1. part Chapter © 2009 The McGraw-Hill Companies, Inc. All rights reserved. 1 McGraw-Hill Organizing Work 2 Chapter 7

2. © 2009 The McGraw-Hill Companies, Inc. All rights reserved. 2 McGraw-Hill Learning Objectives 1.Explain the importance and rationale behind organizing work. 2.Define division of labor. 3.Distinguish between power, authority, and responsibility. 4.Explain the concept of centralization versus decentralization. 5.Define empowerment. 6.Identify several reasons why managers are reluctant to delegate authority.

3. © 2009 The McGraw-Hill Companies, Inc. All rights reserved. 3 McGraw-Hill Organizing Work Most work done through organizations Process of organizing – division of labor More effective use of resources Informal organization Reasons for Organizing Primary reason – establish lines of authority Improves efficiency and quality – Synergism Final reason – improve communication

4. © 2009 The McGraw-Hill Companies, Inc. All rights reserved. 4 McGraw-Hill Division of Labor Organizing Labor can be divided –Vertical division –Horizontal division 6 advantages of horizontal division Major problem – boredom and humiliation Job scope Job depth Not desirable in all situations

5. © 2009 The McGraw-Hill Companies, Inc. All rights reserved. 5 McGraw-Hill Power, Authority, and Responsibility Power Authority Responsibility Sources of Authority Function of position Formal theory Acceptance theory

6. © 2009 The McGraw-Hill Companies, Inc. All rights reserved. 6 McGraw-Hill Centralization versus Decentralization Limitations to the authority Funnels – Figures 7.1 and 7.2 Degree of authority Never completely either Today’s trend – more decentralization Advantage – flexibility and quicker action Disadvantage – potential loss of control

7. © 2009 The McGraw-Hill Companies, Inc. All rights reserved. 7 McGraw-Hill Empowerment A form of decentralization Managers express confidence Four elements must be present : –Participation, innovation, access to information, and accountability Looks simple Several actions to implement Today’s trend Self-managed work teams

8. © 2009 The McGraw-Hill Companies, Inc. All rights reserved. 8 McGraw-Hill Principles Based on Authority Key concepts – delegation, unity of command, the scalar principle, and the chain of command Delegation: The Parity Principle Herbert Engel Occurs when one needs something done Responsibility Parity principle Subordinates must accept Reasons for manager’s reluctance Successful delegation

9. © 2009 The McGraw-Hill Companies, Inc. All rights reserved. 9 McGraw-Hill How to Delegate Successful delegation Defining objectives Controlling delegation Checks Most vague part Rule of thumb Failure to master Exception principle Micromanaging

10. © 2009 The McGraw-Hill Companies, Inc. All rights reserved. 10 McGraw-Hill Unity of Command One immediate manager Key to avoiding problems Problems stem from managers Scalar Principle Chain of command Problem Common misconception

11. © 2009 The McGraw-Hill Companies, Inc. All rights reserved. 11 McGraw-Hill Span of Management Sir Ian Hamilton V. A. Graicunas Lyndall Urwick Criticism Revision Opposite situation overlooked Pros and cons

12. © 2009 The McGraw-Hill Companies, Inc. All rights reserved. 12 McGraw-Hill Workplace Changes in Organizations Changes Flextime – advantages Telecommuting – Advantages – Disadvantages Job sharing – Forms – Critical factor – Benefits