Transcript CHAPTER 12-FUNDAMENTAL CONCEPTS OF ORGANIZING

ORGANIZING CONCEPTS
Chapters 12,13,14,15,16,17, &18
CHAPTER 12
Organizing is based on two principles:
• Authority
• Span of management/span of control/
span of supervision
Authority
• It is the key to the managerial job
• It is the lifeblood of the managerial position
• It gives legitimate power to the manager or
supervisor to give directives to
subordinates
• It is limited in scope by both internal and
external factors
Types of Authority
• Positional
• Functional
• Personal
Span of Management
• It is also called span of control and span of
supervision
• It is the number of subordinates that a manager
directs and supervises
• The number of subordinates varies
• The smaller or narrower the span, the more
levels of management will be required
• Some managers are able to supervise more
subordinates than are others
Factors Determining the Span of
Supervision
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Competence of the supervisor
Competence and makeup of the subordinates
Amount and availability of help from staff specialists
Nature and importance of the activities performed
The dynamics and complexity of the activity to be
performed
• The degree to which a comprehensive set of standards
and procedures are available to guide subordinates
• Availability of self-directed teams
CHAPTER 13
Division of Work:
• Tasks are broken down and divided into
smaller parts
• It is the process by which tasks and
responsibilities are allocated
• It is essential for greater efficiency and
higher productivity
Departmentalization
• The process of grouping the activities of an
organization into units
• The units are grouped by the following methods:
- Functions
- Process and equipment
- Territory or location
- Customer
- Time
- Product
Mixed Departmentalization
• Uses multiple methods of
departmentalization to meet the desired
outcome
Matrix organization
• It is an organizational design that combines both
functional and product departmentalization
• Several projects can be conducted simultaneously
• Employees have two bosses
• It violates the unity of command concept
• Creates a number of problems such as conflicting
directives from two bosses, roles may not be clearly
defined, power struggle between the two bosses, and
subordinates may be confused regarding to whom they
should report
CHAPTER 14
Delegation of authority:
• It makes the organization operative
• It gives life to the organization
• An organization can only exist if authority has been delegated
• Top management must create the mood by preaching and practicing broad
delegation of authority
• It is distributed throughout an organization, starts at the top and flows
downward throughout the various levels of management
• It follows the principles of chain of command or scalar chain and unity of
command
• Frees the time of managers
• Increases morale, interest, and enthusiasm for work
• Provides a training ground and helps identify up coming leaders
• Authority hoarders must be discouraged
• Supervisors who carefully delegate authority does not lose status or free
them from their responsibilities
Three steps of the process of
delegation
• Assignment of duties and defining the
results expected
• Granting of permission (authority)
• Creation of an obligation (responsibility)
In order to make delegation of authority a
success, those three steps must blend
together
General Supervision
• Permits subordinates to decide how to achieve
results within accepted professional standards
• Allows the manager or supervisor to have more
time to perform management functions
• Enables subordinates to take great pride in
decision-making
• Creates an environment to enhance the
performances of team work
Barriers to delegation of authority
• Supervisor’s that are authority hoarders
• Reluctant subordinates to take on
authority and responsibility
• The unavailability of suitable subordinates
to whom authority can be delegated
Organizing Concepts Contd.CHAPTERS 15, 16, 17, & 18
CHAPTER 15
Line authority
• Authority is based on superior-subordinate
relationships and is managerial in nature
• Authority to give orders to subordinates
• The authority to direct subordinates and
require them to comply to decisions,
policies, plans, and objectives
• Generally follows the principle of unity of
command
Staff Authority
• Authority is based on expertise in specialty
areas
• Provides information, counsel, advice, and
guidance in specialty areas and is not
managerial in nature
• The authority to make recommendations
to line organization
• The recommendations can be accepted,
rejected, or altered by the line organization
Functional authority
• The CEO or administrator gives a staff
member special limited right to command
• The right is based on expertise in a
specialized area
• It allows maximum effective use of staff
specialists
• It violates the principle of unity of
command
CHAPTER 16
Reorganization:
• Changes in organizational structures,
departmentalization, assignment of activities,
and authority relationships
• It is closely aligned with reengineering
• Reorganization occurs because of:
- Changes in priorities and goals
- Financial needs
- Scientific and technological advances
- New developments and practices
Tools used for reorganization
• Job design
• Job redesign
• Job rotation
• Job enlargement
• Job enrichment
• Work redesign
In order to ensure quality in services or products,
supervisors should continuously monitor the
processes of reorganization
Reengineering
• The focus is on customer needs
• It is continuous
• Relies heavily on teams of employees that
are coordinated by management
• It has the potential to improve quality,
customer responsiveness, reduce costs,
and streamline operations
Downsizing and Rightsizing
Downsizing:
• Reduction in workforce
• Quickly initiated
• Little or no input from employees
Rightsizing
• Moderate to high cost reduction
• Quickly initiated
• Little or no input from employees
Quality Management
• Continuous service improvements that
meet the needs of the organization and
customers
• Empowers employees to attain the desired
outcomes
CHAPTER 17-Committees as an
Organizational Tool
Committees:
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A formal group of people who function together to attain a desired organizational goal
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Permit a group of people to function collectively in areas that a single individual cannot handle
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Group members have regular full-time duties in the organization
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Group members devote part of their regular working time to committee activities
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Committee members must be carefully selected
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Found at all organizational levels
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Have line or staff capacity
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Can be classified as standing or temporary
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Promote coordination and cooperation among various departments in the organization
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Produce continuity in the organization
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Provide a forum for potential leaders to be identified
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Give opportunities for various departments to be heard and get involved in the affairs of the
organization
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Must have a mandate; know its scope and function
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The degree of authority must be specified
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The chair is the most important member of the committee
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A well prepared agenda is required with a degree of flexibility
CHAPTER 18
The Informal organization:
• It is a social subsystem
• It interacts with the formal organization both in negative and positive
ways
• It is found in almost all organization and cannot be eliminated
• Small groups are the basis for an informal organization
• Employees join small groups because of the following:
- Social needs
- Sense of satisfaction
- Friendship and companionship
- Security, support, and collective power
- Acceptance
- Access to the informal organization (grapevine)
- Status
The supervisor and the informal
organization
• The informal organization is part of a complex system
that interacts with the formal organization
• The supervisor must understand the workings of the
informal organization
• The supervisor should approach the informal
organization in a positive manner
• The supervisor should utilize the informal organization to
achieve departmental objectives
• The supervisor should combine the interests of the
formal organization with those of the formal organization