ob14 organising

8/14/2019 ob14 organising

1/86

Organizing


2/86

What is organizing ?

Is the management function that usually

follows after planning. And it involves the

assignment of tasks, the grouping of tasksinto departments and the assignment of

authority and allocation of resources across

the organization.


3/86

Identify the five basic organizingconcepts.

n Job Specialization creating anddesigning jobs

n

Grouping Jobs - combining jobs intomeaningful categories

n Delegating Responsibility withAuthority

n Establishing Span of Managementn Managing Line and Staff positions


4/86

Importance of Organising

Organisations are often troubled by how to

organise, particularly when a new strategyis developed Changing market conditions or new

technology requires change

Organisations seek efficiencies throughimprovements in organising


5/86

DEPARTMENTATION


6/86

Departmentation

The assignment of jobs to departments is

called departmentation, and it represents

one of the core aspects of the horizontaldivision of labour.

Methods of departmentation include:

Functional, product, matrix, geographic,

customer, and hybrid.


7/86

FUNCTIONAL DEPARTMENTATION


8/86

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.


9/86

Functional Departmentation

Disadvantages: A high degree of differentiation.

Poor communication and slow responseto organizational problems.

Conflicts between departments.

Department empires build at expense of

organizational goals.


10/86

PRODUCT DEPARTMENTATION


11/86

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.


12/86

Product Departmentation

Disadvantages: Professional development might suffer.

Economies of scale might suffer. Inefficiency.


13/86

MATRIX DEPARTMENTATION


14/86

Matrix Departmentation

Employees remain members of a functional

department while also reporting to a

product or project manager. Advantages:

Balance.

Flexibility.

Better communication.


15/86

Matrix Departmentation

Disadvantages: Conflict between product or project

managers and functional managers.

Role conflict and stress because

employees must report to two managers.


16/86

GEOGRAPHIC DEPARTMENTATION


17/86

Geographic Departmentation

Relatively self-contained units deliver an

organizations products or services in a

specific geographic territory. Advantages:

Shortens communication channels.

Caters to regional tastes.

Some local control to clients and customers.


18/86

CUSTOMER DEPARTMENTATION


19/86

Customer Departmentation

Relatively self-contained units deliver an

organizations products or services to

specific customer groups. Advantages:

Better service to customers.

The disadvantages of geographic andcustomer departmentation parallel those for

production departmentation.


20/86

SPAN OF

MANAGEMENT


21/86

Span of Management Decentralization - structure in which power and

control are systematically delegated to lowerlevels in the organization.

Span of Management - number of subordinateswho report directly to a manager. Affects the total

number of relationships within an organization.


22/86

Types of Relationships

Direct - supervisor over subordinates

Cross - relationships among

subordinates

Group - relationships between groups ofsubordinates


23/86

Factors that Influence theSpan of Management

Competence of Manager

Competence of Subordinates

Staff Assistance

Activities Performed

Physical Dispersion

Performance Standards


24/86

Narrow and Wide Spans of Control


25/86

Situational Determinants of Span of Control


26/86

AUTHORITY &

RESPONSIBILITY


27/86

Authority - formal and legitimate right of amanager to make decisions, issue orders, andallocate 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 toreporting and justifying task outcomes to thoseabove them in the chain of command


28/86

Allocating FormalAuthority 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 organizations 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


29/86

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)


30/86

DELEGATION


31/86

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 lower-

level managers.

Increases subordinates commitment by giving them

challenging assignments.


32/86

Review the need for delegation withresponsibility 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.


33/86

Barriers to Effective Delegation:

1. Manager is too disorganized to assign tasks.

2. Manager doesnt want to be outdone by asubordinate.

3. Manager afraid the subordinate wont do the jobas well.

4. Subordinate may be unwilling or unable toperform the task.

5. Task may be one that should not be delegated.6. Manager unwilling to relinquish control.


34/86

DECENTRALIZATION


35/86

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.


36/86

Decentralization

Transfer of responsibility for

Planning

Management Raising resources

from central government to other bodies


37/86

Types of decentralization

Decentralization

Political

decentralization

Administrative

decentralization

Management

decentralization

Fiscal

decentralization


38/86

LINE & STAFF

ORGANIZATION


39/86

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..


40/86

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


41/86

Figure 10.6 A Line and Staff

Organization


42/86

Differentiate between Lineand Staff positions

Line Positions - positions in the direct

chain of command which the

supervisor has direct authority andspecific responsibility.

Staff Positions - positions which are

outside of the direct chain ofcommand that are primarily advisory

or supportive in nature.


43/86

Principal distinction between line &staff Line manager is

generalist Line manager

directs others Line manager

trains his or hersubordinates Line managers

make operatingdecision

Line managersbear finalresponsibility

Staff manager is a specialistwhose knowledge is limited onlyto his field

Staff manager assists others Staff managers serves authority

Staff manager investigates theproblem related to his/her field ofspecialization

Staff manager provide ideas toline managers

Staff managers have expertise inspecialized field


44/86

Placement of Staff Units

Staff units can be assigned at any level of theorganization, offering their specialized help atmostly 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 informationtechnology by managers, enhancing theiranalytical and decision-making capabilities


45/86

Directing


46/86

Directing is influencing people's behavior throughmotivation, communication, group dynamics,leadership and discipline. The purpose of directing is

to channel the behavior of all personnel to accomplishthe 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 secondresponsibility: helping people in the organizationaccomplish their individual career goals.Organizations do not succeed while their people are

failing. Helping people in the organization with careerplanning and professional development is an integralpart of the directing function.


47/86

Motivation


48/86

Selection, training, evaluation and discipline cannotguarantee 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 unmotivatedpeople. Motivation covers up ability and skill deficiencies inemployees. Such truisms about motivation leave employerswanting 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."

Th ft bl l f th i l k f ti ti d


49/86

They often blame employees for their lack of motivation andperformance problems. Employees on the other hand oftenblame any performance problems they may have on externalfactors - their supervisors, equipment, training, co-workers,weather, unrealistic demands made on them, pressures athome, lack of recognition etc., etc.

Despite the conflicting perceptions held by employers andemployees, employers must deal with employee motivation.

Three ways of looking at motivation are: needs, rewards andeffort.

The needs approach stems from the notion that peoples'unsatisfied needs drive their behavior. Figure out a person'sneeds, satisfy the needs and the person will be motivated. Forexample, a person with a high need to satisfy goals is motivatedby production targets.

The rewards approach is based on the expectation thatrewarded behavior is repeated. Giving a person a bonus forexcellent performance during a difficult harvest periodencourages the person to make a special effort during the nextdifficult harvest.

The effort approach to motivation is based on the expectation

that effort brings the worker what he or she wants.


50/86

The most effective motivation for employees comes fromwithin each employee, i.e., self-motivation. Possibleindicators of self-motivation include: past accomplishmentsin school, sports, organizations and work; stated careergoals and other kinds of goals; expertise in one or moreareas that shows evidence of craftsmanship, pride inknowledge and abilities, and self-confidence; an evidentdesire to continue to learn; and a general enthusiasm forlife.

Threats, bribery, manipulation and coercion have onlylimited usefulness beyond the very short-run in changingbehavior in the farm environment. More effective employeraction responds to employee needs, making their workuseful to satisfying their needs, helping employees

understand the relationship between their contribution tosuccess of the farm and rewards received, and creating anatmosphere of equity and fairness.


51/86

Communication


52/86

Prentice Hall, 2000 Chapter 9 52

Chain Wheel All-Channel

Three Common Small-Group Networks


53/86

Three types of small-group networks are the chain, wheel,and all-channel.

The chain rigidly follows the chain of command.

The wheelrelies on the leader to act as the central conduitfor all the groups communication. The all-channelpermits all group members to actively

communicate with one another. The all-channel networkcharacterizes 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, thewheel 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 isthe worst choice.


54/86


AccuracyAccuracy AnxietyAnxiety

AmbiguityAmbiguity

Th e G rap evi ne


55/86

The formal system is not the only communicationsystem in an organization or a group. There is also aninformal system--where information flows along the well-

known grapevine and rumors can flourish. Is the information that flows along the grapevine

accurate? Evidence indicates that about 75 percent theinformation is accurate. But what conditions foster thegrapevine?

It is frequently assumed that rumors start because theymake titillating gossip. This is rarely the case. Rumorsemerge as a response to situations that are important tous, where there is ambiguity, and under conditions that

arouse anxiety. The fact that workplace situationsfrequently contain these elements explains why rumorsflourish in organizations.


56/86


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


57/86


Managers Should Be

Active Listeners

Make eye contact

Avoid distractions

Ask questions

Exhibit appropriate

expressions

Paraphrase

Avoid interrupting

Dont talk too much

Combine speaking and

listening


58/86


Use theUse theGrapevineGrapevine

ObserveObserveNonverbal CuesNonverbal Cues

More CommunicationMore CommunicationSkills for ManagersSkills for Managers

ConstrainConstrain

EmotionsEmotions

SimplifySimplify

LanguageLanguage


59/86

Because language can be a barrier, managers shouldstructure messages in ways that will make them clear andunderstandable. Words should be chosen carefully. Amanager must simplify his or her language and consider the

audience for whom the message is intended. It would be nave to assume that a manager is always

rational when he or she is communicating. Since emotion candistort the transference of meaning, the best approach for amanager who is upset is to wait before trying to send amessage.

Since actions can speak louder than words, managers mustwatch their actions to be sure that they align with andreinforce their verbal messages.

The grapevine cannot be eliminated. So managers shouldmake it work for them. They can transmit information over the

grapevine to test the reaction of employees before they makedecisions. To minimize the impact of damaging rumors on thegrapevine, managers should use formal channels byensuring that they carry relevant, accurate information thatwill be of interest to employees.


60/86

LeadingLeadership style


61/86

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.


62/86

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 Coaching Leader


63/86

Involves employees in problem-solving and goal-setting.

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 employees work with that person.

The Supporting Leader


64/86

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.

The Delegating Leader


65/86

Autocratic leader:

Leader makes decisions without reference to anyone

else

High degree of dependency on the leader

Can create de-motivation and alienationof staff

May be valuable in some types of business where

decisions need to be made quickly and decisively


66/86

Democratic leader:

Encourages decision makingfrom different perspectives leadershipmay be emphasised throughout

the organisation Consultative: process of consultation before

decisions are taken Persuasive: Leader takes decision and seeks to

persuade others that the decisionis correct


67/86

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


68/86

Paternalistic leaders:

Leader acts as a father figure

Paternalistic leader makes decision but

may consult Believes in the need to support staff


69/86

Coordination


70/86

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 ofdiscretion they permit in

terms of task performance.


71/86


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


72/86


The method of coordination affects

the design of jobs.

The use of the various methods ofcoordination tends to vary across

different parts of the organization.

Methods of coordination may

change as task demands change.


73/86

Other Methods of Coordination

Lateral coordination across highly

differentiated departments often requires

more elaborate forms of coordination.

Integrationis the process of attaining

coordination across differentiated

departments.

Th th d f hi i


74/86

Three methods of achievingintegration

Liaison roles

Task forces

Full-time integrators


75/86

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.


76/86

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.


77/86

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.


78/86

Controlling


79/86

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


80/86

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 stillopen to creativity


81/86

Process Controls

Controls that try to specify how tasks are to

be accomplished

Represent use of experience to preventrecurring problems

Three types of process controls: Policies, procedures, and rules

Formalization and standardization

Total quality management controls


82/86

Policies, procedures, and rules

A policy is a guideline for action, noting importantobjectives and broad indication of performanceapproach

A procedure indicates the best method for performing atask, shows which aspects of a task are mostimportant, or outlines how an individual is to berewarded

A rule is a specific, rigid guideline for action, typicallyindicating how something should be done or whatshould not be done

Are often used as substitutes for directmanagerial supervision


83/86

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 workactivities are repeatedly performed in a similar

manner

Total Quality


84/86

Total QualityManagement (TQM)

Demings process approach

focused on continual improvement

through use of statistical analyses

of all firms operations Emphasizes managers and

employees collaborating in search

of quality improvements

Often uses empowerment andparticipative management


85/86

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.


86/86

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.

Documents

ob14 organising