6–1Copyright © 2006 Thomson Business and Economics. All rights reserved.

Agenda and AnnouncementsAgenda and Announcements

• Agenda– Team Training Presentation– Review Chapter 6– Hitachi Case– Freddie Barrett – Conflict Management

• Announcements– Class Grades Now in Blackboard System

• E-mail on Sunday with Instructions• ID any missing assignments from Gradebook

– Participation Option – Blackboard Forums– Feedback–Re-look at Environmental Factors in Chapter 2

• External Factors (understand: society, labor, technology, economy)• Internal Factors (understand: structure, systems processes)

PowerPoint Presentation by Charlie CookThe University of West Alabama

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

Chapter 6Chapter 6

Organizing Organizing and and Delegating Delegating WorkWork

6–3Copyright © 2006 Thomson Business and Economics. All rights reserved.

Organizing QuestionsOrganizing Questions

Questions for Managers Chapter Topic

Who should departments Chain of command; and individuals report to? organization chart

How many individuals should Span of managementreport to each manager?

How should we subdivide Division of labor; the work? departmentalization

How do we get everyone to Coordinationwork together as a system?

At what level should decisions Centralization vs. decentralizationbe made? of authority

How do we organize to meet Departmentalizationour mission and strategy?

Exhibit 6–1

6–4Copyright © 2006 Thomson Business and Economics. All rights reserved.

Levels of AuthorityLevels of Authority

• Authority to Inform– 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.

$$ LEVELS OF AUTHORITY ARE USUALLY SPELLED OUT

6–5Copyright © 2006 Thomson Business and Economics. All rights reserved.

Line and Staff AuthorityLine and Staff Authority

• Line Authority– The responsibility to make decisions and issue orders down the

chain of command OF AN OPERATIONS ORGANIZATION• SALES, MANUFACTURING, SERVICE, OPERATIONS.

• Staff Authority– The responsibility to advise and assist line and other personnel.– STAFF PROVIDES EXPERTISE ACROSS MULTIPLE GROUPS

Service Dept. Head

US Region EurAsia Region S. Hemisphere Staff Support

Technical Support

Procedures

Purchasing

Safety

Example:

• Staff vs. Line – • Who has Authority & Responsibility?• Who has Accountability?

• Staff “Serves” Line or Line “Serves” Staff

6–6Copyright © 2006 Thomson Business and Economics. All rights reserved.

6–7Copyright © 2006 Thomson Business and Economics. All rights reserved.

Line and Staff Authority (cont’d)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.

6–8Copyright © 2006 Thomson Business and Economics. All rights reserved.

Centralized and Decentralized AuthorityCentralized and Decentralized Authority

• Centralized Authority– Important decisions are made by top managers.

• Decentralized Authority– Important decisions are made by middle and

first-line managers.

CAN ALSO APPLY TO SPECIALIZED DEPARTMENTS• Human Resources• IT• Real Estate• Purchasing/Supply Chain• Legal

6–9Copyright © 2006 Thomson Business and Economics. All rights reserved.

Organization DesignOrganization 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.

6–10Copyright © 2006 Thomson Business and Economics. All rights reserved.

Types of DepartmentalizationTypes of Departmentalization

Exhibit 6–6

6–11Copyright © 2006 Thomson Business and Economics. All rights reserved.

Types of Departmentalization (cont’d)Types of Departmentalization (cont’d)

Exhibit 6–6 cont’d

6–12Copyright © 2006 Thomson Business and Economics. All rights reserved.

Multiple DepartmentalizationMultiple 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

6–13Copyright © 2006 Thomson Business and Economics. All rights reserved.

Matrix DepartmentalizationMatrix Departmentalization

Exhibit 6–7

6–14Copyright © 2006 Thomson Business and Economics. All rights reserved.

New Approaches to DepartmentalizationNew 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.

6–15Copyright © 2006 Thomson Business and Economics. All rights reserved.

Job DesignJob Design

• Job Design– 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

Exhibit 6–8

6–16Copyright © 2006 Thomson Business and Economics. All rights reserved.

The Job Characteristics ModelThe Job Characteristics Model

Exhibit 6–9

6–17Copyright © 2006 Thomson Business and Economics. All rights reserved.

Great Job Designs Consider:Great Job Designs Consider:

• Functional Completeness – Beginning to End (Autonomy)• Consistent Relationship – Ongoing Relationships (Identity)• Feedback from the Work Itself – Direct Not Filtered

Example:

Copy Collate Assemble Ship/DeliverOrder Intake

Customer A

Customer B

Customer C

Customer D

6–18Copyright © 2006 Thomson Business and Economics. All rights reserved.

High Performance Organizational DesignHigh Performance Organizational Design

1. Design Workflow and Decision Points

2. Gather Tasks into Jobs– Functional Completeness– Consistent Relationships– Feedback– Authority, Responsibility and

Accountability3. Build Appropriate SupervisionWorkflow:

• Job Design:

• Organization:

Copy Collate Assemble Ship/DeliverOrder Intake

Business School Copy Clerk

Copy Center Mgr.

Business Nursing Engineering Administration Law

Supervision:

• Different Tasks than Employees

• Coordination, Resource Mgmt., Training, Cross Department Integration

6–19Copyright © 2006 Thomson Business and Economics. All rights reserved.

DelegationDelegation

• Benefits

– 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.

6–20Copyright © 2006 Thomson Business and Economics. All rights reserved.

What to Delegate and What Not to DelegateWhat to Delegate and What Not to Delegate

• What 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

Exhibit 6–11

Depending on Situational Leadership and Management Style

- Projects or tasks in crisis

- Activities delegated to you personally