1. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 12 Organizing Concepts

2. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Learning Objectives Discuss the nature of organizing, describe the organizing process, and identify key components and concepts involved in organizing. Discuss job design in organizations, including job specialization and alternatives to it. Indicate how jobs are grouped, particularly grouping by function, product, and location.

3. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Learning Objectives Define and discuss authority, responsibility, delegation, and decentralization. Discuss the concept of the group effectiveness, its impact on the shape of organizations, and how a manager might determine what will make a group effective. Define line and staff positions and indicate their roles in organizational analysis.

4. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The Nature of Organizing The Organizing Process – Organizations start out in one form and evolve into other forms as they grow, shrink, or otherwise change. – New circumstances, opportunities, and threats will always cause modifications and adjustments to the organization.

5. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The Nature of Organizing Key Organizing Components and Concepts – Designing jobs: departmentalization. – Defining authority and responsibility: decentralization. – Organizing for group effectiveness. – Managing line and staff positions.

6. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Designing Jobs Job Design – Determining procedures and operations the employee in each position will perform. Job Specialization – Basis for all job-design activities.

7. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Designing Jobs Alternatives to Specialization – Job rotation: systematically moving employees from one job to another. – Job enlargement: changes nature of job itself. – Job enrichment: workers given not only more activities to perform but more discretion as to how to perform them.

8. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Grouping Jobs Departmentalization by Function – Group together employees who are involved in the same or similar functions or broad activities. – Managers of each function can easily coordinate and control activities within department. – Areas of responsibility clearly defined.

9. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Grouping Jobs Departmentalization by Product – Group together all activities associated with individual products or related product groups. – Activities associated with unique products kept together. – Decision making faster. – Easier to monitor performance of individual product groups.

10. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Grouping Jobs Departmentalization by Location – Jobs in same or nearby locations grouped together in single department. – Close to location of decision-making responsibilities. See Table 12.1: Departmentalization by Function, Product, and Location.

11. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Grouping Jobs Other Considerations in Departmentalization – Departmentalization by: Customer Time Sequence Multiple bases Level Individual circumstances

12. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Authority and Responsibility Delegation – Manager assigns a portion of his tasks to those reporting to him. Assigns responsibility. Grants necessary authority. Creates accountability. – Barriers to delegation.

13. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Authority and Responsibility Decentralization – Power and control systematically delegated to lower levels in organization. Centralization – Power and control systematically kept at top of organization.

14. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Group Effectiveness Group Size and Span of Management – Span of management: number of people who directly report to a given manager. – Wide span: manager responsible for large group. – Narrow span: manager responsible for small group. – Groups involve complex network of interrelationships.

15. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Group Effectiveness Organizational Levels: Tall vs. Flat Organization – Flat organization: relatively few levels of management (wide span of management). – Tall organization: adds more layers of management (narrow span of management).

16. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Group Effectiveness Factors Influencing Group Effectiveness – Competence of manager and group – Physical dispersion – Preference – Task similarity

17. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Group Effectiveness Factors Influencing Group Effectiveness – Nonsupervisory work – Required interaction – Standardization – Frequency of new problems

18. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Line and Staff Positions Line Positions – Direct chain of command with specific responsibility for accomplishing goals of organization. Staff Positions – Outside direct chain of command and advisory or supportive in nature.

19. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter Summary Organizing: grouping activities and resources in logical and appropriate fashion. Designing jobs: determining degree or extent of specialization in each job. Basis for job design is job specialization. Alternatives to specialization: – Job rotation – Job enlargement – Job enrichment

20. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter Summary Departmentalization: grouping jobs into logical sets to make coordination and integration easier. – Functional – Product – Location

21. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter Summary Delegation: manager assigns portions of tasks to group members. – Assigns responsibility to do a task. – Grants authority necessary to accomplish the task. – Creates obligation for group member to carry out job.

22. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter Summary Decentralization is result of delegation. Power and control systematically delegated to lower levels of organization. Span of management: number of people who directly report to a given manager. – Flat organizations: fewer levels of management. – Tall organizations: more levels of management.

23. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter Summary Eight factors influence relation of span to group effectiveness. – Competence of manager and workers – Physical dispersion – Individual preferences – Degree of task similarity

24. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter Summary Eight factors influence relation of span to group effectiveness. – Amount of nonsupervisory work done by manager – Extent of necessary interaction among group members – Degree of standardization of work – Frequency with which new problems occur

25. © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter Summary Line positions carry specific responsibilities for accomplishing goals of organization. Staff positions advisory or supportive in nature. Distinctions becoming less clear between the two positions.