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Chapter 5: Designing Organizational Structure: Authority and Control

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Amanda Harrison

on 2 March 2011

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Transcript of Chapter 5: Designing Organizational Structure: Authority and Control

What is Hierarchy? the number of levels of authority within an organization How an organization improve its ability to control:
increase the number of managers it uses to monitor, evaluate, and reward employees
increase the number of levels in its managerial hierarchy, making it taller
Tall vs Flat Problems with Tall Hierarchies Communication
Bureaucratic Costs
The Parkinson's Law an organization should choose the minimum number of hierarchial levels consistent with its goals and the environment in which it operates... Span of Control the number of subordinates a manager directly manages Control: What Affects the Shape? Horizontal Differentiation
Standardization Principle One: A bureaucracy is founded on the concept of rational-legal authority Principle Two: Organizational roles are held on the basis of technical competence Principle Three: A role's task responsibility and decision-making authority and its relationship to another role should be clearly specified Principle Four: The organization of roles in a bureaucracy is such that each lower office in the hierarchy is under the control of supervision of a higher office Principle Five: Rules, Standard Operating procedures, and norms should be used to control the behavior and the relationship between roles in an organization Principle Six: Administrative acts, decisions, and rules should be formulated and put in writing
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