MEM 2221 Lecture Notes - Lecture 16: Hierarchical Organization, Information Revolution
Document Summary
Hierarchical organization - every entity in the organization, except one, is subordinate to another entity. Arranged according to power, status, job function, etc. Functional departmentation - divided by function rather than level. Organization size increases, number of subordinate managers increases. Span of management/control - number of people directly reporting to each manager. Too narrow spans - expensive, communication and decision making time increases. Too wide spans - managers do not have enough time to supervise all activities, subordinates do not have access to their manager. According to graicunas, the ideal span depends on the number of relationships that exist between managers and subordinates, individually and with various combinations, and among the subordinates themselves. Number of relationships for a manager with n subordinates is n[2 (n-1) +n-1] Subordinate training - the more trained subordinate are, the fewer demands they need from the supervisor.