1. Unit Four Seminar Intro to Management AB140 Instructor: Jill Burgett **Don’t forget to make sure your volume is up.

2. Unit Four Coursework Discussion Discussion Be sure to post three times (min 100 words) on three separate days (from Wed-Tues) to receive full credit. Be sure to post three times (min 100 words) on three separate days (from Wed-Tues) to receive full credit. –Your first post should answer the discussion question and your second two posts should be responses to classmates. Assignment Assignment –Read a scenario about Sandwich Blitz, Inc. and answer four questions (min of 100 words and watch grammar). –Go to Academic Resources to review the Writing Tutorial and visit the Writing Center for assistance on grammar. –I posted an announcement with an APA video. Review Review –Five multiple choice questions ***All Unit Four work is due by next Tuesday by 11:59 PM EST

3. Tonight’s Seminar What to expect in Unit Four What to expect in Unit Four Chapter 6 (Pages 122 – 134) Chapter 6 (Pages 122 – 134) –Second of the four management functions: Organizing –Fundamentals of Organizing: Differentiation and Integration –The Vertical Structure: Span of control –Centralized vs. decentralized organization –The Horizontal Structure –Question & Answer

4. Fundamentals of Organizing Organization chart: reporting structure and division of labor in an organization. Organization chart: reporting structure and division of labor in an organization. Mechanistic organization: a formal structure intended to promote internal efficiency. Mechanistic organization: a formal structure intended to promote internal efficiency. Organic Structure: An organizational form that emphasizes flexibility characterized by: Organic Structure: An organizational form that emphasizes flexibility characterized by: –Broader responsibilities that change as the need arises –Communication through advice and information –Decentralized decision making and influence –Expertise is highly valued –Reliance on judgment rather than rules –Obedience to authority is less important than commitment to the organization’s goals. –Employees depend more on one another and relate more informally and personally.

5. Fundamentals of Organizing Differentiation: an aspect of the organization’s internal environment created by job specialization and the division of labor. Differentiation: an aspect of the organization’s internal environment created by job specialization and the division of labor. Integration: The degree to which differentiated work units work together and coordinate their efforts. Integration: The degree to which differentiated work units work together and coordinate their efforts.

6. Differentiation Is… High when an organization has many subunits and many specialists who think differently High when an organization has many subunits and many specialists who think differently Created through Created through –Division of labor – when the work of the organization is subdivided into smaller tasks to be performed by individuals. –Specialization – different people or groups perform specific parts of the larger task.

7. Integration Is… The degree to which differentiated work units work together and coordinate their efforts. The degree to which differentiated work units work together and coordinate their efforts. Accomplished through structural mechanisms Accomplished through structural mechanisms Any job activity that links work units Any job activity that links work units High differentiation and high integration leads to success in dynamic environments. High differentiation and high integration leads to success in dynamic environments.

8. Test Your Knowledge In the study by Lawrence and Lorsch, companies in complex, dynamic environments developed _____ levels of differentiation; and _____ levels of integration A) low; low B)intermediate; high C)high; high D)low; high E)high; low

9. The Vertical Structure Authority – legitimate right to make decisions and to tell other people what to do. Authority – legitimate right to make decisions and to tell other people what to do. Formal authority Formal authority –Based on formal position –e.g., Board of directors, Chief executive officer, Top management team Informal authority Informal authority –Based on expertise, experience, or personal qualities –e.g., scientists, computer-savvy employees

10. Hierarchy Three broad levels of the organizational pyramid Three broad levels of the organizational pyramid –Top management –Middle management –Operational management (Lower/Frontline)

11. Span of Control The number of subordinates who report directly to an executive or supervisor The number of subordinates who report directly to an executive or supervisor The optimal span of control maximizes effectiveness by balancing two considerations: The optimal span of control maximizes effectiveness by balancing two considerations: –Must be narrow enough to permit managers to maintain control over subordinates –Must not be so narrow that it leads to overcontrol and an excessive number of managers overseeing a few subordinates

12. When should span be wide? 1. The work is clearly defined and unambiguous 2. Subordinates are highly trained and have access to information 3. The manager is highly capable and supportive 4. Jobs are similar and performance measures are comparable 5. Subordinates prefer autonomy to close supervisory control

13. Test Your Knowledge A wide span of control builds a ______________ organization. A)flat B)narrow C)tall D)bureaucratic E)formal

14. Delegation The assignment of new or additional responsibilities to a subordinate. The assignment of new or additional responsibilities to a subordinate. Requires a subordinate to report back to his or her boss about how effectively the assignment was carried out. Requires a subordinate to report back to his or her boss about how effectively the assignment was carried out. Fundamental feature of management at all levels Fundamental feature of management at all levels Good spot for discussion Good spot for discussion

15. Manager A and B (Delegation) Manager A Call Tom Burton at Nittany Office Equipment. Ask him to give you the price list on an upgrade for our personal computers. I want to move up to a Core 2 Duo processor with 4 gigs of RAM and at least a 500-gigabyte hard drive. Ask them to give you a demonstration, and let them try it out. Have them write up a summary of their needs and the potential applications they see for the new systems. Then prepare me a report with the costs and specifications of the upgrade for the entire department. Oh, yes, be sure to ask for information on service costs.

16. Manager A and B (Delegation) Manager B I’d like to do something about our personal computer system. I’ve been getting some complaints that the current systems are too slow, can’t run current software, and don’t allow for networking. Could you evaluate our options and give me a recommendation on what we should do? Our budget is around $2,500 per person, but I’d like to stay under that if we can. Feel free to talk to some of the managers to get their input, but need to have this done as soon as possible.

17. Responsibility and Accountability Responsibility: A person is assigned a task that an employee is supposed to carry out. Responsibility: A person is assigned a task that an employee is supposed to carry out. Accountability: The expectation that employees will perform a job, take corrective action when necessary, and report upward on the status and quality of their performance Accountability: The expectation that employees will perform a job, take corrective action when necessary, and report upward on the status and quality of their performance

18. Advantages of Delegation Leverages the manager’s energy and talent and those of his or her subordinates Leverages the manager’s energy and talent and those of his or her subordinates Conserves a manager’s time Conserves a manager’s time Develops effective subordinates Develops effective subordinates Gives the subordinate a more important job Gives the subordinate a more important job Subordinate gains an opportunity to develop new skills and demonstrate potential for additional responsibilities and perhaps promotion Subordinate gains an opportunity to develop new skills and demonstrate potential for additional responsibilities and perhaps promotion Promotes a sense of being an important, contributing member of the organization leading to stronger commitment, perform their tasks better, and engage in more innovation. Promotes a sense of being an important, contributing member of the organization leading to stronger commitment, perform their tasks better, and engage in more innovation.

19. Steps in Effective Delegation

20. Centralized vs. Decentralized Decision Making Centralized: An organization in which high-level executives make most decisions and pass them to lower levels for implementation. Centralized: An organization in which high-level executives make most decisions and pass them to lower levels for implementation. Decentralized: An organization in which lower level managers make important decisions. Decentralized: An organization in which lower level managers make important decisions.

21. The Horizontal Structure Line departments – those who have responsibility for the principal activities of the firm. Line departments – those who have responsibility for the principal activities of the firm. Staff departments – those who provide specialized or professional skills that support line departments Staff departments – those who provide specialized or professional skills that support line departments

22. Functional Organizations Departmentalization around specialized activities such as production, marketing, and human resources. Departmentalization around specialized activities such as production, marketing, and human resources. Advantages Advantages –Economies of scale can be realized  When people with similar skills are grouped, the company can buy more efficient equipment and obtain discounts for large purchases. –Monitoring of the environment is more effective –Performance standards are better maintained –People have greater opportunity for specialized training and in-depth skill development –Technical specialists are relatively free of administrative work –Decision making and lines of communication are simple and clearly understood

23. The Functional Organization

24. Divisional Organization Groups all functions into a single division and duplicates functions across all the divisions. Groups all functions into a single division and duplicates functions across all the divisions. Act almost as separate businesses or profit centers and work autonomously to accomplish the goals of the entire enterprise. Act almost as separate businesses or profit centers and work autonomously to accomplish the goals of the entire enterprise.

25. The Divisional Organization

26. Functional vs. Divisional Functional Organization A central purchasing department Separate companywide marketing, production, design, and engineering departments A central city health department Plantwide inspection, maintenance, and supply departments Divisional Organization A purchasing unit for each division Each product group’s own experts in marketing, design, production, and engineering Separate health units for the school district and the prison Inspection, maintenance, and supply conducted by each production team

27. Matrix Organization An organization composed of dual reporting relationships in which some managers report to two superiors – a functional manager and a divisional manager. An organization composed of dual reporting relationships in which some managers report to two superiors – a functional manager and a divisional manager.

28. Matrix Organizational Structure

29. Conclusion Tonight We Discussed: Tonight We Discussed: –Second of the four management functions: Organizing –Fundamentals of Organizing: Differentiation and Integration –The Vertical Structure: Span of control –Centralized vs. decentralized organization –The Horizontal Structure –Functional Organizations

30. Next Seminar Please join me next week for our unit five seminar. Please join me next week for our unit five seminar. Any questions, comments, or concerns? Any questions, comments, or concerns?