ORGANIZING AND WORK Chapter 12

“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

Objectives Recognize the reasons for organizing work Understand how businesses prevent their workers from losing interest in their jobs Explain why managers need to delegate authority and responsibility

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

Management Skills How 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?

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: Parenting Education Levels of government

What You’ll Learn How organizing helps groups of people achieve results they could not achieve alone Three reasons why businesses organize workforces Nine characteristics of successful organizations How businesses prevent workers from losing interest in highly specialized jobs Why businesses decentralize their operations

“Without a well-defined organization, no business can be successful” Why is this important? “Without a well-defined organization, no business can be successful”

What is an Organization? A group of people working together in a coordinated effort to reach certain goals Efficiency Effectiveness Better Results Manager’s role in organization To ensure that everyone in the organization works together in a coordinated manner

Why do Businesses Organize Their Workforces? To create clear lines of authority To improve productivity To make it easier for people within a company to communicate with each other To increase profit Provide a sense of stability and belonging when working for an effective organization

Establishing Lines of Authority Authority: Power based on the rights that come with a position President: Can order troops into battle CEO: To make important decisions Store Managers: To approve returns or offer discounts on damaged merchandise Ensures that those making decisions are qualified and are made at the appropriate level Chain of Command: The line of authority within an organization

Advantages of a Well-Defined Chain of Command Makes it easy for all to understand who is in charge Problems are addressed at the lowest possible level

Disadvantages of a Well-Defined Chain of Command Can create problems in structure is too rigid or too complicated Too many layers! Assigning responsibility will be difficult Decisions are made slowly, often by people with only a limited understanding of the issues involved

Improving Productivity Division of Labor: The assignment of specific tasks to individuals or groups Specialization Groups of workers perform very specific tasks or sets of tasks based on a skill level Job Rotation Periodically moving workers from one job to another Job Scope Number of operations involved in a job Narrow Scope vs. Broad Scope Job Depth Freedom employees have to plan and organize their work, interact with co-workers, and work at their own pace

Marshmallow Activity!!! Teams form assembly lines to build marshmallow/toothpick towers (at least 9 inches high), using 40 toothpicks and 40 marshmallows Post activity discussion: Ask how the groups organized this project

Improving Communication Company Expectations Goals Strategies Policies Procedures Communicate: Meetings, memos, e-mail, telephone conversations, and informal encounters

What Makes an Organization Effective? Knowing Your Customers and Responding to Their Needs To succeed in the business world, companies must change to keep up with customer needs What are some ways that Kodak has done this? (established first simple camera in 1888)

Characteristics of Highly Effective Organizations Responsive to the market Customer centered Committed to maintaining networks and alliances Developed around a vision Focused on creating top-quality products and services Dedicated to positive learning and change Attentive to meeting responsibilities to customers, employees, suppliers, and society Committed to measuring their progress against world-class standards of excellence Able to respond to changing market conditions quickly

What Makes an Organization Effective? Decentralization – Managers at all levels make decisions Advantages: Increases an organization’s ability to respond to market changes by allowing decisions to be made by managers who are close to their customers Frees senior managers from many day-to-day tasks Increases lower-level managers’ job scope which increasing their responsibility and interest on the job Disadvantages: Can result in a loss of managerial control Duplication of effort

12. 1: Chapter Summary Organizations help individuals work together efficiently and effectively A well-defined chain of command defines who is in charge for all members of an organization The division of labor assigns specific tasks to individuals or groups Companies prevent boredom in specialized workforces by rotating jobs, widening job scope, and increasing job depth

Sec. 12.2: Delegating Responsibility What do you respect about authority and how do you work best with it Teacher – Student Parent – Child Coach – Player Supervisor – Employee What are the advantages and disadvantages of working in teams? What role does responsibility play?

What You’ll Learn Three benefits of delegating Five reasons some managers are reluctant to delegate How managers delegate effectively Why is this Important? “Managers cannot and should NOT make ALL decisions themselves.”

Maintaining Authority Delegate: To assign responsibility and authority for a task to another person Responsibility: Obligation to perform assigned duties Subordinate: Person holding a lower position within an organization Delegating 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?”

Enforcing the Unity of Command Principle Unity of Command: An employee should have only one immediate supervisor Eliminates confusion Eliminates 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?”

Maintaining Authority Establishing an Appropriate Span of Management (Span of control) Defines the number of subordinates a manager can effectively control Factors that control the quantity a manager can handle The complexity of the jobs subordinates perform The quality of the people who fill the positions The ability of the manager

What are the benefits of this new type of management? Traditional Manager Team Manager Thinks of self as a manager or boss Follows the chain of command Works within a set organizational structure Makes most decisions alone Hoards information Tries to master one discipline Demands long hours Sponsor, Team Leader, Internal Consultant Deals with anyone necessary to get the job done Changes organizational structure in response to market changes Invites others to join in decision-making Shares information Tries to master a broad array of managerial disciplines Demands results The team manager represents one who is more of a team player than a boss. What are the benefits of this new type of management?

Maintaining Authority Giving Subordinates the Authority to Make Decisions Ensuring Accountability The obligation to accept responsibility for one’s actions Allows managers to monitor the work of subordinates

Why Delegate? Task is too time-consuming to handle alone Task is too routine to warrant a manager’s attention Task requires special skills that a manager may not possess Benefits of Delegating Decisions are made by people with the most direct knowledge of issues Employees feel that management has confidence in their abilities when work is delegated to them Employees are more committed Increase employees’ job skills and knowledge of the organization

Learning to Delegate Analyze how you spend your time as manager Identify tasks that could be handled by subordinates Determine which subordinates could best handle them Make sure subordinate understands and accepts responsibility for the task he or she is being given Clearly define objectives of all tasks Set standards Provide appropriate training

Reasons Managers Resist Delegating Fear that subordinates will not perform the task well Fear that subordinates will do the job too well, showing up the manager The belief that it is easier to perform the task oneself than to delegate it to someone else The natural tendency to want to hold on to power Comfort in performing the tasks one is used to performing

12. 2: Chapter Summary Managers should delegate authority and responsibility for decision-making to subordinates The unity of command principle states that an employee should have one immediate supervisor The span of management defines the number of subordinates a manager can effectively control In successful delegation managers identify tasks to be delegated, choose a subordinate to handle tasks, and establish expectations

Case Analysis Jim 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

Math Skills Cindy 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?