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Informal organization - those personal relationships and self-groupings of employees that do not appear on the organization chart; also known as unwritten organization.

Leadership - the human process of influencing people to work willingly and enthusi­astically in the attainment of organizational objectives.

Leadership style - a consistent pattern of behavior found in a leader.

Line-and-staff organization - a structure that combines features of the line and the functional organization forms; line personnel have the power to act and to command, and specialized staff personnel serve as advisers.

Line organization - a structure where authority is passed down in an unbroken chain of command from top management through middle managers and supervisors to workers at the operative level; also known as the scalar or military type.

Management theory - a set of principles that are classified and grouped into a managerial framework to predict accurately the outcomes of management operations.

Matrix organization - a structure that combines both vertical authority relationships and horizontal or diagonal work relationships in order to deal with complex work projects; also known as project organization.

Objective - a desired goal, sometimes considered a target or aim.

Organization chart - a graphic picture of the functional units in a firm showing principal lines of authority.

Organization manual - a book that describes the organization, duties, and responsibili­ties of the firm's departments and all other functional areas of the firm.

Organization structure - the arrangement of functions—the framework—that must be constructed to achieve the organization's goals.

Parkinson's Law - a concept that explains the expansion of work to fill the time available for its completion with little regard for the volume or usefulness of the tasks to be carried out; the expansion of work to fit the organization designed to perform that work; and the tendency for each unit to build up its importance by expanding the number of personnel.

Participative leader - one who openly invites workers to join in and take part in decision making, setting policy, and analyzing methods of operation.

Physical decentralization - the geographic separation of home-office managers from the division or branch managers; also known as physical dispersion.

Policy - a broad guideline for operating the organization.

Principle - a broad general statement widely considered to be true.

Responsibility - the obligation and accountability for properly performing work that is assigned.

Satellite administrative services center - a compact workstation that handles informa­tion processing and general office activities for users of the office services; also known as a substation.

Span of control - the number of employees who are directly supervised by one person; also known as span of management.

Specialist-a person who masters or becomes expert in doing a certain type of work. Technique - a way of doing an assigned task, or a method of accomplishing work.

Theory - a set of principles that are grouped into a general framework that explains basic relationships among the principles.

QUESTIONS FOR REVIEW

  1. Of what value are principles of management to the administrative office manager?

  2. What are the main characteristics of objectives?

  3. For what reasons are policies developed by a business firm?

  1. What steps should be taken by each level of management as it approaches its organizational responsibility?

  1. Distinguish between authority and responsibility.

  2. (a) Explain how a business organization may be looked upon as a system.

(b) With which principle of management is such a comparison related? Explain.

  1. What conditions must be met in the organization for the principle of unity of functions to operate effectively?

  1. Explain the role of specialization in designing an organization structure.

  1. Why should an office worker receive orders from and be responsible to only one supervisor?

  2. What factors limit the office manager's span of control?

  3. Contrast the characteristics of the autocratic leadership style with those of the participative leadership style.

  4. How does an organization chart serve as an important tool of management to the administrative office manager?

  5. What are the advantages and disadvantages of the line form of organization?

  6. Explain why the functional form of organization lends itself to "buck-passing."

  7. (a) Describe briefly the line-and-staff form of organization.

(b) In this form of organization, is the position of office manager ordinarily classified as line or staff?

  1. What advantages and disadvantages are associated with the committee organization?

  2. Explain the operation of a matrix organization as it functions in undertaking a new project—relocating the home office from the center of the city to the suburbs.

19. (a) What is informal organization?

(b) What are some of the abuses to which informal organization is exposed?

QUESTI0NS FOR DISCUSSION

1. After Joe Sanchez uses the authoritarian management style, he often wonders about his style of giving orders- For example, when Sanchez has to give an unpopular order, he usually apologizes to his workers and says something like this: "I know this new directive does not make much sense, but how about helping me out?" How do you react to Sanchez's apologetic tone and the question he has raised to his subor­dinates? Can you offer Sanchez a more effective approach when he is giving orders?

  1. Jennifer Lee, supervisor of the records management center, has tried on several occasions during the past three months to make improvements in her office's filing and retrieval methods. Whenever she suggests changes to her superior, however, her recommendations are ignored or Lee is stymied by remarks such as, "It has always been done this way. Your suggestions have been tried before without suc­ cess." Lee feels these are not satisfactory answers and would like to bypass her superior and go to a higher level of authority for approval of her ideas. Discuss how you feel Lee's problem should be resolved.

  2. Computers link the corporate headquarters of many companies with their branch offices to provide "instant information" on such vital matters as sales, inventories, and production data. To the administrative office manager, this information made possible by the computer actually improves the centralized authority and control over all key business functions. Discuss.

  3. Over the years as needed, the Forlano Company added new administrative services units, such as records management and word processing. In each case, a well- qualified manager was selected to head each unit. Company policy provides for periodic training to keep these managers up-to-date in their specialized areas. As a result, each unit developed more and more expertise. What benefits can be ex­ pected from such a policy? Do you anticipate any problems from following this policy? Explain.

  4. Explain the significance of the following statement made by a practical-minded student of administrative office management: "All this theory about management is unnecessary. What I really need is a lot of facts about how to run an office."

  5. It has been observed that the fundamental problem with organizations today is the absence of the employees' all-important feelings of belonging to a worthwhile enter­ prise where they can grow and contribute and where they can feel they are part of a cause to which they can dedicate their talents and energies. What is your reaction to this concept of motivation? How do you account for this feeling on the part of many of today's workers?

  6. 'The delegation of decision making, which is sometimes known as decentralization, is a current fad. Many apparently believe that all problems would dissolve if only the boss would delegate and decentralize." What are your reactions to these comments made by the chairperson of the board of a large insurance company?

8. Rita Garcia, manager of corporate records for an electronics company, finds herself involved in many operational details even though she does everything necessary for delegating responsibility. In spite of defining authority, delegating to competent peo­ple, spelling out the delegation, keeping control, and coaching, she is still burdened with a mass of detailed work. What reasons can you advance for Garcia's over-involvement in details of her daily vrark?

PRACTICAL OFFICE MANAGEMENT CASES

The purpose of the following two case problems is to help you prepare for the problem-solving activities that commence at the end of Chapter 3. Before studying these two case problems, you may wish to review the comments given on page 29.

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