days.
8. Job enlargement • Authority related to specific functions (pay policy enforced by VP of
9. Flextime HR)
• Authority follows chain of command (President decides which three
10. Compresses work week plans will be closed following reorganization)
11. Job sharing • Line of authority (john reports Sue)
12. Departmentalization • Number of reporting units (seven division reporting to VP of
operation)
13. Vertical co-ordination • Adding variety of similar tasks (Assume the function of peer in
14. Formalization addition to current job)
• Assigned only a few specific activities (make new files ,file papers)
15. Span of Control • Line diagram that reflects structure (Organization has nine SBUs)
16. Centralization • Elastic work hours, core hours.
17. Authority • Power and authority retained (need permission of headquarters)
• Upgrading the job tasks mix (Taking on budgeting planning and other
18. Accountability functions)
19. Line authority • Co-ordination with other units/departments (engineering sales and
manufacturing working out problem together)
20. Functional authority • Two employee/one job (John works morning Joe works afternoon)
21. Slack resources • Right to make decisions (cam spend up to $75000 per purchase)
22. Lateral relations • Clustering into two work groups units division (assembly teams motor
division)
• Shifting workers through functions (Sales then HR then finance)