Intro to Management - Chapter 9

Departmentalization

A method of subdividing work and workers into separate organizational units that take responsibility for completing particular tasks. Organizational structures have been created by departmentalizing work according to five methods 1) Functional 2) Product 3) Customer 4) Geographic 5) Matrix

Functional Departmentalization

Advantages - Work done by highly skilled specialists Lowers costs through reduced duplication Communication and coordination problems are lessened Disadvantages- Cross-department coordination can be difficult May lead to slower decision making Produces managers with narrow experiences

Matrix Departmentalization Advantages and Disadvantages

Advantages- Efficiently manage large, complex tasks Pool of available resources Disadvantages- Requires high levels of coordination Conflict between bosses Requires high levels of management skills

Customer Departmentalization

Advantages- Focuses on customer needs Products and services tailored to customer needs Disadvantages- Duplication of resources Difficult to coordinate across departments Efforts to please customers may hurt the company

Product Departmentalization Advantages and Disadvantages

Advantages- Managers specialize, but have broader experiences Easier to assess work-unit performance Decision-making is faster Disadvantages- Duplication of activities Difficult to coordinate across departments

Chain of Command

the vertical line of authority that clarifies who reports to whom throughout the organization Unity of command- workers report to only one boss matrix organizations violate this principle

How to be a more effective delegator

1) Trust your staff to be a good job 2) Avoid seeing perfection 3) Give effective job instructions 4) Know your true interests 5) Follow up on progress. 6)Praise the efforts of your staff. 7) Don't wait to the last minute to delegate. 8) Ask questions, expect answers, assist employees. 9) Provide the resources you would provide if doing the assignment yourself. 10) Delegate to the lowest possible level.

Matrix Departmentalization

A hybrid structure in which two or more forms of departmentalization are used together. The most common matrix combines product and functional forms of departmentalization.

Job Characteristics Model

A job redesign approach that seeks to increase employee motivation Emphasizes internal motivation -experience work as meaningful -experience responsibility for work outcomes -knowledge of results

Job Specialization

A job that is a small part of a larger task or process Jobs are simple, easy to learn, and economical Can lead to low satisfaction, high absenteeism, & employee turnover

Job Characteristics Model

As shown in Exhibit 9.10, the primary goal of the job characteristics model is to create jobs that result in positive personal and work outcomes such as internal work motivation, satisfaction with one's job, and work effectiveness. The central concern is internal motivation.

Behavioral Informality

Behavioral informality (or formality) is a third influence on intraorganizational processes. Behavioral informality refers to workplace situations characterized by spontaneity, casualness, and interpersonal familiarity.

Degree of Centralization

Centralization of authority- primary authority is held by upper management Decentralization- significant authority is found in lower levels of the organization Standardization- solving problems by applying rules, procedures, and processes the location of most authority at the upper levels of the organization. In a centralized organization, managers make most decisions, even the relatively small ones.

Job Redesign Techniques

Combining Tasks, Forming Natural Work Units, establishing client relationships, vertically loading the job, opening feedback channels

Empowerment

Empowering workers- Permanently passing decision-making authority and responsibilities from managers to workers by giving them the information and resources they need to make good decisions A feeling of intrinsic motivation Workers perceive meaning in their work Employees are capable of self-determination

Rotation, Enlargement, Enrichment

Job Rotation- periodically moving workers from one specialized job to another Job Enlargement- increasing the number of tasks performed by a worker Job Enrichment- adding more tasks and authority to an employee's job

Line Versus Staff Authority

Line authority - the right to command immediate subordinates in the chain of command Staff authority- the right to advise but not command others

Internal motivation

Motivation that comes from the job itself rather than from outside rewards, such as a raise or praise from the boss. If workers feel that performing the job well is itself rewarding, then the job has internal motivation. First, workers must experience the work as meaningful, that is, they must view their job as being important. Second, they must experience responsibility for work outcomes—they must feel personally responsible for the work being done well. Third, workers must have knowledge of results, that is, know how well they are performing their jobs. All three critical psychological states must occur for work to be internally motivating.

Customer Departmentalization

Organizes work and workers into separate units responsible for particular kinds of customers. Exhibit 9.5 shows that Sprint is organized into departments that cater to businesses, consumers, homes, and companies requiring supply chain services.

Product Departmentalization

Organizes work and workers into separate units responsible for producing particular products or services. For example, United Technologies is organized into product lines, a portion of them shown in this slide.

Reengineering and Task Interdependence

Reengineering changes work by changing task interdependence. Exhibit 9.11 shows the three kinds of task interdependence. In pooled interdependence, each job or department independently contributes to the whole. In sequential interdependence, work must be performed in succession, as one group's outputs become the inputs for the next group or job. In reciprocal interdependence, different jobs or groups work together in a back-and-forth manner to complete the process.

Intraorganizational Processes

Reengineering, empowerment, behavioral informality

Organizational Structure

The vertical and horizontal configuration of departments, authority, and jobs within a company

Delegation of Authority

The assignment of direct authority and responsibility to a subordinate to complete tasks for which the manager is normally responsible

Organizational Process

The collection of activities that transform inputs into outputs that customers value

Functional Departmentalization

The most common organizational structure is functional departmentalization. Companies tend to use this structure when they are small or just starting out. Organizing work and workers into separate units responsible for particular business functions or areas of expertise. For example, a common set of functions would consist of accounting, sales, marketing, production, and human resources departments.

Reengineering

fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical measures of performance, such as cost, quality, service, and speed Change the orientation from vertical to horizontal Changes task interdependence

Organizational Authority

the right to give commands, take action, and make decisions to achieve organizational objectives. Traditionally, organizational authority has been characterized by the following dimensions: chain of command, line versus staff authority, delegation of authority, and degree of centralization.

Geographic Departmentalization

organizes work and workers into separate units responsible for doing business in particular geographical areas. Exhibit 9.6 shows the geographic departmentalization used by Coca-Cola Enterprises.

Delegation

the process of assigning managerial authority and responsibility to managers and employees lower in the hierarchy