Warm-up What was the hardest part of creating your personal plan?

Functions of Management: Organizing

Learning Targets I can list the issue involved in structuring organizations. I can create an organization chart. 5eo

Henri Fayol & Max Weber Hierarchy of authority Division of labor Authority Job Descriptions Rules and detailed records Consistent procedures Staffing and promotion based on qualifications

Organizational Design The structuring of workers so that they can best accomplish the firm’s goals.

Tall vs Flat Organizations

Span of Control The optimum number of workers a manager should supervise. Depends on Capabilities of the manager Capabilities of the workers Complexity of the job

Centralized vs Decentralized Authority Centralized Authority A structure in which decision-making authority is maintained at the top level. Decentralized Authority A structure in which decision making authority is delegated to lower-level managers.

Centralization (No Delegation) Advantages Increased Uniformity Increased Uniformity – Less Duplication – Maximum Control Disadvantages – Lots of Policies & Procedures – Many Layers/Slower

Decentralization (Delegate Authority) Advantages – Informed Decisions – Worker Responsibility – Few Layers/Faster Disadvantages – Loss of Control – Possible Duplication

Functional Structure President VP of Marketing VP of Production VP of Finance Legal Counsel Human Resources Staff Personal Line Managers

Functional Structure President VP of Marketing Advertising Manager Sales Manager Customer Service VP of Production Chief Engineer Chief of Technology Head of Maintence VP of Finance Accounts Receivable Accounts Payable Legal Counsel Human Resources

Product Structure President Computer Division Ipod Division Iphone Division Itunes Division Legal Counsel Human Resources Staff Personal Line Managers

Geographic Structure President North American President Asian President Latin American President European President Legal Counsel Human Resources Staff Personnel Line Managers