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8/22/2019 Griffin Chap 11
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Slide content created by Charlie Cook, The University of West Alabama
Copyright Houghton Mifflin Company. All rights reserved.
Chapter Eleven
Basic Elements ofOrganizing
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Learning Objectives
After studying this chapter, you should be able to:1. Identify the basic elements of organizations.
2. Describe alternative approaches to designing jobs.
3. Discuss the rationale and the most common bases for
grouping jobs into departments.4. Describe the basic elements involved in establishing reporting
relationships.
5. Discuss how authority is distributed in organizations.
6. Discuss the basic coordinating activities undertaken byorganizations.
7. Describe basic ways in which positions within an organizationcan be differentiated.
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The Elements Organizing
Organizing Deciding how to best
group organizationalactivities andresources.
OrganizationStructure The set of building
blocks that can beused to configure anorganization.
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Designing Jobs
Job Design
The determination of an individuals work-
related responsibilities.
Job Specialization (Division of Labor)
The degree to which the overall task of the
organization is broken down and divided
into smaller component parts.
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Designing Jobs (contd)
Job Specialization (Division of Labor)
Benefits of Specialization
Workers can become proficient at a task.
Transfer time between tasks is decreased.
Specialized equipment can be more easily developed.
Employee replacement becomes easier.
Limitations of Specialization
Employee boredom and dissatisfaction with mundanetasks.
Anticipated benefits do not always occur.
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Adam Smiths Example
of Job Specialization
Making a pin (nail) requires 18tasks
1 worker doing all 18 tasks might make
20 pins (nails) a day.
20 workers = (20 x 20) = 400 pins
______________________________
With special izat ion :
20 workers make 100,000 pins a day.
1 worker = 5,000 pins
20 pins vs. 5,000 pins per worker
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Alternatives to Specialization
Job Rotation Systematically moving employees from one job to
another in an attempt to reduce employeeboredom.
Job Enlargement An increase in the total number of tasks workers
perform.
Job Enrichment
Increasing both the number of tasks the workerdoes and the control the worker has over the job.
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Alternatives to
Specialization (contd) Job Characteristics Approach:
Core Dimensions Skill varietythe number of tasks a person does in a job.
Task identitythe extent to which the worker does a
complete or identifiable portion of the total job. Task significancethe perceived importance of the task.
Autonomythe degree of control the worker has over howthe work is performed.
Feedback the extent to which the worker knows how
well the job is being performed. Growth-Need Strength
The desire for some people to grow, develop, and expandtheir capabilities that is their response to the coredimensions.
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Figure 11.1: The Job
Characteristics Approach
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Alternatives to
Specialization (contd) Work Teams
An alternative to job specialization that allows theentire group to design the work system it will useto perform an interrelated set of tasks.
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Grouping Jobs:
Departmentalization
Departmentalization
The process of grouping jobs according to some
logical arrangement.
Rationale for Departmentalization
Organizational growth exceeds the owner-
managers capacity to personally supervise all of
the organization.
Additional managers are employed and assigned
specific employees to supervise.
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Grouping Jobs:
Departmentalization (contd)
Advantages Each department can
be staffed by functional-area experts.
Supervision is facilitated
in that managers onlyneed be familiar with anarrow set of skills.
Coordination insideeach department iseasier.
Disadvantages Decision making
becomes slow andbureaucratic.
Employees narrow their
focus to the departmentand lose sight oforganizational goals/issues.
Accountability andperformance are difficult
to monitor.
Functional Departmentalization
Grouping jobs involving the same or similar
activities.
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Figure 11.2: Bases for
Departmentalization
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Product Departmentalization
Form
Advantages All activities associated
with one product can beintegrated andcoordinated.
Speed and effectivenessof decision making areenhanced.
Performance of individualproducts or productgroups can be assessed.
Disadvantages Managers may focus on
their product to theexclusion of the rest ofthe organization.
Administrative costs mayincrease due to eachdepartment having itsown functional-areaexperts.
Product Departmentalization Grouping activities around products or product
groups.
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Customer Departmentalization
Customer Departmentalization Grouping activities to respond to and interact with
specific customers and customer groups.
Advantage Skilled specialists can deal with unique customers
orcustomer groups.
Disadvantage
A large administrative staff is needed to integrateactivities of various departments.
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Location Departmentalization
Location Departmentalization The grouping of jobs on the basis of defined
geographic sites or areas.
Advantage Enables the organization to respond easily to
uniquecustomer and environmental characteristics.
Disadvantage
Large administrative staff may be needed to keeptrack of units in scattered locations.
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Departmentalization
Other Forms of Departmentalization Grouping activities by time
By specific units of time
By sequence.
By a characteristic of the customer, product, or service
Other Considerations Departments are often called by other names.
Divisions, units, sections, and bureaus
Organizations are likely to employ multiple basesof departmentalization, depending on level.
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Establishing Reporting
Relationships
Chain of Command
A clear and distinct line of authority among the
positions in an organization.
Unity of Command
Each person within an organization must have a clear
reporting relationship to one and only one boss.
Scalar Principle
A clear and unbroken line of authority must extend from
the bottom to the top of the organization.
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Establishing Reporting
Relationships (contd)
Narrow Versus Wide Spans Span of Management (Span of Control)
The number of people who report to a particularmanager.
A. V. Graicunas Subordinate interactions
Directmanagers relationship with each subordinate.
Crossamong the subordinates themselves.
Groupbetween groups of subordinates.
Formula for the number of interactions of all types: I = N(2N/2 + N - 1), where I is the total number of
interactions and N is number of subordinates.
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Establishing Reporting
Relationships (contd)
Narrow Versus Wide Spans Ralph Davis
Operative span for lower-level managers of upto 30 workers.
Executive span for middle and top managersset at 3 to 9.
Span depends on managers jobs, companygrowth rate, and similar factors
Lyndall Urwick and General Ian Hamilton Executive span should never exceed six
E t bli hi R ti
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Establishing Reporting
Relationships: Tall versus Flat
Organizations Tall Organizations
Are more expensive
because of the number of
managers involved.
Foster morecommunication problems
because of the number of
people through whom
information must pass.
Flat Organizations
Lead to higher levels of
employee morale and
productivity.
Create moreadministrative
responsibility for the
relatively few managers.
Create more supervisory
responsibility formanagers due to wider
spans of control.
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Figure 11.3: Tall
Versus Flat Organizations
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Table 11.1: Factors Influencing
the Span of Management
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Distributing Authority
Authority Power that has been legitimized by the
organization.
Delegation The process by which managers assign a portion
of their total workload to others.
Reasons for Delegation To enable the manager to get more work done by
utilizing the skills and talents of subordinates. To foster development of subordinates by having
them participate in decision making and problem.
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Figure 11.4: Steps in the
Delegation Process
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Problems in Delegation
Manager
Reluctant to delegate.
Disorganization prevents
planning work in
advance. Subordinates success
threatens superiors
advancement.
Lack of trust in the
subordinate to do well.
Subordinate Reluctant to accept
delegation for fear offailure.
Perceives norewards foraccepting additionalresponsibility.
Prefers to avoid anyrisk andresponsibility.
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Decentralization and
Centralization
Decentralization Systematically delegating power and authority
throughout the organization to middle- and lower-level managers.
Centralization Systematically retaining power and authority in the
hands of higher-level managers.
Factors Determining Choice of Centralization
External environments complexity and uncertainty History of the organization
Nature (cost and risk) of the decisions to be made.
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Coordinating Activities
Coordination
The process of linking the activities of the
various departments of the organization.
The Need for Coordination Departments and work groups are
interdependent; the greater the
interdependence, the greater the need forcoordination.
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Coordinating Activities: Three
Major Forms of Interdependence
Pooled interdependence
When units operate with little interaction; their
output is simply pooled at the organizational level.
Sequential interdependence When the output of one unit becomes the input of
another unit in sequential fashion.
Reciprocal interdependence
When activities flow both ways between units.
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Structural Coordination
Techniques
The Managerial Hierarchy Placing one manager in charge of interdependent
departments or units.
Rules and Procedures Routine coordination activities can be handled via
rules and procedures that set priorities andguidelines for actions.
Liaison Roles
A manager coordinates interdependent units byacting as a common point of contact, facilitatingthe flow of information.
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Structural Coordination
Techniques (contd)
Task Forces Used with multiple units when coordination is
complex, requiring more than one individual andthe need for coordination is acute.
Disbanded when need for coordination has beenmet.
Integrating Departments Permanent organizational units that maintain
internal integration and coordination on anongoing basis.
May have authority and budgetary controls.
Electronic Coordination
E-mail, electronic scheduling, PDAs, cell phones
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Differentiating Between
Positions
Line Positions Positions in the direct chain of command
responsible for the achievement of anorganizations goals.
Have formal (legitimate) authority.
Staff Positions Positions intended to provide expertise, advice,
and support to line positions. Have advisory authority; can give compulsory advice.
Have functional authority to enforce compliance withorganizational policies and procedures.
Administrative Intensity The degree to which managerial positions are
concentrated in staff positions.
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Key Terms
organizing organization structure
job design
job specialization
job rotation
job enlargement
job enrichment
job characteristicsapproach
work teams departmentalization
functionaldepartmentalization
productdepartmentalization
customer
departmentalization location
departmentalization
chain of command
span of management
authority
delegation
centralization
coordination
pooled interdependence
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Key Terms (contd)
sequentialinterdependence
reciprocal
interdependence line position
staff position
administrativeintensity