MNGT 361 Lecture Notes - Lecture 5: Departmentalization, Organizational Architecture, Centrality

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Organizational design- the process of making decisions about how specialized jobs should be, the rule to guide employees" behaviors, and the level at which decisions will be made. Chain of command- when organizing work, managers need to clarify who reports to whom. This is the line of authority extending from upper to lower organizational levels. Authority- refers to the rights inherent in a managerial position to give orders and expect the orders to be obeyed. Responsibility- when employees are given rights they also assume a corresponding obligation to perform and be held accountable for their performance. Line authority- entitles a manager to direct the work of an employee according to the chain of command. Staff authority- functions to support, assist, advise, and generally reduce some of their informational burdens. Unity of command- each employee reports to only one manager. Authority- a right and its legitimacy is based on an authority figure"s position in the organization: functional, hierarchical, centrality.

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