Chapter

7.4. Authority—Establishing Organizational Relationships*

From IntroductionToBusiness OP 8D04gAa

Concepts

1. How do organizations establish managerial relationships and hierarchy?

   "Once companies choose a method of departmentalization, they must then establish the relationships within that structure. In other words, the company must decide how many layers of management it needs

2. How do chain of command and unity of command coordinate organizational work?

   "An organization with a well-defined hierarchy has a clear chain of command , which is the line of authority that extends from one level of the organization to the next, from top to bottom, and makes

3. How do authority, delegation, and accountability work within an organization?

   "Individuals who are part of the chain of command have authority over other persons in the organization. Authority is legitimate power, granted by the organization and acknowledged by employees, that

4. What are the advantages and disadvantages of narrow and wide spans of control?

   "Each firm must decide how many managers are needed at each level of the management hierarchy to effectively supervise the work performed within organizational units. A manager’s span of control (some