1. Chapter 16 Organizing

2. After Reading and Studying This Chapter, You Should Be Able to:
Describe organizational structure and organizational design
Explain why structure and design are important to an organization
Identify the key elements of organizational structure
Differentiate between mechanistic and organic organizational designs
Explain team-based structures and why organizations use them
Describe matrix structures, project structures, independent business units, and boundaryless organizations

3. Purpose of Organizing Dividing work Assigning tasks
Coordinating diverse organizational tasks
Clustering jobs into units
Establishing relationships
Establishing formal lines of authority
Allocating and deploying organizational resources

4. Figure 16-1 The New “Upside-Down” Organizational Chart

5. Work Specialization/Division of Labor
Each worker has a specific task
Each task is standardized
Work is repetitive
Work is broken into manageable steps

6. Departmentalization Coordination of tasks
Methods of departmentalizing:
By function
By product
By guest need
By territory
Or any combination of the above

7. Figure 16-2 Organizational Chart for a Theme Park

8. Authority Comes with title and position Two-way obligation
Expectations
Empowerment

9. Responsibility
“Rights”
Obligation to perform
Performance and outcome

10. Chain of Command Outlines those with authority from the top down:
BOD
CEO
Vice-president
Clearly defined line of authority
Everyone knows to whom they are to report

11. Span of Control
Number of employees a supervisor can efficiently manage
Factors:
Type of work
Skill level of employee
Level of training
Technology available
Leadership style
Management experience

12. Empowerment Giving employees a degree of decision-making authority
Allows employees to be flexible when dealing with difficult situations that do not necessarily require management attention
Increase in guest satisfaction

13. Centralization vs. Decentralization
Decision-making authority lies with top management in a centralized structure
Lower management and line authority employees play a role in the decision-making process in a decentralized structure
Today’s companies are moving toward centralized structures for cost reasons

14. Figure 16-4 Centralization versus Decentralization in an Organization

15. Mechanistic Organizations
High specialization
Rigid departmentalization
Narrow spans of control
High formalization
Limited information network
Centralized

16. Organic Organization Low in complexity Low in formalization
Decentralized
Division of labor of non-standardized jobs
Require few rules
Require little supervision

17. Contingency Factors Organizational structure Size Technology
Degree of environmental uncertainty

18. Team-Based Structure TQM model Front-line associates participate
Team makeup
Coordination of effort
Productivity issues

19. Figure 16-6 The Four Types of Contemporary Organizational Designs

20. Matrix Structure
Assigns specialists from different departments to work on projects:
Pool knowledge
Communication is key
Decision-making tends to move quicker

21. Project Structure Employee continuously works on projects
Move to another project once completed
Members have specific knowledge

22. Independent Business Units (IBUs)
Small, independent businesses within a larger corporate structure
Approval to implement strategies
Assists with exposing employees to revenue and expense issues

23. Boundaryless Organizations
No pre-defined structure
Breakdown of external barriers
Eliminates the chain of command
Appropriate span of control
Replace departments with empowered teams

24. Encouraging Employee Involvement
Teams:
Self-managed
Productive
Job rotation
Job enlargement
Job enrichment

25. Building Productive Teams
Job rotation
Job enlargement
Job enrichment

26. Trends in Organizing Use of computerized scheduling programs
Use of the Internet for recipe access
Multitasking
More decentralization of organization after September 11, 2001
Reduced occupancies at hotels has led to a reduction in staff and managerial positions