Homework #5 for MGT3000

Organization Management
HW # 5
Matthew Henderson

1.  Compare and contrast authority, responsibility, accountability, and delegation?

Authority is the right to make a decision, issue an order or move resources.

Responsibility is the duty to perform a given task.

Accountability is reporting and/or justifying authoritative or responsible task outcomes.

Delegation is the transfer of authority and responsibility from one individual to others.


2. Explain why delegation is important to organizations. Why is it difficult for some managers to delegate?

Delegation is important because it can make an organization more flexible.  If management delegates authority or responsibility to its lower levels, the organization can adapt to rapidly changing environments.  If the authority or responsibility are held at a higher level, reporting and decision making can take a longer time, which could cost the organization.  Delegating also allows lower-level employees to develop good decision making skills and equips them with experience.

Some managers find it difficult to delegate because they believe they can do a better job than their subordinates, they have an aversion to risk.  Generally, they feel that performance responsibility is theirs and they don’t trust others.  They may also feel that delegating tasks will reduce their personal status in the organization.


3. Briefly explain the concept of line and staff departments and authority?

Line Departments perform tasks which directly reflect the organization’s primary goals or missions.  In a manufacturing organization, this is where the products are manufactured.  They are where the tire meets the pavement, the sales and manufacturing, or purchasing and reselling.  They are the “physical labor” side of a business (if you will) or the Customer Interaction side.

Staff Departments generally support the line department with specialized skills.  They serve as an advisory resource (i.e. Marketing, HR, Research, Accounting).

Line Authority is when a manager has formal authority to direct and control immediate subordinates.

Staff Authority is a person’s right to advise, recommend and counsel within that person’s area of expertise.  Staff authority is when a specialist may advise a manager in a technical field.


4. List five of the factors that are associated with less supervisor involvement and thus larger spans of control?

Span of control refers to how closely a supervisor can monitor subordinates.

1. Subordinates perform similar work tasks
2. Subordinates are concentrated in a single location
3. Subordinates are highly trained and need little direction in performing tasks
4. Rules and procedures defining task activities are available.
5. Little time is required in nonsupervisory activities such as coordination with other departments or planning.

5. What advantages does decentralization have over centralization?

Centralization means that authority is located near the top of an organization.
Decentralization means that authority is pushed downward to the lower levels of the organization.

The main advantage of decentralization is that an organization is more adaptable in uncertain or changing environments.  Instead of delivering reports, waiting for the upper-level decision, and then implementing the decision; the decisions can be made an implemented at a much lower and immediate level.  Response is faster and more direct to the customer.

6. Describe the team approach to departmentalization. List three main disadvantages?

The team approach pushes authority down to lower level teams made up of various employees from various departments.

The team approach has two sub-levels:

Cross-functional teams are teams consisting of various employees with various functions form to resolve mutual problems.  Team members report directly to the team and also to their department.

Permanent Teams are groups of employees which is organized similar to a formal department.  Like the cross-functional teams, these are employees from various departments who work together to complete specific tasks.

Three main disadvantages:
1. Dual loyalties and conflict between team and the individual’s department
2. Time and resources spent on meetings
3. Unplanned decentralization (manager’s may feel left out)

7. Describe how cross-functional and permanent teams differ?

Cross-functional teams are formed to combat mutual problems, whereas permanent teams are permanent and are out to perform a task.  Cross-functional teams may have one or two team leaders and Permanent teams may have revolving team leadership.  Cross-functional teams will probably disperse at one point, where Permanent teams will not.

8.  Describe reengineering and its impact on the organization?

Reengineering is when a business radically redesigns itself in an attempt to improve cost, quality, service and speed.

Generally, this redesign leads an organization away from vertical structure and emphasizes the stronger horizontal coordination.  This flattens the vertical hierarchy leaving only a few support functions in the executive level.