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UNIT I – Introduction to Management UNIT 2 – International Management and Diversity UNIT 3 – Managerial Ethics and Social Responsibility UNIT 4 – Planning.

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Presentation on theme: "UNIT I – Introduction to Management UNIT 2 – International Management and Diversity UNIT 3 – Managerial Ethics and Social Responsibility UNIT 4 – Planning."— Presentation transcript:

1 UNIT I – Introduction to Management UNIT 2 – International Management and Diversity UNIT 3 – Managerial Ethics and Social Responsibility UNIT 4 – Planning as a Decision-Making Activity UNIT 5 – Domestic and International Issues in Planning UNIT 6 – Organization – Design and Culture Definitions Macro-Differentiation - Departmentalization Integration - Authority Structures Micro-Differentiation - Job design UNIT 7 – Staffing UNIT 8 – Communication UNIT 9 – Direction - Teams and Group Processes UNIT 10 – Motivation UNIT 11 – Leadership UNIT 12 – Control UNIT 13 - POM/MIS/DSS FOUNDATIONS OF MANAGEMENT UNIT 6 – Organization Design and Culture Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 1 FOUNDATIONS OF MANAGEMENT Fall 2008 Reading Assignment Chapter Seven

2 UNIT I – Introduction to Management UNIT 2 – International Management and Diversity UNIT 3 – Managerial Ethics and Social Responsibility UNIT 4 – Planning as a Decision-Making Activity UNIT 5 – Domestic and International Issues in Planning UNIT 6 – Organization – Design and Culture Definitions Macro-Differentiation - Departmentalization Integration - Authority Structures Micro-Differentiation - Job design UNIT 7 – Staffing UNIT 8 – Communication UNIT 9 – Direction - Teams and Group Processes UNIT 10 – Motivation UNIT 11 – Leadership UNIT 12 – Control UNIT 13 - POM/MIS/DSS FOUNDATIONS OF MANAGEMENT UNIT 6 – Organization Design and Culture Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 2 The design and grouping of like tasks –designated “DIFFERENTIATION” and the definition of structure and authority relationships among differentiated groups –designated “INTEGRATION” The process of “DIFFERENTIATION” and “INTEGRATION” Definition of the Organization Function

3 UNIT I – Introduction to Management UNIT 2 – International Management and Diversity UNIT 3 – Managerial Ethics and Social Responsibility UNIT 4 – Planning as a Decision-Making Activity UNIT 5 – Domestic and International Issues in Planning UNIT 6 – Organization – Design and Culture Definitions Macro-Differentiation - Departmentalization Integration - Authority Structures Micro-Differentiation - Job design UNIT 7 – Staffing UNIT 8 – Communication UNIT 9 – Direction - Teams and Group Processes UNIT 10 – Motivation UNIT 11 – Leadership UNIT 12 – Control UNIT 13 - POM/MIS/DSS FOUNDATIONS OF MANAGEMENT UNIT 6 – Organization Design and Culture Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 3 Organizing Process –The process by which managers establish the structure of working relationships among employees to achieve goals Organizational Structure –Formal system of task and reporting relationships that coordinates and motivates organizational members so that they work together to achieve organizational goals Definitions Continued

4 UNIT I – Introduction to Management UNIT 2 – International Management and Diversity UNIT 3 – Managerial Ethics and Social Responsibility UNIT 4 – Planning as a Decision-Making Activity UNIT 5 – Domestic and International Issues in Planning UNIT 6 – Organization – Design and Culture Definitions Macro-Differentiation - Departmentalization Integration - Authority Structures Micro-Differentiation - Job design UNIT 7 – Staffing UNIT 8 – Communication UNIT 9 – Direction - Teams and Group Processes UNIT 10 – Motivation UNIT 11 – Leadership UNIT 12 – Control UNIT 13 - POM/MIS/DSS FOUNDATIONS OF MANAGEMENT UNIT 6 – Organization Design and Culture Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 4 Organizational design –The process by which managers make specific choices that result in a particular kind of organizational structure. Designing Organizational Structur e

5 UNIT I – Introduction to Management UNIT 2 – International Management and Diversity UNIT 3 – Managerial Ethics and Social Responsibility UNIT 4 – Planning as a Decision-Making Activity UNIT 5 – Domestic and International Issues in Planning UNIT 6 – Organization – Design and Culture Definitions Macro-Differentiation - Departmentalization Integration - Authority Structures Micro-Differentiation - Job design UNIT 7 – Staffing UNIT 8 – Communication UNIT 9 – Direction - Teams and Group Processes UNIT 10 – Motivation UNIT 11 – Leadership UNIT 12 – Control UNIT 13 - POM/MIS/DSS FOUNDATIONS OF MANAGEMENT UNIT 6 – Organization Design and Culture Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 5 Figure 7.1 Factors Affecting Organizational Structure

6 UNIT I – Introduction to Management UNIT 2 – International Management and Diversity UNIT 3 – Managerial Ethics and Social Responsibility UNIT 4 – Planning as a Decision-Making Activity UNIT 5 – Domestic and International Issues in Planning UNIT 6 – Organization – Design and Culture Definitions Macro-Differentiation - Departmentalization Integration - Authority Structures Micro-Differentiation - Job design UNIT 7 – Staffing UNIT 8 – Communication UNIT 9 – Direction - Teams and Group Processes UNIT 10 – Motivation UNIT 11 – Leadership UNIT 12 – Control UNIT 13 - POM/MIS/DSS FOUNDATIONS OF MANAGEMENT UNIT 6 – Organization Design and Culture Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 6 Macro-Level Differentiation Differentiation = Departmentalization

7 UNIT I – Introduction to Management UNIT 2 – International Management and Diversity UNIT 3 – Managerial Ethics and Social Responsibility UNIT 4 – Planning as a Decision-Making Activity UNIT 5 – Domestic and International Issues in Planning UNIT 6 – Organization – Design and Culture Definitions Macro-Differentiation - Departmentalization Integration - Authority Structures Micro-Differentiation - Job design UNIT 7 – Staffing UNIT 8 – Communication UNIT 9 – Direction - Teams and Group Processes UNIT 10 – Motivation UNIT 11 – Leadership UNIT 12 – Control UNIT 13 - POM/MIS/DSS FOUNDATIONS OF MANAGEMENT UNIT 6 – Organization Design and Culture Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 7 Customer Geographic Matrix Functional Product Departmentalization Continue

8 UNIT I – Introduction to Management UNIT 2 – International Management and Diversity UNIT 3 – Managerial Ethics and Social Responsibility UNIT 4 – Planning as a Decision-Making Activity UNIT 5 – Domestic and International Issues in Planning UNIT 6 – Organization – Design and Culture Definitions Macro-Differentiation - Departmentalization Integration - Authority Structures Micro-Differentiation - Job design UNIT 7 – Staffing UNIT 8 – Communication UNIT 9 – Direction - Teams and Group Processes UNIT 10 – Motivation UNIT 11 – Leadership UNIT 12 – Control UNIT 13 - POM/MIS/DSS FOUNDATIONS OF MANAGEMENT UNIT 6 – Organization Design and Culture Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 8 Functional Structure –An organizational structure composed of all the departments that an organization requires to produce its goods or services –Advantages Encourages learning from others doing similar jobs Easy for managers to monitor and evaluate workers –Disadvantages Difficult for departments to communicate with others Preoccupation with own department and losing sight of organizational goals Grouping Jobs into Functions

9 UNIT I – Introduction to Management UNIT 2 – International Management and Diversity UNIT 3 – Managerial Ethics and Social Responsibility UNIT 4 – Planning as a Decision-Making Activity UNIT 5 – Domestic and International Issues in Planning UNIT 6 – Organization – Design and Culture Definitions Macro-Differentiation - Departmentalization Integration - Authority Structures Micro-Differentiation - Job design UNIT 7 – Staffing UNIT 8 – Communication UNIT 9 – Direction - Teams and Group Processes UNIT 10 – Motivation UNIT 11 – Leadership UNIT 12 – Control UNIT 13 - POM/MIS/DSS FOUNDATIONS OF MANAGEMENT UNIT 6 – Organization Design and Culture Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 9 Advertising Agency Sales Accounting Information Systems Information Systems Human Resources Human Resources Print Advertising Print Advertising Art Department Radio Advertising Radio Advertising Creative Department Creative Department Functional Departmentalization

10 UNIT I – Introduction to Management UNIT 2 – International Management and Diversity UNIT 3 – Managerial Ethics and Social Responsibility UNIT 4 – Planning as a Decision-Making Activity UNIT 5 – Domestic and International Issues in Planning UNIT 6 – Organization – Design and Culture Definitions Macro-Differentiation - Departmentalization Integration - Authority Structures Micro-Differentiation - Job design UNIT 7 – Staffing UNIT 8 – Communication UNIT 9 – Direction - Teams and Group Processes UNIT 10 – Motivation UNIT 11 – Leadership UNIT 12 – Control UNIT 13 - POM/MIS/DSS FOUNDATIONS OF MANAGEMENT UNIT 6 – Organization Design and Culture Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 10 AdvantagesDisadvantages Work done by highly skilled specialists Lowers costs through reduced duplication Communication and coordination problems are lessened Cross-department coordination can be difficult May lead to slower decision making Produces managers with narrow experiences Functional Departmentalization

11 UNIT I – Introduction to Management UNIT 2 – International Management and Diversity UNIT 3 – Managerial Ethics and Social Responsibility UNIT 4 – Planning as a Decision-Making Activity UNIT 5 – Domestic and International Issues in Planning UNIT 6 – Organization – Design and Culture Definitions Macro-Differentiation - Departmentalization Integration - Authority Structures Micro-Differentiation - Job design UNIT 7 – Staffing UNIT 8 – Communication UNIT 9 – Direction - Teams and Group Processes UNIT 10 – Motivation UNIT 11 – Leadership UNIT 12 – Control UNIT 13 - POM/MIS/DSS FOUNDATIONS OF MANAGEMENT UNIT 6 – Organization Design and Culture Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 11 Product Team Structure –Members are permanently assigned to a cross-functional team and report only to the product team manager or to one of his subordinates –Cross-functional team – group of managers brought together from different departments to perform organizational tasks Product Team Design Structure

12 UNIT I – Introduction to Management UNIT 2 – International Management and Diversity UNIT 3 – Managerial Ethics and Social Responsibility UNIT 4 – Planning as a Decision-Making Activity UNIT 5 – Domestic and International Issues in Planning UNIT 6 – Organization – Design and Culture Definitions Macro-Differentiation - Departmentalization Integration - Authority Structures Micro-Differentiation - Job design UNIT 7 – Staffing UNIT 8 – Communication UNIT 9 – Direction - Teams and Group Processes UNIT 10 – Motivation UNIT 11 – Leadership UNIT 12 – Control UNIT 13 - POM/MIS/DSS FOUNDATIONS OF MANAGEMENT UNIT 6 – Organization Design and Culture Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 12 General Electric Aircraft Engines Consumer Finance Consumer Products Transportation Systems Specialty Materials Medical Systems NBC Insurance (Partial Listing of Products) Product Departmentalization

13 UNIT I – Introduction to Management UNIT 2 – International Management and Diversity UNIT 3 – Managerial Ethics and Social Responsibility UNIT 4 – Planning as a Decision-Making Activity UNIT 5 – Domestic and International Issues in Planning UNIT 6 – Organization – Design and Culture Definitions Macro-Differentiation - Departmentalization Integration - Authority Structures Micro-Differentiation - Job design UNIT 7 – Staffing UNIT 8 – Communication UNIT 9 – Direction - Teams and Group Processes UNIT 10 – Motivation UNIT 11 – Leadership UNIT 12 – Control UNIT 13 - POM/MIS/DSS FOUNDATIONS OF MANAGEMENT UNIT 6 – Organization Design and Culture Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 13 AdvantagesDisadvantages Managers specialize, but have broader experiences Easier to assess work-unit performance Decision-making is faster Duplication of activities Difficult to coordinate across departments Product Departmentalization

14 UNIT I – Introduction to Management UNIT 2 – International Management and Diversity UNIT 3 – Managerial Ethics and Social Responsibility UNIT 4 – Planning as a Decision-Making Activity UNIT 5 – Domestic and International Issues in Planning UNIT 6 – Organization – Design and Culture Definitions Macro-Differentiation - Departmentalization Integration - Authority Structures Micro-Differentiation - Job design UNIT 7 – Staffing UNIT 8 – Communication UNIT 9 – Direction - Teams and Group Processes UNIT 10 – Motivation UNIT 11 – Leadership UNIT 12 – Control UNIT 13 - POM/MIS/DSS FOUNDATIONS OF MANAGEMENT UNIT 6 – Organization Design and Culture Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 14 Classic Cards Air, Car, Hotel Reservations Air, Car, Hotel Reservations Expense Management Solutions Expense Management Solutions Advice & Planning Advice & Planning American Express Corporation Corporation Lifestyle Cards Vacation & Specials Small Businesses Small Businesses Banking Reward Cards Worldwide Travel Offices Worldwide Travel Offices Financial Services Financial Services Brokerage Cards Travel Business Services Business Services Financial Services Financial Services (Partial Listing) Customer Departmentalization

15 UNIT I – Introduction to Management UNIT 2 – International Management and Diversity UNIT 3 – Managerial Ethics and Social Responsibility UNIT 4 – Planning as a Decision-Making Activity UNIT 5 – Domestic and International Issues in Planning UNIT 6 – Organization – Design and Culture Definitions Macro-Differentiation - Departmentalization Integration - Authority Structures Micro-Differentiation - Job design UNIT 7 – Staffing UNIT 8 – Communication UNIT 9 – Direction - Teams and Group Processes UNIT 10 – Motivation UNIT 11 – Leadership UNIT 12 – Control UNIT 13 - POM/MIS/DSS FOUNDATIONS OF MANAGEMENT UNIT 6 – Organization Design and Culture Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 15 AdvantagesDisadvantages Focuses on customer needs Products and services tailored to customer needs Duplication of resources Difficult to coordinate across departments Efforts to please customers may hurt the company Customer Departmentalization

16 UNIT I – Introduction to Management UNIT 2 – International Management and Diversity UNIT 3 – Managerial Ethics and Social Responsibility UNIT 4 – Planning as a Decision-Making Activity UNIT 5 – Domestic and International Issues in Planning UNIT 6 – Organization – Design and Culture Definitions Macro-Differentiation - Departmentalization Integration - Authority Structures Micro-Differentiation - Job design UNIT 7 – Staffing UNIT 8 – Communication UNIT 9 – Direction - Teams and Group Processes UNIT 10 – Motivation UNIT 11 – Leadership UNIT 12 – Control UNIT 13 - POM/MIS/DSS FOUNDATIONS OF MANAGEMENT UNIT 6 – Organization Design and Culture Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 16 Coca-Cola Enterprises Coca-Cola Enterprises Central North America Group Central North America Group Eastern North America Group Eastern North America Group European Group European Group Western North America Group Western North America Group Geographic Departmentalization

17 UNIT I – Introduction to Management UNIT 2 – International Management and Diversity UNIT 3 – Managerial Ethics and Social Responsibility UNIT 4 – Planning as a Decision-Making Activity UNIT 5 – Domestic and International Issues in Planning UNIT 6 – Organization – Design and Culture Definitions Macro-Differentiation - Departmentalization Integration - Authority Structures Micro-Differentiation - Job design UNIT 7 – Staffing UNIT 8 – Communication UNIT 9 – Direction - Teams and Group Processes UNIT 10 – Motivation UNIT 11 – Leadership UNIT 12 – Control UNIT 13 - POM/MIS/DSS FOUNDATIONS OF MANAGEMENT UNIT 6 – Organization Design and Culture Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 17 AdvantagesDisadvantages Responsive to the demands of different market areas Unique resources located close to the customer Duplication of resources Difficult to coordinate across departments Geographic Departmentalization

18 UNIT I – Introduction to Management UNIT 2 – International Management and Diversity UNIT 3 – Managerial Ethics and Social Responsibility UNIT 4 – Planning as a Decision-Making Activity UNIT 5 – Domestic and International Issues in Planning UNIT 6 – Organization – Design and Culture Definitions Macro-Differentiation - Departmentalization Integration - Authority Structures Micro-Differentiation - Job design UNIT 7 – Staffing UNIT 8 – Communication UNIT 9 – Direction - Teams and Group Processes UNIT 10 – Motivation UNIT 11 – Leadership UNIT 12 – Control UNIT 13 - POM/MIS/DSS FOUNDATIONS OF MANAGEMENT UNIT 6 – Organization Design and Culture Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 18 Matrix Structure –An organizational structure that simultaneously groups people and resources by function and product The structure is very flexible and can respond rapidly to the need for change Each employee has two bosses (functional manager and product manager) and possibly cannot satisfy both Matrix Design Structure

19 UNIT I – Introduction to Management UNIT 2 – International Management and Diversity UNIT 3 – Managerial Ethics and Social Responsibility UNIT 4 – Planning as a Decision-Making Activity UNIT 5 – Domestic and International Issues in Planning UNIT 6 – Organization – Design and Culture Definitions Macro-Differentiation - Departmentalization Integration - Authority Structures Micro-Differentiation - Job design UNIT 7 – Staffing UNIT 8 – Communication UNIT 9 – Direction - Teams and Group Processes UNIT 10 – Motivation UNIT 11 – Leadership UNIT 12 – Control UNIT 13 - POM/MIS/DSS FOUNDATIONS OF MANAGEMENT UNIT 6 – Organization Design and Culture Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 19 CitiGroup International Western Europe Latin America Central & Eastern Europe Global Corporate & Investment Bank Global Corporate & Investment Bank Global Investment Management Global Consumer Smith Barney Country Managers in Spain, France, Ireland, etc. Country Managers in Spain, France, Ireland, etc. Country Managers in China, Japan, etc. Matrix Departmentalization

20 UNIT I – Introduction to Management UNIT 2 – International Management and Diversity UNIT 3 – Managerial Ethics and Social Responsibility UNIT 4 – Planning as a Decision-Making Activity UNIT 5 – Domestic and International Issues in Planning UNIT 6 – Organization – Design and Culture Definitions Macro-Differentiation - Departmentalization Integration - Authority Structures Micro-Differentiation - Job design UNIT 7 – Staffing UNIT 8 – Communication UNIT 9 – Direction - Teams and Group Processes UNIT 10 – Motivation UNIT 11 – Leadership UNIT 12 – Control UNIT 13 - POM/MIS/DSS FOUNDATIONS OF MANAGEMENT UNIT 6 – Organization Design and Culture Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 20 AdvantagesDisadvantages Efficiently manage large, complex tasks Effectively carry out large, complex tasks Requires high levels of coordination Conflict between bosses Requires high levels of management skills Matrix Departmentalization

21 UNIT I – Introduction to Management UNIT 2 – International Management and Diversity UNIT 3 – Managerial Ethics and Social Responsibility UNIT 4 – Planning as a Decision-Making Activity UNIT 5 – Domestic and International Issues in Planning UNIT 6 – Organization – Design and Culture Definitions Macro-Differentiation - Departmentalization Integration - Authority Structures Micro-Differentiation - Job design UNIT 7 – Staffing UNIT 8 – Communication UNIT 9 – Direction - Teams and Group Processes UNIT 10 – Motivation UNIT 11 – Leadership UNIT 12 – Control UNIT 13 - POM/MIS/DSS FOUNDATIONS OF MANAGEMENT UNIT 6 – Organization Design and Culture Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 21 Divisional Structure –An organizational structure composed of separate business units within which are the functions that work together to produce a specific product for a specific customer Divisions create smaller, manageable parts of a firm Divisions develop a business-level strategy to compete Divisions have marketing, finance, and other functions Functional managers report to divisional managers who then report to corporate management Divisional Structures

22 UNIT I – Introduction to Management UNIT 2 – International Management and Diversity UNIT 3 – Managerial Ethics and Social Responsibility UNIT 4 – Planning as a Decision-Making Activity UNIT 5 – Domestic and International Issues in Planning UNIT 6 – Organization – Design and Culture Definitions Macro-Differentiation - Departmentalization Integration - Authority Structures Micro-Differentiation - Job design UNIT 7 – Staffing UNIT 8 – Communication UNIT 9 – Direction - Teams and Group Processes UNIT 10 – Motivation UNIT 11 – Leadership UNIT 12 – Control UNIT 13 - POM/MIS/DSS FOUNDATIONS OF MANAGEMENT UNIT 6 – Organization Design and Culture Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 22 Hybrid Structure –The structure of a large organization that has many divisions and simultaneously uses many different organizational structures Hybrid Structures

23 UNIT I – Introduction to Management UNIT 2 – International Management and Diversity UNIT 3 – Managerial Ethics and Social Responsibility UNIT 4 – Planning as a Decision-Making Activity UNIT 5 – Domestic and International Issues in Planning UNIT 6 – Organization – Design and Culture Definitions Macro-Differentiation - Departmentalization Integration - Authority Structures Micro-Differentiation - Job design UNIT 7 – Staffing UNIT 8 – Communication UNIT 9 – Direction - Teams and Group Processes UNIT 10 – Motivation UNIT 11 – Leadership UNIT 12 – Control UNIT 13 - POM/MIS/DSS FOUNDATIONS OF MANAGEMENT UNIT 6 – Organization Design and Culture Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 23 Integration Definition - The definition of structure and authority relationships among differentiated groups in order to coordinate their separate activities Integrating Mechanisms - Organizing tools that managers can use to increase communication and coordination among functions and divisions

24 UNIT I – Introduction to Management UNIT 2 – International Management and Diversity UNIT 3 – Managerial Ethics and Social Responsibility UNIT 4 – Planning as a Decision-Making Activity UNIT 5 – Domestic and International Issues in Planning UNIT 6 – Organization – Design and Culture Definitions Macro-Differentiation - Departmentalization Integration - Authority Structures Micro-Differentiation - Job design UNIT 7 – Staffing UNIT 8 – Communication UNIT 9 – Direction - Teams and Group Processes UNIT 10 – Motivation UNIT 11 – Leadership UNIT 12 – Control UNIT 13 - POM/MIS/DSS FOUNDATIONS OF MANAGEMENT UNIT 6 – Organization Design and Culture Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 24 Integrating Mechanisms Figure 7.10

25 UNIT I – Introduction to Management UNIT 2 – International Management and Diversity UNIT 3 – Managerial Ethics and Social Responsibility UNIT 4 – Planning as a Decision-Making Activity UNIT 5 – Domestic and International Issues in Planning UNIT 6 – Organization – Design and Culture Definitions Macro-Differentiation - Departmentalization Integration - Authority Structures Micro-Differentiation - Job design UNIT 7 – Staffing UNIT 8 – Communication UNIT 9 – Direction - Teams and Group Processes UNIT 10 – Motivation UNIT 11 – Leadership UNIT 12 – Control UNIT 13 - POM/MIS/DSS FOUNDATIONS OF MANAGEMENT UNIT 6 – Organization Design and Culture Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 25 Forms of Integrating Mechanisms Figure 7.11

26 UNIT I – Introduction to Management UNIT 2 – International Management and Diversity UNIT 3 – Managerial Ethics and Social Responsibility UNIT 4 – Planning as a Decision-Making Activity UNIT 5 – Domestic and International Issues in Planning UNIT 6 – Organization – Design and Culture Definitions Macro-Differentiation - Departmentalization Integration - Authority Structures Micro-Differentiation - Job design UNIT 7 – Staffing UNIT 8 – Communication UNIT 9 – Direction - Teams and Group Processes UNIT 10 – Motivation UNIT 11 – Leadership UNIT 12 – Control UNIT 13 - POM/MIS/DSS FOUNDATIONS OF MANAGEMENT UNIT 6 – Organization Design and Culture Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 26 Delegation of Authority Degree of Centralization Degree of Centralization Chain of Command Line versus Staff Authority Organizational Authority Continue

27 UNIT I – Introduction to Management UNIT 2 – International Management and Diversity UNIT 3 – Managerial Ethics and Social Responsibility UNIT 4 – Planning as a Decision-Making Activity UNIT 5 – Domestic and International Issues in Planning UNIT 6 – Organization – Design and Culture Definitions Macro-Differentiation - Departmentalization Integration - Authority Structures Micro-Differentiation - Job design UNIT 7 – Staffing UNIT 8 – Communication UNIT 9 – Direction - Teams and Group Processes UNIT 10 – Motivation UNIT 11 – Leadership UNIT 12 – Control UNIT 13 - POM/MIS/DSS FOUNDATIONS OF MANAGEMENT UNIT 6 – Organization Design and Culture Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 27 The vertical line of authority in an organization Clarifies who reports to whom Unity of command –workers report to only one boss –matrix organizations violate this principle Chain of Command

28 UNIT I – Introduction to Management UNIT 2 – International Management and Diversity UNIT 3 – Managerial Ethics and Social Responsibility UNIT 4 – Planning as a Decision-Making Activity UNIT 5 – Domestic and International Issues in Planning UNIT 6 – Organization – Design and Culture Definitions Macro-Differentiation - Departmentalization Integration - Authority Structures Micro-Differentiation - Job design UNIT 7 – Staffing UNIT 8 – Communication UNIT 9 – Direction - Teams and Group Processes UNIT 10 – Motivation UNIT 11 – Leadership UNIT 12 – Control UNIT 13 - POM/MIS/DSS FOUNDATIONS OF MANAGEMENT UNIT 6 – Organization Design and Culture Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 28 Basis of Integration Authority –the RIGHT to issue commands and require compliance –The power to hold people accountable for their actions and to make decisions concerning the use of organizational resources Hierarchy of Authority –An organization’s chain of command, specifying the relative authority of each manager

29 UNIT I – Introduction to Management UNIT 2 – International Management and Diversity UNIT 3 – Managerial Ethics and Social Responsibility UNIT 4 – Planning as a Decision-Making Activity UNIT 5 – Domestic and International Issues in Planning UNIT 6 – Organization – Design and Culture Definitions Macro-Differentiation - Departmentalization Integration - Authority Structures Micro-Differentiation - Job design UNIT 7 – Staffing UNIT 8 – Communication UNIT 9 – Direction - Teams and Group Processes UNIT 10 – Motivation UNIT 11 – Leadership UNIT 12 – Control UNIT 13 - POM/MIS/DSS FOUNDATIONS OF MANAGEMENT UNIT 6 – Organization Design and Culture Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 29 Line authority –the right to command immediate subordinates in the chain of command –an activity that contributes directly to profit generation Staff authority –the right to advise but not command others –an activity that supports profit generation Line versus Staff Authority

30 UNIT I – Introduction to Management UNIT 2 – International Management and Diversity UNIT 3 – Managerial Ethics and Social Responsibility UNIT 4 – Planning as a Decision-Making Activity UNIT 5 – Domestic and International Issues in Planning UNIT 6 – Organization – Design and Culture Definitions Macro-Differentiation - Departmentalization Integration - Authority Structures Micro-Differentiation - Job design UNIT 7 – Staffing UNIT 8 – Communication UNIT 9 – Direction - Teams and Group Processes UNIT 10 – Motivation UNIT 11 – Leadership UNIT 12 – Control UNIT 13 - POM/MIS/DSS FOUNDATIONS OF MANAGEMENT UNIT 6 – Organization Design and Culture Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 30 Allocating Authority Span of Control –The number of subordinates that report directly to a manager Line Manager –Managers in the direct chain of command who have formal authority over people and resources lower down Staff Manager –Managers who manage a specialist function

31 UNIT I – Introduction to Management UNIT 2 – International Management and Diversity UNIT 3 – Managerial Ethics and Social Responsibility UNIT 4 – Planning as a Decision-Making Activity UNIT 5 – Domestic and International Issues in Planning UNIT 6 – Organization – Design and Culture Definitions Macro-Differentiation - Departmentalization Integration - Authority Structures Micro-Differentiation - Job design UNIT 7 – Staffing UNIT 8 – Communication UNIT 9 – Direction - Teams and Group Processes UNIT 10 – Motivation UNIT 11 – Leadership UNIT 12 – Control UNIT 13 - POM/MIS/DSS FOUNDATIONS OF MANAGEMENT UNIT 6 – Organization Design and Culture Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 31 The assignment of direct authority and responsibility to a subordinate Manager Responsibility Authority Accountability Subordinate Delegation of Authority

32 UNIT I – Introduction to Management UNIT 2 – International Management and Diversity UNIT 3 – Managerial Ethics and Social Responsibility UNIT 4 – Planning as a Decision-Making Activity UNIT 5 – Domestic and International Issues in Planning UNIT 6 – Organization – Design and Culture Definitions Macro-Differentiation - Departmentalization Integration - Authority Structures Micro-Differentiation - Job design UNIT 7 – Staffing UNIT 8 – Communication UNIT 9 – Direction - Teams and Group Processes UNIT 10 – Motivation UNIT 11 – Leadership UNIT 12 – Control UNIT 13 - POM/MIS/DSS FOUNDATIONS OF MANAGEMENT UNIT 6 – Organization Design and Culture Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 32 1.Trust your staff to be a good job 2.Avoid seeking perfection 3.Give effective job instructions 4.Know your true interests 5.Follow up on progress. 6.Praise the efforts of your staff. 7.Don’t wait to the last minute to delegate. 8.Ask questions, expect answers, assist employees. 9.Provide the resources you would provide if doing assignment yourself. 10.Delegate to the lowest possible level. How to Delegate More Effectively

33 UNIT I – Introduction to Management UNIT 2 – International Management and Diversity UNIT 3 – Managerial Ethics and Social Responsibility UNIT 4 – Planning as a Decision-Making Activity UNIT 5 – Domestic and International Issues in Planning UNIT 6 – Organization – Design and Culture Definitions Macro-Differentiation - Departmentalization Integration - Authority Structures Micro-Differentiation - Job design UNIT 7 – Staffing UNIT 8 – Communication UNIT 9 – Direction - Teams and Group Processes UNIT 10 – Motivation UNIT 11 – Leadership UNIT 12 – Control UNIT 13 - POM/MIS/DSS FOUNDATIONS OF MANAGEMENT UNIT 6 – Organization Design and Culture Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 33 Centralization of authority –primary authority is held by upper management Decentralization –significant authority is found in lower levels of the organization Standardization –solving problems by applying rules, procedures, and processes Degree of Centralization

34 UNIT I – Introduction to Management UNIT 2 – International Management and Diversity UNIT 3 – Managerial Ethics and Social Responsibility UNIT 4 – Planning as a Decision-Making Activity UNIT 5 – Domestic and International Issues in Planning UNIT 6 – Organization – Design and Culture Definitions Macro-Differentiation - Departmentalization Integration - Authority Structures Micro-Differentiation - Job design UNIT 7 – Staffing UNIT 8 – Communication UNIT 9 – Direction - Teams and Group Processes UNIT 10 – Motivation UNIT 11 – Leadership UNIT 12 – Control UNIT 13 - POM/MIS/DSS FOUNDATIONS OF MANAGEMENT UNIT 6 – Organization Design and Culture Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 34 Tall structures have many levels of authority and narrow spans of control Tall and Flat Organizations

35 UNIT I – Introduction to Management UNIT 2 – International Management and Diversity UNIT 3 – Managerial Ethics and Social Responsibility UNIT 4 – Planning as a Decision-Making Activity UNIT 5 – Domestic and International Issues in Planning UNIT 6 – Organization – Design and Culture Definitions Macro-Differentiation - Departmentalization Integration - Authority Structures Micro-Differentiation - Job design UNIT 7 – Staffing UNIT 8 – Communication UNIT 9 – Direction - Teams and Group Processes UNIT 10 – Motivation UNIT 11 – Leadership UNIT 12 – Control UNIT 13 - POM/MIS/DSS FOUNDATIONS OF MANAGEMENT UNIT 6 – Organization Design and Culture Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 35 Flat Organizations Figure 7.9 Flat structures have fewer levels and wide spans of control

36 UNIT I – Introduction to Management UNIT 2 – International Management and Diversity UNIT 3 – Managerial Ethics and Social Responsibility UNIT 4 – Planning as a Decision-Making Activity UNIT 5 – Domestic and International Issues in Planning UNIT 6 – Organization – Design and Culture Definitions Macro-Differentiation - Departmentalization Integration - Authority Structures Micro-Differentiation - Job design UNIT 7 – Staffing UNIT 8 – Communication UNIT 9 – Direction - Teams and Group Processes UNIT 10 – Motivation UNIT 11 – Leadership UNIT 12 – Control UNIT 13 - POM/MIS/DSS FOUNDATIONS OF MANAGEMENT UNIT 6 – Organization Design and Culture Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 36 Micro-Level Differentiation Designing Jobs and Tasks

37 UNIT I – Introduction to Management UNIT 2 – International Management and Diversity UNIT 3 – Managerial Ethics and Social Responsibility UNIT 4 – Planning as a Decision-Making Activity UNIT 5 – Domestic and International Issues in Planning UNIT 6 – Organization – Design and Culture Definitions Macro-Differentiation - Departmentalization Integration - Authority Structures Micro-Differentiation - Job design UNIT 7 – Staffing UNIT 8 – Communication UNIT 9 – Direction - Teams and Group Processes UNIT 10 – Motivation UNIT 11 – Leadership UNIT 12 – Control UNIT 13 - POM/MIS/DSS FOUNDATIONS OF MANAGEMENT UNIT 6 – Organization Design and Culture Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 37 Job Design –The process by which managers decide how to divide tasks into specific jobs Job Simplification –The process of reducing the number of tasks that each worker performs

38 UNIT I – Introduction to Management UNIT 2 – International Management and Diversity UNIT 3 – Managerial Ethics and Social Responsibility UNIT 4 – Planning as a Decision-Making Activity UNIT 5 – Domestic and International Issues in Planning UNIT 6 – Organization – Design and Culture Definitions Macro-Differentiation - Departmentalization Integration - Authority Structures Micro-Differentiation - Job design UNIT 7 – Staffing UNIT 8 – Communication UNIT 9 – Direction - Teams and Group Processes UNIT 10 – Motivation UNIT 11 – Leadership UNIT 12 – Control UNIT 13 - POM/MIS/DSS FOUNDATIONS OF MANAGEMENT UNIT 6 – Organization Design and Culture Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 38 Job Design Job Enlargement –Increasing the number of different tasks in a given job by changing the division of labor Job Enrichment –Increasing the degree of responsibility a worker has over a job

39 UNIT I – Introduction to Management UNIT 2 – International Management and Diversity UNIT 3 – Managerial Ethics and Social Responsibility UNIT 4 – Planning as a Decision-Making Activity UNIT 5 – Domestic and International Issues in Planning UNIT 6 – Organization – Design and Culture Definitions Macro-Differentiation - Departmentalization Integration - Authority Structures Micro-Differentiation - Job design UNIT 7 – Staffing UNIT 8 – Communication UNIT 9 – Direction - Teams and Group Processes UNIT 10 – Motivation UNIT 11 – Leadership UNIT 12 – Control UNIT 13 - POM/MIS/DSS FOUNDATIONS OF MANAGEMENT UNIT 6 – Organization Design and Culture Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 39 Combining Tasks Forming Natural Work Units Forming Natural Work Units Establishing Client Relationships Vertically Loading the Job Opening Feedback Channels Job Redesign Techniques

40 UNIT I – Introduction to Management UNIT 2 – International Management and Diversity UNIT 3 – Managerial Ethics and Social Responsibility UNIT 4 – Planning as a Decision-Making Activity UNIT 5 – Domestic and International Issues in Planning UNIT 6 – Organization – Design and Culture Definitions Macro-Differentiation - Departmentalization Integration - Authority Structures Micro-Differentiation - Job design UNIT 7 – Staffing UNIT 8 – Communication UNIT 9 – Direction - Teams and Group Processes UNIT 10 – Motivation UNIT 11 – Leadership UNIT 12 – Control UNIT 13 - POM/MIS/DSS FOUNDATIONS OF MANAGEMENT UNIT 6 – Organization Design and Culture Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 40 Specialized Jobs Job Rotation, Enlargement, Enrichment Job Characteristics Model Job Design

41 UNIT I – Introduction to Management UNIT 2 – International Management and Diversity UNIT 3 – Managerial Ethics and Social Responsibility UNIT 4 – Planning as a Decision-Making Activity UNIT 5 – Domestic and International Issues in Planning UNIT 6 – Organization – Design and Culture Definitions Macro-Differentiation - Departmentalization Integration - Authority Structures Micro-Differentiation - Job design UNIT 7 – Staffing UNIT 8 – Communication UNIT 9 – Direction - Teams and Group Processes UNIT 10 – Motivation UNIT 11 – Leadership UNIT 12 – Control UNIT 13 - POM/MIS/DSS FOUNDATIONS OF MANAGEMENT UNIT 6 – Organization Design and Culture Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 41 Breaking jobs into small tasks Jobs are simple, easy to learn, and economical Can lead to boredom, low satisfaction, high absenteeism, and employee turnover Job Specialization

42 UNIT I – Introduction to Management UNIT 2 – International Management and Diversity UNIT 3 – Managerial Ethics and Social Responsibility UNIT 4 – Planning as a Decision-Making Activity UNIT 5 – Domestic and International Issues in Planning UNIT 6 – Organization – Design and Culture Definitions Macro-Differentiation - Departmentalization Integration - Authority Structures Micro-Differentiation - Job design UNIT 7 – Staffing UNIT 8 – Communication UNIT 9 – Direction - Teams and Group Processes UNIT 10 – Motivation UNIT 11 – Leadership UNIT 12 – Control UNIT 13 - POM/MIS/DSS FOUNDATIONS OF MANAGEMENT UNIT 6 – Organization Design and Culture Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 42 Job Rotation –periodically moving workers from one specialized job to another Job Enlargement –increasing the number of tasks performed by a worker Job Enrichment –adding more tasks and authority to an employee’s job Job Rotation, Enlargement, & Enrichment

43 UNIT I – Introduction to Management UNIT 2 – International Management and Diversity UNIT 3 – Managerial Ethics and Social Responsibility UNIT 4 – Planning as a Decision-Making Activity UNIT 5 – Domestic and International Issues in Planning UNIT 6 – Organization – Design and Culture Definitions Macro-Differentiation - Departmentalization Integration - Authority Structures Micro-Differentiation - Job design UNIT 7 – Staffing UNIT 8 – Communication UNIT 9 – Direction - Teams and Group Processes UNIT 10 – Motivation UNIT 11 – Leadership UNIT 12 – Control UNIT 13 - POM/MIS/DSS FOUNDATIONS OF MANAGEMENT UNIT 6 – Organization Design and Culture Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 43 A job redesign approach that seeks to increase employee motivation Emphasizes internal motivation –experience work as meaningful –experience responsibility for work outcomes –knowledge of results Job Characteristics Model

44 UNIT I – Introduction to Management UNIT 2 – International Management and Diversity UNIT 3 – Managerial Ethics and Social Responsibility UNIT 4 – Planning as a Decision-Making Activity UNIT 5 – Domestic and International Issues in Planning UNIT 6 – Organization – Design and Culture Definitions Macro-Differentiation - Departmentalization Integration - Authority Structures Micro-Differentiation - Job design UNIT 7 – Staffing UNIT 8 – Communication UNIT 9 – Direction - Teams and Group Processes UNIT 10 – Motivation UNIT 11 – Leadership UNIT 12 – Control UNIT 13 - POM/MIS/DSS FOUNDATIONS OF MANAGEMENT UNIT 6 – Organization Design and Culture Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 44 Job Characteristics Model

45 UNIT I – Introduction to Management UNIT 2 – International Management and Diversity UNIT 3 – Managerial Ethics and Social Responsibility UNIT 4 – Planning as a Decision-Making Activity UNIT 5 – Domestic and International Issues in Planning UNIT 6 – Organization – Design and Culture Definitions Macro-Differentiation - Departmentalization Integration - Authority Structures Micro-Differentiation - Job design UNIT 7 – Staffing UNIT 8 – Communication UNIT 9 – Direction - Teams and Group Processes UNIT 10 – Motivation UNIT 11 – Leadership UNIT 12 – Control UNIT 13 - POM/MIS/DSS FOUNDATIONS OF MANAGEMENT UNIT 6 – Organization Design and Culture Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 45 Job Design Using the Job Characteristics Model

46 UNIT I – Introduction to Management UNIT 2 – International Management and Diversity UNIT 3 – Managerial Ethics and Social Responsibility UNIT 4 – Planning as a Decision-Making Activity UNIT 5 – Domestic and International Issues in Planning UNIT 6 – Organization – Design and Culture Definitions Macro-Differentiation - Departmentalization Integration - Authority Structures Micro-Differentiation - Job design UNIT 7 – Staffing UNIT 8 – Communication UNIT 9 – Direction - Teams and Group Processes UNIT 10 – Motivation UNIT 11 – Leadership UNIT 12 – Control UNIT 13 - POM/MIS/DSS FOUNDATIONS OF MANAGEMENT UNIT 6 – Organization Design and Culture Copyright © 2008 by Dr. Eliot S. Elfner, St. Norbert College 46 FOUNDATIONS OF MANAGEMENT Fall The End Dr. Eliot S. Elfner Professor of Business Administration St. Norbert College


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