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

2. Learning Outcomes After studying this chapter, you should be able to:
Explain the difference between a flat organization and a tall organization.
Describe the similarities and differences among liaisons, integrators, and people in boundary roles.
Discuss the difference between formal and informal authority and centralized and decentralized authority.
List and briefly explain the four levels of authority.
Describe the relationship between line authority and staff authority.
Explain what an organization chart is and list the four aspects of a firm that it shows.
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3. Learning Outcomes (cont’d)
Discuss the difference between internal and external departmentalization.
State the similarities and differences between matrix and divisional departmentalization.
Explain the difference between job simplification and job expansion.
Describe the job characteristics model.
Explain how to set priorities by answering three priority questions and determining whether activities have high, medium, or low priority.
List the four steps in the delegation process.
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4. Learning Outcomes (cont’d)
Define the following key terms:
span of management decentralized authority
responsibility organization chart
authority departmentalization
delegation divisional structure
levels of authority job design
line authority job enrichment
staff authority job characteristics model
centralized authority priority-determination questions
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5. Ideas on Management at Post and Schell
What key organizational principles guided Post & Schell in its reorganization?
How has authority changed at Post & Schell?
What organizational design did Post & Schell adopt?
What type of job design does Post & Schell use?
What prioritization and delegating issues does Post & Schell face?
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6. Organizing Questions Questions for Managers Chapter Topic
Who should departments Chain 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 to Coordination work together as a system?
At what level should decisions Centralization vs. decentralization be made? of authority
How do we organize to meet Departmentalization our mission and strategy?
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Exhibit 6–1

7. Principles of Organization
Unity of Command and Direction
Chain of Command
Span of Management (flat and tall organizations)
Division of Labor (specialization, departmentalization, integration)
Coordination
Balanced Responsibility and Authority
Delegation
Flexibility
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Exhibit 6–2

8. Balanced Responsibility and Authority
The obligation to achieve objectives by performing required activities.
Authority
The right to make decisions, issue orders, and use resources.
Accountability
The evaluation of how well individuals meet their responsibilities.
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9. Balanced Responsibility and Authority (cont’d)
Delegation
The process of assigning responsibility and authority for accomplishing objectives.
Flexibility
The ability to adapt to exceptions to the rules, policies, and procedures of the organization.
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10. Copyright © 2006 Thomson Business and Economics. All rights reserved.

11. Authority Formal Authority (or Structure) Informal Authority
The organizationally-sanctioned way of getting the job done.
Organizational charts illustrate formal lines of authority in firms.
Informal Authority
The patterns of relationships and communication that evolve as employees interact and communicate that is not sanctioned by the organization.
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12. Authority (cont’d) Scope of Authority
A hierarchy as it flows down the organization.
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Exhibit 6–3

13. Levels of Authority Authority to Inform Authority to Recommend
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.
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14. Line and Staff Authority
Line Authority
The responsibility to make decisions and issue orders down the chain of command.
Staff Authority
The responsibility to advise and assist line and other personnel.
Functional authority
The right of staff personnel to issue orders to line personnel in established areas of responsibility.
Dual line and staff authority
Staff personnel exercise line authority within their own departments.
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16. 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.
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17. Centralized and Decentralized Authority
Important decisions are made by top managers.
Decentralized Authority
Important decisions are made by middle and first-line managers.
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18. Authority
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Exhibit 6–4

19. 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.
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20. Organization Chart Exhibit 6–5
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Exhibit 6–5

21. Departmentalization Departmentalization Functional departmentalization
The grouping of related activities into units.
Functional departmentalization
Based on the internal operations or functions that the employees perform and the resources needed to accomplish that work.
External, or output, departmentalization
Based on activities or factors outside the organization: product, customer, or territory.
Multiple Departmentalization
Hybrid structure: matrix and divisional (SBUs)
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22. Types of Departmentalization
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Exhibit 6–6

23. Types of Departmentalization (cont’d)
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Exhibit 6–6 cont’d

24. 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
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25. Matrix Departmentalization
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Exhibit 6–7

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27. Copyright © 2006 Thomson Business and Economics. All rights reserved.

28. 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.
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29. Job Design Job Design Job Design Options
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
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Exhibit 6–8

30. The Job Characteristics Model
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Exhibit 6–9

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32. Setting Priorities Priority-Determination Questions
Do I need to be personally involved because of my unique knowledge or skills?
Is the task my responsibility, or will it affect the performance or finances of my department?
When is the deadline—is quick action needed?
Assigning Priorities
Delegate (D) priority: The task is delegated if the answer to question 1 is no.
High (H) priority: Assign the task a high priority if you answer yes to all three questions.
Medium (M) priority: Assign the task a medium priority if you answer yes to question 1 but no to one of the remaining two questions.
Low (L) priority: Assign the task a low priority if you answer yes to question 1 but no to both questions 2 and 3.
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33. Prioritized To-Do List
Write the task that you must perform on the task line.
Answer the three priority questions by placing a Y (yes) or N (no) in the relevant column.
Assign a priority to the task by placing the letter D (delegate), H (high), M (medium), or L (low) in the priority column.
Determine which task to complete now.
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Exhibit 6–10

34. Delegation Benefits Obstacles 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.
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35. What to Delegate and What Not 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
Projects or tasks in crisis
Activities delegated to you personally
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Exhibit 6–11

36. Steps in the Delegation Model
1. Explain the need for delegating and the reasons for selecting the employee.
2. Set objectives that define responsibility, the level of authority, and the deadline.
3. Develop a plan.
4. Establish control checkpoints and hold employees accountable.
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