This activity is important because managers must consider how to structure their authority relationships and determine what structure the organization itself will have and how it will appear on the organizational chart. Common forms of organization include line structure, line-and-staff structure, multidivisional structure, and matrix structure. The goal of this activity is to demonstrate your understanding of the line of authority and potential disadvantages of the line structure, line-and-staff structure, multidivisional structure, and matrix structure. Select the most appropriate form of organization for the 8 statements below.
1. With this structure, there is a direct line of authority from the top manager to the lowest level in the organization.
2. With this structure, the manager must possess a wide range of knowledge and skills.
3. With this structure, there is a direct relationship between superiors and subordinates, as well as staff managers who provide advice and support in specialized matters.
4. With this structure, some managers involved do not have authority over some of the staff they’re involved with, which can result in ambiguous communication.
5. With this structure, departments are organized into divisions, which in turn have numerous departments within them, which allows for delegation of authority.
6. With this structure, there is inevitable work duplication, which makes it more difficult to realize the economies of scale that result from grouping functions together.
7. This structure sets up teams from different departments, thereby creating intersecting lines of authority.
8. With this structure, employees may be confused as to whose authority has priority—the project manager’s or the immediate supervisor’s.
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