4–1

Supervision in Organizations

Chapter 4

Organizing an Effective

Department

4–2

Learning OutcomesAfter reading this chapter, I will be able to:

1. Define organizing.

2. Describe why work specialization should increase economic efficiency.

3. Contrast line and staff authority.

4. Differentiate between centralized and decentralized decision making.

5. Identify the five different ways by which management can departmentalize.

4–3

Learning Outcomes (cont’d)After reading this chapter, I will be able to:

6. Contrast the different organizational structures.

7. Explain what is meant by the term learning organization.

8. Discuss the value of job descriptions

9. Identify the four-step process of delegation

4–4

What is Organizing?

Organizing defined:

Arranging and grouping jobs, allocating resources, and assigning work so that activities

can be accomplished as planned (p. 95)

4–5

What is Work Specialization?Work Specialization:

“jobs being broken down into steps, each step being completed by a separate individual”

Example: assembly line production– Challenges:

• Boredom• Fatigue• Increased absenteeism• High turnover

– Solution:• Allowing workers to complete an entire piece of work• Create Teams

4–6

What is Span of Control?• Span of Control:

the number of employees a supervisor can efficiently and effectively direct (5 – 30 people)

Depends on the following factors:– Experience/Competence of Supervisor– Varied job duties– Employee’s abilities– Complexity of employee’s activities– Department’s formal rules & regulations

4–7

What is the Chain of Command?

• Chain of Command defined:

“The continuous line of authority that extends from upper organizational levels to the lowest levels &

clarifies who reports to whom” (p. 98)

Chain of Command Principle:

“Subordinate should have one and only one supervisor to whom he/she is directly

responsible.”

4–8

What is Authority?

• Authority:

“The rights inherent in a supervisory position to give orders and expect the orders to be obeyed.”

• Line Authority – the right to direct the work of his/her employees & make certain decisions w/o

consulting others

• Staff Authority – supports line authority by advising, servicing, & assisting, but they needn’t be obeyed by the

subordinate (ex. Assistant Department Chair)

• Functional Authority – represents control over individuals outside one’s own direct areas of

responsibility

4–9

Responsibility vs. Authority• Responsibility:

Supervisors are obligated to achieve their unit’s goals, keep costs within budget, follow organizational policies, & motivate their subordinates through obligation

Responsibility must equal Authority!!

Authority = the right to hire, reward, discipline, & fire

4–10

Where are Decisions Made?

Where are decisions made?

• Centralization – the design of any organization requiring top management to make decisions (problems/decision

makingflow up to senior executives)

• Decentralization – people closets to the problems

make decision

4–11

Departmentalization

Departmentalization defined:

grouping departments based on work functions (functional), product or service (product), target customer or client (customer), geographic territory (geographic), or the process used to turn inputs into outputs (process) in the attainment of the organization’s objectives.

4–12

5 Ways to Departmentalize

1. Functional departmentalization

The grouping of activities by functions performed

most directly take advantage of work specialization

4–13

5 Ways to Departmentalize cont…

2. Product departmentalization

The grouping of activities by product produced where the supervisor, who is a specialist in, has the authority and responsibility for everything to do with his/her product line

4–14

5 Ways to Departmentalize cont…

3. Customer departmentalization

The grouping of activities by common customers Example: Setting up department to meet special

requirement from customers (ex. Continuing Education: Evening/Weekend Classes)

4–15

5 Ways to Departmentalize cont..

4. Geographic departmentalization The grouping of activities by territory

Advantage: Puts decision-making authority close to where the work is being done

4–16

5 Ways to Departmentalize cont..

5. Process departmentalization

The grouping of activities by work or customer flow

4–17

Organizational Structural Configuration

• Mintzberg’s five-sector logo Operating core

People who perform basic work (line workers)

Administrative Component

Managers/supervisors (line supervisor)

Strategic Apex Focus on outside environment

(executives) Techno structure

Specialist/analysts (engineers) Support staff

Perform tasks that facilitate work (secretaries)

4–18

Structural Configuration• Simple structure

Two Levels: Strategic apex Operating level

Characteristics: “Mom & Pop Shop’s” Loose body of empowered employees Today, more organizations are using this structure

Benefits: Structure is very flexible & adaptable One person directs the entire operation

Challenges: Lack of strategic planning (boss too close to operations) Authority can block change only effective in small organization Risky: decisions depend upon one person

4–19

Structural Configuration cont…• Functional Structure (Professional Bureaucracy)

Characteristics: An organization structure in which similar & related occupational

specialties are group together Operating core is larger than other structural parts Few managerial levels exist between the strategic apex and

professors (flat organizational structure) Examples: Universities (EIU or U of Illinois)

Benefits: Capitalize on work specialization

Challenges: organization frequently looses sight of its pursuit of functional

goals. Dealing with incompetence and irresponsibility Respond slow to change

4–20

Structural Configuration cont…• Divisionalized Form

Organization made up of self-contained units or divisions

Work accomplished through quasi-autonomous units (multispecialty hospital) serving defined markets

Division heads (presidents) are accountable to the corporate office

As long as the division performs, they have free reign

Benefits: Division managers have full responsibility for a product or service Structure frees headquarters of being responsible for day-to-day

operations; more focus on strategic planning Responsive

Challenges: Headquarters may lose touch with operations Duplication of activities and resources contributing to higher

costs Example: Marketing Research for each division

4–21

Organizational Structure cont…Matrix Organization:

Creates a dual chain of command which explicitly violates the Principle of Chain of Command

Employees in a matrix structure would have two managers: 1. functional departmental supervisor

2. their product or project supervisor

4–22

Organizational Structure cont…• Team-Based:

An organization that consists entirely of work groups or teams

Keys to success– Employees trained to work within a team structure– Receive cross-functional training– Be compensated for their cross-functional roles

4–23

Organizational Structure cont…• Learning Organization:

An organization that has developed the capacity to continuously adapt and change because all members take an active role in identifying and resolving work-related issues.

4–24

Organizing Your EmployeesHow do you Identify the Tasks to be Done?

1. Identify specific tasks that must be completed by your subordinates

2. From the list of tasks, combine tasks that need to be accomplished (Work specialization)

3. Develop job descriptions

4. Assign jobs/tasks to operative employees

5. Ensure workloads are balanced

4–25

Purpose of Job Descriptions

Job Description:

“a written statement of what a jobholder does, how the job is done, and why it is done.”

Why should you write a job description1. It provides you with a formal document describing

what each employee is supposed to be doing– used in performance appraisal– compare actual performance to desired performance

2. Helps employee learn their job duties and clarifies the results that you expect them to achieve

4–26

Empowering other through Delegation

What is Delegation?

a way to accomplish job tasks with each person taking a part of the work and responsibility which best uses and extends her skills.

Four Step Process:1. Allocation of duties

2. Delegation of authority

3. Assignment of responsibility

4. Creation of accountability

4–27

Why Delegate?

Here are a few good reasons to delegate:

To build individual confidence and increase motivation.

To share the power and responsibility.

To provide growth experiences and to model the value of skill development.

To create a sense of importance and belonging for the employee.

To encourage independence, initiative, and creative problem solving.

4–28

Steps for Successful DelegationClearly describe the results you want.

Explain how the results fit into the team’s or organization’s big picture.

Together establish the boundaries and limitations of the work.

State and agree upon the benchmark, checkpoints, and deadlines that will ensure successful accomplishment.

Be sure to give the individual the authority to complete the task.

4–29

Steps for Successful Delegation cont…

Secure commitment from the individual; ask directly for it.

Specify chain of command for problem solving.

Be specific in detailing what success or failure will look like.

What will be the impact of success in this task for the team, organization, and individual?

What will be the impact of failure in this task for

the team, organization, and individual?