Authority and control
8 important questions on Authority and control
What is the difference between a tall and a flat structured organisation?
Tall: Many levels of hierarchy
Some of the problems that can arise when the hierarchy in an organisation becomes too tall are:
- Communication problems
- Motivation problems
- Bureaucratic costs
Why do these problems occur? Describe the problems.
- Communication problems
- Long chain of command -> Communication between top and bottom takes longer -> Decision making slows down
- Distortion -> Message gets a different meaning by the time it reaches the end of the chain
- Manipulation of information: Managers restrict flow of information to
- Motivation problems
- The taller the hierarchy, the lesser the responsibility of each manager at all levels.
- Bureaucratic costs
- Managers cost money
What does Parkinson's law problem say about managers and subordinates?
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What is the ideal number of hierarchical levels in an organisation?
What does "span of control" mean? Why is it important to keep an eye on the span of control? What happens if the span of control is too big? What does it depend on?
It is important to monitor the span of control because managers are expensive and some managers can have more than subordinates than other.
It is also important that a manager does not have too many subordinates so that he does not lose control over them.
It all depends on the complexity and interrelatedness of the subordinate's tasks.
There are four factors than are affection the shape of the hierarchy/ vertical differentiation:
- Level of horizontal differentiation
- The strength of the informal ties and relationships that exist between organised members
- The level of decentralisation
- The level of standardisation
Describe the four factors and why they influence the hierarchy
- Level of horizontal differentiation
- Dividing organisation into subunits result in fewer hierarchical levels and better flow of information in the individual subunits.
- Each subunit has its own hierarchy
- The strength of the informal ties and relationships that exist between organised members
- Personal relationships within the organisation
- The level of decentralisation
- Power to managers at all levels
- The level of standardisation
- Predictability of behaviour of the employees in different situations to reduce the need for control
What is centralisation and decentralisation of power? Why and when are they used?
Decentralisation: Power is delegated throughout the hierarchy; Managers at all levels can make decisions.
Decentralisation is used when an organisation becomes tall and communication and coordination problems grow.
Centralisation is used to keep the organisation on track so managers do not go in different directions.
How can standardisation be made? Why is it used by managers? What needs does standardisation reduce?
Standardisation can made through detailed work rules and get employees integrated into organisational norms and values. Used by managers to gain control over their employees by standardising the behaviour of the employees to make their actions predictable.
Reduces the need for personal control by managers, the need for more hierarchical levels and direct supervision and contact.
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