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    Organizational Structure Concepts

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    1. Explain the difference between Authority and Power:

    2. Explain the 5 types of power:

    3. Define "centralized" and "decentralized" organizational structures:

    4. Explain at least 2 ways to "departmentalize" organizations:

    5. Define "staff" vs. "line" responsibility (and give an example):

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    Solution Preview

    Please Note: Please remember that this is a study guide and to use it as such. You still need to put your assignment in your own words. You can summarize, and paraphrase the information in this guide to fit your needs but I would advise that you do not turn it in word for word as your own work or you risk plagiarism. Good luck with your studies!

    Thanks,
    Fariba
    OTA # 105428

    1. Explain the difference between Authority and Power:
    Power is the ability to compel someone or something to obey one's will. Authority is something one has by virtue of the job one holds. It is the right to issue directives and expend resources and is determined by upper management and implemented through the organization structure.
    For example the authority to purchase goods on behalf of the corporation is vested upon a corporate buyer enabling the buyer to make buying decisions on behalf of the corporation. The Buyer has the authority to purchase merchandise for the corporation based on the authority that the corporation has given the buyer.

    The corporation, on the other hand, has the power, by virtue of being the possessor of capital, to grant the buyer the authority to make purchases.
    In leadership true power is derived from inspiring people to follow one's instructions based on a vision that serves the common good as well as the good of the individuals being led.
    2. Explain the 5 types of power:
    Five types of power in management are: reward, coercive, legitimate, referent, and expert. (Stojkovic, Kalinich and Klofas, Page 247 chapter 10)

    Reward power means an employee believes they are going to get some type of reward for doing their job. The reward could be pay, days off, etc. The employee believes the reward will be coming from the supervisor.

    Coercive power is a supervisor intimidating an employee to do the work or they can be fired or ...

    Solution Summary

    This is a discussion of organizational structure concepts including Authority and Power, 5 types of power, centralized and decentralized organizational structures, departmentalization, and staff responsibility versus line responsibility.

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