Контрольная по английскому языку

Unit 2

ORGANIZING A BUSINESS

1. Read and translate the text.

The Role of Organization Structure.

How well a firm is managed depends greatly on the organization structure. The successful firms of the future will combine the best features of large companies (access to large amounts of capital and the ability to attract and keep the most talented managers) with the best features of small businesses (focus, flexibility and speed).

The main purpose of business is to discuss principles of organization such as the notion that companies function better when the operating units are small and manageable. There are other similar organizational decisions that are important, such as: How many people should report to one manager? How much authority and responsibility should be delegated to lower-level managers and workers?

Роль організаційної структури.

Ефективність управління компанією багато в чому залежить від організаційної структури. Успішні компанії майбутнього поєднують найкращі риси крупних компаній (доступ до великих обсягів капіталу та можливість залучення й утримання найталановитіших менеджерів) з найкращими рисами малого бізнесу (фокус, гнучкість та швидкість).

Основна мета бізнесу – обговорення таких принципів організації, як поняття того, що компанії краще функціонують, коли діючі підрозділи є невеликими та знаходяться під керуванням. Є інші подібні організаційні рішення, які є важливими, такі як: Скільки людей повинні звітувати перед одним керівником? Скільки повноважень та відповідальності слід делегувати керівникам та працівникам нижчого рівня?

2. Read, write down and translate key words.

organizational design – організаційна модель

line personnel – основний персонал

staff personnel – допоміжний персонал

downsizing – скорочення

authority – влада

responsibility – обов’язок

accountability – звітність

equity – рівність

technical complexity – технічна складність

organization chart – організаційна схема

matrix organization – головна організація

self-managed teams — самокеровані групи

cross-functional teams – багатофункціональні групи

supervisor – керівник

benefit – користь, зиск

3. Definition of the Key Terms. Read and translate.

Manageabilitycapability 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 designthe establishment of manageable groups of people who have clear responsibilities and who know how to accomplish the objectives of the organization and the group.
Organizationa group of people working together to accomplish a goal.
Economies of scaleefficiency resulting from employee specialization created in large plants.
Authoritythe right to make decisions and take actions.
Responsibilitythe obligation of a person to complete a given task.
Accountabilityrequirement that workers accept the consequences of their action and report those actions to their layers supervisor.
Bureaucratic organizationBureaucratic 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 complexitythe degree to which machines are used in the production process rather than people.
Organization charta visual picture of an organization that shows who reports to whom.
Centralized authoritymaintaining decision-making authority with the top level of management at its headquarters.
Decentralized authoritydelegating decision-making authority to lower-level managers who are more familiar with local conditions.
Delegation of authorityassigning part of a manager’s duties to subordinates.
Line organizationorganization 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 personnelemployees who perform functions that contribute directly to the primary goals of the organization.
Staff personnelemployees who perform functions that assist line personnel in achieving their goals.
Matrix organizationorganization 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 organizationthe structure that details lines of responsibility, authority, and position. It is the structure that is shown on organizational charts.
  Informal organizationalthe 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
Керованістьздатність кожного в організації знати, хто за що відповідає, хто кому звітує, що робити, коли виникають проблеми тощо.
Організаційна модельстворення керованих груп людей, які мають чіткі обов’язки та знають, як досягти цілей організації та групи.
Організаціягрупа людей, які працюють разом задля досягнення мети.
Підвищення ефективності від росту масштабів виробництваефективність, що виникає в результаті  спеціалізації співробітників на крупних заводах.
Владаправо приймати рішення та вживати заходів.
Відповідальністьзобов’язання особи виконати певне завдання.
Звітністьвимога до робітників приймати наслідки своїх дій та звітувати про ці дії інспекторові у відповідності з субординацією.
Бюрократична організаціяБюрократична організація – організація з трьома рівнями повноважень: (1) топ-менеджери, які приймають рішення, (2) керівники середнього рівня, які розробляють процедури виконання рішень, і (3) працівники та інспектори, які виконують роботу.
Технічна складністьступінь використання машин у виробничому процесі, у порівнянні з людьми.
Організаційна схемавізуальна картина організації, яка показує, хто кому звітує.
Централізована владазбереження повноважень приймати рішення на вищому рівні управління в головному офісі.
Децентралізована влададелегування повноваження приймати рішення менеджерам нижчого рівня, які більше знайомі з місцевими умовами.
Делегування повноваженняпередача частини обов’язків менеджера підлеглим.
Лінійна організаціяорганізація, в якій існують двосторонні сфери відповідальності, влади та спілкування, починаючи від верхівки до низу організації, при цьому всі працівники звітують лише одному керівникові.
Основний персоналспівробітники, які виконують функції, які роблять безпосередній внесок в головні цілі організації.
Допоміжний персоналспівробітники, які виконують функції, які допомагають основному персоналу досягати цілей.
Головна організаціяорганізація, в якій спеціалісти з різних частин організації зібрані разом, щоб працювати над специфічними проектами, але все ще залишаються частиною традиційної основної та лінійної структур.
Офіційна організаціяструктура, яка визначає сфери відповідальності, влади та посад. Це структура, що показана на схемі організації.
Неофіційна організаціясистема відносин та сфер відповідальності, яка розвивається спонтанно, оскільки співробітники зустрічаються і формують владні центри. Це людська сторона організації, яка не показана на жодній офіційний схемі.

4. Read about different types of organization structure.

Types of organization structure

According to the structure all organizations can be divided into following three types.

The first is a line organization. It 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 some advantages. This structure is easy to understand and it has clearly defined responsibility and authority with only one supervisor for each person.

However, a line organization may have also some disadvantages. It is too inflexible because very few specialists or experts can advise people along the line and its lines of communication are too long. As a result it is unable to handle the complex decisions involved in an organization. To minimize the disadvantages of simple line organizations, most organizations today have both line and staff personnel. A couple of definitions will help:

  • Line personnel perform functions that contribute directly to the primary goals of the organization (e. g., making the product, distributing it, and selling it).
  • Staff personnel perform functions that advise and assist line personnel in performing their goals (e. g., marketing research, legal advising, and personnel).

Staff usually serve an advisory function; that is, they usually cannot tell line managers or their workers what to do. In fact, different organizations handle line-staff relationships in different ways. In some organizations, line managers must consult with staff managers on some issues; on others, they must get staff approval for certain actions; and in others, staff people may actually give orders.

The benefits of the line and staff organization structure are rather clear. It encourages co-operation and better communication at all levels of the organization and of course line personnel can get expert advice from staff. The disadvantages are not so obvious at first. Today, however, some organizations are suffering from too many staff personnel (over-staffing). To justify their existence, staff people may conduct research and generate reports that no one asks for or needs (over-analyzing). Lines of authority and communication can become blurred when staff people get involved in decision making (over-managing). For example, by the time a line manager clears a decision with the» legal department, the safety department, and personnel, the initial problem could have become much more serious.

As you have learned, the trend today is to cut staff positions or assign staff to smaller functional units, rather than work independently from line managers.

Both line and line and staff organization structures suffer from certain inflexibility.

More flexible is a new kind of organization structure. A matrix organization is one in which specialists from different parts of the organization are brought together to work on specific projects but still remain part of a line and staff structure. In other words, a project manager can borrow people from different departments to help design and market new product ideas,

Matrix organization structures were developed in the aerospace industry at firms such as Boeing, Lockheed, and McDonnell Douglas. The structure is now used in banking, management consulting firms, accounting firms, ad agencies.

WORDLIST

relationship – взаємовідношення

to have direct authority over smb – мати безпосередню владу над кимось

staff – штат  

clearly defined – чітко визначений

inflexible – негнучкий

togive/take orders – надавати/приймати накази

to handle decisions – виконувати рішення

unrelated product – продукт, який не має відношення до основного бізнесу

literally – тут: непотрібно

to be responsible for – відповідати за

to run the company – керувати компанією

to contribute – робити внесок

primary goals – першочергові завдання

performing -виконання

to benefit – мати вигоду

inferior- підлеглий

payroll – платіжна відомість

to cause conflicts – спричиняти конфлікти

correct procedures to follow – додержуватися правильних дій

to frustrate – розстроювати, зривати (плани)

to get approval – надати схвалення

to suffer (from) — страждати (через)

astounding – вражаючий, приголомшуючий

to be blurred – тут: бути затьмареним, неясним

assign staff – призначений штат

stiff competition – жорстка конкуренція

environment – оточення

to borrow people – залучати людей (з інших структур)

to be in charge of – очолювати

to be accountable to/for – відповідати перед (кимось)/за(щось)

Retell:

The text tells about the types of organization structure. According to the text, these types are represented by line organization and matrix organization. Line organization means that 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 disadvantage of this type of organization is its inflexibility. The personnel inside line organization is divided into two groups line personnel and staff personnel. Line personnel perform functions that contribute directly to the primary goals of the organization. Staff personnel perform functions that advise and assist line personnel in performing their goals. Another type of organization is matrix. It is rather new and more flexible. Matrix organization means that specialists from the different parts of organization work on certain projects, but they enter into line and staff structure. The example is Boeing, McDonnel Douglas companies. Matrix type of organization is especially popular in banking sphere.

5. Answer the questions.

1. What does «manageability» mean?

2. How would you define «organization»?

3. What are the principles of organization according to Fayol?

4. What is the Max Weber’s organization theory?

5. How would you describe the contribution of Joan Woodward to the field of organization principles?

6. What is the difference between centralized and decentralized authority?

7. What organization types can you name?

8. Would you give the difference between line and line and staff organizations?

1. What does «manageability» mean? – Manageability means 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.

2. How would you define «organization»? – Organization is defined as a group of people working together to accomplish a goal.

3. What are the principles of organization according to Fayol? – There are 14 principles of organization according to Fayol. They are division of work, authority and responsibility, discipline, unity of command, unity of direction, subordination of individual interest, remuneration, the degree of centralization, scalar chain, order, equity, stability of tenure of personnel, initiative and esprit de corps.

4. What is the Max Weber’s organization theory? – Theory of Max Weber, a German scientist, defines bureaucracy as a highly structured, formalized, and also an impersonal organization. He also instituted the belief that an organization must have a defined hierarchical structure and clear rules, regulations, and lines of authority which govern it.

5. How would you describe the contribution of Joan Woodward to the field of organization principles? – Joan Woodward’s primary contribution to organizational theory was the idea that organizational structure is contingent on the types of production technologies employed by the firm. This idea became a foundation of contingency theory and has had a sustained impact on the fields of innovation and management.

6. What is the difference between centralized and decentralized authority? – Centralized authority maintains decision-making authority with the top level of management at its headquarters. Decentralized authority means delegating decision-making authority to lower-level managers who are more familiar with local conditions.

7. What organization types can you name? – The organization types are line organization and matrix organization.

8. Would you give the difference between line and line and staff organizations? – Line Organization is the form of organization, wherein the authority flows from the person present at the top of the organizational hierarchy to the person working at the lowest level. In line and staff organization, the hierarchy remains same as in the line organization, but specialists are attached to the front line managers to advise and guide them on significant issues.

6. Choose the necessary word and put in the sentence.

1. Organization structure shows … between each position and positions above and below.1 relationship   2 to hold a position   3 authority   4 complex   5 task 6 a line department   7 staff department
2. A sales manager has direct… over a salesman.
3. As a rule a … usually does not give orders to other departments.
4. When the business gets more … there is a need for staff departments.
5. My friend…of sales manager.
6. The… of staff departments is to do different services.
7. My friend works in a …., he is responsible for the company product.

1. Organization structure shows relationship between each position and positions above and below.

2. A sales manager has direct authority over a salesman.

3. As a rule a staff department usually does not give orders to other departments.

4. When the business gets more complex there is a need for staff departments.

5. My friend holds a position of sales manager.

6. The task of staff departments is to do different services.

7. My friend works in a line department, he is responsible for the company product.

7. Read and translate the dialogue.

Dialogue

Peggy Forman is talking with Jaff Downing, another administrative assistant in her company.

JaffHow are you today, Peggy?
PeggyOh, fine, thanks.
JaffGlad to hear that. By the way, are you familiar with the organizational chart for the company?
PeggyNo, I am not. What is it like actually?
JaffWell, the chart shows how the employees are divided into groups. It gives one an overview of the chain of command in the company.
PeggyI see. The positions can be line and staff ones.
JaffYes. The subject is not new to you. What else do you know about it?
PeggyAs far as I know a worker in a line position receives orders from his immediate subordinate.
JaffExactly, that’s the line chain of command.
PeggyA worker in a staff position reports directly to a line worker but he neither gives nor receives orders for line workers. Am I right?
JaffYes, you are. But someone may have line authority over people in his department and not be considered a line administrator.
PeggyHow can it be?
JaffThat’s possible when a whole department is a staff department. For example, in our company the head of the credit department or the personnel department can hardly ever be president of the company.
PeggyAnd what do the people in staff departments do, how is their work different?
JaffWell, they are usually busy with services and they could do the same service for any company. So they are not in the line.
PeggyIt seems to be rather complicated.
JaffIt only seems so. I think the chart should help.
PeggyOh, sure. But, Jaff, would you explain me what span of control is?
JaffOh, span of control refers to the number of people whom one managers directly.
PeggyCan you give me an example?
JaffWell. The President of our company directly managers the Vice President of Production, the Vice President of Marketing and the Comptroller. Thus, his span of control includes three people.
PeggyYes, now I see. Thank you for your help.
JaffNot at all. Why don’t we go to the coffee stall and have a snack together?

WORDLIST

оrganizational chart – організаційна схема

line position – лінійна посада

staff position – штатна посада

immediate superior – безпосередній керівник

immediate subordinate – безпосередній підлеглий

line chain of command – лінійна структура підлеглості

to report – тут: доповідати

credit department – відділ кредитування

span of control – сфера безпосередньої підлеглості

vice-president of production – віце-президент по виробництву

vice-president of marketing –віце-президент по збуту

comptroller – головний фінансист

Пеггі Форман говорить з Джеффом Даунінг, ще одним адміністративним помічником у її компанії.

ДжеффЯк справи, Пеггі?
ПеггіО, добре, дякую.
ДжеффРадий чути це. До речі, ти знайома з організаційною схемою компанії?
ПеггіНі, не знайома. А що це насправді таке?
ДжеффЕ-е, це графік, що показує, як працівники розподіляються на групи. Це дає розуміння лінійної структури підлеглості.
ПеггіРозумію. Посади можуть бути головними та допоміжними.
ДжеффТак. Тема для тебе не нова. Що ще ти знаєш про це?
ПеггіНаскільки я розумію, робітник, який перебуває на головній посаді, отримує замовлення від свого безпосереднього підлеглого.
ДжеффСаме так, лінійна структура підлеглості.
ПеггіПрацівник, який перебуває на допоміжній посаді, звітує безпосередньо працівнику на головній посаді, але він не дає і не отримує доручень від співробітників на головній посаді. Я права?
ДжеффТак, права. Але особа може управляти людьми у ​​своєму відділі і не вважатися головним адміністратором.
ПеггіЯк це може бути?
ДжеффЦе можливо, коли цілий відділ – це відділ персоналу. Наприклад, у нашій компанії керівник кредитного відділу або відділу кадрів навряд чи коли-небудь може бути президентом компанії.
ПеггіА що роблять люди у відділах персоналу, чим відрізняється їхня робота?
ДжеффЕ-е, зазвичай вони зайняті послугами, і вони можуть надавати ці послуги  будь-якій іншій компанії. Тож вони не займають головних посад.
ПеггіЦе здається досить складним.
ДжеффЦе тільки здається. Я думаю, що діаграма повинна допомогти.
ПеггіО, звичайно. Але, Джефф, ти б мені пояснив, що таке сфера безпосередньої підлеглості?
ДжеффО, сфера безпосередньої підлеглості стосується кількості людей, якими управляє один менеджер.
ПеггіТи можеш мені навести приклад?
ДжеффЕ-е, президент нашої компанії безпосередньо керує віце-президентом з виробництва, віце-президентом з маркетингу та головним фінансистом. Таким чином, його сфера контролю включає трьох людей.
ПеггіТак, тепер я розумію. Дякую за допомогу.
ДжеффНема за що. Не хочеш випити кави та перекусити зі мною?

8. Give affirmative and negative answers to the questions.

Model: Have you examined the organizational structure of the company yet?

Yes, I have already examined it. No, I haven’t examined it yet.

1. Have you reported to the comptroller yet?

2. Have you settled this problem with the manager yet?

3. Have you learned line arid staff positions of the company yet?

4. Have you got acquainted with your immediate superior yet?

5. Have you heard about his span of control yet?

6. Have you met your immediate subordinates yet?

7. Have you passed your report to the credit department yet?

1. Have you reported to the comptroller yet?

Yes, I have already reported to him. No, I haven’t reported to him yet.

2. Have you settled this problem with the manager yet?

Yes, I have already settled it. No, I haven’t settled it yet.

3. Have you learned line arid staff positions of the company yet?

Yes, I have already learnt them.  No, I haven’t learnt them yet.

4. Have you got acquainted with your immediate superior yet?

Yes, I have already got acquainted with him. No, I haven’t got acquainted with him yet.

5. Have you heard about his span of control yet?

Yes, I have already heard about it. No, I haven’t heard about it yet.

6. Have you met your immediate subordinates yet?

Yes, I have already met them. No, I haven’t met them yet.

7. Have you passed your report to the credit department yet?

Yes, I have already passed it. No, I haven’t passed it yet.

9. Change the sentences according to the model.

Model: A staff employee doesn’t give orders.

             A staff employee doesn’t receive orders.

             A staff employee neither gives, nor receives orders.

1. He isn’t a Controller. He isn’t a sales manager.

2. The head of the credit department doesn’t advise the President. The head of the credit department doesn’t report to controller.

3. He doesn’t want to hold a position of vice-president of marketing. He doesn’t want to hold apposition of a general manager.

4. A credit department doesn’t have direct authority over a line department. A personnel department doesn’t have direct authority over a line department.

5. I don’t want to talk with the Boss. I don’t want to talk with the Controller.

6. She doesn’t like to give orders. She doesn’t like to receive orders.

7. Jecky doesn’t want to attend annual meeting of shareholders. Susan doesn’t want to attend annual meeting of shareholders either.

1. He isn’t a Controller. He isn’t a sales manager.

He is neither a Controller, nor a sales manager.

2. The head of the credit department doesn’t advise the President. The head of the credit department doesn’t report to controller.

The head of the credit department neither advises the President, nor reports to controller.

3. He doesn’t want to hold a position of vice-president of marketing. He doesn’t want to hold a position of a general manager.

He wants to hold neither a position of vice-president of marketing, nor a position of a general manager.

4. A credit department doesn’t have direct authority over a line department. A personnel department doesn’t have direct authority over a line department.

Neither a credit department has direct authority over a line department, nor has a personnel department.

5. I don’t want to talk with the Boss. I don’t want to talk with the Controller.

I neither want to talk with the Boss, nor with the Controller.

6. She doesn’t like to give orders. She doesn’t like to receive orders.

She likes neither to give orders, nor to receive orders.

7. Jecky doesn’t want to attend annual meeting of shareholders. Susan doesn’t want to attend annual meeting of shareholders either.

Neither Jecky, nor Susan wants to attend annual meeting of shareholders.

10. Translate into English.

1. Працівники повинні мати чіткі обов’язки.

2. Організаційна структура фірми залежить від особливостей бізнеcy.

3. Лінійна організація є легкою для розуміння, але негнучкою.

4. Традиційні організаційні структури добре працюють у відносно стабільному діловому оточенні.

5. У нових сферах промисловості, як аерокосмічна та біо-технологічна, велика увага приділяється розробці нових продуктів, творчості, швидкому спілкуванню та командній роботі.

6. У матричних організаціях менеджери проектів очолюють групи, які складаються з працівників різних відділів.

1. Workers should have clear responsibilities.

2. The organizational structure of the firm depends on the characteristics of business.

3. Line organization is easy to understand, but inflexible.

4. Traditional organizational structures work well in a relatively stable business environment.

5. In new industries, such as aerospace and bio-technology, much attention is paid to the new product development, creativity, rapid communication and teamwork.

6. In matrix organizations, project managers lead groups consisting of employees from different departments.

11. Discussion questions.

1. What is the role of organization structure in business?

2. Discuss advantages and disadvantages of Fayol’s, M. Weber’s and J. Woodward’s principles of organization?

3. Focus on benefits and flaws of line, line and staff and matrix organizational design. Use the table on the next page.

4. Describe the difference between simple line and simple line and staff organizations. Use the table on the next page.

Types of organizations. Each form of organization has its own advantages and disadvantages.

 AdvantagesDisadvantages
Line  * Clearly defined responsibility and authority * Easy to understand * One supervisor for each  person line personnel* Too inflexible * Few specialists to advise * Long lines of communication * Unable to handle complex questions quickly * Tons of paperwork
Line and staff  * Expert advice from staff to line personnel * Establishes lines of authority * Encourages co-operation and better communication at all levels* Potential over — staffing * Potential over-analyzing * Lines of communication can get blurred * Staff frustrations because of lack of authority * Costly and complex * Can confuse employees * Requires good interpersonal skills and cooperative managers and employees * Difficult to evaluate employees and to set up reward systems * Some confusion over responsibility and authority * Perceived loss of control by management * Difficult to evaluate employees and set up reward systems * Requires self-motivated and highly trained workers
Matrix  * Flexible * Encourages co-operation among departments * Can produce creative solutions to problems * Allows organization to take on new project without adding to the organization structure
Cross-functional, self-managed teams  * Greatly increases interdepartmental coordination and co-operation * Quicker response to customers and market conditions * Increased employee motivation and morale

1. What is the role of organization structure in business?

Organization structure tries to make optimum use of organization resources by ensuring their allocation to points where there are needed. Organization structure gives a higher place to activities which are more important to the achievement of organizational objectives.

2. Discuss advantages and disadvantages of Fayol’s, M. Weber’s and J. Woodward’s principles of organization?

Fayol believed that an organization’s structure was important, as it facilitated the optimum conduct of its business. The advantages of Fayol’s structure include as follows:

(1) Fayol was the first person to actually give a definition of management which is generally familiar today namely forecast and plan, to organize, to command, to co-ordinate and to control’

(2) Fayol also gave much of the basic terminology and concepts, which would be elaborated upon by future researchers, such as division of labour, scalar chain, unity of command and centralization.

The disadvantages of Fayol’s structure are as follows:

(1) Fayol was describing the structure of formal organizations.

(2) Absence of attention to issues such as individual versus general interest, remuneration and equity suggest that Fayol saw the employer as paternalistic and by definition working in the employee’s interest.

(3) Fayol does mention the issues relating to the sensitivity of a patient’s needs, such as initiative and ‘esprit de corps’, he saw them as issues in the context of rational organizational structure and not in terms of adapting structures and changing people’s behaviour to achieve the best fit between the organization and its customers.

(4) Many of these principles have been absorbed into modern day organizations, but they were not designed to cope

Weber described bureaucracy as the most efficient way of working. Advantages of Weber’s principles include as follows:

(1) Appointment, promotion and authority were dependent on technical competence and reinforced by written rules and procedures of promoting those most able to manage rather than those favored to manage.

(2) The adoption of bureaucratic type of management systems allow organizations to grow into large complex organized systems that are focused towards formalized explicit goals.

(3) It cannot be stated strongly enough that the Weber theory has the advantage of being used as a ‘gold standard’ on which to compare and develop other modern theories.

The disadvantages of Weber’s principles include such ones as:

(1) Tendency for organizations to become procedure dominated rather than goal dominated.

(2) Tendency for heavily formalized organizational roles to suppress initiative and flexibility of the job holders.

(3) Rigid behaviour by senior managers can lead to standardized services that do not meet the needs of the client.

(4) Rigid procedures and rules are demotivating for the subordinates that work in the organizations.

(5) Exercise of control based on knowledge as advocated by Weber has led to the growth of experts whose opinions and attitudes may frequently clash with those of the more generalized managers and supervisors.

Joan Woodward’s study challenged classical management’s belief in the existence of universal principles – one set of golden management rules to create effective organizations. The advantage of its principles is that her study led to the contingency approach that assumes that the most effective organizational structure depends on external conditions. The disadvantage of Woodward’s principles is that organizations often use multiple technologies at different levels. Woodward’s typology failed to describe the organization in its full diversity. Her study focused primarily on small organizations. The identified relationships are less clear for larger organizations.

3. Focus on benefits and flaws of line, line and staff and matrix organizational design. Use the table on the next page.

Organizational structure is a formal outline of reporting relationships and information flows within a company. Two types of managerial authority are granted by an organizational structure. Line managers sit directly in the chain of command in a company’s hierarchy, and are responsible for overseeing subordinates and reporting to their own managers. Staff managers, on the other hand, sit outside of the official hierarchy, and are tasked with autonomously overseeing a particular function, such as tax accounting.

Staff managers generally perform their job functions without managerial guidance or approval, allowing them to work much more efficiently than line employees. Staff managers are placed in charge of vital issues that are best handled by a single, highly specialized individual, or in which a formal chain of command would simply hinder productivity and efficiency. Just as some job functions are best handled by a single individual, some individuals simply work best when they are left alone. Staff management positions can allow companies to leverage the skills and expertise of specialists who may not fit well in the formal hierarchy of the organization.

Line managers are vital to the success of any growing business. Line managers compose the chain of command, and are responsible for directing, motivating and supervising employees at all levels of an organization. Line managers make formal decisions within their sphere of authority that directly influence the way a company does business, including production goals, organizational policies and compensation decisions. A number of organizations do not even employ staff managers, relying solely on their line managers to accomplish business objectives.

The matrix structure is different in striking ways:

  • Employees are generally accountable to more than one boss
  • There are usually two separate chains of command
  • The matrix structure is designed to be partially impermanent
  • There are two kinds of managers: functional managers and project managers
  • Managerial roles are fluid, not fixed
  • The balance of power between functional and project managers isn’t organizationally defined.

Because matrix structures retain an organization’s functional structure, they allow for the rapid creation of efficient large-scale, project structures that employ many members of the organization’s functional structure but without disrupting or destroying the structure in the process. Because the two organizations have different timelines – one relatively permanent, the other designed to expire with the completion of the project – the kinds of managerial discontent that can arise when a sub-unit in an organization «steals» employees to work on a project is muted. In ideal matrix structures, the two structures share resources equally without territorial struggles, because as each functional manager knows, the project structure will eventually dissolve. Other advantages of matrix structures noted in one of the seminal academic studies of these structures are:

  • Clear articulation of project objectives;
  • Workable way of integrating project objectives with functional objectives;
  • Efficient use of limited human resources;
  • Rapid (often interdisciplinary) information flow through the project;
  • Retention of expert teams through the life of the project;
  • Rapid dispersion of team members back into the functional organization upon project completion without organizational disruption;
  • Project management trains managers to become leaders in the functional organization;
  • Project structures develop team spirit and high morale;
  • Possibility of conflicts arising during the project carrying over to functional management.

The same seminal study of matrix organizations also notes their disadvantages:

  • Two-boss problems, leaving project members caught in the middle;
  • Project members playing bosses against one another;
  • Increases organizational complexity;
  • Requirement for high degree of cooperation between functional and project management;
  • Potential for conflicting management directives;
  • Difficulty of establishing priorities suiting both functional and project management;
  • Possible slowdowns in management reaction to events when two structures required for solution;
  • Possible structural collapse in «crunch time»;
  • Increase in management overhead costs.

4. Describe the difference between simple line and simple line and staff organizations. Use the table on the next page.

One important difference between line and staff personnel is authority. Line managers direct the work of subordinates and make important decisions, while staff managers advise those with line authority. Moreover, line managers are directly accountable for sales and production target achievement, whereas staff managers extend support to help them achieve their goals.

The top management of organizations delegates the authority of human resources. Line authority entitles managers to control immediate subordinates, thereby creating a superior-subordinate relationship that is crucial to the success of the organization. For example, with line authority, a production supervisor has the right to direct employees to operate certain machines, and a finance vice president has the right to request for financial reports from a department head. On the other hand, staff authority creates an advisory relationship in which they advise and support line managers. It empowers staff personnel with the right to give useful advice to improve line operations. For example, a quality control manager helps a production manager by assessing the quality level of products and services offered by a certain manufacturing company, and employees in the human resource department assist other departments by training a qualified workforce. Both line and stuff functions have their respective hierarchies. While line managers have absolute control over their domain, they have to inform staff managers of any decision that impacts the macro-management of the organization.