2-5
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Chapter 5:
Organizing Work
1
Applying Management Skills • Organization – Group of people working together in some concerted or coordinated effort to attain objectives.
• Organizing – Grouping of activities to attain common objectives and the assignment of each grouping to a manager with the authority to supervise people performing the activities.
• Informal organization – Aggregate of the personal contacts and interactions and the associated groupings of people working within the formal organization. 2
Reasons for Organizing • Establish lines of authority. • Improve the efficiency and quality of work through synergism. • Improve communications.
3
Reasons for Organizing • The use of organization allows people to: • • • • •
Increase specialization and division of labor. Use large-scale technology. Manage the external environment. Economize on transaction costs. Exert power and control.
4
Horizontal Division of Labor • Advantages: – Fewer skills are required per person. – Skills required for selection or training are easier to supply. – Practice in the same job develops proficiency. – Promotes efficient use of each worker’s skills. – Concurrent operations are made possible. – Product conformity is increased when each piece is produced by the same person. 5
Division of Labor • Job Scope • Refers to the number of different types of operations performed on the job.
• Job depth • Refers to the freedom of employees to plan and organize their own work, work at their own pace, move around and communicate as desired.
6
Power, Authority, and Responsibility • Power – Ability to influence, command, or apply force.
• Authority – Legitimate exercise of power.
• Responsibility – Accountability for the attainment of objectives, the use of resources, and the adherence to organizational policy. 7
Centralization versus Decentralization • Centralization – Little authority is delegated to lower levels of management.
• Decentralization – A great deal of authority is delegated to lower levels of management.
8
Tapered Concept of Authority
Scope of authority
Board of Directors President Vice president General manager Superintendent Employee 9
Centralized versus Decentralized Authority
Scope of authority
Board of Directors President
Scope of authority
Vice president General manager Superintendent Employee
Centralized
Decentralized
10
Empowerment • Implementing empowerment • Restructure units to be smaller, less complex, and less dependent on other units for decision making and action. • Minimize the number of organizational rules. • Emphasize personal accountability. • Provide education and training for personal improvement.
11
Delegation of Authority • Management reluctance caused by: – – – – –
Fear that subordinates will fail. Belief that it is easier to do the task oneself. Fear that subordinates will look “too good.” Humans’ attraction to power. Comfort in doing the tasks of the previous job held.
12
Delegation of Authority Steps in the delegation process: 1. Analyze how you spend your time. 2. Decide which tasks can be assigned. 3. Decide who can handle each task. 4. Delegate the authority. 5. Create an obligation (responsibility). 6. Control the delegation. 13
Delegation of Authority • Unity of command – States that an employee should have one, and only one, immediate manager.
• Scalar principle – States that authority in the organization flows through the chain of managers one link at a time, ranging from the highest to the lowest ranks. – Also referred to as chain of command.
• Span of management – Number of subordinates a manager can effectively manage. – Also referred to as span of control. 14
Factors Affecting Span of Management Factor
Description
Relationship to Span of Control
Complexity
Job scope Job depth
Shortens span of control
Variety
Number of different types of jobs being managed
Shortens span of control
Proximity
Physical dispersion of jobs being managed
Lengthens span of control
Quality of subordinates
General quality of the employees being managed
Lengthens span of control
Quality of manager
Ability to perform managerial duties
Lengthens span of control 15
Organizing Work
1
Applying Management Skills • Organization – Group of people working together in some concerted or coordinated effort to attain objectives.
• Organizing – Grouping of activities to attain common objectives and the assignment of each grouping to a manager with the authority to supervise people performing the activities.
• Informal organization – Aggregate of the personal contacts and interactions and the associated groupings of people working within the formal organization. 2
Reasons for Organizing • Establish lines of authority. • Improve the efficiency and quality of work through synergism. • Improve communications.
3
Reasons for Organizing • The use of organization allows people to: • • • • •
Increase specialization and division of labor. Use large-scale technology. Manage the external environment. Economize on transaction costs. Exert power and control.
4
Horizontal Division of Labor • Advantages: – Fewer skills are required per person. – Skills required for selection or training are easier to supply. – Practice in the same job develops proficiency. – Promotes efficient use of each worker’s skills. – Concurrent operations are made possible. – Product conformity is increased when each piece is produced by the same person. 5
Division of Labor • Job Scope • Refers to the number of different types of operations performed on the job.
• Job depth • Refers to the freedom of employees to plan and organize their own work, work at their own pace, move around and communicate as desired.
6
Power, Authority, and Responsibility • Power – Ability to influence, command, or apply force.
• Authority – Legitimate exercise of power.
• Responsibility – Accountability for the attainment of objectives, the use of resources, and the adherence to organizational policy. 7
Centralization versus Decentralization • Centralization – Little authority is delegated to lower levels of management.
• Decentralization – A great deal of authority is delegated to lower levels of management.
8
Tapered Concept of Authority
Scope of authority
Board of Directors President Vice president General manager Superintendent Employee 9
Centralized versus Decentralized Authority
Scope of authority
Board of Directors President
Scope of authority
Vice president General manager Superintendent Employee
Centralized
Decentralized
10
Empowerment • Implementing empowerment • Restructure units to be smaller, less complex, and less dependent on other units for decision making and action. • Minimize the number of organizational rules. • Emphasize personal accountability. • Provide education and training for personal improvement.
11
Delegation of Authority • Management reluctance caused by: – – – – –
Fear that subordinates will fail. Belief that it is easier to do the task oneself. Fear that subordinates will look “too good.” Humans’ attraction to power. Comfort in doing the tasks of the previous job held.
12
Delegation of Authority Steps in the delegation process: 1. Analyze how you spend your time. 2. Decide which tasks can be assigned. 3. Decide who can handle each task. 4. Delegate the authority. 5. Create an obligation (responsibility). 6. Control the delegation. 13
Delegation of Authority • Unity of command – States that an employee should have one, and only one, immediate manager.
• Scalar principle – States that authority in the organization flows through the chain of managers one link at a time, ranging from the highest to the lowest ranks. – Also referred to as chain of command.
• Span of management – Number of subordinates a manager can effectively manage. – Also referred to as span of control. 14
Factors Affecting Span of Management Factor
Description
Relationship to Span of Control
Complexity
Job scope Job depth
Shortens span of control
Variety
Number of different types of jobs being managed
Shortens span of control
Proximity
Physical dispersion of jobs being managed
Lengthens span of control
Quality of subordinates
General quality of the employees being managed
Lengthens span of control
Quality of manager
Ability to perform managerial duties
Lengthens span of control 15
