line and staff authority

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Montana, P. and Charnov, B. Management: A Streamlined Course for Students and Business People. (Hauppauge, New York:
Barron’s Business Review Series, 1993), pp. 155-169.

KEY TERMS departmentalization the grouping of related functions into manageable units to achieve the objectives of the enterprise in the most efficient and effective manner. delegation the process that makes management possible because management is the process of getting results accomplished through others. Delegation is the work a manager performs to entrust others with responsibility and authority and to create accountability for results. It is an activity of the organizing function. scalar principle
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Departmentalization by matrix, or project, has received considerable use in recent years, particularly in such industries as aerospace (e.g., NASA). In this method, personnel with different backgrounds and experiences that bear on the project are assembled and given the specific project to be accomplished within a certain time period. When the project is completed, these specialized personnel return to their regular work assignments. An example of this form is illustrated in Figure 11-7 below; it often takes the shape of a diamond.


Many organizations, particularly large, physically dispersed and diversified organizations, utilize several different forms of departmentalization. Figure 11-8 is an organizational chart showing the use of several forms of departmentalization. YOU SHOULD REMEMBER
Determining the functions to be performed in an organization involves consideration of division of labor; this is usually accomplished by a process of departmentalization. The primary forms of departmentalization are by function, process, product, market, customer, geographical area, matrix (project) or some combination of these forms.

As shown earlier, the process of managing begins with the establishment of objectives. Once the objectives have been established, the functions that must be accomplished are considered. Then the work to be performed or the

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