Organizing
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Organizing
What is organizing ?
Is the management function that usually follows after planning. And it involves the assignment of tasks, the grouping of tasks into departments and the assignment of authority and allocation of resources across the organization.
Identify the five basic organizing concepts. n n n n n
Job Specialization – creating and designing jobs Grouping Jobs - combining jobs into meaningful categories Delegating Responsibility with Authority Establishing “Span of Management” Managing Line and Staff positions
Importance of Organising
Organisations are often troubled by how to organise, particularly when a new strategy is developed Changing market conditions or new technology requires change Organisations seek efficiencies through improvements in organising
DEPARTMENTATION
Departmentation
The assignment of jobs to departments is called departmentation, and it represents one of the core aspects of the horizontal division of labour. Methods of departmentation include: Functional, product, matrix, geographic, customer, and hybrid.
FUNCTIONAL DEPARTMENTATION
Functional Departmentation
Employees with closely related skills and responsibilities are assigned to the same department. Advantages:
Efficiency. Enhanced communication. Enhanced career ladders and training opportunities. Easier to measure and evaluate performance.
Functional Departmentation
Disadvantages:
A high degree of differentiation. Poor communication and slow response to organizational problems. Conflicts between departments. Department empires build at expense of organizational goals.
PRODUCT DEPARTMENTATION
Product Departmentation
Departments are formed on the basis of a particular product, product line, or service. Advantages:
Better coordination and communication among functional specialists who work on a particular product line. Flexibility. Departments can be evaluated as profit centres. Timely response to customers.
Product Departmentation
Disadvantages:
Professional development might suffer. Economies of scale might suffer. Inefficiency.
MATRIX DEPARTMENTATION
Matrix Departmentation
Employees remain members of a functional department while also reporting to a product or project manager. Advantages:
Balance. Flexibility. Better communication.
Matrix Departmentation
Disadvantages:
Conflict between product or project managers and functional managers. Role conflict and stress because employees must report to two managers.
GEOGRAPHIC DEPARTMENTATION
Geographic Departmentation
Relatively self-contained units deliver an organization’s products or services in a specific geographic territory. Advantages:
Shortens communication channels. Caters to regional tastes. Some local control to clients and customers.
CUSTOMER DEPARTMENTATION
Customer Departmentation
Relatively self-contained units deliver an organization’s products or services to specific customer groups. Advantages:
Better service to customers.
The disadvantages of geographic and customer departmentation parallel those for production departmentation.
SPAN OF MANAGEMENT
Span of Management
Decentralization - structure in which power and control are systematically delegated to lower levels in the organization.
Span of Management - number of subordinates who report directly to a manager. Affects the total number of relationships within an organization.
Types of Relationships
Direct - supervisor over subordinates
Cross - relationships among subordinates
Group - relationships between groups of subordinates
Factors that Influence the Span of Management
Competence of Manager
Competence of Subordinates
Staff Assistance
Activities Performed
Physical Dispersion
Performance Standards
Narrow and Wide Spans of Control
Situational Determinants of Span of Control
AUTHORITY & RESPONSIBILITY
Authority - formal and legitimate right of a manager to make decisions, issue orders, and allocate resources to achieve organisationally desired outcomes. Responsibility - duty to perform the task or activity an employee has been assigned Accountability - the fact that the people with authority and responsibility are subject to reporting and justifying task outcomes to those above them in the chain of command
Allocating Formal Authority
Where is decision-making power in the organization? Centralization = authority to make decisions is restricted to higher levels of management Preferred when facing a major threat Decentralization = authority to make decisions is given to lower levels in an organization’s hierarchy Leads to higher satisfaction in subordinates, quicker response to problems, easier training for promotion Linked to idea of participation; many want to be involved in decisions that affect their work
Types of Authority
Line Authority - right to direct the work of others and to require them to conform to decisions, rules, policies, and goals.
Functional Authority - special right authorized by Top Executive to a staff position based on specialized knowledge, expertise, position (e.g. Legal Counsel)
DELEGATION
Effective Delegation Delegation
Assigning various degrees of decision-making authority to lower-level employees. The Advantages of Delegation Frees up managerial time for other important tasks. Serves as a training and development tool for lowerlevel managers. Increases subordinates’ commitment by giving them challenging assignments.
Review the need for delegation with responsibility and authority
Delegation- process of assigning tasks and responsibilities to subordinates.
Three aspects of delegation:
Responsibility - assigning a task to a subordinate.
Authority - granting the subordinate the necessary power to complete the task.
Accountability - acknowledging the subordinate is obligated to complete the task.
Barriers to Effective Delegation: 1. 2. 3. 4. 5. 6.
Manager is too disorganized to assign tasks. Manager doesn’t want to be ‘outdone’ by a subordinate. Manager afraid the subordinate won’t do the job as well. Subordinate may be unwilling or unable to perform the task. Task may be one that should not be delegated. Manager unwilling to relinquish control.
DECENTRALIZATION
Centralization, Decentralization, and Formalization
Centralization - The location of decision making authority near top organizational levels. Decentralization - The location of decision making authority near lower organizational levels. Formalization - The written documentation used to direct and control employees.
Decentralization Transfer of responsibility for Planning Management Raising resources from central government to other bodies
Types of decentralization Decentralization Political decentralization Fiscal decentralization
Administrative decentralization Management decentralization
LINE & STAFF ORGANIZATION
Line and Staff Authority
Line authority - in which individuals in management positions have the formal power to direct and control immediate subordinates. Staff authority - granted to staff specialists in their areas of expertise. Narrrower than line authority and includes the right to advise, recommend, and counsel in the staff specialists' area of expertise..
Line and Staff Units
Line units = work groups that conduct the major business of the organization Internal line units (e.g., production) External line units (e.g., marketing) Staff units = groups that assist the line units by performing specialized services in the organization Internal staff units (e.g., accounting) External staff units (e.g., public relations)
Figure 10.6 A Line and Staff Organization
Differentiate between Line and Staff positions
Line Positions - positions in the direct ‘chain of command’ which the supervisor has direct authority and specific responsibility. Staff Positions - positions which are outside of the direct ‘chain of command’ that are primarily advisory or supportive in nature.
Principal distinction between line & staff
Line manager is generalist Line manager directs others Line manager trains his or her subordinates Line managers make operating decision Line managers bear final responsibility
Staff manager is a specialist whose knowledge is limited only to his field Staff manager assists others Staff managers serves authority Staff manager investigates the problem related to his/her field of specialization Staff manager provide ideas to line managers Staff managers have expertise in specialized field
Placement of Staff Units
Staff units can be assigned at any level of the organization, offering their specialized help at mostly the senior level, the middle management level, or to lower-level managers Increasing interest in outsourcing many staff functions Also interest in decreasing need for some internal staff through greater use of information technology by managers, enhancing their analytical and decision-making capabilities
Directing
Directing is influencing people's behavior through motivation, communication, group dynamics, leadership and discipline. The purpose of directing is to channel the behavior of all personnel to accomplish the organization's mission and objectives. The directing function gives the manager an active rather than a passive role in employee performance, conduct and accomplishments. Managers accomplish their objectives through people. The directing function gives managers a second responsibility: helping people in the organization accomplish their individual career goals. Organizations do not succeed while their people are failing. Helping people in the organization with career planning and professional development is an integral part of the directing function.
Motivation
Selection, training, evaluation and discipline cannot guarantee a high level of employee performance. Motivation, the inner force that directs employee behavior, also plays an important role. Highly motivated people perform better than unmotivated people. Motivation covers up ability and skill deficiencies in employees. Such truisms about motivation leave employers wanting to be surrounded by highly motivated people but unequipped to motivate their employees. Employers and supervisors want easily applied motivation models but such models are unavailable. Motivation probably tops the list of complex activities with which labor managers deal. Their intuition suggests an easy answer, "I want everyone around here to be motivated."
They often blame employees for their lack of motivation and performance problems. Employees on the other hand often blame any performance problems they may have on external factors - their supervisors, equipment, training, co-workers, weather, unrealistic demands made on them, pressures at home, lack of recognition etc., etc. Despite the conflicting perceptions held by employers and employees, employers must deal with employee motivation. Three ways of looking at motivation are: needs, rewards and effort. The needs approach stems from the notion that peoples' unsatisfied needs drive their behavior. Figure out a person's needs, satisfy the needs and the person will be motivated. For example, a person with a high need to satisfy goals is motivated by production targets. The rewards approach is based on the expectation that rewarded behavior is repeated. Giving a person a bonus for excellent performance during a difficult harvest period encourages the person to make a special effort during the next difficult harvest. The effort approach to motivation is based on the expectation that effort brings the worker what he or she wants.
The most effective motivation for employees comes from within each employee, i.e., self-motivation. Possible indicators of self-motivation include: past accomplishments in school, sports, organizations and work; stated career goals and other kinds of goals; expertise in one or more areas that shows evidence of craftsmanship, pride in knowledge and abilities, and self-confidence; an evident desire to continue to learn; and a general enthusiasm for life. Threats, bribery, manipulation and coercion have only limited usefulness beyond the very short-run in changing behavior in the farm environment. More effective employer action responds to employee needs, making their work useful to satisfying their needs, helping employees understand the relationship between their contribution to success of the farm and rewards received, and creating an atmosphere of equity and fairness.
Communication
Three Common Small-Group Networks
Chain
Prentice Hall, 2000
Wheel
Chapter 9
All-Channel
52
Three types of small-group networks are the chain, wheel, and all-channel. The chain rigidly follows the chain of command. The wheel relies on the leader to act as the central conduit for all the group’s communication. The all-channel permits all group members to actively communicate with one another. The all-channel network characterizes the problem-solving task force, in which all group members are free to contribute. The effectiveness of each type of network depends on the goals of the group. If speed is important, for example, the wheel and all-channel networks are best. For accuracy, choose the chain or wheel. The wheel is best for allowing leaders to emerge. And if member satisfaction is important, the all-channel network is the best choice and the wheel is the worst choice.
Th e G rap evi ne Anxiety
Accuracy
Ambiguity
Prentice Hall, 2000
Chapter 9
54
The formal system is not the only communication system in an organization or a group. There is also an informal system--where information flows along the wellknown grapevine and rumors can flourish. Is the information that flows along the grapevine accurate? Evidence indicates that about 75 percent the information is accurate. But what conditions foster the grapevine? It is frequently assumed that rumors start because they make titillating gossip. This is rarely the case. Rumors emerge as a response to situations that are important to us, where there is ambiguity, and under conditions that arouse anxiety. The fact that workplace situations frequently contain these elements explains why rumors flourish in organizations.
Cross-Cultural Communication • Assume differences until similarity is proved • Emphasize description over interpretation and evaluation • Cultivate the art of being empathetic • Treat your interpretation as a working hypothesis Prentice Hall, 2000
Chapter 9
56
Managers Should Be Active Listeners
Make eye contact
Paraphrase
Avoid distractions
Avoid interrupting
Ask questions
Don’t talk too much
Exhibit appropriate
Combine speaking and
expressions Prentice Hall, 2000
listening Chapter 9
57
Simplify Language
Constrain Emotions
More Communication Skills for Managers Observe Nonverbal Cues Prentice Hall, 2000
Use the Grapevine Chapter 9
58
Because language can be a barrier, managers should structure messages in ways that will make them clear and understandable. Words should be chosen carefully. A manager must simplify his or her language and consider the audience for whom the message is intended. It would be naïve to assume that a manager is always rational when he or she is communicating. Since emotion can distort the transference of meaning, the best approach for a manager who is upset is to wait before trying to send a message. Since actions can speak louder than words, managers must watch their actions to be sure that they align with and reinforce their verbal messages. The grapevine cannot be eliminated. So managers should make it work for them. They can transmit information over the grapevine to test the reaction of employees before they make decisions. To minimize the impact of damaging rumors on the grapevine, managers should use formal channels by ensuring that they carry relevant, accurate information that will be of interest to employees.
Leading Leadership style
The Directing Leader
Sets goals. Identifies the problems. Comes up with solutions. Decides who does what work. Gives specific directions. Announces decisions. Closely supervises and evaluates employees' work.
The Coaching Leader
Sets the goals. Identifies the problems. Develops a plan to solve problems and consults with employees. Makes the final decision about procedures or solutions after hearing employees' ideas, opinions, and feelings. Explains decisions to employees and asks for their ideas. Praises employees' work efforts. Continues to direct employees' work. Evaluates employees' work.
The Supporting Leader
Involves employees in problem-solving and goalsetting. Takes the lead in defining how to do a job or solve a problem. Provides support, resources, and ideas if requested. Shares responsibility for problem-solving with employees. Listens to employees and guides them as they make decisions. Evaluates an employee’s work with that person.
The Delegating Leader
Identifies problems with employees. Sets goals with employees. Develops plans and makes decisions with employees. Lets employees decide who does the tasks. Accepts employees' decisions and monitors their performance. Lets employees evaluate their own work. Lets employees take responsibility and credit for their work.
Autocratic leader:
Leader makes decisions without reference to anyone else High degree of dependency on the leader Can create de-motivation and alienation of staff May be valuable in some types of business where decisions need to be made quickly and decisively
Democratic leader:
Encourages decision making from different perspectives – leadership may be emphasised throughout the organisation
Consultative: process of consultation before decisions are taken Persuasive: Leader takes decision and seeks to persuade others that the decision is correct
Democratic: May help motivation and involvement Workers feel ownership of the firm and its ideas Improves the sharing of ideas and experiences within the business Can delay decision making
Paternalistic leaders:
Leader acts as a ‘father figure’ Paternalistic leader makes decision but may consult Believes in the need to support staff
Coordination
Basic Methods of Coordinating
Coordination is a process of facilitating timing, communication, and feedback among work tasks. There are five basic methods of coordination. The methods can be ordered in terms of the degree of discretion they permit in terms of task performance.
Basic Methods of Coordinating
From least to most work discretion, the five methods are:
Direct supervision Standardization of work processes Standardization of work outputs Standardization of skills Mutual adjustment
Basic Methods of Coordinating
The method of coordination affects the design of jobs. The use of the various methods of coordination tends to vary across different parts of the organization. Methods of coordination may change as task demands change.
Other Methods of Coordination
Lateral coordination across highly differentiated departments often requires more elaborate forms of coordination. Integration is the process of attaining coordination across differentiated departments.
Three methods of achieving integration
Liaison roles Task forces Full-time integrators
Liaison Role
A person is assigned to help achieve coordination between his or her department and another department. One person serves as a part-time link between two departments.
Task Forces
Temporary groups set up to solve coordination problems across several departments. Self-managed and cross-functional teams are also an effective means of achieving coordination.
Integrators
Organizational members permanently assigned to facilitate coordination between departments. They are especially useful for dealing with conflict between highly interdependent departments with diverse goals in an ambiguous environment.
Controlling
Control
Set of mechanisms an organization uses to ensure that actions and outputs respect predetermined limits Involves setting standards, measuring results, and taking corrective actions Types of controls:
Output controls Process controls
Output Controls
Controls that focus on desired targets and allow managers to use their own methods for reaching these targets Steps in developing output controls: Developing targets or standards Measuring results against targets Taking corrective action Part of a “management by exception” approach Promotes flexibility as only goals are defined; methods still open to creativity
Process Controls
Controls that try to specify how tasks are to be accomplished Represent use of experience to prevent recurring problems Three types of process controls:
Policies, procedures, and rules Formalization and standardization Total quality management controls
Policies, procedures, and rules
A policy is a guideline for action, noting important objectives and broad indication of performance approach A procedure indicates the best method for performing a task, shows which aspects of a task are most important, or outlines how an individual is to be rewarded A rule is a specific, rigid guideline for action, typically indicating how something should be done or what should not be done
Are often used as substitutes for direct managerial supervision
Formalization and standardization
:
Formalization refers to the written documentation of work rules, policies, and procedures
Simplifies jobs, ensures consistency
Standardization is the degree to which the range of actions in a job or series of jobs is limited
Guidelines are created so that similar work activities are repeatedly performed in a similar manner
Total Quality Management (TQM)
Deming’s process approach focused on continual improvement through use of statistical analyses of all firm’s operations Emphasizes managers and employees collaborating in search of quality improvements Often uses empowerment and participative management
Techniques of controlling Centralization and decentralization. Centralization. Decision making responsibility is moved upward in
the hierarchy of authority. Decentralization. Decision making responsibility is moved
downward in the hierarchy of authority. Greater centralization is often used by firms
facing a single major threat to its survival.
Benefits of decentralization. Higher subordinate satisfaction. Quicker response to a series of unrelated problems. Assists in on-the-job training of subordinates for higher level positions Participation is closely related to decentralization.
What is organizing ?
Is the management function that usually follows after planning. And it involves the assignment of tasks, the grouping of tasks into departments and the assignment of authority and allocation of resources across the organization.
Identify the five basic organizing concepts. n n n n n
Job Specialization – creating and designing jobs Grouping Jobs - combining jobs into meaningful categories Delegating Responsibility with Authority Establishing “Span of Management” Managing Line and Staff positions
Importance of Organising
Organisations are often troubled by how to organise, particularly when a new strategy is developed Changing market conditions or new technology requires change Organisations seek efficiencies through improvements in organising
DEPARTMENTATION
Departmentation
The assignment of jobs to departments is called departmentation, and it represents one of the core aspects of the horizontal division of labour. Methods of departmentation include: Functional, product, matrix, geographic, customer, and hybrid.
FUNCTIONAL DEPARTMENTATION
Functional Departmentation
Employees with closely related skills and responsibilities are assigned to the same department. Advantages:
Efficiency. Enhanced communication. Enhanced career ladders and training opportunities. Easier to measure and evaluate performance.
Functional Departmentation
Disadvantages:
A high degree of differentiation. Poor communication and slow response to organizational problems. Conflicts between departments. Department empires build at expense of organizational goals.
PRODUCT DEPARTMENTATION
Product Departmentation
Departments are formed on the basis of a particular product, product line, or service. Advantages:
Better coordination and communication among functional specialists who work on a particular product line. Flexibility. Departments can be evaluated as profit centres. Timely response to customers.
Product Departmentation
Disadvantages:
Professional development might suffer. Economies of scale might suffer. Inefficiency.
MATRIX DEPARTMENTATION
Matrix Departmentation
Employees remain members of a functional department while also reporting to a product or project manager. Advantages:
Balance. Flexibility. Better communication.
Matrix Departmentation
Disadvantages:
Conflict between product or project managers and functional managers. Role conflict and stress because employees must report to two managers.
GEOGRAPHIC DEPARTMENTATION
Geographic Departmentation
Relatively self-contained units deliver an organization’s products or services in a specific geographic territory. Advantages:
Shortens communication channels. Caters to regional tastes. Some local control to clients and customers.
CUSTOMER DEPARTMENTATION
Customer Departmentation
Relatively self-contained units deliver an organization’s products or services to specific customer groups. Advantages:
Better service to customers.
The disadvantages of geographic and customer departmentation parallel those for production departmentation.
SPAN OF MANAGEMENT
Span of Management
Decentralization - structure in which power and control are systematically delegated to lower levels in the organization.
Span of Management - number of subordinates who report directly to a manager. Affects the total number of relationships within an organization.
Types of Relationships
Direct - supervisor over subordinates
Cross - relationships among subordinates
Group - relationships between groups of subordinates
Factors that Influence the Span of Management
Competence of Manager
Competence of Subordinates
Staff Assistance
Activities Performed
Physical Dispersion
Performance Standards
Narrow and Wide Spans of Control
Situational Determinants of Span of Control
AUTHORITY & RESPONSIBILITY
Authority - formal and legitimate right of a manager to make decisions, issue orders, and allocate resources to achieve organisationally desired outcomes. Responsibility - duty to perform the task or activity an employee has been assigned Accountability - the fact that the people with authority and responsibility are subject to reporting and justifying task outcomes to those above them in the chain of command
Allocating Formal Authority
Where is decision-making power in the organization? Centralization = authority to make decisions is restricted to higher levels of management Preferred when facing a major threat Decentralization = authority to make decisions is given to lower levels in an organization’s hierarchy Leads to higher satisfaction in subordinates, quicker response to problems, easier training for promotion Linked to idea of participation; many want to be involved in decisions that affect their work
Types of Authority
Line Authority - right to direct the work of others and to require them to conform to decisions, rules, policies, and goals.
Functional Authority - special right authorized by Top Executive to a staff position based on specialized knowledge, expertise, position (e.g. Legal Counsel)
DELEGATION
Effective Delegation Delegation
Assigning various degrees of decision-making authority to lower-level employees. The Advantages of Delegation Frees up managerial time for other important tasks. Serves as a training and development tool for lowerlevel managers. Increases subordinates’ commitment by giving them challenging assignments.
Review the need for delegation with responsibility and authority
Delegation- process of assigning tasks and responsibilities to subordinates.
Three aspects of delegation:
Responsibility - assigning a task to a subordinate.
Authority - granting the subordinate the necessary power to complete the task.
Accountability - acknowledging the subordinate is obligated to complete the task.
Barriers to Effective Delegation: 1. 2. 3. 4. 5. 6.
Manager is too disorganized to assign tasks. Manager doesn’t want to be ‘outdone’ by a subordinate. Manager afraid the subordinate won’t do the job as well. Subordinate may be unwilling or unable to perform the task. Task may be one that should not be delegated. Manager unwilling to relinquish control.
DECENTRALIZATION
Centralization, Decentralization, and Formalization
Centralization - The location of decision making authority near top organizational levels. Decentralization - The location of decision making authority near lower organizational levels. Formalization - The written documentation used to direct and control employees.
Decentralization Transfer of responsibility for Planning Management Raising resources from central government to other bodies
Types of decentralization Decentralization Political decentralization Fiscal decentralization
Administrative decentralization Management decentralization
LINE & STAFF ORGANIZATION
Line and Staff Authority
Line authority - in which individuals in management positions have the formal power to direct and control immediate subordinates. Staff authority - granted to staff specialists in their areas of expertise. Narrrower than line authority and includes the right to advise, recommend, and counsel in the staff specialists' area of expertise..
Line and Staff Units
Line units = work groups that conduct the major business of the organization Internal line units (e.g., production) External line units (e.g., marketing) Staff units = groups that assist the line units by performing specialized services in the organization Internal staff units (e.g., accounting) External staff units (e.g., public relations)
Figure 10.6 A Line and Staff Organization
Differentiate between Line and Staff positions
Line Positions - positions in the direct ‘chain of command’ which the supervisor has direct authority and specific responsibility. Staff Positions - positions which are outside of the direct ‘chain of command’ that are primarily advisory or supportive in nature.
Principal distinction between line & staff
Line manager is generalist Line manager directs others Line manager trains his or her subordinates Line managers make operating decision Line managers bear final responsibility
Staff manager is a specialist whose knowledge is limited only to his field Staff manager assists others Staff managers serves authority Staff manager investigates the problem related to his/her field of specialization Staff manager provide ideas to line managers Staff managers have expertise in specialized field
Placement of Staff Units
Staff units can be assigned at any level of the organization, offering their specialized help at mostly the senior level, the middle management level, or to lower-level managers Increasing interest in outsourcing many staff functions Also interest in decreasing need for some internal staff through greater use of information technology by managers, enhancing their analytical and decision-making capabilities
Directing
Directing is influencing people's behavior through motivation, communication, group dynamics, leadership and discipline. The purpose of directing is to channel the behavior of all personnel to accomplish the organization's mission and objectives. The directing function gives the manager an active rather than a passive role in employee performance, conduct and accomplishments. Managers accomplish their objectives through people. The directing function gives managers a second responsibility: helping people in the organization accomplish their individual career goals. Organizations do not succeed while their people are failing. Helping people in the organization with career planning and professional development is an integral part of the directing function.
Motivation
Selection, training, evaluation and discipline cannot guarantee a high level of employee performance. Motivation, the inner force that directs employee behavior, also plays an important role. Highly motivated people perform better than unmotivated people. Motivation covers up ability and skill deficiencies in employees. Such truisms about motivation leave employers wanting to be surrounded by highly motivated people but unequipped to motivate their employees. Employers and supervisors want easily applied motivation models but such models are unavailable. Motivation probably tops the list of complex activities with which labor managers deal. Their intuition suggests an easy answer, "I want everyone around here to be motivated."
They often blame employees for their lack of motivation and performance problems. Employees on the other hand often blame any performance problems they may have on external factors - their supervisors, equipment, training, co-workers, weather, unrealistic demands made on them, pressures at home, lack of recognition etc., etc. Despite the conflicting perceptions held by employers and employees, employers must deal with employee motivation. Three ways of looking at motivation are: needs, rewards and effort. The needs approach stems from the notion that peoples' unsatisfied needs drive their behavior. Figure out a person's needs, satisfy the needs and the person will be motivated. For example, a person with a high need to satisfy goals is motivated by production targets. The rewards approach is based on the expectation that rewarded behavior is repeated. Giving a person a bonus for excellent performance during a difficult harvest period encourages the person to make a special effort during the next difficult harvest. The effort approach to motivation is based on the expectation that effort brings the worker what he or she wants.
The most effective motivation for employees comes from within each employee, i.e., self-motivation. Possible indicators of self-motivation include: past accomplishments in school, sports, organizations and work; stated career goals and other kinds of goals; expertise in one or more areas that shows evidence of craftsmanship, pride in knowledge and abilities, and self-confidence; an evident desire to continue to learn; and a general enthusiasm for life. Threats, bribery, manipulation and coercion have only limited usefulness beyond the very short-run in changing behavior in the farm environment. More effective employer action responds to employee needs, making their work useful to satisfying their needs, helping employees understand the relationship between their contribution to success of the farm and rewards received, and creating an atmosphere of equity and fairness.
Communication
Three Common Small-Group Networks
Chain
Prentice Hall, 2000
Wheel
Chapter 9
All-Channel
52
Three types of small-group networks are the chain, wheel, and all-channel. The chain rigidly follows the chain of command. The wheel relies on the leader to act as the central conduit for all the group’s communication. The all-channel permits all group members to actively communicate with one another. The all-channel network characterizes the problem-solving task force, in which all group members are free to contribute. The effectiveness of each type of network depends on the goals of the group. If speed is important, for example, the wheel and all-channel networks are best. For accuracy, choose the chain or wheel. The wheel is best for allowing leaders to emerge. And if member satisfaction is important, the all-channel network is the best choice and the wheel is the worst choice.
Th e G rap evi ne Anxiety
Accuracy
Ambiguity
Prentice Hall, 2000
Chapter 9
54
The formal system is not the only communication system in an organization or a group. There is also an informal system--where information flows along the wellknown grapevine and rumors can flourish. Is the information that flows along the grapevine accurate? Evidence indicates that about 75 percent the information is accurate. But what conditions foster the grapevine? It is frequently assumed that rumors start because they make titillating gossip. This is rarely the case. Rumors emerge as a response to situations that are important to us, where there is ambiguity, and under conditions that arouse anxiety. The fact that workplace situations frequently contain these elements explains why rumors flourish in organizations.
Cross-Cultural Communication • Assume differences until similarity is proved • Emphasize description over interpretation and evaluation • Cultivate the art of being empathetic • Treat your interpretation as a working hypothesis Prentice Hall, 2000
Chapter 9
56
Managers Should Be Active Listeners
Make eye contact
Paraphrase
Avoid distractions
Avoid interrupting
Ask questions
Don’t talk too much
Exhibit appropriate
Combine speaking and
expressions Prentice Hall, 2000
listening Chapter 9
57
Simplify Language
Constrain Emotions
More Communication Skills for Managers Observe Nonverbal Cues Prentice Hall, 2000
Use the Grapevine Chapter 9
58
Because language can be a barrier, managers should structure messages in ways that will make them clear and understandable. Words should be chosen carefully. A manager must simplify his or her language and consider the audience for whom the message is intended. It would be naïve to assume that a manager is always rational when he or she is communicating. Since emotion can distort the transference of meaning, the best approach for a manager who is upset is to wait before trying to send a message. Since actions can speak louder than words, managers must watch their actions to be sure that they align with and reinforce their verbal messages. The grapevine cannot be eliminated. So managers should make it work for them. They can transmit information over the grapevine to test the reaction of employees before they make decisions. To minimize the impact of damaging rumors on the grapevine, managers should use formal channels by ensuring that they carry relevant, accurate information that will be of interest to employees.
Leading Leadership style
The Directing Leader
Sets goals. Identifies the problems. Comes up with solutions. Decides who does what work. Gives specific directions. Announces decisions. Closely supervises and evaluates employees' work.
The Coaching Leader
Sets the goals. Identifies the problems. Develops a plan to solve problems and consults with employees. Makes the final decision about procedures or solutions after hearing employees' ideas, opinions, and feelings. Explains decisions to employees and asks for their ideas. Praises employees' work efforts. Continues to direct employees' work. Evaluates employees' work.
The Supporting Leader
Involves employees in problem-solving and goalsetting. Takes the lead in defining how to do a job or solve a problem. Provides support, resources, and ideas if requested. Shares responsibility for problem-solving with employees. Listens to employees and guides them as they make decisions. Evaluates an employee’s work with that person.
The Delegating Leader
Identifies problems with employees. Sets goals with employees. Develops plans and makes decisions with employees. Lets employees decide who does the tasks. Accepts employees' decisions and monitors their performance. Lets employees evaluate their own work. Lets employees take responsibility and credit for their work.
Autocratic leader:
Leader makes decisions without reference to anyone else High degree of dependency on the leader Can create de-motivation and alienation of staff May be valuable in some types of business where decisions need to be made quickly and decisively
Democratic leader:
Encourages decision making from different perspectives – leadership may be emphasised throughout the organisation
Consultative: process of consultation before decisions are taken Persuasive: Leader takes decision and seeks to persuade others that the decision is correct
Democratic: May help motivation and involvement Workers feel ownership of the firm and its ideas Improves the sharing of ideas and experiences within the business Can delay decision making
Paternalistic leaders:
Leader acts as a ‘father figure’ Paternalistic leader makes decision but may consult Believes in the need to support staff
Coordination
Basic Methods of Coordinating
Coordination is a process of facilitating timing, communication, and feedback among work tasks. There are five basic methods of coordination. The methods can be ordered in terms of the degree of discretion they permit in terms of task performance.
Basic Methods of Coordinating
From least to most work discretion, the five methods are:
Direct supervision Standardization of work processes Standardization of work outputs Standardization of skills Mutual adjustment
Basic Methods of Coordinating
The method of coordination affects the design of jobs. The use of the various methods of coordination tends to vary across different parts of the organization. Methods of coordination may change as task demands change.
Other Methods of Coordination
Lateral coordination across highly differentiated departments often requires more elaborate forms of coordination. Integration is the process of attaining coordination across differentiated departments.
Three methods of achieving integration
Liaison roles Task forces Full-time integrators
Liaison Role
A person is assigned to help achieve coordination between his or her department and another department. One person serves as a part-time link between two departments.
Task Forces
Temporary groups set up to solve coordination problems across several departments. Self-managed and cross-functional teams are also an effective means of achieving coordination.
Integrators
Organizational members permanently assigned to facilitate coordination between departments. They are especially useful for dealing with conflict between highly interdependent departments with diverse goals in an ambiguous environment.
Controlling
Control
Set of mechanisms an organization uses to ensure that actions and outputs respect predetermined limits Involves setting standards, measuring results, and taking corrective actions Types of controls:
Output controls Process controls
Output Controls
Controls that focus on desired targets and allow managers to use their own methods for reaching these targets Steps in developing output controls: Developing targets or standards Measuring results against targets Taking corrective action Part of a “management by exception” approach Promotes flexibility as only goals are defined; methods still open to creativity
Process Controls
Controls that try to specify how tasks are to be accomplished Represent use of experience to prevent recurring problems Three types of process controls:
Policies, procedures, and rules Formalization and standardization Total quality management controls
Policies, procedures, and rules
A policy is a guideline for action, noting important objectives and broad indication of performance approach A procedure indicates the best method for performing a task, shows which aspects of a task are most important, or outlines how an individual is to be rewarded A rule is a specific, rigid guideline for action, typically indicating how something should be done or what should not be done
Are often used as substitutes for direct managerial supervision
Formalization and standardization
:
Formalization refers to the written documentation of work rules, policies, and procedures
Simplifies jobs, ensures consistency
Standardization is the degree to which the range of actions in a job or series of jobs is limited
Guidelines are created so that similar work activities are repeatedly performed in a similar manner
Total Quality Management (TQM)
Deming’s process approach focused on continual improvement through use of statistical analyses of all firm’s operations Emphasizes managers and employees collaborating in search of quality improvements Often uses empowerment and participative management
Techniques of controlling Centralization and decentralization. Centralization. Decision making responsibility is moved upward in
the hierarchy of authority. Decentralization. Decision making responsibility is moved
downward in the hierarchy of authority. Greater centralization is often used by firms
facing a single major threat to its survival.
Benefits of decentralization. Higher subordinate satisfaction. Quicker response to a series of unrelated problems. Assists in on-the-job training of subordinates for higher level positions Participation is closely related to decentralization.
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