6–16–1Copyright © 2006 Thomson Business and Economics. All rights reserved. Agenda and Announcements Agenda –Team Training Presentation –Review Chapter 6 –Hitachi Case –Freddie Barrett – Conflict Management Announcements –Class Grades Now in Blackboard System on Sunday with Instructions ID any missing assignments from Gradebook – Participation Option – Blackboard Forums – Feedback–Re-look at Environmental Factors in Chapter 2 External Factors (understand: society, labor, technology, economy) Internal Factors (understand: structure, systems processes)

PowerPoint Presentation by Charlie Cook The University of West Alabama Copyright © 2006 Thomson Business and Economics. All rights reserved. Chapter 6 Organizing and Delegating Work

6–36–3Copyright © 2006 Thomson Business and Economics. All rights reserved. Organizing Questions Questions for ManagersChapter Topic Who should departmentsChain of command; and individuals report to? organization chart How many individuals should Span of management report to each manager? How should we subdivide Division of labor; the work? departmentalization How do we get everyone toCoordination work together as a system? At what level should decisions Centralization vs. decentralization be made? of authority How do we organize to meetDepartmentalization our mission and strategy? Exhibit 6–1

6–46–4Copyright © 2006 Thomson Business and Economics. All rights reserved. Levels of Authority Authority to Inform –Inform a superior of action alternatives and the superior makes the decision. Authority to Recommend –List alternatives/actions and recommend one action; superior makes action decision. Authority to Report –Select and implement a course of action, reporting action to superior. Full Authority –Acting independently without supervision. $$ LEVELS OF AUTHORITY ARE USUALLY SPELLED OUT

6–56–5Copyright © 2006 Thomson Business and Economics. All rights reserved. Line and Staff Authority Line Authority –The responsibility to make decisions and issue orders down the chain of command OF AN OPERATIONS ORGANIZATION SALES, MANUFACTURING, SERVICE, OPERATIONS. Staff Authority –The responsibility to advise and assist line and other personnel. –STAFF PROVIDES EXPERTISE ACROSS MULTIPLE GROUPS Example: Staff vs. Line – Who has Authority & Responsibility? Who has Accountability? Staff “Serves” Line or Line “Serves” Staff

6–66–6Copyright © 2006 Thomson Business and Economics. All rights reserved.

6–76–7 Line and Staff Authority (cont’d) General staff –Work for only one manager and help the manager in any way needed. Specialist staff –Help anyone in the organization who needs it.

6–86–8Copyright © 2006 Thomson Business and Economics. All rights reserved. Centralized and Decentralized Authority Centralized Authority –Important decisions are made by top managers. Decentralized Authority –Important decisions are made by middle and first-line managers. CAN ALSO APPLY TO SPECIALIZED DEPARTMENTS Human Resources IT Real Estate Purchasing/Supply Chain Legal

6–96–9Copyright © 2006 Thomson Business and Economics. All rights reserved. Organization Design Contingency Factors Affecting Structure –Environment (mechanistic versus organic) –Production technology –Strategy (“structure follows strategy”) –Size of the organization (larger = more formal) Organization Chart –A graphic illustration of the organization’s management hierarchy and departments and their working relationships. Management level, chain of command, division and type of work, and departmentalization.

6–10Copyright © 2006 Thomson Business and Economics. All rights reserved. Types of Departmentalization Exhibit 6–6

6–11Copyright © 2006 Thomson Business and Economics. All rights reserved. Types of Departmentalization (cont’d) Exhibit 6–6 cont’d

6–12Copyright © 2006 Thomson Business and Economics. All rights reserved. Multiple Departmentalization Hybrid structures using combinations of functional and product departmentalization Matrix Departmentalization –Unity of command –Coordination issues Divisional Departmentalization –Strategic business units (SBUs) –Conglomerate structures: profit centers

6–13Copyright © 2006 Thomson Business and Economics. All rights reserved. Matrix Departmentalization Exhibit 6–7

6–14Copyright © 2006 Thomson Business and Economics. All rights reserved. New Approaches to Departmentalization Horizontal Team Organization –Has an all-directional focus to increase speed of response, individual accountability, flexibility, knowledge sharing, and coordination. –Networks Boundaryless interrelationships among different organizations. –Virtual Organization A continually evolving group of companies that unite temporarily to exploit specific opportunities or to attain strategic advantages and then disband when objectives are met.

6–15Copyright © 2006 Thomson Business and Economics. All rights reserved. Job Design –The process of identifying tasks that each employee is responsible for completing. Job Design Options –Job Simplification Eliminate tasks Combine tasks Change task sequence –Job Expansion Rotate jobs Add tasks Job enrichment (increase task variety and employee responsibility) –Work Teams Integrated Self-managed Exhibit 6–8

6–16Copyright © 2006 Thomson Business and Economics. All rights reserved. The Job Characteristics Model Exhibit 6–9

6–17Copyright © 2006 Thomson Business and Economics. All rights reserved. Great Job Designs Consider: Functional Completeness – Beginning to End (Autonomy) Consistent Relationship – Ongoing Relationships (Identity) Feedback from the Work Itself – Direct Not Filtered Example: CopyCollateAssembleShip/DeliverOrder Intake Customer A Customer B Customer C Customer D

6–18Copyright © 2006 Thomson Business and Economics. All rights reserved. High Performance Organizational Design 1.Design Workflow and Decision Points 2.Gather Tasks into Jobs –Functional Completeness –Consistent Relationships –Feedback –Authority, Responsibility and Accountability 3.Build Appropriate Supervision Workflow: Job Design: Organization: CopyCollateAssembleShip/DeliverOrder Intake Business School Copy Clerk Supervision: Different Tasks than Employees Coordination, Resource Mgmt., Training, Cross Department Integration

6–19Copyright © 2006 Thomson Business and Economics. All rights reserved. Delegation Benefits –More time for other high-priority tasks. –Trains employees and improves their self-esteem. –Enriches jobs and improves personal and work outcomes. Obstacles –Reluctance to stop doing tasks personally. –Fear of employee’s failure to accomplish task. –Threatened by employee’s success.

6–20Copyright © 2006 Thomson Business and Economics. All rights reserved. What to Delegate and What Not to Delegate What to Delegate –Paperwork –Routine tasks –Technical matters –Tasks that develop employees –Tasks associated with solving employee’s problems What Not to Delegate –Anything that you need to be involved with because of your unique knowledge or skill –Personnel matters (evaluating, disciplining, firing) –Confidential matters Exhibit 6–11 Depending on Situational Leadership and Management Style - Projects or tasks in crisis - Activities delegated to you personally