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the process of identifying and grouping of the works to be performed, defining and delegating responsibility and authority and establishing relationships for the purpose of enabling people to work most efficiently". - Louis A. Allen
Organizing
It means that the various units must be put back together so that work is coordinated.
Integration
It means that an organization is composed of units that work on specialized tasks using different work methods and requiring employees with unique competencies.
Differentiation
An organization is a system of cooperative relationships of two or more persons.
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An organization is not a mere mechanical structure but a living organism arising out of the sentiments, attitudes, and behaviour of people.
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People who form an organization communicates with each other in order to integrate or coordinate their efforts. The structure must be such that people can perform together efficiently.
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The members of an organization are willing to help each other for the achievement of desired goals.
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For the orderly and systematic working of the members, rules and regulations are laid down and enforced by the central authority.
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Every organization has a common objective distinct from personal objectives of the members.
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In an organization, there is a central directing authority which controls the concerted efforts of the group. The chain of authority- responsibility relationships is known as the chain of command.
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An organization comes into existence when the total task is divided into the members of the group.
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This refers to the hierarchical arrangement of positions and roles within an organization, where there are clear levels of authority and a chain of command from top to bottom.
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a system made up of tasks to be accomplished, work movements from one work level to other levels in the system, reporting relationships, and communication passageways that unite the work of different individual persons and groups.
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This type of structure is characterized by a clear chain of command, with each level of the organization reporting to the level above it.
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Lines of authority flow directly from the top (Investor) to the bottom (employees).
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Decisions are typically made at the top and then communicated down the chain of command.
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Employees have specific roles and responsibilities within their departments.
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Communication typically flows through formal channels, such as memos, emails, and meetings.
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A horizontal structure refers to the departmentalization of an organization into smaller work units as tasks become increasingly varied and numerous. Types of Departments
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deal directly with the firm’s primary goods and services.
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support the activities of the line departments by doing research, attending legal matters, performing public relations duties.
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where the subdivisions are formed based on specialized activities such as marketing, production, financial management, and human resources management.
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This type of structure groups employees based on their specific functions or areas of expertise.
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This structure promotes efficiency and specialization within each functional area
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In a functional structure, decision-making authority is typically centralized at the top level of the organization.
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It can sometimes lead to a siloed approach where departments may not communicate effectively and focus on their own goals rather than the overall objectives of the organization.
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where departments are formed based on management of their products, customers, or geographic areas covered.
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is a hybrid form of departmentalization where managers and staff personnel report to the superiors, the functional manager and the divisional manager. Combines functional and divisional structures to gain advantages and minimize disadvantages of each.
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Employees have two bosses: a functional manager and a project manager. This can lead to potential conflicts and confusion if not managed carefully.
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Resources (personnel, equipment, budget) are shared between different projects, often leading to resource constraints and scheduling challenges.
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This structure is highly adaptable and can respond quickly to changing priorities and market conditions.
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Project teams are typically composed of members from various functional departments, fostering collaboration and knowledge sharing.
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is a collection of independent, usually single function organizations/companies that work together to produce a product or service.
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A decentralized approach can foster creativity and innovation.
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Decision-making power is distributed across various units or teams.
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The structure can adapt quickly to changing market conditions.
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Units work together on shared goals, often through partnerships and alliances.
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Individual units have the freedom to operate independently.
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occurs when some people ask others to perform tasks on their behalf, also called deputation in the assignment of authority and responsibility to another person.
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Elements of Delegation
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It is the obligation of a subordinate to properly perform the assigned duty. When a superior assigns a job to his subordinate it becomes the responsibility of the subordinate to complete the job.
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It means the power to take decisions. To carry on the responsibilities every employee need to have some authority.
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It means the power to take decisions. To carry on the responsibilities every employee need to have some authority.
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It is the answerability of the subordinate to his superior for his work performance.
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In an organization there is central directing authority which controls the concerted efforts of the group
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Importantance of Delegation
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Proces of Delegation
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3 types of Approach
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What are 3 structure
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Two types of department
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Study Notes
Organization
- Process of identifying and grouping works to be performed, defining and delegating responsibility and authority, and establishing relationships for efficient work.
- A system of cooperative relationships of two or more people, with a common objective.
- A living organism arising from the sentiments, attitudes, and behavior of people within it.
- Communication is vital to integrate and coordinate efforts, leading to efficient performance.
- Members are willing to help each other to achieve shared goals.
- Rules and regulations are laid down and enforced by a central authority for systematic work.
- A central directing authority controls the group's concerted efforts.
- The chain of command is the hierarchical arrangement of authority and responsibility relationships.
- The organization exists when the total task is divided among group members.
- A system with tasks, work movements, reporting relationships, and communication pathways uniting individual and group work.
Organizational Structures
- Line structures are characterized by a direct chain of command, with clear decision-making authority flowing from top to bottom.
- Horizontal Structures occur due to increased task complexity and variation, leading to departmentalization into smaller work units.
Types of Departments
- Line departments deal with the firm’s primary goods and services.
- Staff departments support line departments through activities such as research, legal matters, public relations.
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Functional departments are formed based on specialized activities like marketing, production, finance, and human resource management.
- Promotes efficiency and specialization within each functional area.
- Centralized decision-making authority.
- Can lead to a siloed approach with departments focusing on their goals rather than overall organizational objectives.
- Divisional structures are formed based on products, customers, or geographic areas covered.
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Matrix structures combine functional and divisional structures to leverage the advantages of both.
- Employees report to both functional and divisional manager.
- Can lead to conflicts and confusion if not managed well.
- Resources are shared between projects.
- Highly adaptable to changing priorities.
- Facilitates collaboration and knowledge sharing.
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Network structures are collections of independent organizations working together on a product or service.
- Decentralized approach, fostering innovation.
- Decision-making power is distributed.
- Adaptable to changing market conditions.
- Individual units operate independently.
Delegation
- The act of assigning tasks and authority to another person.
- Responsibility: The subordinate's obligation to perform the assigned duty.
- Authority: The power to make decisions.
- Accountability: The subordinate's answerability to the superior for their work performance.
- Features: The process of assigning work and giving authority to complete it.
Importance of Delegation
- Enables managers to focus on strategic goals.
- Develops subordinate skills and capabilities.
- Increases motivation and job satisfaction.
- Improves efficiency and productivity.
- Facilitates organizational growth and agility.
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Description
This quiz explores key concepts in management based on Louis A. Allen's definition of the process of organizing and delegating responsibilities. Delve into the essential practices that lead to efficient teamwork and operational effectiveness. Test your understanding of management fundamentals with this insightful quiz.