introduction to management—chapter8讲义教材.ppt

Organizational Structure Chapter 8 The board of directors Inside board members Outside board members Span of Control Organizational heights Narrow span of control Wide span of control Centralization Decentralization Centralization Keeping most authority among the high-level managers Middle and supervisory managers are responsible for day-to-day tasks reporting to the top managers They are not allowed to make many decisions Decentralization Authority is spread among several divisions or managers Extreme form of decentralization: autonomy Divisions can make their own decisions and act independently Advantages It reduces operating expenses It accelerates the decision-making process Decisions are made more quickly if the decision makers do not have to wait for approval from top managers. It motivates some employees by assigning them more responsibilities Those employees become more experienced in decision making. They will be better qualified for high-level management position in the future It allows those employees who are closely involved in the production of particular product to offer their input Decentralization Disadvantages It could force some managers to make major decisions even though they lack the experience to make such decisions or prefer not to do so. If middle and supervisory managers are assigned in excessive amount of responsibilities, they may be unable to complete all of their tasks. Decentralization Proper degree of decentralization The proper degree of decentralization for any firm is dependent on the skills of managers who could be assigned more responsibilities. Decentralization can be beneficial when the managers who are given more power are capable of handling their additional responsibilities. Appropriate decentralization High-level managers still retain authority for tasks that require their specialized skills, but should delegate authority when the tasks could be handled by other managers. Routine decisions Some degree of centralizatio