Ex.3. Definition of the Key Terms. Read and translate.
Manageability - capability of everyone in the organization to know who is responsible for what, who reports to whom, what to do when problems arise, and so forth.
Organizational design - the establishment of manageable groups of people who have clear responsibilities and who know how to accomplish the objectives of the organization and the group.
Organization - a group of people working together to accomplish a goal.
Economies of scale - efficiency resulting from employee specialization created in large plants.
Authority - the right to make decisions and take actions.
Responsibility - the obligation of a person to complete a given task.
Accountability - requirement that workers accept the consequences of their action and report those actions to their layers supervisor.
Bureaucratic organization - organization with three layers of authority: (1) top managers who make decisions, (2) middle managers who develop procedures for implementing decisions, and (3) workers and supervisors who do the work.
Technical complexity - the degree to which machines are used in the production process rather than people.
Organization chart - a visual picture of an organization that shows who reports to whom.
Centralized authority - maintaining decision-making authority with the top level of management at its headquarters.
Decentralized authority - delegating decision-making authority to lower-level managers who are more familiar with local conditions.
Delegation of authority - assigning part of a manager’s duties to subordinates.
Line organization - organization in which there are direct two-way lines of responsibility, authority, and communication running from the top to the bottom of the organization, with all employees reporting to only one supervisor.
Line personnel - employees who perform functions that contribute directly to the primary goals of the organization.
Staff personnel - employees who perform functions that assist line personnel in achieving their goals.
Matrix organization - organization in which specialists from different parts of the organization are brought together to work on specific projects but still remain part of traditional line and staff structure.
Formal organization - the structure that details lines of responsibility, authority, and position. It is the structure that is shown on organizational charts.
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Informal organizational - the system of relationships and lines of authority that develops spontaneously as employees meet and form power centers. It is the human side of the organization and does not show on any formal charts.
Ex.4. Read about different types of organization structure.
Text A
LINE ORGANIZATIONS
A line organization is one in which there are direct two-way lines of responsibility, authority, and communication running from the top to the bottom of the organization, with all people reporting to only one supervisor. The most obvious example is the army, which has a clear line of authority going from general to colonel to major to lieutenant to sergeant to corporal to private.
A private reports to a corporal, the corporal to a sergeant, and so on back up to the generals. A line organization has the advantages of having clearly defined responsibility and authority, of being easy to understand, and of providing one supervisor for each person. The principles of good organizational design are met.
However, a line organization may have the disadvantages of being too inflexible, of having few specialists or experts to advise people along the line, of having lines of communication that are too long, and of being unable to handle the complex decisions involved in an organization with thousands of sometimes unrelated products and literally tons of paperwork.
Simple line organization
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