Welcome to Unit 4 Seminar Slide 1

My contact information- Just in case My contact information (AIM IM: KymberlyChavez Alternate Email: kymchavez@bellsouth.net. Kaplan Email: kchavez@kaplan.edu. My phone number is 423-510-8460 and 423-505-8724 (mobile). Unless you have Sprint, please call me after 6pm- it is free for me!

Agenda General Questions and Announcements Introduction Organizational Structures / Q & A Levels of Authority within a Business / Q & A Delegation /Q & A Conclusion of Seminar 3

UNIT 3: Any questions?

Nag Grams and Late work… If you have late work, please send it in. Better some points then no points, right? You may receive a funny little reminder called a nag-gram- that is a free service I offer to make sure you turn in your assignments. 

Unit 4 Objectives During this unit we will: Identify characteristics of vertical and horizontal organizational structures. Identify levels of authority in an organization. Discuss delegation.

Mgr.- Mrktg and Cust. Service Key Concepts Organizing is one of the primary functions of management. Organizational structures have vertical and horizontal dimensions CEO V.P. Finance/ Acctg. Accountant Mgr.- Mrktg and Cust. Service Manager Production Manager Research Assist. Manager Supply Chain Organizational structures have vertical and horizontal dimensions, each having unique characteristics. The organization chart depicts the positions in the organization and the way they are arranged. Delegation is a fundamental feature of management at every level of management. This is a very small start up business. What does this organization chart tell you about the business?

Organizational Structures Two Broad Structures: Mechanistic Structures: Intended to promote internal efficiency. A formal structure. Organic Structures: Depend heavily on informal structures of employee networks. A more flexible and changeable form. Differentiation versus Specialization: Differentiation is created by division of labor and job specialization. Work specialization refers to an organizational structure that is composed of many different units that work on many different kinds of tasks, using different skills and work methods.

Vertical Organizational Structures (Continued) Two dimensions to an organization’s structure: Vertical and Horizontal. Vertical Structure: Hierarchical lines of authority: Board of Directors Chief Executive Officer Upper Management Team Middle Management First Line Management Span of Control: Determines a manager’s authority.

Vertical Organizational Structures (Continued) Delegation: The assignment of authority and responsibility to a subordinate at a lower level in the hierarchy. Responsibility: Means that a person is assigned a task that they are supposed to complete. Accountability: The right of the subordinate’s manager to expect specific performance and to take corrective action if the subordinate fails to do so. Decentralization: Spreads the decision-making power to lower levels within the organization.

Horizontal Organizational Structures Departmentalization: The subdividing of larger organizations into smaller subunits. Line Departments: Those that have responsibility for the primary activities of the firm. Staff Departments: Those that provide specialized or professional skills to support the line departments.

Horizontal Organizational Structures (Continued) A firm may be subdivided by: Functions: Like production, human resources, accounting, etc. Divisions: To reflect diverse firm needs. Each division having its own functional subunits. Matrix: A hybrid form combining both functional and divisional characteristics. Involves multiple reporting relationships. Network: A collection of mostly single-function firms that collaborate to produce a good or service.

Organizational Chart Illustrated (Sandwich Blitz, Inc.)

Any questions on this week’s Unit ? Slide 41

READING FOR UNIT 4: 1)      READING: This week's required reading is from Chapter 6 in the Bateman and Snell text pp. 122-134. In this chapter we will discuss how businesses are structurally organized and why. We will examine how the way a business is organized structurally determines how decisions are made, how employees interact, and how the company is managed.

DISCUSSION 2)    DISCUSSION: Delegation is the assignment of new or additional responsibilities to a subordinate. When done correctly, the individuals involved know exactly what they are to do, and the chances for success are maximized. Refer to the unit readings in the textbook section on delegation (pp. 126-127). Pick a job or position (paid or unpaid) that you have held in which you delegated to others or had responsibilities delegated to you. Describe your experience with delegation in terms of what went well and why, or what did not go as expected. (Use information from reading when possible) What could have improved the chances of a successful outcome in that particular situation?

EXAMPLE In my current position delegation is a daily must. To effectively manage my store I have a list of daily projects that need to be completed. At my company they require managers to create daily tour notes, and use a delegation and follow up method that they call CBWA. Coaching By Walking Around. Once I have completed my morning tour notes, I will evaluate each task and select my Associates based upon their competency level. Once I have assigned the tasks, I will let the individual know what I expect, and the time frame in which they have, to complete their task. By using the CBWA method, I will walk around and check each Associates progress throughout their task, and give them any needed resources. This also allows time to reflect on that specific task, and resolve any issues that they may have encountered. For example: I was preparing the store for a physical inventory. This requires all back stock to be counted and labeled with inventory tags, then numbered with the item count. Everything must be in matching alignment. I selected an Associate that had never done this particular task before, however I felt that she was more than capable. I explained in detail what needed to be done, and how I expected all back stock to be in uniform order. I gave her all of the resources that she would need to complete this task. I then followed up with her several times throughout the day, lending her my help as well. She did such a great job, that when the regional manager come in to check on the stores progress, he was so impressed that he took pictures of our steel , and emailed them to the other store managers. He told the other managers that he expected their back rooms to look exactly like the pictures. For a manager to be successful they must understand that effectively delegating is a must. Managers must choose the right person, effectively communicate the task, follow up throughout the duration of the task, and at the end, double check that the task is fully completed to expected standards.

ASSIGNMENT ASSIGNMENT:   Jack and Jenny have discussed two possible avenues to grow and expand Sandwich Blitz, Inc. One possible strategy would be to franchise locations and another would be to secure venture capital to finance an internal expansion by opening more company-owned shops.Jack feels that he just doesn’t have time to investigate these options because he is spending an increasing amount of his time assisting the location managers. Jenny noted that two of the location managers had exhibited much skill in the management of their locations and perhaps a new position could be added to coordinate with the location managers, thus freeing Jack to work on these larger issues.   After reading the scenario above and pages 124–125 in Chapter 6 of your textbook under the section on authority, please respond to the following questions: (Please number your responses 1 – 4 according to the four questions below) 1. How would creating a new position between the CEO and the location managers help the business to grow? 2. Is promoting an existing manager the best place to fill this position? If not, what is an alternative source to fill the position? 3. Who within the company should make these decisions? 4. List the levels of authority (management) that Sandwich Blitz, Inc. would have if the new position is created.

Review- 25 points Ok let’s review…

Next Week - Unit 5 LEADING Slide 57

Funny Story… The Perfect Couple "How is it that you never married?" "I just never met the right woman. I guess I've been looking for the perfect girl." "Oh, come on now, surely you have met at least one girl you wanted to marry." "Yes, there was one once. I guess she was the one perfect girl, the only perfect girl I really ever met. She was just the right everything. I really mean that, she was the perfect girl for me." "Well, why didn't you marry her?" "She was looking for the perfect man."

Parting Thoughts Have a great week! 