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 jobsExplain 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 SkillsHow 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:ParentingEducationLevels of government
7 What You’ll LearnHow organizing helps groups of people achieve results they could not achieve aloneThree reasons why businesses organize workforcesNine characteristics of successful organizationsHow businesses prevent workers from losing interest in highly specialized jobsWhy 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 goalsEfficiencyEffectivenessBetter ResultsManager’s role in organizationTo ensure that everyone in the organization works together in a coordinated manner
10 Why do Businesses Organize Their Workforces? To create clear lines of authorityTo improve productivityTo make it easier for people within a company to communicate with each otherTo increase profitProvide 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 positionPresident: Can order troops into battleCEO: To make important decisionsStore Managers: To approve returns or offer discounts on damaged merchandiseEnsures that those making decisions are qualified and are made at the appropriate levelChain 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 chargeProblems 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 complicatedToo many layers!Assigning responsibility will be difficultDecisions 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 groupsSpecializationGroups of workers perform very specific tasks or sets of tasks based on a skill levelJob RotationPeriodically moving workers from one job to anotherJob ScopeNumber of operations involved in a jobNarrow Scope vs. Broad ScopeJob DepthFreedom 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 marshmallowsPost activity discussion:Ask how the groups organized this project
16 Improving Communication Company ExpectationsGoals Strategies Policies ProceduresCommunicate: Meetings, memos, , telephone conversations, and informal encounters
17 What Makes an Organization Effective? Knowing Your Customers and Responding to Their NeedsTo succeed in the business world, companies must change to keep up with customer needsWhat are some ways that Kodak has done this? (established first simple camera in 1888)
18 Characteristics of Highly Effective Organizations Responsive to the marketCustomer centeredCommitted to maintaining networks and alliancesDeveloped around a visionFocused on creating top-quality products and servicesDedicated to positive learning and changeAttentive to meeting responsibilities to customers, employees, suppliers, and societyCommitted to measuring their progress against world-class standards of excellenceAble to respond to changing market conditions quickly
19 What Makes an Organization Effective? Decentralization – Managers at all levels make decisionsAdvantages:Increases an organization’s ability to respond to market changes by allowing decisions to be made by managers who are close to their customersFrees senior managers from many day-to-day tasksIncreases lower-level managers’ job scope which increasing their responsibility and interest on the jobDisadvantages:Can result in a loss of managerial controlDuplication of effort
20 12. 1: Chapter SummaryOrganizations help individuals work together efficiently and effectivelyA well-defined chain of command defines who is in charge for all members of an organizationThe division of labor assigns specific tasks to individuals or groupsCompanies 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 itTeacher – StudentParent – ChildCoach – PlayerSupervisor – EmployeeWhat 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 delegateHow managers delegate effectivelyWhy 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 personResponsibility: Obligation to perform assigned dutiesSubordinate: Person holding a lower position within an organizationDelegating 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 supervisorEliminates confusionEliminates 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 controlFactors that control the quantity a manager can handleThe complexity of the jobs subordinates performThe quality of the people who fill the positionsThe ability of the manager
26 What are the benefits of this new type of management? Traditional ManagerTeam ManagerThinks of self as a manager or bossFollows the chain of commandWorks within a set organizational structureMakes most decisions aloneHoards informationTries to master one disciplineDemands long hoursSponsor, Team Leader, Internal ConsultantDeals with anyone necessary to get the job doneChanges organizational structure in response to market changesInvites others to join in decision-makingShares informationTries to master a broad array of managerial disciplinesDemands resultsThe 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 DecisionsEnsuring AccountabilityThe obligation to accept responsibility for one’s actionsAllows 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 attentionTask requires special skills that a manager may not possessBenefits of DelegatingDecisions are made by people with the most direct knowledge of issuesEmployees feel that management has confidence in their abilities when work is delegated to themEmployees are more committedIncrease 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 subordinatesDetermine which subordinates could best handle themMake sure subordinate understands and accepts responsibility for the task he or she is being givenClearly define objectives of all tasksSet standardsProvide appropriate training
30 Reasons Managers Resist Delegating Fear that subordinates will not perform the task wellFear that subordinates will do the job too well, showing up the managerThe belief that it is easier to perform the task oneself than to delegate it to someone elseThe natural tendency to want to hold on to powerComfort in performing the tasks one is used to performing
31 12. 2: Chapter SummaryManagers should delegate authority and responsibility for decision-making to subordinatesThe unity of command principle states that an employee should have one immediate supervisorThe span of management defines the number of subordinates a manager can effectively controlIn successful delegation managers identify tasks to be delegated, choose a subordinate to handle tasks, and establish expectations
32 Case AnalysisJim 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 SkillsCindy 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?