BUA 325 chapter 11 terms

Management responsibilities at Massey Ferguson

(Only management is allowed to follow through on the following responsibilities) 1. Responsibilities for determining the overall objectives of the enterprise 2. Responsibility for formulating the policies that guide the enterprise 3. Final responsibility for control of the business within the total range of the objectives and policies, including control over any changes in the nature of the business 4. Responsibility for product design when a product design affects more than one area of accountability 5. Responsibility for planning for achievement of overall objectives and for measuring actual performance against those plans 6. Final approval of corporate plans or budgets 7. Decisions pertaining to availability and application of general company funds 8. Responsibility for capital investment plans

Staff authority

- Consists of the right to advise or assist those who possess line authority as well as other staff personnel. - Enables those responsible for improving the effectiveness of line personnel to perform their required tasks. Examples: people working in accounting and human resource departments

Advantages in the delegation process

- Enhanced employee confidence - Improved subordinate involvement and interest - More free time for the supervisor to accmplish tasks - As the organization gets larger, assistance from subordinates in completing tasks the manager simply doesn't have time for

Guidelines for Making Delegation Effective

- Gives employees the freedom to pursue tasks in their own way - Establish mutually agreed-upon results and performance standards for delegated tasks - Encourage employees to take an active role in defining, implementing, and communicating progress on tasks - Entrust employees with completion of whole projects or tasks whenever possible - Explain the relevance of delegated tasks to larger projects or to department or organization goals - Give employees the authority necessary to accomplish tasks - Allow employees access to all information, people, and departments necessary to perform delegated tasks - Provide the training and guidance necessary for employees to complete delegate tasks satisfactorily - When possible, delegate tasks on the basis of employee interests

Line authority

- Involves giving orders concerning production activities - Pertains to matters directly involving management system production, sales, and finance and, as a result, the attainment of objectives. - It consists of the right to make decisions and to give orders concerning the production-, sales-, or finance-related behavior or subordinates. - The most fundamental authority within an organization, reflects existing superior-subordinate relationships.

Disadvantage of the delegation process

- Possibility that the manager will lose track of the progress of the delegated task

Authority on the job

Has the necessary authority to perform tasks

Management responsibility guide

Helps management to describe the various responsibility relationships that exist in the organization and to summarize how the responsibilities of various managers relate to one another.

Delegation

Is the actual process of assigning job activities and corresponding authority to specific individuals within the organization.

overlapping responsibility

Refers to a situation in which more than one individual is responsible for the same activity.

Accountability

Refers to the management philosophy whereby individuals are held liable, or accountable, for how well they use their authority and live it up their responsibility of performing predetermined activities. Implies that if an individual does not perform predetermined activities, some types of penalty, or punishment, is justified. This is especially important for successful knowledge management in an organization

Behavior with upper management (responsible management behavior)

Responsible managers: 1. Accept criticism for mistakes and buffer their groups from excessive criticism 2. Ensure that their groups meet management expectations and objectives

Centralization

The degree to which delegation exists within an organization. A minimal number of job activities and a minimal amount of authority have been delegated to subordinates by management

Responsibility

The obligation to perform assigned activities. It is a self-assumed commitment to handle a job to the best of one's ability. The source lies within the individual

Authority

The right to perform or command. It allows its holder to act in certain designated ways and to influence the actions of other directly through orders. It also allows its holder to allocate the organization's resources to achieve organizational objectives.

Tips for delegating tasks

- Realize that you cannot do it all. Experienced managers know that they have to delegate tasks in order to be able to carry out key managerial responsibilities - Learn the strengths of your employees. Know what each employee is capable of - Make sure you spread the wealth. Assign tasks to all your employees so that you can determine which skills among your team members need further development - Don't delegate a task because you don't want to do it. Be a good example for your employees by being willing to do the tasks as well - Don't delegate a task because you don't know how to do it. Learn how to do certain tasks before delegating them - Don't use delegation as punishment. If there is a troublesome employee, discipline that individual appropriately rather than piling on additional tasks.

What managers can do to eliminate obstacles in the delegation process

- They must continually strive to uncover any obstacles to delegation - They then approach taking action to eliminate these obstacles with the understanding that they may be deeply ingrained and therefore might require much time and effort to overcome - Build subordinate confidence in the use of delegated authority, - Minimizing the impact of delegated authority on established working relationships - Helping delegatees cope with problems whenever necessary Some suggest coaching

Critical characteristics of managers to have to overcome obstacles in delegation

- Willingness to consider seriously the ideas of others - The insight of to allow subordinates the free rein necessary to carry about their responsibilities - The capacity to trust subordinates' abilities - The wisdom to allow people to learn from their mistakes rather than instituting unreasonable penalties because they made mistakes (Koontz, O'Donnell, and Weihrich)

Steps in the Delegation Process

1. Assigning specific duties to the individual (subordinate must have a clear understanding of the duties) 2. Granting the appropriate authority to the subordinate-that is the subordinate must be given the right and power within the organization to accomplish the duties assigned 3. Creating the obligation for the subordinate to perform the duties assigned (subordinate must be aware of and accept responsibility)

The degree of responsibility that a manager possesses can be determined by appraising the manager on these four dimensions:

1. Attitude toward and conduct with subordinates 2. Behavior with upper management 3. Behavior with other groups 4. Personal attitudes and values

Seven main organizational responsibility relationships covered by the management responsibility guide

1. General responsibility: the individual who guides and directs the execution of the function through the person accepting operating responsibility 2. Operating responsibility: the individual who is directly responsibility for the execution of the function 3. Specific responsibility: the individual who is responsible for executing a specific or limited portion of the function 4. Must be Consulted: The individual whose area is affected by a decision and who must be called on to render advice or relate information before any decision is made or approval is granted (This individual does not, however, make the decision or grant approval) 5. May be Consulted: The individual who may be called on to relate information, render advice, or make recommendations before the action is taken 6. Must be Notified: the individual who must be notified of any action that has been taken 7. Must Approve: the individual (other than persons holding general and operating responsibility) who must approve or disapprove the decision

Obstacles in the Delegation process

1. Obstacles related to the supervisor 2. Obstacles related to subordinates 3. Obstacles related to the organization

When two (or more) employees are uncertain about who is responsible for a task, four outcomes are possible:

1. One of the two may perform the job. The other may either forget to or choose not to do the job-and neither of these is a desirable outcome for product quality control 2. Both employees may perform the job. At the least, this situation results in duplication effort, which dampens employee morale. At worst, one employee may diminish the value of the other's work, resulting in a decrement in product quality 3. Neither employee may perform the job because each assumed the other would do it 4. The employees may spend valuable time negotiating each aspect and phase of the job to carefully mesh their job responsibilities, thus minimizing both duplication of effort and responsibility gaps. Though time-consuming, this is actually the most desirable option in terms of product quality.

Additional guides to supplement the functional similarity method

1. Overlapping responsibility should be avoided when making job activity divisions. 2. Responsibility gaps should be avoided 3. Management should avoid creating job activities to accomplish tasks that do not enhance goal attainment (organization members should be obligated to perform only those activities that lead to goal attainment)

Roles of Staff personnel

1. The advisory or counseling role 2. The service role 3. The control role The role of staff personnel in organization should be specifically designated to best meet the needs of that organization. In some organizations, the same staff people must perform all three major roles.

Massey Ferguson 3 guidelines for determining the degree of decentralization of decision making

1. The competence to make decisions must be possessed by the person to whom authority is delegated. A derivative of this principle is that the superior must have confidence in the subordinate to whom authority is delegated. 2. Adequate and reliable information pertinent to the decision is required by the person making the decision. Decision-making authority therefore cannot be pushed below the point at which all information bearing on the decision is available. 3. If a decision affects more than one unit of the enterprise, the authority to make the decision must rest with the manager accountable for the most units affected by the decision.

Acceptance of authority (Chester Barnard)

1. The individual can understand the order being communicated 2. The individual believes the order is consistent with the purpose of the organization 3. The individual sees the order as compatible with his or her personal interests 4. The individual is mentally and physically able to comply with the order The fewer of these four conditionals that are present, the lower the probability that authority will be accepted and obedience will be exacted.

Managers commands will be accepted over the long term if:

1. The manager uses formal channels of communication that familiar to all organization members 2. Each organization member has an assigned formal communication channel through which orders are received 3. The line of communication between manager and subordinate is as direct as possible 4. The complete chain of command is used to issue orders 5. The manager possesses adequate communication skills 6. The managers uses formal communication lines only for organizational business 7. A command is authenticated as coming from a manager

Questions managers ask to determine the amount of decentralization appropriate for a situation:

1. What is the present size of the organization? The larger the organization, the greater the likelihood that decentralization will be advantageous. 2. Where are the organization's customers located? The more physically separated the organization's customers are, the more viable a significant amount of decentralization is. 3. How homogeneous is the organization's product line? As the product line becomes more heterogeneous, or diversified, the appropriateness of decentralization increases. 4. Where are organizational suppliers? Time lost and high transportation costs associated with shipping raw materials over great distances from supplier to manufacturer could signal the need to decentralize certain functions. 5. Are quick decisions needed in the organization? If speedy decision making is essential, a considerable amount of decentralization is probably in order. 6. Is creativity a desirable feature of the organization? If creativity is desirable, then some decentralization is advisable because decentralization allows delegatees the freedom to find better ways of doing things.

Job description

A list of specific activities that must be performed by whoever holds the position. An individual's job activities within an organization are usually summarized in this formal statement.

Functional similarity method

According to many management theorists, the most basic method of dividing job activities. The method suggests that management should take four basic, interrelated steps to divide job activities in this sequence: 1. Examine management system objectives 2. designate the appropriate activities that must be performed to reach those objectives 3. Design specific jobs by grouping similar activities 4. Make specific individuals responsible for performing those jobs

Viewpoint of staff personnel on conflict of line-staff personnel relationships

Conflict is created because line personnel do not make proper use of staff personnel, resist new ideas, and refuse to give staff personnel enough authority to do their jobs.

Viewpoint of line personnel of conflict of line-staff personnel relationships

Conflict is created because of staff personnel tend to assume line authority, do not give sound advice, steal credit for success, fail to keep line personnel informed of their activities, and do not see the whole picture.

Functional authority

Consists of the right to give orders within a segment of the organization in which this right is normally nonexistent. This authority is usually assigned to individuals to complement the line or staff authority they already possess. Typically given to individuals who, in order to meet responsibilities in their own areas, must be able to exercise some control over organization members in other areas. Generally covers only specific task areas and is operational only for designated amounts of time

Complementing centralization (Massey Ferguson)

Decentralization is complemented by centralization: "The organization plan that best serves our total requirements is a blend of centralized and decentralized elements. Marketing and manufacturing responsibilities, together with supporting service functions, are located as close as possible to local markets. Activities that determine the long range character of the company, such as the planning and control of the product line, the planning and control of facilities and money, the planning of the strategy to react to changes in the patterns of international trade, are highly centralized. Thus, MF recognizes that decentralization is not necessarily an either/or decision and uses the strengths of both centralization and decentralization to its advantage.

Beneficial decentralization

Decentralization that is advantageous for the organization in which it is being implemented

Decentralization

Degree to which delegation exists within an organization Maximum delegation in organization

Detrimental decentralization

Disadvantageous for the organization

Delegation as a Frame of Mind (Massey Ferguson)

Encourages in its managers a positive attitude toward decentralization. The company's organization manual states that delegation is not delegation in name only but is a frame of mind that includes both what a supervisor says to subordinates and how the supervisor acts towards them. Managers at Massey-Ferguson are encouraged to allow subordinates to make a reasonable number of mistakes and to help them learn from these mistakes.

Obstacles related to the organization

Examples of this obstacle include: - A very small organization may present the supervisor with only a minimal number to be delegated - In organizations where few job activities and little authority have been delegated in the past, an attempt to initiate the delegation process may make employees uncooperative and apprehensive because the supervisor is introducing significant change in procedure- and change is often strongly resisted

Obstacles related to subordinates

Examples of this obstacle include: - Subordinates may be reluctant to accept delegated authority because they are afraid of failing, lack self confidence, or feel the supervisor doesn't have the confidence in them - The fear that the supervisor will be unavailable for guidance when needed - Reluctance to exercise authority that may complicate congenial working relationships These obstacles are apparent in subordinates who have never before used delegated authority

Obstacles related to the supervisor

Examples of this obstacle include: - The supervisor who resists delegating his authority to subordinates because he cannot bear to part with any authority - The fear that subordinates will not do a job well and the suspicion that surrendering some authority may be seen as a sign of weakness - If supervisors are insecure in their jobs or believe certain activities are extremely important to their personal success, they may find it hard to put the performance of these activities into the hands of others

Responsibility gaps

Exists when certain tasks are not included in the responsibility area of any individual organization member. Nobody within the organization is obligated to perform certain necessary activities.

The Control role

In this role, staff personnel help establish a mechanism for evaluating the effectiveness of organizational plans. Staff personnel exercising this role are representatives, or agents, of top management.

Advisory/Counseling role

In this role, staff personnel use their professional expertise to solve organizational problems. The staff personnel are, in effect, internal consultants whose relationship with line personnel is similar to that of a professional and a client. Example: The staff quality control manager might advise the line production manager on possible technical modifications on the production process that would enhance the quality of the organization's products

Types of authority

Line authority, staff authority, and functional authority

Personal attitudes and values (responsible management behavior)

Responsible managers: 1. Identify with the group 2. Put organizational goals ahead of personal desires or activities 3. Perform tasks that offer no immediate reward but help subordinates, the company, or both 4. Converse corporate resources as if the resources were their own

Attitude toward and conduct with subordinates (responsible management behavior)

Responsible managers: 1. Take the complete charge of their work groups 2. Pass praise and credit along to subordinates 3. Stay close to problems and activities 4. Take actions to maintain productivity and are willing to terminate poor performers if necessary

Behavior with other groups (responsible management behavior)

Responsible managers: 1. Make sure that any gaps between their areas and those of other managers are securely filled

How to fix line-staff personnel relationships conflict

Staff personnel can: - Strive to emphasize the objectives of the organization as a whole - Encourage and educate line personnel in the appropriate use of staff personnel - Obtain any necessary skills they do not already possess - Deal intelligently with resistance to change rather than view it as an immovable barrier Line personnel can: - Using staff personnel whenever possible - Make proper use of the staff abilities - Keep staff personnel appropriately informed

The Service role

Staff personnel in this role provide services that can be provided by a single centralized staff group more efficiently and effectively than those service can be provided by many individuals scattered throughout the organization. This role can probably be best understood staff personnel are viewed as suppliers, and line personnel are viewed as customers. Example: Members of a human resource department recruit, employ, and train workers for all organizational departments needing workers are their customers.