Organizing and Delegating Work Chapter 6 Organizing and Delegating Work PowerPoint Presentation by Charlie Cook The University of West Alabama Copyright © 2006 Thomson Business and Economics. All rights reserved.

Learning Outcomes After studying this chapter, you should be able to: Explain the difference between a flat organization and a tall organization. Describe the similarities and differences among liaisons, integrators, and people in boundary roles. Discuss the difference between formal and informal authority and centralized and decentralized authority. List and briefly explain the four levels of authority. Describe the relationship between line authority and staff authority. Explain what an organization chart is and list the four aspects of a firm that it shows. Copyright © 2006 Thomson Business and Economics. All rights reserved.

Learning Outcomes (cont’d) Discuss the difference between internal and external departmentalization. State the similarities and differences between matrix and divisional departmentalization. Explain the difference between job simplification and job expansion. Describe the job characteristics model. Explain how to set priorities by answering three priority questions and determining whether activities have high, medium, or low priority. List the four steps in the delegation process. Copyright © 2006 Thomson Business and Economics. All rights reserved.

Learning Outcomes (cont’d) Define the following key terms: span of management decentralized authority responsibility organization chart authority departmentalization delegation divisional structure levels of authority job design line authority job enrichment staff authority job characteristics model centralized authority priority-determination questions Copyright © 2006 Thomson Business and Economics. All rights reserved.

Ideas on Management at Post and Schell What key organizational principles guided Post & Schell in its reorganization? How has authority changed at Post & Schell? What organizational design did Post & Schell adopt? What type of job design does Post & Schell use? What prioritization and delegating issues does Post & Schell face? Copyright © 2006 Thomson Business and Economics. All rights reserved.

Organizing Questions Questions for Managers Chapter Topic Who should departments Chain of command; and individuals report to? organization chart How many individuals should Span of management report to each manager? How should we subdivide Division of labor; the work? departmentalization How do we get everyone to Coordination work together as a system? At what level should decisions Centralization vs. decentralization be made? of authority How do we organize to meet Departmentalization our mission and strategy? Copyright © 2006 Thomson Business and Economics. All rights reserved. Exhibit 6–1

Principles of Organization Unity of Command and Direction Chain of Command Span of Management (flat and tall organizations) Division of Labor (specialization, departmentalization, integration) Coordination Balanced Responsibility and Authority Delegation Flexibility Copyright © 2006 Thomson Business and Economics. All rights reserved. Exhibit 6–2

Balanced Responsibility and Authority The obligation to achieve objectives by performing required activities. Authority The right to make decisions, issue orders, and use resources. Accountability The evaluation of how well individuals meet their responsibilities. Copyright © 2006 Thomson Business and Economics. All rights reserved.

Balanced Responsibility and Authority (cont’d) Delegation The process of assigning responsibility and authority for accomplishing objectives. Flexibility The ability to adapt to exceptions to the rules, policies, and procedures of the organization. Copyright © 2006 Thomson Business and Economics. All rights reserved.

Copyright © 2006 Thomson Business and Economics. All rights reserved.

Authority Formal Authority (or Structure) Informal Authority The organizationally-sanctioned way of getting the job done. Organizational charts illustrate formal lines of authority in firms. Informal Authority The patterns of relationships and communication that evolve as employees interact and communicate that is not sanctioned by the organization. Copyright © 2006 Thomson Business and Economics. All rights reserved.

Authority (cont’d) Scope of Authority A hierarchy as it flows down the organization. Copyright © 2006 Thomson Business and Economics. All rights reserved. Exhibit 6–3

Levels of Authority Authority to Inform Authority to Recommend Inform a superior of action alternatives and the superior makes the decision. Authority to Recommend List alternatives/actions and recommend one action; superior makes action decision. Authority to Report Select and implement a course of action, reporting action to superior. Full Authority Acting independently without supervision. Copyright © 2006 Thomson Business and Economics. All rights reserved.

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 line and other personnel. Functional authority The right of staff personnel to issue orders to line personnel in established areas of responsibility. Dual line and staff authority Staff personnel exercise line authority within their own departments. Copyright © 2006 Thomson Business and Economics. All rights reserved.

Copyright © 2006 Thomson Business and Economics. All rights reserved.

Line and Staff Authority (cont’d) General staff Work for only one manager and help the manager in any way needed. Specialist staff Help anyone in the organization who needs it. Copyright © 2006 Thomson Business and Economics. All rights reserved.

Centralized and Decentralized Authority Important decisions are made by top managers. Decentralized Authority Important decisions are made by middle and first-line managers. Copyright © 2006 Thomson Business and Economics. All rights reserved.

Authority Copyright © 2006 Thomson Business and Economics. All rights reserved. Exhibit 6–4

Organization Design Contingency Factors Affecting Structure Environment (mechanistic versus organic) Production technology Strategy (“structure follows strategy”) Size of the organization (larger = more formal) Organization Chart A graphic illustration of the organization’s management hierarchy and departments and their working relationships. Management level, chain of command, division and type of work, and departmentalization. Copyright © 2006 Thomson Business and Economics. All rights reserved.

Organization Chart Exhibit 6–5 Copyright © 2006 Thomson Business and Economics. All rights reserved. Exhibit 6–5

Departmentalization Departmentalization Functional departmentalization The grouping of related activities into units. Functional departmentalization Based on the internal operations or functions that the employees perform and the resources needed to accomplish that work. External, or output, departmentalization Based on activities or factors outside the organization: product, customer, or territory. Multiple Departmentalization Hybrid structure: matrix and divisional (SBUs) Copyright © 2006 Thomson Business and Economics. All rights reserved.

Types of Departmentalization Copyright © 2006 Thomson Business and Economics. All rights reserved. Exhibit 6–6

Types of Departmentalization (cont’d) Copyright © 2006 Thomson Business and Economics. All rights reserved. Exhibit 6–6 cont’d

Multiple Departmentalization Hybrid structures using combinations of functional and product departmentalization Matrix Departmentalization Unity of command Coordination issues Divisional Departmentalization Strategic business units (SBUs) Conglomerate structures: profit centers Copyright © 2006 Thomson Business and Economics. All rights reserved.

Matrix Departmentalization Copyright © 2006 Thomson Business and Economics. All rights reserved. Exhibit 6–7

Copyright © 2006 Thomson Business and Economics. All rights reserved.

Copyright © 2006 Thomson Business and Economics. All rights reserved.

New Approaches to Departmentalization Horizontal Team Organization Has an all-directional focus to increase speed of response, individual accountability, flexibility, knowledge sharing, and coordination. Networks Boundaryless interrelationships among different organizations. Virtual Organization A continually evolving group of companies that unite temporarily to exploit specific opportunities or to attain strategic advantages and then disband when objectives are met. Copyright © 2006 Thomson Business and Economics. All rights reserved.

Job Design Job Design Job Design Options The process of identifying tasks that each employee is responsible for completing. Job Design Options Job Simplification Eliminate tasks Combine tasks Change task sequence Job Expansion Rotate jobs Add tasks Job enrichment (increase task variety and employee responsibility) Work Teams Integrated Self-managed Copyright © 2006 Thomson Business and Economics. All rights reserved. Exhibit 6–8

The Job Characteristics Model Copyright © 2006 Thomson Business and Economics. All rights reserved. Exhibit 6–9

Copyright © 2006 Thomson Business and Economics. All rights reserved.

Setting Priorities Priority-Determination Questions Do I need to be personally involved because of my unique knowledge or skills? Is the task my responsibility, or will it affect the performance or finances of my department? When is the deadline—is quick action needed? Assigning Priorities Delegate (D) priority: The task is delegated if the answer to question 1 is no. High (H) priority: Assign the task a high priority if you answer yes to all three questions. Medium (M) priority: Assign the task a medium priority if you answer yes to question 1 but no to one of the remaining two questions. Low (L) priority: Assign the task a low priority if you answer yes to question 1 but no to both questions 2 and 3. Copyright © 2006 Thomson Business and Economics. All rights reserved.

Prioritized To-Do List Write the task that you must perform on the task line. Answer the three priority questions by placing a Y (yes) or N (no) in the relevant column. Assign a priority to the task by placing the letter D (delegate), H (high), M (medium), or L (low) in the priority column. Determine which task to complete now. Copyright © 2006 Thomson Business and Economics. All rights reserved. Exhibit 6–10

Delegation Benefits Obstacles More time for other high-priority tasks. Trains employees and improves their self-esteem. Enriches jobs and improves personal and work outcomes. Obstacles Reluctance to stop doing tasks personally. Fear of employee’s failure to accomplish task. Threatened by employee’s success. Copyright © 2006 Thomson Business and Economics. All rights reserved.

What to Delegate and What Not to Delegate Paperwork Routine tasks Technical matters Tasks that develop employees Tasks associated with solving employee’s problems What Not to Delegate Anything that you need to be involved with because of your unique knowledge or skill Personnel matters (evaluating, disciplining, firing) Confidential matters Projects or tasks in crisis Activities delegated to you personally Copyright © 2006 Thomson Business and Economics. All rights reserved. Exhibit 6–11

Steps in the Delegation Model 1. Explain the need for delegating and the reasons for selecting the employee. 2. Set objectives that define responsibility, the level of authority, and the deadline. 3. Develop a plan. 4. Establish control checkpoints and hold employees accountable. Copyright © 2006 Thomson Business and Economics. All rights reserved.