What is reporting relationship in organization?
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Reporting relationships concern organizational chain of command and the span of management. Show
Chain of CommandChain of command is defined as “a clear and distinct line of authority among the positions in an organization,” (Griffin, 2013). There are two principles of creating an effective chain of command: unity of command and the scalar principle. Unity of command recommends that each individual should have only one person to whom they report. The scalar principle there needs to be an unbroken line of command from the highest position in the organization to the lowest position. Span of ManagementSpan of management is defined as “the number of people who report to a particular management,” (Griffin, 2013). There are various organizational configurations for span of management. Two popular models are tall organizations and flat organizations. Tall organizations are defined by being highly centralized in terms of decision making. They result in a highly bureaucratic structure, based on formal and legitimate authority. Examples of tall organizations are the United States Army and the Roman Catholic Church. The ideal bureaucratic organization employs a distinct division of labor and a consistent set of rules. Every position should be filled by an expert, and employment and advancement should be based on expertise (Griffin, 2013). The bureaucratic model (or System 1 model) generally improves organizational efficiency and prevents favoritism because of the rigid structure of rules. However, the bureaucratic model also has weaknesses because rigidity creates an inflexible environment that “often results in neglect of human and social processes within the organization,” (Griffin, 2013). Flat organizations tend to be significantly more flexible, an environment where managers experience more decentralized authority, and increased administrative responsibility. Flat organizations tend to employ the behavioral model of organizational design. The behavior model (or System 4 model) of organizational design is characterized by emphasizing supportive relationships and human value of employees (Griffin, 2013). However, it’s important to keep in mind, that organizational relationships aren’t so cut and dry. A lot of unofficial communication takes place within a work environment. Additional ResourcesReporting structure refers to the authority relationships in a company – who reports to whom. For small businesses with only a couple of employees, that structure is often self-evident: Everyone reports to the owner. With enough new employees, though, coordinating everyone’s efforts will likely demand a formal reporting hierarchy. This framework establishes who is in charge of different tasks, departmental areas and the organization as a whole. These authority boundaries and the relationships among people in authority serve to create the reporting structure. Vertical StructureThe vertical aspect of organizational structure creates a power hierarchy. Employees only have the authority to do their individual jobs, so they’re at the bottom of the hierarchy. They report to operational supervisors, who may themselves require supervision by middle managers. This increasing power continues up to the top of the reporting structure, stopping at the owner or chief executive officer. Lucid Chart, a company that creates organizational charts, states that with the vertical structure, lines connect positions to their respective managers. Operational, middle and top management are all said to have line authority over those they directly supervise. The vertical relationships in the reporting structure are the chain of command. Horizontal StructureThe horizontal aspect of the reporting structure establishes peer relationships and those among departments. Lateral relationships affect a business’s well-being, because people and sections from across the organization must coordinate efforts to further the company. It would create confusion, for instance, if a subordinate of one manager approached another manager to work on an interdepartmental project. Instead, the two peer managers, each holding decision-making authority, need to align their resources. A structure’s horizontal aspect also lays out each manager’s span of control, reports the Corporate Finance Institute. The number of subordinates who report to a manager comprise that manager’s span. Staff AuthorityReporting relationships in the workplace may look a little different where some of the departments in a business exist solely to advise. A big corporation might need an entire legal department, for instance. Certain small businesses might require people dedicated to research. These advisory departments report their advice and knowledge to other managers or directly to the owner. The information is the basis for decisions affecting other departments and, often, the entire company. The advisers are said to have staff authority. Advisers might also hold line authority within their own departments. Functional AuthoritySome staff managers must have authority over certain procedures or tasks throughout a company. For instance, a human resources manager may have created procedures that all managers must follow to prevent discrimination and promote diversity. Managers from across the company would need to report their compliance to the human resources manager, who holds functional authority over the procedures. Creating the Right Types of Reporting RelationshipsA small-business owner establishes reporting structure as the final step in organizational design. She builds the best structure by first considering the company’s strategic goals and mission and then listing all the tasks needed to accomplish the necessary work. The owner sorts, classifies and groups tasks to create jobs and departments. The work is assigned and authority delegated. With all the work and roles defined, the owner can set up the organization’s vertical and horizontal aspects by establishing reporting relationships. What is a reporting relationship example?For example, a technical person may report to both their direct manager as well as a project manager if they are involved in another department in some capacity.
What are the reporting relationships within a company called?Reporting structure refers to the authority relationships in a company – who reports to whom.
Why is it important to know the reporting relationships as a team?Reporting relationships within team and external to team are necessary for the accomplishment of the roles and discharging the responsibilities of individuals within the team. When managers assign people to a team to work on a group project, all the people on the team adopt specific roles.
What is establishing reporting relationship in management?Establishing Reporting Relationships:
Establishing responsibility relationships in an organisation structure implies the allocation of authority and responsibility among employees of the enterprise in such a way that each person should know who is responsible to whom and for what.
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