Table 15.1
As the new general manager of a regional cable service, Joe is studying the formal configuration of groups and individuals in respect to the allocation of tasks, responsibilities, and authority within the cable company. He notices that there are numerous layers of people between the cable installers and technicians and himself as general manager. He thinks this is because of the high degree of specialization in the company. Everyone seems to have very narrowly defined jobs. Joe decides he wants fewer layers of employees and for each manager to have responsibility for more employees. He reduces the number of managers from 10 to 3. As a consequence, each manager will make of his/her own decisions and rely less on Joe.
-Refer to Table 15.1. The numerous layers of employees between the service providers and top management represents the company's:
A) division of labor.
B) hierarchy of authority.
C) functional matrix.
D) span of influence.

Question

Quizplus · Accepted Answer

The numerous layers of employees between the service providers and top management represent the company's hierarchy of authority, which is the formal system of authority, communication, and roles within an organization. This hierarchy determines the level of responsibility of each employee and the number of levels of management between the top and bottom of the organization. Joe's decision to reduce the number of managers and give each manager more responsibility is an attempt to flatten the hierarchy and increase efficiency.

Table 15.1 As the New General Manager of a Regional Cable Service