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DABDC CACAD C 1. What is the difference between line authority and staff authority?
Line authority entitles a manager to direct the work of an employee. Staff authority functions to support, assist, advise, and generally reduce some of the informational burdens of those with line authority.
2. Compare and contrast authority and power.
Authority comes from the position, not the person.
Power is the ability of an individual to influence decisions, which may not be reflected in their level of authority. French and Raven suggested five bases of power: reward, coercive, legitimate, referent, and expert. Authority is a two dimensional concept while the power is a three-dimensional one. One should move up in the hierarchy to gain higher authority, but in order to be more powerful, managers could move up or move inward to have closer relationship with those people representing the power core.
3. set an example to clarify each of five types of departmentalization that are available.
Departmentalization types examples (departments in certain organization)
Functional marketing, HR, R&D, financing etc.
Product food, clothes, home appliances, etc.
Customer personal clients, government, VIP etc.
Geographic Great China, North America, EU
Process validation, registration, payment, etc.
4. What is a matrix structure? What is its primary strength? What are its major disadvantages?
Matrix structure—an organization in which specialists from functional departments are assigned to work on one or more projects led by a project manager.
Primary strength—can facilitate coordination of a multiple set of complex and interdependent projects, while still retaining the economies that result from keeping functional specialists grouped together.
Major disadvantages—creates confusion and has a propensity to sponsor power struggles. 5. Compare functional and divisional structure.
Both are bureaucratic design of organizations.
Functional structure groups similar or related occupational specialties together. While divisional structure is self-contained, composed of autonomous units or divisions, with managers having fully responsibility for a product or service.
Advantages of functional structure accrue from work specialization. 1. putting like specialties together results in economies of scale, minimizes
duplication of personnel and equipment; 2. it makes employees comfortable and satisfied since they have same interests.
Chief advantage of divisional structure is that it focuses on results, also it frees the headquarters staff from operating details so that they can focus on long-term strategic planning.
Weaknesses of functional structure: organizational interests might be lost in pursuit of functional goals; no one function is totally responsible for results; members become insulated and have little understanding about peers in other functions.
The major disadvantage of divisional structure is the duplication of activities and resources.
