Making the Connection

Find an example of a company that recently changed its hierarchy of authority or its top management team. What changes did it make? Why did it make them ? What does it hope to accomplish as a result of them? What happened as a result of the changes

Analyzing the organization : Design Module

This module focuses on vertical differentiation and understanding the managerial hierarchy in your organization and the way the organization allocates decision -making authority.

Assignment

1. How many people does the organization employ?

2. How many levels are there in the organization's hierarchy?

3. Is the organization tall or flat? Does the organization experience any of the prob-lems associated with tall hierarchies? Which ones?

4. What is the span of control of the CEO? Is this span appropriate, or is it too wide or too narrow?

5. How do centralization, standardization, and horizontal differentiation affect the shape of the organization?

6. Do you think your organization does a good or a poor job in managing its hierar-chy of authority? Give reasons for your answer.