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management process correct answers Management is a critical element in helping transform inputs of the foodservice system into outputs. In this chapter, management concepts are reviewed and applied to the foodservice operation. The importance of management functions in the transformation element of the foodservice system is emphasized. Ways to structure the organization, social responsibility, and globalization also will be discussed. Management has been defined as a process whereby unrelated resources are integrated into a total system for accomplishment of objectives. Management, involving the basic functions of planning, organizing, staffing, directing, and controlling, is the primary force that coordinates the activities of subsystems within organizations. Management was explained by Robbins, Decenzo, and Coulter (2011) as the process of coordinating work activities so that they are completed efficiently and effectively by working with and through other people. All these definitions underscore how important it is that managerial activity be directed toward achieving the goals and objectives of the organization. As shown in Figure 9-1, management is part of the transformation process, turning inputs into outputs. managing organizations correct answers Management concepts have broad applications because much of an individual's activity takes place within an organizational context. The tendency to develop cooperative and interdependent relationships is a basic human characteristic. All organizations, ranging on a continuum from informal ad hoc groups to formal, highly structured organizations, require managing. An organization is defined as a group of people working together in a structured and coordinated way to achieve goals (Griffin, 2001). Resources come together in an organization; the manager is responsible for coordinating them in a sensible way by acquiring, organizing, and combining resources to accomplish goals. Management is a set of activities (planning, organizing, staffing, directing, and controlling) directed at an organization's resources (human, materials, facilities, and operational) for achieving goals effectively and efficiently (Griffin, 2001). efficiency correct answers Management requires coordination of human and material resources while maintaining concern for morals, ethics, and ideals. Goals are determined by values and preferences, but the method for reaching them must be socially and morally acceptable. A manager's job is unpredictable and full of challenges, but it is also filled with opportunities to make a difference. Authority, responsibility, and accountability are concepts important to the process of management. Authority is delegated from the top level to lower levels of management and is the right of a manager to direct others and take actions because of his or her position in the organization. Responsibility is the obligation to perform an assigned activity or see that someone
else per-forms it. Because responsibility is an obligation a person accepts, it cannot be delegated or passed to another; essentially, the obligation remains with the person who accepted the responsibility. Accountability is the state of being responsible to one's self, to some organization, or even to the public. In the systems context, management was described as a process for accomplishment of objectives, implying, therefore, that accountability is an integral aspect of the managerial role. Managers must show results in an era when scarce resources are an increasing concern. Efficient and effective use of these resources to produce desired results is a requisite for a viable organization. In contemporary jargon, efficiency is described as "doing things right," and effectiveness as "doing the right things." efficiency 2 correct answers According to Robbins, Decenzo, and Coulter (2011), managerial efficiency, the ability to get things done correctly, means getting the most output from the least amount of input. Food-service managers who can reduce the cost of food products to attain goals are acting efficiently. Effectiveness, in contrast, is the ability to choose appropriate objectives; an effective foodservice manager selects the right things to accomplish certain ends, such as interviewing customers to determine if quality expectations have been met. The foodservice manager who plans a menu featuring grilled orange roughy when the customer would prefer fish and chips may be performing efficiently but not effectively. No amount of efficiency can compensate for lack of effectiveness. Drucker (1964), one of the first management authorities to discuss efficiency and effectiveness in relation to managerial performance, stated that the question is not how to do things right but how to find the right things to do. Thus, effectiveness is at the heart of accountability. types of managers 264 correct answers Most organizations have first-line, middle, and top managerial levels (Figure 9-2). First-line, or first-level, managers generally are responsible for supervising employees. In the foodservice organization, these managers usually are referred to as foodservice supervisors. Functional responsibilities may be indicated as part of their title. For example, in a college residence hall foodservice, first-line supervisors may be assigned to production, service, or sanitation. In Chapter 1, a model (see Figure 1-3) was presented that showed there are three levels of an organization: technical, organizational, and policy making. Figure 9-2 shows how the management levels work within the organizational levels. First-line managers function at the technical core and are responsible for day-to-day operational activities. Middle management may refer to more than one level in an organization, depending on the complexity of the organization. The primary responsibility of middle managers is to coordinate activities that implement policies of the organization and to facilitate activities at the technical
customer oriented, skills focused, dynamic, and involvement oriented. In many cases, traditional top-management activities will need to be shared and performed by others in the organization. Managers are now asked to create an environment that encourages all employees to solve problems and make improvements and that empowers them to implement solutions. Managers should share business or competitive information with all employees because they need to understand where their organization stands in terms of profit and loss and market share. Only then can employees make good decisions that fit into the mission of the organization (Gufreda, Maynard, & Lytle, 1990). general correct answers Earlier in this chapter, managers were classified by their level in the organization; managers also can be classified according to the range of organizational activities for which they are responsible. In this second classification, managers can be considered either general or functional managers. A general manager is responsible for all the activities of a unit. In a restaurant, every-thing that happens on a specific shift is the responsibility of the general manager on duty. A functional manager is responsible for only one area of organizational activity, such as the bar. If the bartender is absent, the bar manager must make arrangements for coverage. If, however, the bar manager is absent, the general manager would be responsible for covering the position or appointing someone to take the manager's place. Although a small organization may have only one general manager, a larger, more complex organization may have several. A college foodservice director and unit managers and assistant unit managers at university foodservice centers typically are all considered general managers. Depending on the size of the units, two or more functional managers may be responsible for various areas of activity within each of the units. roles correct answers Mintzberg (1980) described the manager's job in terms of various roles, which he referred to as organized sets of behaviors identified with a position. He depicted the manager's position as be-ing composed of 10 different but closely related roles, shown in Figure 9-4. The formal authority of a manager gives rise to interpersonal, informational, and decisional roles. interpersonal roles correct answers Interpersonal roles of figurehead, leader, and liaison focus on relationships. The figurehead role has been described by some management experts as the representational responsibility of management. By virtue of a manager's role as head of an organization or unit, ceremonial duties must be performed and may involve a written proclamation or an appearance at an important function. For example, a manager's ceremonial
tasks may include greeting a group of touring dignitaries or signing certificates for a group of employees who have completed a training program. The manager in charge of an organization or unit also is responsible for the work of the staff; this constitutes the leader role. Functions of this role range from hiring and training employees to creating an environment that will motivate the staff. Mintzberg (1975) contended that the influence of the manager is seen most clearly in the role of leader. Although formal authority vests the manager with great potential power, leadership determines, in large measure, how much is realized. A manager must encourage employees and assist them in reconciling personal needs with organizational goals. The manager also must assume the interpersonal role of liaison by dealing with people both inside and outside the organization. Managers must relate effectively to peers in other departments of the organization and to suppliers and clients. Depending on a manager's level in the organization, responsibility for liaison relationships will vary. In Mintzberg's (1975) research, 44% of the time that company chief executives spent with people was spent with people outside their organizations. The liaison role is important in building a manager's information system. informational roles pg 266 correct answers Mintzberg (1975) suggested that communication may be the most important aspect of a manager's job. A manager needs information to make sound decisions, and others in a manager's unit or organization depend on information they receive from and transmit through the manager.According to Mintzberg (1975), the informational roles of a manager are those of monitor, disseminator, and spokesperson. As monitor, the manager constantly searches for information to use to become more effective -Chapter 9 • Management Principles 267 Informational roles. The manager queries liaison contacts and subordinates and must be alert to unsolicited information that may result from the network of contacts previously developed. The man-ager collects this information in many forms and must discern implications of its use for the organization. In the disseminator role, the manager transmits information to subordinates who other-wise would probably have no access to this information. An important aspect of this role is to make decisions concerning the information needs of staff members. The manager must assume responsibility to disseminate information that helps staff members become well informed and more effective. The spokesperson role of the manager is closely akin to the figurehead role. In the spokes-person role, the manager transmits information to people inside and outside the organization or unit. For example, the director of dietetics in a hospital should keep the administrator up to date about problems in the department, and the food and beverage manager in a hotel should relay information to the general manager. The spokesperson role may also include providing information to legislators, suppliers, and community groups.
specialized knowledge, analytical ability, and expertise in the use of tools and procedures. Managers need sufficient technical skill to understand and supervise activities in their areas of responsibility. For example, the foodservice manager must understand quantity food production and operation of equipment. Managers must have technical expertise to develop the right questions to ask subordinates and the abilities to evaluate operations, train employees, and respond in crisis situations. human skill correct answers Human, or interpersonal, skill concerns working with people and understanding their behavior. Human skill, which requires effective communication, is vital to all the manager's activities and must be consistently demonstrated in actions. As Katz (1974) indicated, human skill cannot be a "sometime thing." Such skillfulness must be a natural, continuous activity that involves be-ing sensitive to the needs and motivations of others in the organization. Katz (1974) described two aspects of human skill: leadership within the manager's own unit and skill in intergroup relationships. This description of human skill is similar to Mintzberg's (1975) interpersonal roles of leader and liaison. Both authors emphasized the importance of a manager working effectively with staff within the organizational unit and with people outside the unit. The campus foodservice director described previously must work effectively with unit managers within the department and the housing director, head of maintenance, and campus purchasing director. conceptual skill correct answers Conceptual skill is the ability to view the organization as a whole, recognizing how various parts depend on one another and how changes in one part affect other parts. Conceptual skill also involves the ability to understand the organization within the environmental context; a good example is the relationship of the organization to other similar organizations and to suppliers within the community. It also includes understanding the impact of political, social, and economic forces on the organization. From this description, conceptual skill is obviously a systems approach to management. A manager needs conceptual skill to recognize how the various forces in a given situation are interrelated to ensure that decisions are made in the best interest of the overall organization. In summary, Katz (1974) stated that effective management depends on three basic skills: technical, human, and conceptual. Adequate technical skill is needed to accomplish the mechanics of the job, sufficient human skill is necessary in working with others to enable development of a cooperative effort, and conceptual skill is required to recognize interrelationships of factors involved in the job.
managerial skill correct answers Although all three skills are important at every managerial level, the technical, human, and conceptual skills used by managers vary at different levels of responsibility (see Figure 9-5). Technical skill is most important at the lower levels of management, identified as nonsupervisory and supervisory by Hersey, Blanchard, and Johnson (2000), and it becomes less important in the higher levels. The nonsupervisory level includes employees who participate in on-the-job training of other employees. The foodservice production supervisor at the supervisory level, for example, is called upon to use technical skills frequently in supervising employees in daily operations. These technical skills are important in evaluating products, in training employees, and in problem solving. The middle manager at the managerial level uses technical skills in performing the tasks of evaluating operations and selecting employees who have appropriate skills to perform various jobs. Also, in crisis situations, the middle manager's technical skills may be called into action. Top-level managers at the executive level, although generally not involved in daily operations, need understanding of technical operations to enable effective planning. MG 2 pg 269 correct answers Human skill, the ability to work effectively with others, is essential at every level of management, as reflected in Figure 9-5. The first-line manager, who is responsible for daily super-vision of operating employees, must be effective in guiding and leading these individuals to accomplish the activities for which they are responsible. These employees must be motivated to produce quality products, to serve customers cheerfully, and to wash dishes properly. Morale and satisfaction are important to each employee's effective performance. Middle managers, because of their pivotal role in the organization, must be especially accomplished in human skills. These managers must effectively lead their own groups and appropriately relate to other parts of the organization. At the top level, the manager must be equally effective in dealing with people outside the organization. The importance of conceptual skill increases with movement up the ranks of the organization. The higher a manager is in the hierarchy, the greater the manager's involvement in broad, long-range decisions affecting large parts of the organization. At this level, conceptual skill becomes the most important one for successful performance. functions correct answers The work performed by managers has been described in many ways. One of the more common is to organize managerial work into what has been called "functions." The five management functions are planning, organizing, staffing, directing, and controlling. Managers perform these functions in the process of coordinating activities of the subsystems of the organization.
of an organization. A policy, the broadest of the standing plans, is a general guide to organizational behavior developed by the governing body or top-level management. Organizations should have a wide variety of policies covering the most important functions. Frequently these policies are formalized and available in policy and procedure manuals. Characteristics of policies and procedures are listed in Table 9-1. Procedures and methods establish more definite steps for the performance of certain activities and are developed especially for use at the technical level of the system. A procedure shows a chronological sequence of activities; a method is even more detailed, relating to only one step of a procedure. rules correct answers Rules specify action by stating what must or must not be done, whenever or wherever they are in effect. Some examples of rules are prohibitions against smoking and the requirements to wear a specific uniform and hair restraint in the production area of a foodservice operation. A policy and its procedures for a hospital department of dietetics are shown in Figure 9-9. An advantage of the standing plan is that it ensures uniformity of operations throughout the system. Once established, understood, and accepted, the standing plan provides similarity of action in meeting certain situations; on the negative side, however, standing plans may create resistance to change. Management by exception is an important concept in relation to standing plans. Although standing plans serve as guidelines for decision making, upper levels of management must be- come involved whenever the application of policy is questioned. Single-use, or single-purpose, plans are designed to attain specific objectives, usually within a relatively short period of time. A single-use plan in a foodservice organization might be a major program for the design, development, and construction of a central food-processing facility for a restaurant chain; a plan for a "monotony breaker" in a college residence hall food- service; or a plan for a New Year's Eve celebration at a country club. time span correct answers The time span for planning refers to short-range versus long-range planning. Short-range, or operational, planning typically covers a period of 1 year or less. The operating budget for a year is one example of a short-range plan. Long-range planning in most organizations encompasses a 5-year cycle; however, a longer time span may be essential for some aspects of planning, such as a major building program. Long-range planning begins with an assessment of the current conditions and projections about changes. Managers must be able to see
the connections between actions in one place and consequences in another (Kanter, 1992). Effective long-range planning requires a mission statement of the long-range vision of the organization. The model for long-range planning shown in Figure 9-10 indicates the progression from premising to planning to implementing and reviewing the resulting plan. In the premising phase, the basis for the plan is considered in terms of the mission and opportunities of the organization. The planning phase consists of developing long-range goals and objectives, short- range Premising objectives, and action plans logically leading to implementation of the long-range plan. At this time, a final review and evaluation are necessary and may result in revision. Strategic planning correct answers Strategic planning is a continuous and systematic process in which people make decisions about intended future outcomes, how outcomes are to be accomplished, and how success is measured and evaluated. In the early 1920s, Harvard Business School developed the Harvard Policy Model, one of the first strategic planning methodologies for private businesses. The model defines strategy as a pattern of purposes and policies defining the company and its business. A strategy is the thread or underlying logic that holds a business together. The firm weaves purposes and policies in a pattern that unites company resources, senior management, market information, and social obligations. Strategies determine organizational structure and appropriate strategies that will lead to improved economic performance. As used today, strategic planning has a strong connotation of overcoming obstacles, as can be seen in the derivation of the word strategy from the Greek stratego, meaning to plan the defeat of an enemy through effective use of resources. In modern business terminology, an organization must develop a competitive edge over its rivals by planning the effective use of personnel, materials, facilities, and operational resources. The outcome of the strategic planning process is a brief working document that unifies the action of participants toward achievement. Strategic planning and long-range planning for organizations are terms often used synonymously (Bryson, 1995). practice correct answers Although there may be little difference in outcome, in practice they usually differ in four fundamental ways: • While both focus on an organization and what it should do to improve its performance, strategic planning relies more on identifying and resolving issues; long-range planning focuses more on specifying goals and objectives and translating them into work programs.
locations, assessing the impact of adding new menu items on costs, revenues, and profits, and projecting capital required for expansion. The manager of one of the units, however, is concerned with scheduling employees, predicting the impact of bad weather on customer traffic, and flexibility correct answers One of the major considerations in planning is the permissible degree of flexibility. Long-range planning involves decision making that commits resources over an extended period of time. Rapidly changing technology, competitive and market situations, and political pressures make forecasting extremely difficult. Rigid planning at early stages involves the risk of inability to cope with changes. Organizations may have to compromise on rigidity versus flexibility by developing relatively fixed short-range operation plans and more flexible long-range strategic plans. organizing correct answers After developing objectives and plans to achieve them, managers must arrange the work to achieve these objectives. Organizing is the process of grouping activities, delegating authority to accomplish activities, providing for coordination of relationships, and facilitating decision making (Robbins & Coulter, 2005). A more complete discussion of the organizing function is included later in this chapter. The outcome of organizing is the development of the formal organization, which is usually depicted in the form of a chart. An example of an organizational chart for a university residence hall foodservice department is shown in Figure 9-12. Once managers have established objectives and developed plans to reach them, they must design an organization to activate these plans. Different objectives will require different kinds of organizations. For example, an organization for a limited-menu restaurant operation will be far different from one for an upscale gourmet restaurant. Similarly, the organization of a 50-bed nursing home foodservice department will differ markedly from that of a 500-bed teaching hospital. organizing 2 correct answers Organizing involves the division of labor. Within organizations, labor can be divided both horizontally through departmentalization and vertically through the delegation of authority. In designing organizations, line and staff authority relationships are created. Generally, line personnel are in a linear responsibility relationship; a superior has supervision over a subordinate. Staff personnel serve in an advisory capacity to line managers.
staffing correct answers The most valuable resources of an organization are its human resources —the people who pro-vide the organization with their work, talent, drive, and commitment. Among the most critical tasks of a manager is staffing, the recruitment, selection, training, and development of people who will be most effective in helping the organization meet its goals. Competent people at all levels are required to ensure that appropriate goals are pursued and that activities proceed in such a way that these goals are achieved. In the organizing process, various jobs in the organization are defined. The staffing pro-cess then involves a series of steps designed to supply the right people to the right positions at the right time. This process is performed on a continuing basis because organizational personnel change over time due to resignation, retirement, and other reasons. In many organizations, staffing is carried out primarily by a personnel department. The responsibility for staffing, however, lies with line managers. Every line manager, even one not involved in recruiting and selecting personnel, is responsible for training, development, and other aspects of staffing. staffing 2 correct answers Staffing consists of several steps (Figure 9-13): human resources planning; recruitment and selection; orientation, training, and development; performance appraisal; and compensation. Closely linked to these steps are a variety of staffing functions concerned with maintenance of the workforce. These functions include promotions, demotions, transfers, layoffs, and dismiss-als. Human resources planning is designed to ensure that the organization's labor requirements are met continuously. It is a process involving both forecasting of staffing needs and analysis of labor market conditions. Recruitment and selection are concerned with developing a pool of job applicants and evaluating and choosing among them. These processes have become increasingly complex be- cause of legislative employment mandates. They are discussed in Chapter 12. Orientation, training, and development are processes designed first to acquaint new-comers with the organization and its goals and policies and to inform them of their responsibilities. Later, training is designed to improve job skills, and development programs are used to prepare employees for increased responsibilities. staffing 3 correct answers Performance appraisal is concerned with comparison of an individual's performance with established standards for the job. It also involves determination of rewards for high performance and corrective action to bring low performance in line with standards. Rewards may include bonuses, pay increments, or more challenging work assignments. Additional train- ing is often necessary for low performers. Compensation encompasses all activities concerned with administration of the wage and salary program. Fringe benefits are an important part of the program and include insurance pro-grams, leave time, and retirement programs.
organizing, staffing, and directing. Within this interrelatedness and interdependency of managerial functions, controlling relates most closely to planning. controlling 2 correct answers Standards created in the planning process define the dimensions of what is expected to happen. These expected performance standards are the criteria that managers use to control performance; in turn, feedback from the controlling process is the information managers use to evaluate and adjust plans (Figure 9-14). The controlling function of management involves the following three steps, as depicted in Figure 9-15:
- Measuring actual performance and comparing it with desired performance or standards • Analyzing deviations between actual and desired performance and determining whether or not deviations are within acceptable limits
- Taking action to correct unacceptable deviations Taking corrective action is a process that cuts across both the directing and controlling functions because many deviations from expected standards are related to performance of personnel. For example, fewer portions than expected from a particular recipe might be caused by a foodservice worker using an inappropriate portioning tool. organizational structure correct answers An organization is defined as a group of people working together in some form of coordinated effort to attain objectives. An ideal organization results in the most efficient use of resources. The organization structure is based on the objectives that management has established and on plans and programs to achieve these objectives. Different types of structures will be required for traditional and new organizations, each with different objectives. traditional organization correct answers Kast and Rosenzweig (1985) stated that the traditional organization frequently is defined in terms of the following: • Organization chart and job descriptions or position guides. Pattern of formal relation-ships and duties. Differentiation or departmentalization. Assignment of various activities or tasks to different units or people of the organization
- Integration. Coordination of separate activities or tasks • Delegation of authority. Power, status, and hierarchical relationships within the organization
- Administrative systems. Guidance of activities and relationships of people in the organization through planned and formalized policies, procedures, and controls One of the primary reasons for organizing in the traditional organization is to establish lines of authority, which create order. Without delineation of authority, there may be chaos, in which everyone is telling everyone else what to do. innovative organization correct answers In innovative organizations, employers are challenged to improve the quality of work life and to develop a corporate, or organizational, culture (Sherman, Snell, & Bohlander, 1997). Kesier, DeMicco, Cobanoglu, and Grimes (2008) and Dressler (2002) suggest that innovative organizations are characterized by several general precepts: • Empowered decision making. Employees, not just managers, are involved in decision making.
- Sociability. A sense of belonging to the organization is created for all members. • New bases of management power. A shift has occurred from use of only downward authority to inclusion of upward and lateral lines of authority and input.
- Personal consideration. Greater recognition is given to the importance of individual employees, not just the job they perform.
- Team-based with group recognition. Formation of teams of employees and/or managers working together to accomplish goals with more emphasis on team rather than individual recognition.
- Self-fulfillment. Employee job satisfaction and sense of accomplishment is more valued. • Flat hierarchy. The number of managerial levels has been reduced. • Emphasis on vision and values. Companies are finding it more important to formulate clear visions and values to which employees can commit themselves.
- Managers as change agents. Change is viewed as a critical component in organization success, and managers are expected to stimulate and facilitate change.
- Technologically savvy. Effective use of all forms of technology and a presence on the Internet are necessary components of organizations. QWL correct answers To improve the quality of work life (QWL) in the organization, managers need to look at the way work is organized and the way jobs are designed. Each organization has special problems and designs jobs to solve those problems. Some general guidelines, adapted from the Ontario, Canada, Quality of Life centre (cited in Sherman, Snell, & Bohlander, 1997), include the following: Decisions are made at the lowest possible level. • Teams of employees are
work for fun • Community involvement. Participating in community service programs • Emphasis on physical health and fitness. Practicing a belief that a sound mind goes along with a sound body CC 2 correct answers Although culture starts at the top, to mean anything it must be passed on to employees at all levels. Managers are encouraged to talk about the organization's culture constantly. Some or- ganizations post signs containing the mission statement or their culture principles for all employ- ees to see. Pizza Hut's culture is called "ownership," the feeling that comes from knowing an employee can affect the company's direction through expertise, innovative ideas, and hard work. Developing a good relationship between management and staff by giving rewards for good job performance, being sure the workers receive training they need, and providing consistent feedback are all important components of a caring culture that enables employees to do their jobs better. The caring culture checklist suggests that foodservice operations should: • Have a written mission statement.
- Remind employees of the mission statement. • Have a hands-on style of management. • Foster open relationships between management and employees. • Empower hourly employees. • Give incentives for superior performance. • Recognize superior performance. • Give employees an ownership stake in the business. CC 3 correct answers Adhering to a caring culture checklist increases the odds that employees will work for a longer tenure and former employees will have a positive view of the industry. The best place to start in developing a caring culture is to formalize a mission statement and to be sure that each employee understands and believes in it, thus showing employees how important their performance is to the operation's overall success. When employees understand that the overall success of the operation depends on them, management must then support and guide them to help them reach their workplace goals. This requires a hands-on style of management, a style that facilitates open communication between management and employees. Developing a reward system between employees and management also is part of creating a caring culture. Evidence of how a company's corporate culture is articulated in mission and value state-ments can be found on many corporate Web sites. A foodservice operation in a hospital, for example, might have a mission that states, "To provide excellent food and service that exceeds the expectations of our patients, staff, and guests"
Another might have a mission to "To work as a unified team to provide leading edge medical nutrition therapy to patients and high quality, nutritious, and safe food to our customers at a reasonable cost while enhancing their dining experiences." Both show a strong commitment to excellence in their statements, yet each has unique characteristic phrases that help differentiate it from other companies. division of labor correct answers Organizing is basically a process of division of labor, which can be divided vertically, horizontally, or in matrix format. Organizing also improves the efficiency and quality of work, as the coordinated efforts of people working together begin to produce a synergistic effect. As defined in Chapter 1, synergy means that the units or parts of an organization acting in concert can produce more impact than by operating separately. Synergism can result from division of labor and from increased coordination, both of which are products of organization. Improved communication also can be a product of organization and its structurally defined channels. In the traditional organization, employee positions were discussed as either vertical or horizontal. In newer management organizations, the division of labor lines are not as clear-cut because employees work as teams and are empowered to make decisions; team and matrix organizational structures are becoming more common. vertical correct answers Vertical division of labor is based on the establishment of lines of authority. In addition to establishing authority at various levels of the organization, vertical division of labor facilitates communication flow. The chain of command has clear and distinct lines of authority that need to be established among all positions in the organization (Griffin, 2001). The chain of command has two components: the unity of command and the scalar principle. Unity of command means that the employee reports to only one manager. The scalar principle indicates that a clear and unbroken line of authority extends from the bottom to the top position in the organization. An organization chart (Figure 9-16) for a department of food and nutrition services at a large academic medical center illustrates the vertical division of labor. vertical 2 correct answers In a centralized organization, most decisions are made at the top, and lower-level managers have limited discretion in decision making. The degree of centralization/decentralization is re- lated to the number of decisions made at lower levels of the organization, the importance of those decisions, and the amount of checking required for decision making by lower-level managers. The degree of decentralization varies widely in large organizations. In some organizations,
