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zHow do you arrange people to do the things which they can do the best zWhat is the average size of a group that managers manage

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Page 1: Organizing. zWhat does it seem that managers overdelegate responsibility or pawn off their jobs to people below them. zWho do you handle complaints form

Organizing

Page 2: Organizing. zWhat does it seem that managers overdelegate responsibility or pawn off their jobs to people below them. zWho do you handle complaints form

What does it seem that managers overdelegate responsibility or pawn off their jobs to people below them.

Who do you handle complaints form employee that they might have about upper management and how they are treated by them.

Page 3: Organizing. zWhat does it seem that managers overdelegate responsibility or pawn off their jobs to people below them. zWho do you handle complaints form

How do you arrange people to do the things which they can do the best

What is the average size of a group that managers manage

Page 4: Organizing. zWhat does it seem that managers overdelegate responsibility or pawn off their jobs to people below them. zWho do you handle complaints form

L en S ym m esC on tro lle r

D ave S ch wabF ac to ry S u p er

R a lp h S im p sonE xec V P

D oc R eevesD ir. R esearch

F red R og ersD ep u ty D ir.

F ran k F orb u sE n g . S ervices

F ran k F orb u sD irec to r o f E n g in eerin g

R on P orte rV P S a les

B ill H u n tP res id en t

Page 5: Organizing. zWhat does it seem that managers overdelegate responsibility or pawn off their jobs to people below them. zWho do you handle complaints form

Previous slide was an organizational chart

Describes the arrangement of work positions within an organization (it reflect the formal or official organizational structure).

Different ways to organize.

Page 6: Organizing. zWhat does it seem that managers overdelegate responsibility or pawn off their jobs to people below them. zWho do you handle complaints form

Rondell--high tech company with rapidly changing Tech. Frank was recently hired. Predecessor lasted 10 months and one before him took to drinking. Problem in ES.

Page 7: Organizing. zWhat does it seem that managers overdelegate responsibility or pawn off their jobs to people below them. zWho do you handle complaints form

ES does pre-production lay out and design. Doc Reeves has many new ideas (over 900/year) and ES expected to modify pre-production changes quickly. Reeves underestimates time to implement.

Page 8: Organizing. zWhat does it seem that managers overdelegate responsibility or pawn off their jobs to people below them. zWho do you handle complaints form

Sales delivery dates get set further behind. Sales complains about resolving disputes between ES and production

Page 9: Organizing. zWhat does it seem that managers overdelegate responsibility or pawn off their jobs to people below them. zWho do you handle complaints form

Production complains about sloppy work in ES (Schwab). Forbus gets “a sack” for a Christmas present. Reason--costly delays that influenced customer satisfaction.

Page 10: Organizing. zWhat does it seem that managers overdelegate responsibility or pawn off their jobs to people below them. zWho do you handle complaints form

What would you do with Rondell. Are the problems Forbus or the structure? Assume you are on the management team and will make a recommendation.

Page 11: Organizing. zWhat does it seem that managers overdelegate responsibility or pawn off their jobs to people below them. zWho do you handle complaints form

L en S ym m esC on tro lle r

D ave S ch wabF ac to ry S u p er

R a lp h S im p sonE xec V P

D oc R eevesD ir. R esearch

F red R og ersD ep u ty D ir.

P erson XE n g . S ervices

W h o wan ts th is job ?D irec to r o f E n g in eerin g

R on P orte rV P S a les

B ill H u n tP res id en t

Page 12: Organizing. zWhat does it seem that managers overdelegate responsibility or pawn off their jobs to people below them. zWho do you handle complaints form

Key definitions (p. 219)Organizing arranges people and

resources to work towards a goal.Organizational structure is the

system of tasks, reporting relationships and communication linkages.

Page 13: Organizing. zWhat does it seem that managers overdelegate responsibility or pawn off their jobs to people below them. zWho do you handle complaints form
Page 14: Organizing. zWhat does it seem that managers overdelegate responsibility or pawn off their jobs to people below them. zWho do you handle complaints form

Organizing in a team Pretty much deciding how to break

up the work and who does what.Importantly, how to communicate

and set up the work flow (who does what first).

Time components.

Page 15: Organizing. zWhat does it seem that managers overdelegate responsibility or pawn off their jobs to people below them. zWho do you handle complaints form

Big issueWork collaboratively.Specialize.

Page 16: Organizing. zWhat does it seem that managers overdelegate responsibility or pawn off their jobs to people below them. zWho do you handle complaints form

As a mid to upper level managerOrganizing is what you focus. How

do you get departments to work with each other.

Rather than focusing on people in a group, you focus on the departments.

Page 17: Organizing. zWhat does it seem that managers overdelegate responsibility or pawn off their jobs to people below them. zWho do you handle complaints form

Why importantPriorities of important areas. Those that

report directly to the President are most important for strategic purposes. Not all are equally important.

Working relationships (task flow) and communications effectiveness internally.

Managing external relationships with key stakeholders (customer).

Page 18: Organizing. zWhat does it seem that managers overdelegate responsibility or pawn off their jobs to people below them. zWho do you handle complaints form

Key Issues--Relevant to RondellDifferentiation--degree of difference

between subsystems in an organization

Time orientationObjectivesInterpersonal orientationFormal structure

Page 19: Organizing. zWhat does it seem that managers overdelegate responsibility or pawn off their jobs to people below them. zWho do you handle complaints form

Need for differentiationSpecialization of tasksDevote resources towards critical

needs such as technology, customer segments, or stakeholders.

Tied to Mission/strategy/operational plans

Page 20: Organizing. zWhat does it seem that managers overdelegate responsibility or pawn off their jobs to people below them. zWho do you handle complaints form

How does Rondell do differentiation?

Page 21: Organizing. zWhat does it seem that managers overdelegate responsibility or pawn off their jobs to people below them. zWho do you handle complaints form

IntegrationThe level of coordination achieved

among subsystemsHuman resources and material resourcesEfficient use of materials and peopleAvoid displacement of operational plans

over strategic plans.Be certain to read p. 293 on How to

improve integration.

Page 22: Organizing. zWhat does it seem that managers overdelegate responsibility or pawn off their jobs to people below them. zWho do you handle complaints form

HOW TO IMPROVESUBSYSTEM Integration

Rules and proceduresDirect contact among managers Liaison roles Task forces Teams Matrix organizations

Page 23: Organizing. zWhat does it seem that managers overdelegate responsibility or pawn off their jobs to people below them. zWho do you handle complaints form

Think about consequences if no integration.

Page 24: Organizing. zWhat does it seem that managers overdelegate responsibility or pawn off their jobs to people below them. zWho do you handle complaints form

How does Rondell do integration?

Page 25: Organizing. zWhat does it seem that managers overdelegate responsibility or pawn off their jobs to people below them. zWho do you handle complaints form

ManagementConstantly addressing organizing in

higher positions. Given goals how can we best allocate are material resources and human resources to meet those goals from efficiency perspective and from goal success perspective.

Page 26: Organizing. zWhat does it seem that managers overdelegate responsibility or pawn off their jobs to people below them. zWho do you handle complaints form

Functional structureGroups together people with similar

skills.Rondell--research and engineering,

production, and sales Best when few product lines and

competing demands for different products.

Page 27: Organizing. zWhat does it seem that managers overdelegate responsibility or pawn off their jobs to people below them. zWho do you handle complaints form

Advantages (Expertise and efficiency)Task assignments consistent with

technical training.Technical Problem solving.Clear career paths.Efficient use of resources time and

cost within units.

Page 28: Organizing. zWhat does it seem that managers overdelegate responsibility or pawn off their jobs to people below them. zWho do you handle complaints form

DisadvantagesPoor communication across functionsToo many problems get resolved at

the top.Loss of responsibility for getting

product to market.Self-centered viewpoints.

Page 29: Organizing. zWhat does it seem that managers overdelegate responsibility or pawn off their jobs to people below them. zWho do you handle complaints form

Divisional structuresGroups people with diverse skills to

work on the same product or with similar clients and customers.

Page 30: Organizing. zWhat does it seem that managers overdelegate responsibility or pawn off their jobs to people below them. zWho do you handle complaints form
Page 31: Organizing. zWhat does it seem that managers overdelegate responsibility or pawn off their jobs to people below them. zWho do you handle complaints form

Advantages over functionalImproved coordination (integration)Responsibility assigned for

product/service. Greater customer satisfaction with product or service.

Greater flexibility to adapt to environmental changes.

Page 32: Organizing. zWhat does it seem that managers overdelegate responsibility or pawn off their jobs to people below them. zWho do you handle complaints form

disadvantagesDivisions fight for resourcesLoss of efficiencies (capital and

human resources). (poor differentiation)

Lack of sharing of expertise across products.

New product development limited.

Page 33: Organizing. zWhat does it seem that managers overdelegate responsibility or pawn off their jobs to people below them. zWho do you handle complaints form

movieDone individually.Does Chrysler have a divisional or

functional design. Why was this design effective. How did this influence employee behavior?

Page 34: Organizing. zWhat does it seem that managers overdelegate responsibility or pawn off their jobs to people below them. zWho do you handle complaints form

Overlay to create efficienciesLarger Staff functions such as human

resources or import/exportSee page 10 Provide advice and

support to line managers.In reality it often does rules and

constraints.

Page 35: Organizing. zWhat does it seem that managers overdelegate responsibility or pawn off their jobs to people below them. zWho do you handle complaints form

New TrendsIncreased delegation--distributing

and entrusting work to others (empowerment).

Increased responsibility and accountability.

See page 214 of text for delegation.Trust and accountability are key.

Page 36: Organizing. zWhat does it seem that managers overdelegate responsibility or pawn off their jobs to people below them. zWho do you handle complaints form

SAS Airlines

Page 37: Organizing. zWhat does it seem that managers overdelegate responsibility or pawn off their jobs to people below them. zWho do you handle complaints form

Current TrendsIncreased Team--cross functional

teams brings together members from different functional departments.

Page 38: Organizing. zWhat does it seem that managers overdelegate responsibility or pawn off their jobs to people below them. zWho do you handle complaints form
Page 39: Organizing. zWhat does it seem that managers overdelegate responsibility or pawn off their jobs to people below them. zWho do you handle complaints form

ProblemViolates Unity in chain of command

Page 40: Organizing. zWhat does it seem that managers overdelegate responsibility or pawn off their jobs to people below them. zWho do you handle complaints form

Current Trends (cont)Flatter organizations--wider spans of

control and shorter chains of command.

Page 41: Organizing. zWhat does it seem that managers overdelegate responsibility or pawn off their jobs to people below them. zWho do you handle complaints form
Page 42: Organizing. zWhat does it seem that managers overdelegate responsibility or pawn off their jobs to people below them. zWho do you handle complaints form

Wider spans of control associated withLess controlling/ more empowermentdecentralized decision making (Stew

Leonard).

Page 43: Organizing. zWhat does it seem that managers overdelegate responsibility or pawn off their jobs to people below them. zWho do you handle complaints form

Example of company with new methodsNucor See p. W 39

Page 44: Organizing. zWhat does it seem that managers overdelegate responsibility or pawn off their jobs to people below them. zWho do you handle complaints form

Steel bars, sheets, joists and girders, decking, grinding balls, fasteners, prefab buildings, and bearings. Started with just steel bars. Recycled steel in Mini meels

9 facilities in all7000 employees

Page 45: Organizing. zWhat does it seem that managers overdelegate responsibility or pawn off their jobs to people below them. zWho do you handle complaints form

Think small in spite of growthFlat organization with Wide spans of

controlDelegationIncentive systems

Page 46: Organizing. zWhat does it seem that managers overdelegate responsibility or pawn off their jobs to people below them. zWho do you handle complaints form

layersTop executivesGeneral managers (by divisions)Department supervisorSupervisorhourly employeeExample no shift supervisors just

department supervisor

Page 47: Organizing. zWhat does it seem that managers overdelegate responsibility or pawn off their jobs to people below them. zWho do you handle complaints form

incentivesWeekly between 80-150% base payannual if outstanding performance of

company.

Page 48: Organizing. zWhat does it seem that managers overdelegate responsibility or pawn off their jobs to people below them. zWho do you handle complaints form

Revisting RondellWhat should we do to get them to

work together. Nothing is perfect. What could be done to improve the situation?

Page 49: Organizing. zWhat does it seem that managers overdelegate responsibility or pawn off their jobs to people below them. zWho do you handle complaints form

SummaryDifferentiation and integrationExamined different ways to

differentiate and integrate. Current trends toward employee

empowerment/accountability. Promoting integration


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