Chapter 8: Chapter 8: SUPERVISORY SUPERVISORY ORGANIZING ORGANIZING AT THEAT THE DEPARTMENTAL DEPARTMENTAL LEVELLEVELLeonard: Supervision 11eLeonard: Supervision 11e

Chapter 8: Chapter 8: SUPERVISORY SUPERVISORY ORGANIZING ORGANIZING AT THEAT THE DEPARTMENTAL DEPARTMENTAL LEVELLEVELLeonard: Supervision 11eLeonard: Supervision 11e

© 2010 Cengage/South-Western.All rights reserved.

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AFTER STUDYING THIS AFTER STUDYING THIS CHAPTER, YOU WILL BE ABLE CHAPTER, YOU WILL BE ABLE TO:TO:

AFTER STUDYING THIS AFTER STUDYING THIS CHAPTER, YOU WILL BE ABLE CHAPTER, YOU WILL BE ABLE TO:TO:1.1. Identify the organizing function of management.Identify the organizing function of management.

2.2. Discuss the impact of the informal organization and Discuss the impact of the informal organization and informal group leaders and how supervisors should informal group leaders and how supervisors should deal with them.deal with them.

3.3. Explain the unity-of-command principle and its Explain the unity-of-command principle and its applications.applications.

4.4. Define the span-of-management principle and the Define the span-of-management principle and the factors that influence its application.factors that influence its application.

5.5. Describe departmentalization and alternative Describe departmentalization and alternative approaches for grouping activities and assigning work.approaches for grouping activities and assigning work.

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AFTER STUDYING THIS AFTER STUDYING THIS CHAPTER, YOU WILL BE ABLE CHAPTER, YOU WILL BE ABLE TO: (cont’d)TO: (cont’d)

AFTER STUDYING THIS AFTER STUDYING THIS CHAPTER, YOU WILL BE ABLE CHAPTER, YOU WILL BE ABLE TO: (cont’d)TO: (cont’d)6.6. Explain the advantages of the project management-type Explain the advantages of the project management-type

organizational structure.organizational structure.

7.7. Identify why a supervisor should plan for an “ideal” Identify why a supervisor should plan for an “ideal” departmental structure and work toward this objective.departmental structure and work toward this objective.

8.8. Define and discuss organizational tools that are useful in Define and discuss organizational tools that are useful in supervisory organizing efforts.supervisory organizing efforts.

9.9. Define downsizing (restructuring) and its implications for Define downsizing (restructuring) and its implications for organizational principles. organizational principles.

10.10. Identify the major factors contributing to organizing Identify the major factors contributing to organizing effective meetings, especially the supervisor’s role.effective meetings, especially the supervisor’s role.

11.11. Understand the importance of self-organization, i.e., Understand the importance of self-organization, i.e., effective use of your time.effective use of your time.

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Organizing As an Essential Organizing As an Essential Managerial FunctionManagerial Function

• OrganizationOrganization Group structured by management to carry out Group structured by management to carry out

designated functions and accomplish certain designated functions and accomplish certain objectives.objectives.

• Organizations Are PeopleOrganizations Are People People are the substance and essence of any People are the substance and essence of any

organization, regardless of how the enterprise is organization, regardless of how the enterprise is structured.structured.

Organizational success is more likely to happen when Organizational success is more likely to happen when employees are truly given top-priority attention by employees are truly given top-priority attention by their managers and supervisors.their managers and supervisors.

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The Informal OrganizationThe Informal Organization

• Informal OrganizationInformal Organization Informal gatherings of people, apart from the formal Informal gatherings of people, apart from the formal

organizational structure, that satisfy members’ social organizational structure, that satisfy members’ social and other needs.and other needs.

• The Informal Organization and the SupervisorThe Informal Organization and the Supervisor The informal organization can make the supervisor’s The informal organization can make the supervisor’s

job easier or more difficult.job easier or more difficult.

Informal groups can be very strong in shaping Informal groups can be very strong in shaping employee behavior to an extent that it interferes with employee behavior to an extent that it interferes with supervision (organizational negativity).supervision (organizational negativity).

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The Informal Organization (cont’d)The Informal Organization (cont’d)

• Supervising and Informal Work Group LeadersSupervising and Informal Work Group Leaders An informal leader may be chosen by the group or An informal leader may be chosen by the group or

may assume leadership by being a spokesperson for may assume leadership by being a spokesperson for the group.the group.

Without the informal leader’s cooperation and Without the informal leader’s cooperation and goodwill, the supervisor may have difficulty controlling goodwill, the supervisor may have difficulty controlling the performance of the department.the performance of the department.

Informal leaders can help the supervisor, especially Informal leaders can help the supervisor, especially as channels of communication.as channels of communication.

The supervisor should look for subtle approaches to The supervisor should look for subtle approaches to have informal groups and their leaders dovetail their have informal groups and their leaders dovetail their special interests with the department’s activities.special interests with the department’s activities.

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Unity of Command and Unity of Command and Authority RelationshipsAuthority Relationships

• Unity-of-Command PrincipleUnity-of-Command Principle Holds that each employee should directly report to Holds that each employee should directly report to

only one supervisor.only one supervisor.

Helps supervisors know exactly who their managers Helps supervisors know exactly who their managers and subordinates are.and subordinates are.

May become blurred when the organization uses a May become blurred when the organization uses a matrix structure or establishes task forces, project matrix structure or establishes task forces, project groups, and special committees.groups, and special committees.

Helps prevent unsatisfactory performance by the Helps prevent unsatisfactory performance by the employee due to confusion of authority.employee due to confusion of authority.

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The Span-of-Management PrincipleThe Span-of-Management Principle

• Span-of-Management PrincipleSpan-of-Management Principle Holds that there is an upper limit to the number of Holds that there is an upper limit to the number of

subordinates a supervisor can manage effectively.subordinates a supervisor can manage effectively.

• Factors Influencing the Span of Management:Factors Influencing the Span of Management: The supervisor’s managerial abilitiesThe supervisor’s managerial abilities The types and amounts of staff assistanceThe types and amounts of staff assistance Level of employees’ abilities and capabilitiesLevel of employees’ abilities and capabilities Location of employeesLocation of employees Nature and complexity of employees’ work activitiesNature and complexity of employees’ work activities The degree to which departments have objective The degree to which departments have objective

performance standardsperformance standards

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The Span-of-Management Principle The Span-of-Management Principle (cont’d)(cont’d)

The amount, nature, complexity and predictability The amount, nature, complexity and predictability of activities influence the span of management. of activities influence the span of management. The simpler, more routine, and more uniform the The simpler, more routine, and more uniform the work activities, the greater the number of people work activities, the greater the number of people one supervisor can manage. When tasks are one supervisor can manage. When tasks are repetitious, the span may be as broad as 25 or repetitious, the span may be as broad as 25 or more employees. When activities are varied or more employees. When activities are varied or interdependent, the span may be as narrow as interdependent, the span may be as narrow as three to five. three to five.

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DepartmentalizationDepartmentalization

• Division of Work (Specialization)Division of Work (Specialization) Is dividing work into components and specialized Is dividing work into components and specialized

tasks to improve efficiency and output.tasks to improve efficiency and output.

• DepartmentalizationDepartmentalization Is the process of grouping activities and people into Is the process of grouping activities and people into

distinct organizational units.distinct organizational units.

• DepartmentDepartment Is an organizational unit for which a supervisor has Is an organizational unit for which a supervisor has

responsibility and authority.responsibility and authority.

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Departmentalization (cont’d)Departmentalization (cont’d)

• Formal Organizational StructureFormal Organizational Structure Departments, positions, functions, authority, and Departments, positions, functions, authority, and

reporting relationships as depicted on a firm’s reporting relationships as depicted on a firm’s organizational chart.organizational chart.

• Work Assignments and Organizational StabilityWork Assignments and Organizational Stability The assignment of work should be justifiable and The assignment of work should be justifiable and

explainable on the basis of good management rather explainable on the basis of good management rather than on personal likes and dislikes or intuition.than on personal likes and dislikes or intuition.

Principle of organizational stabilityPrinciple of organizational stability No organization should become overly dependent on one or No organization should become overly dependent on one or

several “indispensable” individuals.several “indispensable” individuals.

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Departmentalization (cont’d)Departmentalization (cont’d)

• Authority and Organizational StructuresAuthority and Organizational Structures Line authorityLine authority

The right to direct others and to require them to conform to The right to direct others and to require them to conform to decisions, policies, rules, and objectives.decisions, policies, rules, and objectives.

Staff authorityStaff authority The right to provide counsel, advice, support, and service in a The right to provide counsel, advice, support, and service in a

person’s areas of expertise.person’s areas of expertise.

Line-and-staff-type organizational structureLine-and-staff-type organizational structure Structure that combines line and staff departments and Structure that combines line and staff departments and

incorporates line and staff authority.incorporates line and staff authority.

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The Project Management-Type The Project Management-Type Organizational StructureOrganizational Structure

• Project Management-type Organizational Project Management-type Organizational StructureStructure Is a hybrid structure in which regular (functional) line Is a hybrid structure in which regular (functional) line

and staff departments coexist with project teams and staff departments coexist with project teams made up of people from different departments.made up of people from different departments.

Focus special talents from different departments on Focus special talents from different departments on specific projects for certain periods.specific projects for certain periods.

Can have problems with direct accountability in that it Can have problems with direct accountability in that it violates the unity of command principle and violates the unity of command principle and schedules employees across several projects.schedules employees across several projects.

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FIGURE FIGURE 8.8.44 Basic project management- type organizational structure.Basic project management- type organizational structure.

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Getting Home with Project Getting Home with Project Management TeamsManagement Teams

Successful project teams are generally those Successful project teams are generally those where someone dreamed big, created a vision, where someone dreamed big, created a vision, aligned the project team’s goals with the overall aligned the project team’s goals with the overall strategy, and informed team members, executed, strategy, and informed team members, executed, and made changes as necessary. and made changes as necessary.

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Planning the “Ideal” Departmental Planning the “Ideal” Departmental StructureStructure

• The ideal arrangement assumes:The ideal arrangement assumes: All required and qualified employees and resources All required and qualified employees and resources

are available.are available.

• However, in reality, available employees and However, in reality, available employees and other resources must be fitted to the structure.other resources must be fitted to the structure. Changes can be made to gradually move the Changes can be made to gradually move the

department toward its ideal structure.department toward its ideal structure.

Learning organization – employees continually strive Learning organization – employees continually strive to improve their SKAs while expanding their efforts to to improve their SKAs while expanding their efforts to achieve organizational objectives. achieve organizational objectives.

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Organizational Tools and Their Organizational Tools and Their ApplicationsApplications

• Departmental Organizational ChartsDepartmental Organizational Charts Organizational chart Organizational chart

A graphic portrayal of a company’s authority and A graphic portrayal of a company’s authority and responsibility relationships.responsibility relationships.

Advantages of departmental charts:Advantages of departmental charts: Promote careful study and analysis of the departmentsPromote careful study and analysis of the departments

Help identify duplicate efforts or inconsistenciesHelp identify duplicate efforts or inconsistencies

Reveal dual-reporting relationshipsReveal dual-reporting relationships

Help determine the proper span of management Help determine the proper span of management

Help acquaint new employees with the departmentHelp acquaint new employees with the department

Show formal authority and responsibility relationshipsShow formal authority and responsibility relationships

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FIGURE FIGURE 8.8.66

Organizational chart Organizational chart for the nursing-for the nursing-services department services department of a hospital.of a hospital.

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Organizational Tools and Their Organizational Tools and Their ApplicationsApplications

• Job DescriptionJob Description Written description of the principal elements, duties, Written description of the principal elements, duties,

and scope of authority and responsibility of a job.and scope of authority and responsibility of a job.

• Job SpecificationJob Specification Written description of the personal qualifications Written description of the personal qualifications

(SKAs: skills, knowledge, and abilities) needed to (SKAs: skills, knowledge, and abilities) needed to perform a job adequately.perform a job adequately.

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Organizational Principles in an Organizational Principles in an Era of Organizational Era of Organizational

DownsizingDownsizing• Downsizing (also Restructuring, Right-sizing)Downsizing (also Restructuring, Right-sizing)

Is the large-scale reduction and elimination of jobs in Is the large-scale reduction and elimination of jobs in a company that usually reduces middle-level a company that usually reduces middle-level managers, removes organizational levels, and widens managers, removes organizational levels, and widens the span of management for remaining supervisors.the span of management for remaining supervisors.

Can create problems with employee productivity Can create problems with employee productivity declines, lower morale, and weakened organizational declines, lower morale, and weakened organizational structures.structures.

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Organizational Principles in an Era of Organizational Principles in an Era of Organizational Downsizing (cont’d)Organizational Downsizing (cont’d)

• Self-Directed (self-managed) Work Teams Self-Directed (self-managed) Work Teams (SDWTs)(SDWTs)

When employee groups are given wide latitude and When employee groups are given wide latitude and considerable authority to make many of their own job-considerable authority to make many of their own job-related decisions.related decisions.

• ReengineeringReengineering

Restructuring a firm based on processes and Restructuring a firm based on processes and customer needs and services rather than on customer needs and services rather than on departments and functions.departments and functions.

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Organizational Principles in an Era of Organizational Principles in an Era of Organizational Downsizing (cont’d)Organizational Downsizing (cont’d)

• Horizontal CorporationHorizontal Corporation

A very flat firm resulting from restructuring by A very flat firm resulting from restructuring by customer process and organizational structure.customer process and organizational structure.

• Virtual OrganizationVirtual Organization

Companies linked temporarily to take advantage of Companies linked temporarily to take advantage of marketplace opportunities.marketplace opportunities.

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Organizing for Effective Organizing for Effective Meeting ManagementMeeting Management

• Select participants who will bring knowledge and Select participants who will bring knowledge and expertise to the meeting.expertise to the meeting.

• Notify participants well in advance of the meeting.Notify participants well in advance of the meeting.

• Have a plan and an agenda.Have a plan and an agenda.

• Begin the meeting on time.Begin the meeting on time.

• Present the problems and issues to be discussed and Present the problems and issues to be discussed and the meeting’s objectives.the meeting’s objectives.

• Encourage all group members to participate fully in the Encourage all group members to participate fully in the discussion.discussion.

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Organizing for Effective Organizing for Effective Meeting Management Meeting Management

(cont’d)(cont’d)• Allow sufficient time for participants to offer information Allow sufficient time for participants to offer information and discuss alternative proposals.and discuss alternative proposals.

• Strive to find consensus and areas of agreement before Strive to find consensus and areas of agreement before voting on the proposal.voting on the proposal.

• Try to stay on the subject and adjourn on time, but make Try to stay on the subject and adjourn on time, but make adjustments as necessary.adjustments as necessary.

• Follow up, including distributing a summary of the Follow up, including distributing a summary of the meeting (minutes) and actions to be taken.meeting (minutes) and actions to be taken.

Using Time EffectivelyUsing Time Effectively

• Author Stephen Covey suggests we always Author Stephen Covey suggests we always “begin with the end in mind.”“begin with the end in mind.”

• Only by working smarter, more effectively Only by working smarter, more effectively planning, organizing, and managing our planning, organizing, and managing our activities, can we better use time. activities, can we better use time.

• By developing a vision about what the end result By developing a vision about what the end result should be, developing plans and organizing, and should be, developing plans and organizing, and prioritizing activities will supervisors be able to prioritizing activities will supervisors be able to use their time effectively.use their time effectively.

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KEY TERMSKEY TERMS

• DepartmentDepartment• DepartmentalizationDepartmentalization• Division of work (specialization)Division of work (specialization)• Downsizing (restructuring, Downsizing (restructuring,

right-sizing)right-sizing)• Formal organizational structureFormal organizational structure• Horizontal corporationHorizontal corporation• Informal organizationInformal organization• Job descriptionJob description• Job specification Job specification • Lead personLead person• Learning organizationLearning organization• Line authorityLine authority

• Line-and-staff-type Line-and-staff-type organizational structureorganizational structure

• OrganizationOrganization• Organizational chartOrganizational chart• Principle of organizational Principle of organizational

stabilitystability• Project management-type Project management-type

organizational structureorganizational structure• ReengineeringReengineering• Self-directed (self-managed) Self-directed (self-managed)

work teams (SDWTs)work teams (SDWTs)• Span-of-management principleSpan-of-management principle• Staff authorityStaff authority• Unity-of-command principleUnity-of-command principle• Virtual organizationVirtual organization