1. ORGANIZING AND WORK
Chapter 12

2. “Management Talk”
“We believe that all people want to be involved in decisions that affect them, care about their jobs and each other, take pride in themselves and in their contributions, and want to share in the success of their efforts.”
The Saturn Team, in concert with the UAW and General Motors

3. Objectives Recognize the reasons for organizing work
Understand how businesses prevent their workers from losing interest in their jobs
Explain why managers need to delegate authority and responsibility

4. Understanding Management
The Saturn company began in the mid-1980s as the brainchild of a group of 99 General Motors employees. Working conditions at the company’s Spring Hill, Tennessee, plant are different from the typical assembly line factory. Saturn “team members” have the freedom to improve the production process. Within a few years, Saturn won awards for the quality of its vehicles. Other companies now look to Saturn for new and effective ways to manage workers

5. Management Skills
How might involving employees in making decisions help factory operations run more smoothly?
You are in charge of building your school’s homecoming dance with 20 volunteers. How would you organize them?

6. Sec. 12.1: Designing Organizations
What ways do you organize your personal lives?
What does authority mean to you?
What role does authority play in:
Parenting
Education
Levels of government

7. What You’ll Learn
How organizing helps groups of people achieve results they could not achieve alone
Three reasons why businesses organize workforces
Nine characteristics of successful organizations
How businesses prevent workers from losing interest in highly specialized jobs
Why businesses decentralize their operations

8. “Without a well-defined organization, no business can be successful”
Why is this important?
“Without a well-defined organization, no business can be successful”

9. What is an Organization?
A group of people working together in a coordinated effort to reach certain goals
Efficiency
Effectiveness
Better Results
Manager’s role in organization
To ensure that everyone in the organization works together in a coordinated manner

10. Why do Businesses Organize Their Workforces?
To create clear lines of authority
To improve productivity
To make it easier for people within a company to communicate with each other
To increase profit
Provide a sense of stability and belonging when working for an effective organization

11. Establishing Lines of Authority
Authority: Power based on the rights that come with a position
President: Can order troops into battle
CEO: To make important decisions
Store Managers: To approve returns or offer discounts on damaged merchandise
Ensures that those making decisions are qualified and are made at the appropriate level
Chain of Command: The line of authority within an organization

12. Advantages of a Well-Defined Chain of Command
Makes it easy for all to understand who is in charge
Problems are addressed at the lowest possible level

13. Disadvantages of a Well-Defined Chain of Command
Can create problems in structure is too rigid or too complicated
Too many layers!
Assigning responsibility will be difficult
Decisions are made slowly, often by people with only a limited understanding of the issues involved

14. Improving Productivity
Division of Labor: The assignment of specific tasks to individuals or groups
Specialization
Groups of workers perform very specific tasks or sets of tasks based on a skill level
Job Rotation
Periodically moving workers from one job to another
Job Scope
Number of operations involved in a job
Narrow Scope vs. Broad Scope
Job Depth
Freedom employees have to plan and organize their work, interact with co-workers, and work at their own pace

15. Marshmallow Activity!!!
Teams form assembly lines to build marshmallow/toothpick towers (at least 9 inches high), using 40 toothpicks and 40 marshmallows
Post activity discussion:
Ask how the groups organized this project

16. Improving Communication
Company Expectations
Goals Strategies Policies Procedures
Communicate: Meetings, memos, , telephone conversations, and informal encounters

17. What Makes an Organization Effective?
Knowing Your Customers and Responding to Their Needs
To succeed in the business world, companies must change to keep up with customer needs
What are some ways that Kodak has done this? (established first simple camera in 1888)

18. Characteristics of Highly Effective Organizations
Responsive to the market
Customer centered
Committed to maintaining networks and alliances
Developed around a vision
Focused on creating top-quality products and services
Dedicated to positive learning and change
Attentive to meeting responsibilities to customers, employees, suppliers, and society
Committed to measuring their progress against world-class standards of excellence
Able to respond to changing market conditions quickly

19. What Makes an Organization Effective?
Decentralization – Managers at all levels make decisions
Advantages:
Increases an organization’s ability to respond to market changes by allowing decisions to be made by managers who are close to their customers
Frees senior managers from many day-to-day tasks
Increases lower-level managers’ job scope which increasing their responsibility and interest on the job
Disadvantages:
Can result in a loss of managerial control
Duplication of effort

20. 12. 1: Chapter Summary
Organizations help individuals work together efficiently and effectively
A well-defined chain of command defines who is in charge for all members of an organization
The division of labor assigns specific tasks to individuals or groups
Companies prevent boredom in specialized workforces by rotating jobs, widening job scope, and increasing job depth

21. Sec. 12.2: Delegating Responsibility
What do you respect about authority and how do you work best with it
Teacher – Student
Parent – Child
Coach – Player
Supervisor – Employee
What are the advantages and disadvantages of working in teams?
What role does responsibility play?

22. What You’ll Learn Three benefits of delegating
Five reasons some managers are reluctant to delegate
How managers delegate effectively
Why is this Important?
“Managers cannot and should NOT make ALL decisions themselves.”

23. Maintaining Authority
Delegate: To assign responsibility and authority for a task to another person
Responsibility: Obligation to perform assigned duties
Subordinate: Person holding a lower position within an organization
Delegating to a Subordinate means:
Subordinate has been given the ability to act and make decisions
“How much of a role should managers have in hiring future subordinates to whom they will delegate responsibility?”

24. Enforcing the Unity of Command Principle
Unity of Command: An employee should have only one immediate supervisor
Eliminates confusion
Eliminates conflict of expectations
“Have you ever been in a situation at home, work, or school where the unity of command principle would have prevented a frustrating conflict of expectations?”

25. Maintaining Authority
Establishing an Appropriate Span of Management
(Span of control) Defines the number of subordinates a manager can effectively control
Factors that control the quantity a manager can handle
The complexity of the jobs subordinates perform
The quality of the people who fill the positions
The ability of the manager

26. What are the benefits of this new type of management?
Traditional Manager
Team Manager
Thinks of self as a manager or boss
Follows the chain of command
Works within a set organizational structure
Makes most decisions alone
Hoards information
Tries to master one discipline
Demands long hours
Sponsor, Team Leader, Internal Consultant
Deals with anyone necessary to get the job done
Changes organizational structure in response to market changes
Invites others to join in decision-making
Shares information
Tries to master a broad array of managerial disciplines
Demands results
The team manager represents one who is more of a team player than a boss.
What are the benefits of this new type of management?

27. Maintaining Authority
Giving Subordinates the Authority to Make Decisions
Ensuring Accountability
The obligation to accept responsibility for one’s actions
Allows managers to monitor the work of subordinates

28. Why Delegate? Task is too time-consuming to handle alone
Task is too routine to warrant a manager’s attention
Task requires special skills that a manager may not possess
Benefits of Delegating
Decisions are made by people with the most direct knowledge of issues
Employees feel that management has confidence in their abilities when work is delegated to them
Employees are more committed
Increase employees’ job skills and knowledge of the organization

29. Learning to Delegate Analyze how you spend your time as manager
Identify tasks that could be handled by subordinates
Determine which subordinates could best handle them
Make sure subordinate understands and accepts responsibility for the task he or she is being given
Clearly define objectives of all tasks
Set standards
Provide appropriate training

30. Reasons Managers Resist Delegating
Fear that subordinates will not perform the task well
Fear that subordinates will do the job too well, showing up the manager
The belief that it is easier to perform the task oneself than to delegate it to someone else
The natural tendency to want to hold on to power
Comfort in performing the tasks one is used to performing

31. 12. 2: Chapter Summary
Managers should delegate authority and responsibility for decision-making to subordinates
The unity of command principle states that an employee should have one immediate supervisor
The span of management defines the number of subordinates a manager can effectively control
In successful delegation managers identify tasks to be delegated, choose a subordinate to handle tasks, and establish expectations

32. Case Analysis
Jim Waters is a detail man. Despite heading up a 30-person marking department for a major corporation, he types all of his own correspondence, keeps track of all employees’ sick and vacation days, and makes all of his own travel arrangements. As his supervisor, you are concerned that he is spending too much time on tasks that could be handled by his assistant.
Explain how and why you would like Mr. Waters to delegate some of his experiences

33. Math Skills
Cindy Giovanetti earns $6.25 an hour as a cashier at a video store. The manager of the store, Jon Laughlin, earns $12.00 an hour. Last week Jon put in 10 hours of overtime stocking the shelves with new products. He was paid $18.00 an hour.
How much would the company save if Cindy had stocked the shelves during her regular working hours?