16 Management: Principles and Practices Griffin © 2010 South-Western, Cengage Learning, Inc. All rights reserved.

The Elements of Organizing Deciding how to best group organizational activities and resources. Organization Structure The set of building blocks that can be used to configure an organization. © 2010 South-Western, Cengage Learning, Inc. All rights reserved.

Alternatives to Job Specialization Job Enlargement Job Enrichment Job Rotation Job Specialization Alternatives © 2010 South-Western, Cengage Learning, Inc. All rights reserved.

Alternatives to Specialization (cont’d) Work Teams An alternative to job specialization that allows the entire group to design the work system it will use to perform an interrelated set of tasks. © 2010 South-Western, Cengage Learning, Inc. All rights reserved.

Grouping Jobs: Departmentalization The process of grouping jobs according to some logical arrangement. Rationale for Departmentalization Organizational growth exceeds the owner-manager’s capacity to personally supervise all of the organization. Additional managers are employed and assigned specific employees to supervise. © 2010 South-Western, Cengage Learning, Inc. All rights reserved.

Departmentalization Functional Departmentalization Grouping jobs involving the same or similar activities. Product Departmentalization Grouping activities around products or product groups. Customer Departmentalization Grouping activities to respond to and interact with specific customers and customer groups. Location Departmentalization The grouping of jobs on the basis of defined geographic sites or areas. © 2010 South-Western, Cengage Learning, Inc. All rights reserved.

Establishing Reporting Relationships Scalar Principle Span of Control Unity of Command Reporting Relationships Considerations © 2010 South-Western, Cengage Learning, Inc. All rights reserved.

Distributing Authority Power that has been legitimized by the organization. Delegation The process by which managers assign a portion of their total workload to others. Reasons for Delegation To enable the manager to get more work done by utilizing the skills and talents of subordinates. To foster development of subordinates by having them participate in decision making and problem. © 2010 South-Western, Cengage Learning, Inc. All rights reserved.

Factors in Choice of Centralization History of the organization Nature (cost and risk) of decisions to be made External environment’s complexity and uncertainty Organization’s Centralization Choice © 2010 South-Western, Cengage Learning, Inc. All rights reserved.

Major Forms of Interdependence Sequential Reciprocal Input Output Input Output Input Output Pooled Input Input Output Input Input Output © 2010 South-Western, Cengage Learning, Inc. All rights reserved.

Structural Coordination Task Forces Integrating Departments Electronic Coordination Structural Coordination Techniques Management Hierarchy Rules and Procedures Managerial Liaison Roles © 2010 South-Western, Cengage Learning, Inc. All rights reserved.

Key Terms organizing organization structure job design job specialization job rotation job enlargement job enrichment job characteristics approach work teams departmentalization functional departmentalization product departmentalization customer departmentalization location departmentalization chain of command span of management authority delegation centralization coordination pooled interdependence sequential interdependence reciprocal interdependence line position staff position administrative intensity © 2010 South-Western, Cengage Learning, Inc. All rights reserved.