2. Organizational Considerations
• Mechanic Organizations
• Are bureaucratic
• Follow rules through tight control
• Specialized jobs
• Decisions made by top managers
• Work well in stable environments
• Organic Organizations
• Are flexible
• Minimal focus on rules
• Broadly defined jobs decisions made at lower levels
• Work well in dynamic environment
3. Command and Direction
• Unity of Command:
• Requires that each employee report to only one boss
• Unity of Direction:
• Requires that all activities be directed toward the same objectives
• Chain of Command or the Scalar Principle:
• The clear line of authority from the top to the bottom of an organization
4. Span of Management
• The number of employees reporting to a manager
• Tall organization:
• Many levels with narrow spans of management
• Flat organization:
• Few levels with wide spans of management
5. Authority
• Based on the specified
relationship among employees
• Sanctioned way of getting the job
done
• Common in mechanistic
organizations
• Based on patterns of relationship
that evolve as employees interact
• Unsanctioned way of getting the
job done
• More accepted in organic
organizations
Formal Authority Informal Authority
6. Centralized and Decentralized Authority
• Important decisions are made by
top managers
• Allows for control and reduced
duplication of work
• Mechanic organization use
centralized authority
• Important decisions are made by
middle and first-line managers
• Pushes authority and
accountability further down the
line
• Allows for efficiency and flexibility
• Organic tend to use decentralized
authority
Centralized Authority Decentralized Authority
7. Levels of Authority
• The Authority to Inform:
• May inform the supervisor alternative actions
• The Authority to Recommend:
• May list alternative decision and actions, analyze them and recommend
one action
• The Authority to Report:
• May select a course of action but must report the action
• Full Authority:
• May make decisions without the supervisor’s knowledge
8. Line and Staff Authority
• Line authority:
• The responsibility to make decisions and issue orders down the chain
of command
• Staff authority:
• The responsibility to advise and assist other personnel
9. Organization Chart
• Graphic illustration of the organizations management hierarchy
and departments and their working relationships
• The Level of Management Hierarchy
• Top, middle and first line
• Chain of Command
• Who reports to whom
• Division of work
• Who is responsible for what function
• Departmentalization
• The grouping of related activities into units
10. Internal Departmentalization
• Based on Internal Operations or Functions
• Also called “Functional Departmentalization”
• Involves organizing department around essential input activities
• Sales, production, and finance
• Used by small organizations
11. External Departmentalization
• Based on the external or output and activities outside the
organization
• Product Departmentalization
• Organizing departments around goods or services
• Customer Departmentalization
• Organizing department around the needs of different types of customers
• Territory Departmentalization
• Establishing separate units in each area in which enterprise does business
12. Multiple Departmentalization
• Many organizations, particularly large, complex ones, use
several types of departmentalization to create a hybrid structure
• Matrix departmentalization
• Combines functional and product departmentalization
• Divisional structure is based on semiautonomous strategic business
units
13. Conglomerate Structure
• Based on autonomous profit centers or many unrelated
diversified business units
• Top management focuses on business portfolio management
to buy and sell lines of business without great concern for
coordinating divisions
14. Contemporary Organizational Designs
• Networks
• Boundariless interrelationships among different organizations
• Modular
• Firms that focus on what they do best, outsource the rest to other
companies, and coordinate their activities
• Virtual Organization
• Continually evolving network of companies that unite temporarily to
exploit specific opportunities or to attain strategic advantages and then
disband when objectives are met
15. Job Design
• The process of identifying tasks that each employee is
responsible for completing
16. Job Simplification and Job Expansion
• Changes in the work
sequence enhance
performance
• Makes job more specialized
• Work smarter, not harder
• Three steps:
• Eliminate
• Combine
• Change sequence
• Makes jobs less specialized
• Jobs can be expanded
through:
• Rotation- performing different
jobs in certain period of time
• Enlargement- adding tasks to
broaden variety
• Enrichment- building motivators
into the job itself to make it
more interesting.
Job Simplification Job Expansion
17. Setting Priorities
• Make a to-do list of tasks
• Assign each task a priority
• Focus on accomplishing only one task at a time
18. Priority Determination Questions
• Do I need to be personally involved because of my knowledge
or skills?
• Is the task my responsibility or will it affect the performance of
my department?
• When is the deadline - is quick action needed?
19. Delegating
• The process of assigning responsibility and authority for
accomplishing objectives
• Obstacles to delegation: Managers believe that they can
perform the task more efficiently than others
20. Four Steps in the Delegating Process
• Explain the need for delegating and the reasons for selecting
the employees
• Set objectives that define responsibility, level of authority and
deadline
• Develop a plan
• Establish control checkpoints and hold employees accountable
Notas do Editor
Key to Success seems to be having the right balance between the two authorities
Successful managers are effective at setting priorities and delegating work
Successful managers are effective at setting priorities and delegating work