creating a flexible organization
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Creating a Flexible Organization. Chapter 7. What Is an Organization?. A group of two or more people working together to achieve a common set of goals Developing organization charts Organization chart A diagram that represents the positions and relationships within an organization - PowerPoint PPT PresentationTRANSCRIPT
© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 4 | Slide 1
Creating a Flexible Organization
Chapter
7
© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 4 | Slide 2
A group of two or more people working together to achieve a common set of goals
Developing organization charts• Organization chart
– A diagram that represents the positions and relationships within an organization
• Chain of command– The line of authority that extends from the highest to
the lowest levels of the organization• Staff (advisory) positions
– Jobs that are not part of the direct chain of command in the organization
What Is an Organization?
© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 4 | Slide 3
A Typical Corporate Organization Chart
© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 4 | Slide 4
Job design-• Specialization• Alternatives to specialization
Departmentalization Delegation Span of management Chain of command
Major Considerations for Organizing a Business
© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 4 | Slide 5
Job specialization• The separation of activities into distinct tasks and the
assignment of different tasks to different people
Rationale for specialization• The “job” of the organization is too large for one
person to accomplish.• A worker learning only a specific, highly specialized
task should be able to learn to do it efficiently.• Workers do not lose time switching from one operation
to another.• Specialization makes it easier to design machinery
to assist those who do the job.• Specialization makes it easier to train new workers.
Job Design
© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 4 | Slide 6
Alternatives to job specialization• Job rotation systematically shifts employees from
one job to another• Job enlargement-adding more responsibilities• Job enrichment-more variety and
more responsibility
Job Design (cont.)
Needs photo credit
© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 4 | Slide 7
Grouping jobs into manageable units Common bases for departmentalization
• By function• By product• By location• By customer• Combinations
Departmentalization (Ways of Organizing)
© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 4 | Slide 8
Evolution of an Organization Chart
© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 4 | Slide 9
Departmentalization by Function
CEO
Finance Marketing Operations
© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 4 | Slide 10
Departmentalization by Product
CEO
Computers Printers Software
© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 4 | Slide 11
Departmentalization by Location
CEO
U.S. Region
European Region
Asian Region
© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 4 | Slide 12
Departmentalization by Customer
CEO
Home Users
Business Users
Educational Users
© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 4 | Slide 13
Multibase Departmentalization forNew-Wave Fashions, Inc.
© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 4 | Slide 14
Delegation—assigning part of a manager’s work and power to other workers• Steps in delegation
– Responsibility—the duty to do a job or perform a task– Authority—the power, within an organization, to accomplish
an assigned task– Accountability—the obligation to accomplish an assigned
job or task
• Barriers to delegation– Fear the work will not get done– Fear the work will be done too well– Inability to plan and assign work effectively
Delegation, Decentralization, and Centralization
© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 4 | Slide 15
The manager assigns responsibility.
The subordinate is empowered to do the task.
Ultimate accountability remains with the manager.
Steps in the Delegation Process
© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 4 | Slide 16
Decentralization of Authority
Decentralized organization• Spreads the authority widely into the lower levels
Centralized organization• Authority is concentrated at the upper levels
© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 4 | Slide 17
The number of workers who report directly to one manager• Wide span
– Large number of subordinates to one manager• Narrow span
– Only a few subordinates to one manager
The Span of Management
© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 4 | Slide 18
The Span of Management (cont.)
© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 4 | Slide 19
The Span of Management (cont.)
Organizational height—number of layers, or levels, of management in a firm• Flat organizations
– Have wider spans of management and fewer levels– Require managers to perform more administrative
tasks and to spend more time supervising subordinates
• Tall organizations– Have narrow spans of management and many levels– Have higher administrative costs (more managers)– May distort internal communications during passage
of the communications through the multiple levels of organization
© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 4 | Slide 20
Line and Staff Managers
© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 4 | Slide 21
Forms of Organizational Structure (cont.)
Line-and-staff structure (cont.)• Line managers make decisions and give orders to
subordinates.– Line authority—line managers can make decisions and issue
directives related to organizational goals
• Staff managers provide support, advice, and expertise.– Advisory authority—the expectation that line managers will
consult with staff managers before making decisions– Example: A manager has concerns that one of his employees
may be sexually harassing another so he consults with HR first before taking action.
– Functional authority—staff managers’ authority to make decisions and issue directives within their area of expertise
– Example: A staff manager in the Finance Dept tells a Line Manager in the Production Dept to bring her payroll figures so that Finance can create a month-end report.
© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 4 | Slide 22
Forms of Organizational Structure (cont.)
Line-and-staff structure (cont.)• Reasons for conflict between line and staff managers
– Staff managers often have more formal education.– Staff managers are sometimes younger and more
ambitious.– Line managers may perceive staff managers as a threat.– Staff managers may become angry if their
recommendations are not adopted.
• Minimizing conflict between line and staff managers– Integrate line and staff managers into one team.– Ensure that responsibilities are clearly defined.– Hold both line and staff managers accountable for results.
© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 4 | Slide 23
The Informal Organization
Pattern of behavior and interaction that stems from personal rather than official relationships• Informal groups
– Formed by the members themselves to accomplish goals that may or may not be relevant to the organization
– Can be powerful forces in organizations, exerting positive as well as negative influences
• The grapevine– Informal communication network within an organization
that is completely separate from—and sometimes faster than—the organization’s formal communication channels
– May be accurate or distorted; managers should be aware and use appropriately
© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 4 | Slide 24
Chapter Quiz
1. Solid vertical lines on an organization chart indicate
A. staff positions.B. employees.C. delegated positions.D. the chain of command.E. line and staff positions.
© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 4 | Slide 25
Chapter Quiz
2. The systematic shifting of employees from one job to another is called job
A. specialization.B. rotation.C. sharing.D. enlargement.E. enrichment.
© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 4 | Slide 26
Chapter Quiz
3. Grouping all activities according to the geographic area in which they are located is departmentalization by
A. function.B. employee.C. product.D. customer.E. location.
© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 4 | Slide 27
Chapter Quiz
4. In a ______ organization, administrative costs are higher because more managers are needed.
A. longB. flatC. tallD. shortE. broad
© 2013 South-Western, a part of Cengage Learning. All rights reserved. Chapter 4 | Slide 28
Chapter Quiz
5. The power to accomplish an assigned job is called
A. authority.B. accountability.C. responsibility.D. delegation.E. obligation.