2 The Elements Organizing Deciding how to best group organizational activities and resources.Organization StructureThe set of building blocks that can be used to configure an organization.
3 Designing Jobs Job Design The determination of an individual’s work-related responsibilities.Organizing TDR into a productive unit of work. Reasons for systematic job design:Maximize performanceEnhance job satisfactionReduce adverse affects to physical and mental health.
4 Designing Jobs (Job Specialization ) Job Specialization (Division of Labor) -- The degree to which the overall task of the organization is broken down and divided into smaller component partsBenefits of SpecializationWorkers can become proficient at a task.Transfer time between tasks is decreased.Specialized equipment can be more easily developed.Employee replacement becomes easier.
5 Designing Jobs (Job Specialization ) Job Specialization (Division of Labor).Limitations of SpecializationEmployee boredom and dissatisfaction with mundane tasks.Anticipated benefits do not always occur.
6 Adam Smith’s Example of Job Specialization Making a pin (nail) requires 18 tasks1 worker doing all 18 tasks might make20 pins (nails) a day.20 workers = (20 x 20) = 400 pins______________________________With specialization:20 workers make 100,000 pins a day.1 worker = 5,000 pins20 pins vs. 5,000 pins per worker10
7 Alternatives to Specialization Job RotationSystematically moving employees from one job to another in an attempt to reduce employee boredom.Job EnlargementAn increase in the total number of tasks workers perform (increasing the scope of the job).Job EnrichmentIncreasing both the number of tasks the worker does and the control the worker has over the job (increasing the scope and depth of the job).
8 Alternatives to Specialization Job Characteristics Approach:Core DimensionsSkill variety—the number of tasks a person does in a job.Task identity—the extent to which the worker does a complete or identifiable portion of the total job.Task significance —the perceived importance of the task.Autonomy—the degree of control the worker has over how the work is performed.Feedback— the extent to which the worker knows how well the job is being performed.
9 Alternatives to Specialization Job Characteristics Approach:Growth-Need StrengthThe desire for some people to grow, develop, and expand their capabilities that is their response to the core dimensions.
11 Alternatives to Specialization (Work Teams) An alternative to job specialization that allows the entire group to design the work system it will use to perform an interrelated set of tasks.Self-Directed Work Teams (SDWT) – composed of individuals who are assigned a cluster of TDR to be performed and are empowered to make decisions regarding work assignments within the group.
12 Grouping Jobs: Departmentalization The process of grouping jobs according to some logical arrangement.Rationale for DepartmentalizationOrganizational growth exceeds the owner-manager’s capacity to personally supervise all of the organization.Additional managers are employed and assigned specific employees to supervise.
13 Grouping Jobs: Departmentalization (Functional) Functional DepartmentalizationGrouping jobs involving the same or similar activities.AdvantagesEach department can be staffed by functional-area experts.Supervision is facilitated in that managers only need be familiar with a narrow set of skills.Coordination inside each department is easier.
14 Grouping Jobs: Departmentalization (Functional) Functional DepartmentalizationDisadvantagesDecision making becomes slow and bureaucratic.Employees narrow their focus to the department and lose sight of organizational goals/ issues.Accountability and performance are difficult to monitor.
15 Product Departmentalization Form DisadvantagesManagers may focus on their product to the exclusion of the rest of the organization.Administrative costs may increase due to each department having its own functional-area experts.
16 Product Departmentalization Form Grouping activities around products or product groups.AdvantagesAll activities associated with one product can be integrated and coordinated.Speed and effectiveness of decision making are enhanced.Performance of individual products or product groups can be assessed
17 Customer Departmentalization Grouping activities to respond to and interact with specific customers and customer groups.AdvantageSkilled specialists can deal with unique customers or customer groups.DisadvantageA large administrative staff is needed to integrate activities of various departments.
18 Location Departmentalization Location (Geographic) DepartmentalizationThe grouping of jobs on the basis of defined geographic sites or areas.AdvantageEnables the organization to respond easily to unique customer and environmental characteristics.DisadvantageLarge administrative staff may be needed to keep track of units in scattered locations.
20 Departmentalization Other Forms of Departmentalization Grouping activities by timeBy specific units of timeBy sequence.By a characteristic of the customer, product, or serviceOther ConsiderationsDepartments are often called by other names.Divisions, units, sections, and bureausOrganizations are likely to employ multiple bases of departmentalization, depending on level.
21 Establishing Reporting Relationships Chain of Command (scalar chain)A clear and distinct line of authority among the positions in an organization.Scalar Principle (Fayol)A clear and unbroken line of authority must extend from the bottom to the top of the organization.Unity of Command (Fayol)Each person within an organization must have a clear reporting relationship to one and only one boss.
22 Establishing Reporting Relationships (Span of Control) Narrow Versus Wide SpansSpan of Management (Span of Control)The number of people who report to a particular manager.A. V. GraicunasSubordinate interactionsDirect—manager’s relationship with each subordinate.Cross—among the subordinates themselves.Group—between groups of subordinates.Formula for the number of interactions of all types:I = N(2N/2 + N - 1), where I is the total number of interactions and N is number of subordinates.
23 Establishing Reporting Relationships (Span of Control) Narrow Versus Wide SpansRalph DavisOperative span for lower-level managers of up to 30 workers.Executive span for middle and top managers set at 3 to 9.Span depends on managers’ jobs, company growth rate, and similar factorsLyndall Urwick and General Ian HamiltonExecutive span should never exceed six
24 Establishing Reporting Relationships: Tall versus Flat Organizations Tall OrganizationsAre more expensive because of the number of managers involved.Foster more communication problems because of the number of people through whom information must pass
25 Establishing Reporting Relationships: Tall versus Flat Organizations Lead to higher levels of employee morale and productivity.Create more administrative responsibility for the relatively few managers.Create more supervisory responsibility for managers due to wider spans of control.
27 Factors Influencing the Span of Management Competence of the supervisor.Competence of the subordinates.Physical dispersion.Extent of manager’s nonsupervisory work (the greater the narrower the span).Degree of required interaction (the greater, the narrower the span).Extent of SOPs (the greater the wider the span).Frequency of problems (the greater, the narrower the span).Preferences of supervisors and subordinates.
28 Distributing Authority Power that has been legitimized by the organization.DelegationThe process by which managers assign a portion of their total workload to others.Reasons for DelegationTo enable the manager to get more work done by utilizing the skills and talents of subordinates.To foster development of subordinates by having them participate in decision making and problem.
30 Problems in Delegation ManagerReluctant to delegate.Disorganization prevents planning work in advance.Subordinate’s success threatens superior’s advancement.Lack of trust in the subordinate to do well.
31 Problems in Delegation SubordinateReluctant to accept delegation for fear of failure.Perceives no rewards for accepting additional responsibility.Prefers to avoid any risk and responsibility.
32 Decentralization and Centralization Systematically delegating power and authority throughout the organization to middle- and lower-level managers.CentralizationSystematically retaining power and authority in the hands of higher-level managers.
33 Decentralization and Centralization Factors Determining Choice of CentralizationExternal environment’s complexity and uncertaintyHistory of the organizationNature (cost and risk) of the decisions to be made.
34 Coordinating Activities CoordinationThe process of linking the activities of the various departments of the organization.The Need for CoordinationDepartments and work groups are interdependent; the greater the interdependence, the greater the need for coordination.
35 Coordinating Activities: Three Major Forms of Interdependence Pooled interdependenceWhen units operate with little interaction; their output is simply pooled at the organizational level.Sequential interdependenceWhen the output of one unit becomes the input of another unit in sequential fashion.Reciprocal interdependenceWhen activities flow both ways between units.
36 Structural Coordination Techniques The Managerial HierarchyPlacing one manager in charge of interdependent departments or units.Rules and ProceduresRoutine coordination activities can be handled via rules and procedures that set priorities and guidelines for actions.
37 Structural Coordination Techniques Liaison RolesA manager coordinates interdependent units by acting as a common point of contact, facilitating the flow of information.Task ForcesUsed with multiple units when coordination is complex, requiring more than one individual and the need for coordination is acute.Disbanded when need for coordination has been met.
38 Structural Coordination Techniques (cont’d) Integrating DepartmentsPermanent organizational units that maintain internal integration and coordination on an ongoing basis.May have authority and budgetary controls.Electronic Coordination, electronic scheduling, PDAs, cell phones.
39 Differentiating Between Positions Line PositionsPositions in the direct chain of command responsible for the achievement of an organization’s goals.Have formal (legitimate) authority.Staff PositionsPositions intended to provide expertise, advice, and support to line positions.Have advisory authority; can give compulsory advice.Have functional authority to enforce compliance with organizational policies and procedures.
40 Differentiating Between Positions Administrative IntensityThe degree to which managerial positions are concentrated in staff positions.