MGMT 309 Exam 3 Chapter 10

suggests that there must be a clear and unbroken line of authority that extends from the lowest to the highest position in the organization

Scalar Principle

Two specific issues that managers must address when distributing authority are ____________ and _______________-

Delegation Decentralization and Centralization

The process of grouping jobs according to some logical arrangement (sales, finance, marketing, etc)

Departmentalization

The Elements of Organizing

Organizing Organizational Structure

3 Major forms of Interdependence

Pooled Sequential Reciprocal

represents the lowest level of interdependence -units operate with little interaction -the output of units is pooled a the organizational level -stores interdependent to the extent that the final success or failure of one store affects the others, but they do not generally interact on a day-to-day basis

Pooled Interdependence

involves grouping and arranging activities around products or product groups. -most larger businesses adopt this form of departmentalization for grouping activities at the business or corporate level

Product Departmentalization

Disadvantages of Functional Departmentalization (3)

-Decision making slows and becomes bureaucratic -Employees lose sight of the organization as a system -Accountability and performance are difficult to monitor

Graicunas noted that a manager must deal with three kinds of interactions with and among subordinates:

-Direct -----(the manager's one-to-one relationship with a subordinate) -Cross -----(subordinates relationship among themselves) -Group -----(between groups of subordinates)

3 Areas of Designing Jobs

-Job Specialization -Benefits and Limitations of Specialization -Alternatives To Specialization

Advantages of Functional Departmentalization (3)

-each department can be staffed by experts -Facilitates supervision - narrow set of skills -Ease of coordinating activities inside departments

3 Advantages of Product Departmentalization

1. All activities associated with one product or product group can be easily integrated and coordinated 2. The speed and effectiveness of decision making are enhanced 3. Improves department accountability

The Delegation Process (3 Steps)

1. Assigning Responsibility 2. Granting Authority 3. Creating Accountability

5 Core Dimensions of Job Characteristics Model

1. skill variety (number of things a person does in a job) 2. task identity (extent to which the worker does a complete or identifiable portion of the total job) 3. task significance (the perceived importance of the job) 4. autonomy (the degree of control the worker has over how te work is performed) 5. feedback (the extent to which the worker knows how well the job is being performed

Lyndall F. Urwick and General Ian Hamilton suggested that an executive span should never exceed _____ subordinates

6

1 Disadvantage of Location Departmentalization

A larger administrative staff may be required if the organization must keep track of units in scattered locations

Organizations sometimes try to balance their emphasis on line versus staff positions in terms of administrative intensity -the degree to which managerial positions are concentrated in staff positions

Administrative Intensity

3 Forms of Staff Authority

Advise Authority Compulsory Advice Functional Authority

power that has been legitimized by the organization

Authority

the process of systematically retaining power and authority in the hands of higher-level managers -decision making power and authority are retained at the higher levels of management

Centralization

A clear and distinct line of authority among all positions in an organization

Chain of Command

4 Methods of Establishing Reporting Relationships

Chain of Command Narrow Versus Wide Spans Tall Versus Flat Organizations Determining the Appropriate Span

2 Basic Issues in Establishing Reporting Relationships

Clarifying the Chain of Command The Span of Management

the line manager must consider the advice but can choose to heed it or ignore it -ex: Pope is expected to listen to the advice of the Sacred College of Cardinals when dealing with church doctrine, but may follow his own beliefs when making decision

Compulsory Advice

The greater the degree of interdependence, the more attention the organization must devote to

Coordination

the process of linking the activities of the various departments of the organization

Coordination

The organization structures its activities to respond to and interact with specific customers or customer groups -Ex: Lending activities in most banks are usually tailored to meet the needs of different kinds of customers (business, consumer, mortgage, and agricultural loans)

Customer Departmentalization

the process of systematically delegating power and authority throughout the organization to middle and lower-level managers -decision making power and authority are delegated as far down the chain of command as possible

Decentralization

Elements of Electronic Coordination (3)

Email Electronic Scheduling Handheld Electronic Devices

4 Common Bases for Departmentalization

Functional Product Customer Location

-formal or legitimate authority over activities related to the staff member's specialty -Ex: A human resource staff manager may have functional authority when there is a question of discrimination in hiring. Conferring functional authority is probably the most effective way to use staff positions because the organization can take advantage of specialized expertise while also maintaining a chain of command

Functional Authority

The most common base for departmentalization -most effective in smaller organizations -grouping jobs involving the same or similar activities -if organization becomes larger then departments tend to focus only on themselves rather than the organization as a whole

Functional Departmentalization

-occasionally used for coordination -similar to task forces but are more permanent -generally has some pertinent members as well as memberss who are assigned temporarily from units that are particularly in need of coordination

Integrating Departments

1 Primary Advantage of Location Departmentalization

It enables the organization to respond easily and quickly to unique customer and environmental characteristics in the various regions

An alternative to job specialization that suggests that jobs should be diagnosed and improvised along five core dimensions, taking into account both the work system and employee preferences

Job Characteristics Approach

the determination of a person's work related responsibilities -DESCRIPTION -what performance standards are expected -defining areas of decision-making responsibility -natural starting point is determining the LEVEL OF DESIRED SPECIALIZATION

Job Design

An alternative to job specialization that was developed to increase the NUMBER OF TASKS workers perform -as a result, all workers perform a wide variety of tasks, which presumably reduces the level of job dissatisfaction

Job Enlargement

Involves systematically moving employees from one job to another -jobs do not change but workers move from job to job -NOT successful in increasing employee motivation or satisfaction -often used as a TRAINING DEVICE to improve worker skills and flexibility

Job Rotation

Most sufficient techniques to use within a more complex sequential or simpler forms of reciprocal interdependence

Liaisons Roles Task Forces

Two Areas of Grouping Jobs : Departmentalization

Rationale For Departmentalization Common Bases for Departmentalization

exists when activities flow both ways between units -clearly the most complex -Ex: Marriott hotel, within it the reservations department, front-desk check in, and houeskeeping are all reciprocally interdependent -if any three units do not do its job properly, all the others will be affected

Reciprocal Interdependence

Basic Disadvantage of Customer Departmentalization

Requires a fairly large administrative staff to integrate the activities of the various departments

Routing coordination activities can be handled via ________________. ex: outgoing truck shipment has priority over an incoming rail shipment. Thus when trucks are to be loaded, the shipping unit is given access to all of the center's auxiliary forklifts. This priority is specifically given in a __________. -Not particularly effective when coordination problems are complex or unusual

Rules and Procedures

The number of people who report to a particular manager -Should it be narrow or wide?

Span of Management

___________ in its purest form is simply a normal extension of organizational growth

Specialization

intended to provide expertise, advice, and support for line positions -advise and assist -less concrete and may take a variety of forms

Staff Position

Tall versus Flat Organizations

Tall -more levels in between the executive level and the production line (Banks) Flat -only one level of managers in between executives and production ---(move faster) ---Ex: Google, Apple

Most sufficient techniques to use within a complex Reciprocal inerdependence

Task Forces Integrating Departments

An organization with high administrative intensity is one with many staff positions relative to the number of line positions; low administrative intensity reflects relatively more line positions (T/F)

True

Growth-Need Strength -presumed to affect how the model works for different people -people with a strong desire to grow, develop, and expand their capabilities are expected o respond strongly to the presence or absence of the basic job characteristics; -those with low growth-need strength are expected not to respond as strongly or consistently T/F

True

Rationale of Departmentalization is linked to size -as growth occurs, the owner-manager can no longer oversee all workers -new managerial positions oversee workers grouped according to some plan -The logic in such a plan is the basis for all departmentalization T/F

True

The number of possible interactions of all types between a manager and subordinates can be determined by the following formula I = N (2^N/2 + N - 1) I = Total number of interactions among subordinates N= number of subordinates T/F

True

The primary reason for coordination is that departments and work groups are interdependent, they depend on one another for information and resources to perform their respective activities. The greater the interdependence between departments, the more coordination the organization requires if departments are to be able to perform effectively (T/F)

True

Chain of Command has 2 Components

Unity of Command Scalar Principle

Distributing ______ is another normal outgrowth of increasing organizational size. For example, when an owner-manager hires a sales representative to market his products, he needs to give the new employee appropriate ___________ to make decision about delivery dates, discounts, and so forth

authority

Basic Advantage of Customer Departmentalization

organization can use skilled specialist to deal with unique customer or customer groups

process by which managers assign work to subordinates

Delegation

2 Reasons for Delegation

1. Enable the manager to get more work done 2. Helps develop subordinates

8 Factors Influencing the Span of Management

1. Competence of a Supervisor and subordinates (the greater the competence, he wider the potential span) 2. Physical dispersion of subordinates (the greater the dispersion, the narrower the potential span) 3. Extent of non-supervisory work in manager's job (the more non-supervisory work, the narrow the potential span) 4. Degree of required interaction (the less required interaction, the wider the potential span) 5. Extent of standardized procedures (the more procedures, the wider the potential span) 6. Similarity of Tasks being supervised (the more similar the tasks, the wider the potential span) 7. Frequency of new problems (the higher the frequency, the narrower the potential span) 8. Preferences of supervisors and subordinates

Other Considerations for Departmentalization

1. Departments are often called something entirely different (Divisions, units, sections, etc.) 2. Almost any organization is likely to employ multiple bases of departmentalization depending on level 3. Role of Social Media in departmentalization is just beginning to have an impact

There are 6 Basic Building blocks that managers can use in constructing an organization:

1. Designing Jobs 2. Grouping Jobs 3. Establishing Reporting Relationships between Jobs 4. Distributing authority among jobs 5. Coordinating activities among jobs 6. Differentiating among positions

5 Alternatives to Specialization

1. Job Rotation 2. Job Enlargement 3. Job Enrichment 4. Job Characteristics Approach 5. Work Teams

3 Problems in Delegation

1. Manager - Reluctant to Delegate 2. Manager worried subordinate may do job too well and pose a threat to their own advancement 3. Manager may not trust a subordinate to do the job well

2 Disadvantages of Product Departmentalization

1. Manager may lose foucs of the organization as a whol 2. Administrative costs rise (because each department must have its own functional specialists for areas such as market research and financial analysis)

Factors Determining Organization's Position on Decentralization

1. Organizations External Environment 2. History of the Organization 3. Nature of Decisions Being Made

The Delegation Process (3 areas)

1. Reasons for Delegation 2. Parts of the Delegation Process 3. Problems in Delegation

5 Structural Coordination Techniques

1. The Managerial Hierarchy 2. Rules and Procedures 3. Liaison Roles 4. Task Forces 5. Integrating Departments

3 Sections of Coordinating Activities

1. The Need For Coordination 2.Structural Coordination Techniques 3.Electronic Coordination

Other Forms of Departmentalization

1. Time (operating in shifts with a different superintendent and its own functional departments) 2. Sequence -----many college students must register in sequence (Seniors first, then juniors, etc)

Job Enlargement has 3 Disadvantages

1. Training costs usually increase 2. Unions have argued that pay should increase because the worker is doing more tasks 3. In many cases, the work remains boring and routine even after job enlargement

Job Specialization provides 2 negatives to organizations

1. Worker Boredom and Dissatisfaction (lead to higher absenteeism, lower quality of work) 2. Anticipated benefits of specialization do not always occur

Job Specialization provides 4 benefits to organizations

1. Workers performing small, simple tasks will become very PROFICIENT at each task 2. TRANSFER TIME between tasks decreases 3. More narrowly defined job is, the easier it is to develop SPECIALIZED EQUIPMENT to assist with that job 4. When employee who performs highly specialized job resigns, manager can TRAIN SOMEONE new at relatively low cost

the line manager can choose whether to seek or to avoid input from staff; and even when advice is sought, the line manager might still choose to ignore it

Advise Authority

-An alternative to job specialization that involves increasing both the number of TAKS the worker does and the CONTROL the worker has over the job -increase subordinates sense of responsibility -increases employees opportunity for growth and advancement -NEEDS NOT USUALLY MADE FOR SUCCESSFUL IMPLEMENTATION

Job Enrichment

the degree to which the overall task of the organization is broken down and divided into smaller component parts -evolved from the concept of division of labor -Ex: first impact was from the assembly line

Job Specialization

-coordinates interdependent units by acting as a common point of contact -this person may not have any formal authority over the groups but instead simply facilitates the flow of information between units

Liaison Roles

a position in the direct chain of command that is responsible for the achievement of an organization's goals -work directly toward organizational goals -generally thought of as the formal or legitimate authority created by the organizational hierarchy

Line Position

Differentiating Between Positions (3)

Line Position Staff Position Administrative Intensity

groups jobs on the basis of defined geographic sites or areas -may range in size -ex: Transportation companies, police departments, and Federal Reserve Bank all use this

Location Departmentalization

Ralph C. Davis argued that ______________ spans could approach 30 subordinates, where as __________ plans could be limited between 3 and 9

Operative; executive

Ralph C. Davis described two types of spans: an _____________ span for lower level managers and an ________ span for middle and top managers

Operative; executive

The set of elements that can be used to configure an organization (org chart)

Organizational Structure

deciding how best to group organizational elements (activities and resources) -managers can choose a variety of structural possibilities -can put the organization together many different ways

Organizing

the output of one unit becomes the input for another -this creates a moderate level of interdependence -Ex: At Nissan, one plant assembles engines and then ships them to a final assembly site at another plant, where the cars are completed -plants are interdependent in that the final assembly plant must have the engines from engine assembly before it can perform its primary function of producing final assembly

Sequential Interdependence

may be created when the need for coordination is acute -when interdependence is complex and several units are invloved, a single liaison person may not be sufficient -coordination function is spread across several individuals, each of whom has special information about one of the groups involved -when project is completed, members return to their original positions

Task Forces

2 Areas of Distributing Authority

The Delegation Process Decentralization and Centralization

-Organizations place one manager in charge of interdependent departments or units ex: Receiving and Shipping at Walmart (same manager)

The Managerial Hierarchy

Most sufficient techniques to use within a pooled or simple sequential interdependence

The Managerial Hierarchy Rules and Procedures

suggests that each person within an organization must have a clear reporting relationship to one and only one boss

Unity of Command

An alternative to job specialization that allows an entire group to design the work system it will use to perform and interrelated set of tasks -decides how job will be allocated -assigns specific tasks to members, monitors and controls its own performance, and has autonomy over work scheduling

Work Teams