Page 353 - Business Principles and Management

Unit 4

higher levels. For example, the head nurse in charge of a floor unit in a hospital
may supervise 15 or more employees, whereas only three vice presidents report
to the chief executive of the hospital.
Companies that use work teams and encourage employees to be more involved
in planning and decision making have found that they can increase the span of
control. Well-trained and motivated employees do not require as much direct
supervision as those who must rely on managers for direction. These companies
have been able to reduce the numbers of managers required or have been able to
increase the size of their workforces without hiring additional managers.

CHECKPOINT
What is likely to happen if employees are assigned responsibility
for work tasks but are not given the needed authority?

13.3 Assessment

UNDERSTAND MANAGEMENT CONCEPTS
Determine the best answer for each of the following questions.
1. A well-designed organizational chart shows all of the following
except
a. the major work units that make up the business
b. which unit each employee is affiliated with, how it relates
to other units, and to whom employees are accountable
c. lines of authority and formal communication within the
organization
d. the primary groups of customers to whom the business sells
its products
2. The number of employees that any one manager supervises
directly is the
a. span of control
b. unity of command
c. division of work
d. assignment of responsibility and authority

THINK CRITICALLY
Answer the following questions as completely as possible.
3. Do you believe that a large business will operate more efficiently
and effectively with more or fewer organizational units? Justify
your answer.
4. If you were a supervisor, what would you do to make sure each
employee is aware of his or her responsibilities and authority?
What could you do to make your employees feel empowered
to make decisions and solve problems associated
with their work?

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