Hi,
The main features of an organizational formal structure are:
Hierarchy, Chain of Command, Span of Control, Responsibility, and
Authority Delegation. Formal organizational structures describe a
system of business created in the middle 19th century by men like
Robert Owen, Henry Poor, and M. Laughlin, who introduced the human
element with theories of worker training, motivation and
organizational structure.
"By about 1900 we find managers trying to place their theories on a
thoroughly scientific basis. Examples include Henry Towne's Science of
management in the 1890s, Frederick Winslow Taylor's Scientific
management (1911), Frank and Lillian Gilbreth's Applied motion study
(1917), and Henry L. Gantt's charts (1910s). J. Duncan wrote the first
college management text book in 1911."
(http://en.wikipedia.org/wiki/Management )
Hierarchy:
Business Hierarchy is a Hierarchical Organization whose goal is to make profit.
Originally, Hierarchy meant, "rule by priests".
Rooted Hierarchical is a term to describe a type of Business Hierarchy
that features a root (known as the Big Boss) rather than a committee
or Board of Directors.
The Hierarchical system is common in human systems such as businesses,
churches, armies and political governments. The structured
hierarchical system has people "at the top", titled as "the Boss" or
CEO, who are seen as having more power than those under them.
Each level tends to grow in population as it decreases in the power
the individuals who make up the level are perceived to have. The
Formal Business Structure system benefits greatly by a clear
understanding of the power base of the organization, though the system
itself has been criticized greatly in recent years as no longer being
the most profitable structure available.
Chain of Command
chains of command :"A system whereby authority passes down from the
top through a series of executive positions or military ranks in which
each is accountable to the one directly superior."
The Chain of Command is the way a Hierarchical system is able to
communicate effectively with itself. Each level in the Hierarchical
system asks those above them for solutions, or reports status to those
just above their own level, not to levels higher.
Decisions and direction of the business are passed down from the
higher areas in general terms, and each level of the hierarchical
system adds levels of detail or complexity so that the directions
begin to become instructions and performance tasks.
A direct and clear cut chain of command works effectively, a cluttered
or not well thought out chain of command tends to become the
bureaucratic "Red Tape" often heard about in systems where no decision
is able to be made in a timely manner, no matter how trivial.
Span of Control: "...in business, the area of activity and number of
duties and employees for which an individual or organization is
responsible for; also, the number of employees that a manager can
efficiently handle while improving effectiveness"
Span of Control refers to the area in which a particular person or
manager has direct influence over, and whose responsibility the area
comes under. As a Span of Control grows, the manager is brought up in
levels on the Hierarchical system.
Responsibility
Responsibility in the formal business structure refers to areas of
Responsibility and is closely related to Span of Control. When a task
or direction is given, a person or group is given responsibility over
the completion of that task. With responsibility generally comes the
delegation of authority as well, but in some less than efficient
systems, this is not the case. The practice of placement of
Responsibility without granting the delegation of Authority is often
termed the creation of a "Scape Goat"
Authority Delegation
Authority Delegation is closely related to the areas of
Responsibility. The delegation of authority is often used as a tool to
bring in the creative power of entrepreneurship by allowing a large
company to think small. To do this a person must have the authority to
take initiative and move in a direction which appears best to them,
without having to answer to the chain of command at every step.
Reference and Source links
Strategic management
http://en.wikipedia.org/wiki/Strategic_management
Hierarchy - Wikipedia
http://en.wikipedia.org/wiki/Hierarchy
Span of Control - Wikipedia
http://en.wikipedia.org/wiki/Span_of_control
Seb's Web of Knowledge and Know-How
http://www.iro.umontreal.ca/~paquetse/knoweb/business_hierarchy.html
Dictionary
http://dictionary.reference.com/search?q=Chain+of+Command
Dictionary
http://dictionary.reference.com/search?q=Span+of+Control
Scapegoat
http://en.wikipedia.org/wiki/Scapegoat
If you require more research in this area please use the Clarification
Request Function.
thanks,
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