1. © Prentice Hall, 2002 11 - 1 Modern Management 9 th edition.

2. © Prentice Hall, 2002 11 - 2  Objectives An understanding of the relationship of responsibility, authority, and delegation Information on how to divide and clarify the job objectives of individuals working within an organization Knowledge of the differences among line authority, staff authority, and functional authority An appreciation for the issues that can cause conflict in line and staff relationships Insights into the value of accountability to the organization An understanding of how to delegate A strategy for eliminating various barriers to delegation A working knowledge of when and how an organization should be decentralized.

3. © Prentice Hall, 2002 11 - 3 R ESPONSIBILITY The Job Description Dividing Job Activities The Functional Similarity Method Interrelated steps: 1. Examine management system objectives 2. Designate appropriate activities 3. Design specific jobs 4. Make specific individuals responsible.

4. © Prentice Hall, 2002 11 - 4 R ESPONSIBILITY Figure 11.1 Sequence of activities for the functional similarity method of dividing job activities.

5. © Prentice Hall, 2002 11 - 5 R ESPONSIBILITY Dividing Job Activities (con’t) Functional Similarity and Responsibility Overlapping responsibility 1. One of the two may perform the job 2. Both employees may perform the job 3. Neither employee may perform the job 4. Employees may spend valuable time negotiating job Responsibility gap Goal attainment activities.

6. © Prentice Hall, 2002 11 - 6 R ESPONSIBILITY Clarifying Job Activities of Managers Management Responsibility Guide Responsible Managers Appraising the manager: 1. Attitude toward and conduct with subordinates 2. Behavior with upper management 3. Behavior with other groups 4. Personal attitudes and values.

7. © Prentice Hall, 2002 11 - 7 R ESPONSIBILITY Table 11.1 Seven Responsibility Relationships among Managers, as Used in the Management Responsibility Guide 1. General ResponsibilityThe individual who guides and directs the execution of the function through the person accepting operating responsibility. 2. Operating ResponsibilityThe individual who is directly responsible for the execution of the function. 3. Specific ResponsibilityThe individual who is responsible for executing a specific or limited portion of the function. 4. Must Be ConsultedThe individual whose area is affected by a decision who must be called on to render advice or relate information before any decision is made or approval is granted. This individual does not, however, make the decision or grant approval. 5. May Be ConsultedThe individual who may be called on to relate information, render advice, or make recommendations before the action is taken. 6. Must Be NotifiedThe individual who must be notified of any action that has been taken. 7. Must ApproveThe individual (other than persons holding general and operating responsibility) who must approve or disapprove the decision..

8. © Prentice Hall, 2002 11 - 8 R ESPONSIBILITY Table 11.2 Four Key Dimensions of Responsible Management Behavior Behavior withBehavior withBehavior withPersonal Attitudes SubordinatesUpper ManagementOther Groupsand Values ———————————————————Responsible managers———————————————————— 1.Take complete 1.Accept criticism for 1.Make sure that any 1.Identify with the group charge of their mistakes and buffer gaps between their 2.Put organizational work groups their groups from areas and those of goals ahead of 2.Pass praise excessive criticism other managers personal desires and credit 2.Ensure that their are securely filled.or activities along to groups meet 3.Perform tasks for subordinates management which there is no 3.Stay close expectations immediate reward to problems and objectives but that help and activities subordinates, the 4.Take actions to company, or both maintain productivity4.Conserve corporate and are willing to resources as if the terminate poor resources were performers if necessarytheir own.

9. © Prentice Hall, 2002 11 - 9 A UTHORITY Authority on the Job Acceptance of Authority Barnard maintains authority will be accepted only if individual: 1. Can understand the order being communicated 2. Believes the order is consistent with the purpose of the organization 3. Sees the order as compatible with his or her personal interests 4. Is mentally and physically able to comply with the order.

10. © Prentice Hall, 2002 11 - 10 A UTHORITY Acceptance of Authority (con’t) Barnard maintains commands will be accepted over long term if: 1. Manager uses formal channels of communication that are familiar to all 2. Each member has an assigned formal communication channel 3. Line of communication between manager and subordinate is as direct 4. Complete chain of command is used to issue orders 5. Manager possesses adequate communication skills 6. Manager uses formal communication lines only for organizational business 7. A command is authenticated as coming from a manager.

11. © Prentice Hall, 2002 11 - 11 A UTHORITY Types of Authority Line and Staff Authority Line–Staff Relationships Roles of Staff Personnel Harold Stieglitz roles that staff personnel perform: 1. Advisory or counseling 2. Service 3. Control Conflict in Line–Staff Relationships Functional Authority Accountability.

12. © Prentice Hall, 2002 11 - 12 A UTHORITY Figure 11.2 Possible line–staff relationships in selected organizational areas.

13. © Prentice Hall, 2002 11 - 13 A UTHORITY Figure 11.3 Proposed design for incorporating three types of authority in a hospital.

14. © Prentice Hall, 2002 11 - 14 D ELEGATION Steps in the Delegation Process Obstacles to the Delegation Process 1. Obstacles related to the supervisor 2. Obstacles related to subordinates 3. Obstacles related to organizations Eliminating Obstacles to the Delegation Process.

15. © Prentice Hall, 2002 11 - 15 D ELEGATION Table 11.3 Guidelines for Making Delegation Effective Give employees freedom to pursue tasks in their own way Establish mutually agreed-upon results and performance standards for delegated tasks Encourage employees to take an active role in defining, implementing, and communicating progress on tasks Entrust employees with completion of whole projects or tasks whenever possible Explain the relevance of delegated tasks to larger projects or to department or organization goals Give employees the authority necessary to accomplish tasks Allow employees access to all information, people, and departments necessary to perform delegated tasks Provide training and guidance necessary for employees to complete delegated tasks satisfactorily When possible, delegate tasks on the basis of employee interests.

16. © Prentice Hall, 2002 11 - 16 D ELEGATION Centralization and Decentralization Decentralizing an Organization: A Contingency Viewpoint Questions to determine the amount of decentralization: 1. What is the present size of the organization? 2. Where are the organization’s customers located? 3. How homogeneous is the organization’s product line? 4. Where are organizational suppliers? 5. Is there a need for quick decisions in the organization? 6. Is creativity a desirable feature of the organization?.

17. © Prentice Hall, 2002 11 - 17 D ELEGATION Figure 11.4 Centralized and decentralized organizations on delegation continuum.

18. © Prentice Hall, 2002 11 - 18 D ELEGATION Centralization and Decentralization (con’t) Decentralization at Massey-Ferguson: A Classic Example Guidelines for Decentralization 1.Person with authority to delegate must possess competence to make decisions 2.Decision maker must have adequate and reliable information pertinent to decision 3.Manager accountable for the most units must have authority to make decision Delegation as a Frame of Mind Complementing Centralization.

19. © Prentice Hall, 2002 11 - 19 D ELEGATION Centralization and Decentralization (con’t) Decentralization at Massey-Ferguson: A Classic Example (con’t) Management Responsibilities 1.Responsibility for determining overall the objectives of the enterprise 2.Responsibility for formulating the policies that guide the enterprise 3.Final responsibility for control of the business 4.Responsibility for product design 5.Responsibility for planning for achievement of overall objectives and for measuring actual performance against those plans 6.Final approval of corporate plans or budgets 7.Decisions pertaining to availability and application of general company funds 8.Responsibility for capital investment plans.

20. © Prentice Hall, 2002 11 - 20 Chapter Eleven Questions