Welcome to MT140 Introduction to Management Unit 4 Seminar Organizing

Agenda General Questions and Announcements Introduction to Organizing Differentiation and Integration Span of Control Centralized vs. Decentralized Organization Recap Unit 4 Assignment Q & A Conclusion of Seminar

Organizing Introduction In Unit 4, we are considering:  That organizing is one of the primary functions of management.  That organizational structures have vertical and horizontal dimensions, each having unique characteristics.  That the organization chart depicts the positions in the organization and the way they are arranged.  That delegation is a fundamental feature of management at every level of management.

Fundamentals of Organizing Organization chart -The reporting structure and division of labor in an organization 6-4

Authority in Organizations Authority -The legitimate right to make decisions and to tell other people what to do. 6-5

Authority in Organizations 6-6 Board of Directors Chief Executive Officer Top Management Team

Hierarchical Levels Hierarchy -The authority levels of the organizational pyramid Corporate governance -The role of a corporation’s executive staff and board of directors in ensuring that the firm’s activities meet the goals of the firm’s stakeholders 6-7

Differentiation = Division of Labor In businesses that follow a differentiation structure, the work is divided among the unit (departments) of the business. Individuals in the various units are skilled at specific functions. Examples are: marketing, human resources, finance, information technology, or other departmental name. Can you name some departments in businesses that you are familiar with?

Integration = Coordination for Projects Communication is cooperation is required to get the desired results, even in a differentiated structure. Integration is that part of the business that provide and encourages linkages among the various functional areas to get the optimal results for a work project.

Span of Control What is meant by Span of Control? “Balance” is very important when making management decisions regarding span of control…the span should be appropriate for the type of work and workers involved and for the skill level of the manager involved.

Delegation -The assignment of new or additional responsibilities to a subordinate Responsibility, Authority, and Accountability 6-11

Delegation Responsibility -The assignment of a task that an employee is supposed to carry out Accountability -The expectation that employees will perform a job, take corrective action when necessary, and report upward on the status and quality of their performance 6-12

Steps in Effective Delegation 6-13 Figure 6.2

Decentralization Centralized organization -An organization in which high-level executives make most decisions and pass them down to lower levels for implementation Decentralized organization -An organization in which lower-level managers make important decisions 6-14

The Functional Organization Functional organization -Departmentalization around specialized activities such as production, marketing, and human resources. 6-15

The Functional Organization 6-16 Figure 6.3

The Divisional Organization Divisional organization -Departmentalization that groups units around products, customers, or geographic regions. 6-17

The Divisional Organization 6-18 Figure 6.4

The Matrix Organization Matrix organization -An organization composed of dual reporting relationships in which some managers report to two superiors—a functional manager and a divisional manager 6-19

Matrix Organizational Structure 6-20 Figure 6.5

The Network Organization Network organization -A collection of independent, mostly single- function firms that collaborate on a good or service 6-21

The Network Organization 6-22Figure 6.6

The Network Organization Dynamic network -Temporary arrangements among partners that can be assembled and reassembled to adapt to the environment Broker -A person who assembles and coordinates participants in a network 6-23

Recap We have discussed the following aspects of organization, including: Differentiation and Integration Span of Control Centralized vs. Decentralized Organization --- Please add your questions or comments. ---

There are 3 graded assignments in Unit 4. Discussion Board Assignment: 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 on delegation. 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. What could have improved the chances of a successful outcome in that particular situation?

Dropbox Assignment …paraphrasing After reading the scenario in the course and the section on authority in your textbook 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 Don’t forget that you can take the Review as often as you need to during the Unit Week prior to the Tuesday midnight deadline until you get the score that you desire.

Thank You for Attending! This concludes our seminar for Unit 4. I appreciate your taking the time out to join me and to invest in the concepts.