1. Chapter 5 Organizing

2. Advanced Organizer Managing Engineering and Technology
Management Functions
Managing Technology
Personal Technology
Decision Making
Planning
Organizing
Leading
Controlling
Research
Design
Production
Quality
Marketing
Project Management
Time Management
Ethics
Career

3. Chapter Objectives Analyze the different forms of an organization
Explain different organizational structures
Describe the differences in line and staff relationships
Describe the use and value of teams

4. Legal Forms of Organization
Sole Proprietorship
Partnership
Corporations
S-Corporation
Limited Liability Companies
Cooperatives

5. Sole Proprietorship Ownership:1 person Legal Restrictions: few
Duration: Life of the Proprietor
Taxation: Through personal tax
Advantages
Simple to operate
Owner is free to make all decisions
Disadvantages
Owner faces unlimited liability
Difficult to raise capital

6. Partnership Ownership: 2 or More Legal Restrictions: Few Duration:
Taxation: Through personal tax
Advantages
Pooling of management skills, financial strength
Disadvantages
Divided decision-making authority
Partners face unlimited liability

7. Corporations Ownership: Shareholders Legal Restrictions: many
Duration: Perpetual
Taxation: Double taxes
Advantages
Easy to raise capital,
Easy to transfer ownership, and change mgmt.
Disadvantages
Difficult to organize
Double taxes

8. S-Corporation Ownership: Shareholders Legal Restrictions: many
Duration: No perpetual life
Taxation: Through personal tax
Restrictions
No more than 75 owners
Only one class of stock
No retained earnings

9. Limited Liability Companies (LLC)
Ownership: Members
Duration: Perpetual (in most of states)
Taxation: Through personal tax
Advantages
Limited liabilities
No limitation on the number of members
May issue more than one class of stock

10. Cooperatives Ownership: Users Legal Restrictions: Duration:
Taxation: Tax-free
Advantages 
Disadvantages 

11. Organizing: Identification and classification of required activities
Grouping of activities necessary to attain objectives
Assignment of each grouping to a manager with authority
Provision for coordination horizontally and vertically

12. Purpose of Organizing
“Organizations are not built to serve customers; they are built to preserve internal order. To customers, the internal structure may not only mean very little; it may serve as a barrier.
“Organizational charts are vertical and serving the customers is horizontal.”
George Fisher, CEO, Motorola

13. Patterns of Departmentation
Function
Product
Geographic location
Type of customers
Process or equipment
Shift or time
Numbers

14. Span of Control Number of people reporting directly to each manager
Number of relationships: n [2(n-1) + n – 1]
Subordinate training
Nature of job supervised
Rate of change of activities and personnel
Clarity of instruction and delegation
Staff assistance

15. Line & Staff Relationships
Line functions: those accomplish the main mission of the organization, e.g. production, sales, finance, etc
Staff functions: those help the line accomplish the objectives by providing some sort of advice or service
Personal staff
Specialized staff: serve the entire organization, e.g., personnel, procurement, legal counsel, market research

16. Line & Staff Relationships
Line relationships: Superior-subordinate relationships (chain of command) typically represented vertically in organizational charts
Staff relationships: Advisory in nature, degree of influence may vary
Provide advice on request
Recommendations when appropriate
Must be consulted by line but have no direct authority
Concurring authority - veto authority over line

17. Line and Staff Relationships
Service: Centralized support functions
Custodial
Security
Medical

18. Line and Staff Relationships

19. Modern Organization Structures
Project and Other Temporary Organizations
Impact of Information Revolution

20. Project and Other Temporary Organizations
Matrix management
Team Organization

21. Teams Small group of people Serve interests of its members
Exchange ideas freely and clearly
Have common goals
Committed to achieving goals
Each team member treated equally

22. Impact of Information Revolution
Computer
Internet
Intranet

23. Computer Technology’s Impact on the Work Force
Factory workers will require a higher level of skills
Visualization
Conceptual thinking
Knowledge of production process
Statistical inference
Oral and visual communication
Attentiveness
Individual responsibility

24. Impact of Information Revolution
Disappearance of job security
Shared responsibility of employers (providing opportunity) and employees (self-improving)
Increasing demand for professional & technical workers
Decreasing demand for operators, laborers, craftsmen, clerical staff, and farm workers.
Reduced real wages
Continuing downsizing of staff, longer working hours under high stress.
Increases in part-time, contract, and self-employed workers.