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Administrative Office Management, 8/e by Zane Quible

©2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

The Organization Chart

Identifies lines of authority.

Gives employees a better understanding of the

formal structure of the organization.

Helps identify areas of overlapping

responsibility that should be eliminated.

Identifies promotional opportunities for job

applicants and new employees.

Identifies areas suitable for training and

orientation.

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Administrative Office Management, 8/e by Zane Quible

©2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Organizing Function is Helpful By:

1. Assuring more efficient use of the organization’s

resources (Allocative efficiency).

2. Improving employee understanding of job duties

and responsibilities.

3. Improving employee morale (motivated employees).

4. Providing a sense of direction for each of the

organization’s functional areas.

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Administrative Office Management, 8/e by Zane Quible

©2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

1. Organization’s Objectives

Should be written in context of outcomes,

understood and accepted by employees, be

measurable, contain a time reference, and

be challenging but attainable.

• Unity of direction
• Subordination of individual interests to

the common interest

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Administrative Office Management, 8/e by Zane Quible

©2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

2. Span of Control

Refers to the number of subordinates

an individual is able to supervise.

Generally, 6 to 14 (<20) subordinates per manager.

• Division of Work

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Administrative Office Management, 8/e by Zane Quible

©2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

3. Interrelated Functions

Organization’s functions have become so

interrelated that when a problem arises in one

functional area, other related functions are also

likely to be affected.

• Centralization or Decentralization
• Esprit de corps (Group harmony)

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Administrative Office Management, 8/e by Zane Quible

©2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

4. Chain of Command

Identifies who reports to whom within

an organization.

Two types:

• Vertical chain (Top-down, Bottom-up)
• Horizontal chain.
• Scalar Chain

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Administrative Office Management, 8/e by Zane Quible

©2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

5. Unity of Command

States that each employee should be

directly responsible to one supervisor.

One-boss system vs. Two-boss system.

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Administrative Office Management, 8/e by Zane Quible

©2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

6. Authority and Responsibility

States that individuals who are given the

responsibility to undertake a task must also

be given an appropriate amount of authority to

ensure task completion.

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Administrative Office Management, 8/e by Zane Quible

©2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

7. Work Assignment

States that each employee’s work assignments

should be based on his/her special

strengths and talents.

• Remuneration of personnel (Fair compensation)
• Stability of personnel tenure (Job Security)
• Order (Right person for right place)

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Administrative Office Management, 8/e by Zane Quible

©2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

8. Employee Empowerment

States that empowered employees are

encouraged to participate as much as possible in

making decisions that affect all aspects of

their job tasks.

• Initiative
• Discipline (Mutual agreement) ==== MBOs

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Administrative Office Management, 8/e by Zane Quible

©2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Line

Line and Staff

Functional

Product division

Committee

Matrix

Organizational

Structures

Start working on Ch2 worksheet!

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Administrative Office Management, 8/e by Zane Quible

©2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Line Structure

Is the oldest and simplest of structures.

Has direct authority flowing vertically

from the top.

Is generally found in small organizations

because support staff is needed once they

begin to grow.

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Administrative Office Management, 8/e by Zane Quible

©2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Board

President

VP Marketing

VP Production

VP Service

Promotion

Sales

Purchase

Foreman

Supervisor

Purchase

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Administrative Office Management, 8/e by Zane Quible

©2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Advantages of Line Structure

2. Decision making is expedited.

3. Is a simple structure to understand.

1. Employees are fully aware of the boundaries of

their jobs.

4. Employees can be held directly accountable

when they fail to perform as expected.

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Administrative Office Management, 8/e by Zane Quible

©2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Disadvantages of Line Structure

2. Line managers need to begin to perform

specialized activities.

1. Fails to provide specialization needed when

organization begins to grow.

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Administrative Office Management, 8/e by Zane Quible

©2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Line and Staff Structure

Has line authority similar to line structure.

Staff employees assist the line function.

Specialized staff activities are added that

support line activities.

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Administrative Office Management, 8/e by Zane Quible

©2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Board

President

VP Marketing

VP Production

VP Finance

Promotion

Auditing

Foreman

Comptroller

Purchase

VP Corp. Affairs

Sales

Office Service

HR

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Administrative Office Management, 8/e by Zane Quible

©2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Line Employees

Staff Employees

Line employees are directly

concerned with the organization’s

primary objectives.

Staff employees support the

line employees.

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Administrative Office Management, 8/e by Zane Quible

©2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Advantages of Line and Staff Structure

2. Staff employees can lend their specialized

support.

1. Line employees have time to focus on those

activities directly related to the organization’s

primary objectives.

3. Flexibility of staff units facilitates undertaking

new projects.

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Administrative Office Management, 8/e by Zane Quible

©2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Disadvantages of Line and Staff Structure

1. Line and staff employees sometimes are

in conflict with one another.

2. Line employees sometimes suppress the

talents of staff employees.

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Administrative Office Management, 8/e by Zane Quible

©2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Exercise

Wilcox company (Equipment manufacturing)

• Founded and owned by Sean and David Cox)
• Market expansion (Increased sales volume) --- Marginal profits for years
• 6 employees are taking general management responsibilities
• 6 employees are involved in either marketing or production.
• Try to hire new managers.

You are consultant for Wilcox company.

You have to know the following issues.

• Current org. structure and recommended org. structure(s)
• Problems for current org. structures and management.
• Possible problems for new org. structures and management.

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Administrative Office Management, 8/e by Zane Quible

©2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Exercise

• Current org. structure and recommended org. structure(s)
• Current: Poorly designed line structure.
• Recommendations: (1) Current structure with several temporary workers.

(2)Well defined line structure

(3) Line and Staff structure

• Problems for current org. structures and management.
• Poor definitions of authority and responsibility
• Poor structural design
• Poor operational design (Efficiency and Effectiveness)
• “Owner-Manager” issues in the stage of growth.
• Demand projections.
• Possible problems for new org. structures and management.
• Confusions (Efficiency and Effectiveness) of new structure
• Resistance to the new system and structure
• “Owner-Manager” issues as barriers for transformation and growth
• “Old boys” vs. “New comers”

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Administrative Office Management, 8/e by Zane Quible

©2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Division Structure

Each major product is given division

status.

Incorporates line and staff structure into

these divisions.

Each product tends to operate independently

of other divisions.

Company’s products provide a basis for

its structure.

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Administrative Office Management, 8/e by Zane Quible

©2005 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458