1. PowerPoint Presentation by Charlie Cook The University of West Alabama chapter 5 Part 3: Organizing Copyright © 2009 South-Western/Cengage Learning. All rights reserved. Organizing and Delegating Work

2. Copyright © 2009 South-Western/Cengage Learning. All rights reserved.5–2 Exhibit 5–1 ● Organizing Questions

3. Copyright © 2009 South-Western/Cengage Learning. All rights reserved.5–3 ● Principles of Organization Unity of command and direction -only 1 boss Chain of command -know to whom you report and who reports to you Span of management -how many employees report to you? Flat organizations- more employees report to you Tall organizations-fewer employees report to you Division of labor specialization-specialized jobs in a certain area like accounting, sales, etc departmentalization-(differentiation)-breaking the organization into different departments integration-coordinating the different departments

4. Principles of Organization (contd) Copyright © 2009 South-Western/Cengage Learning. All rights reserved. Coordination-all departments and individuals work together to accomplish objectives.Coordination-all departments and individuals work together to accomplish objectives. (Balanced) responsibility and authority-responsibilities (the obligation)-are clearly defined and authority (the right to make decisions, issue orders, use resources) to do them is given and you are held accountable(Balanced) responsibility and authority-responsibilities (the obligation)-are clearly defined and authority (the right to make decisions, issue orders, use resources) to do them is given and you are held accountable Delegation-assigning responsibility andDelegation-assigning responsibility andauthority Flexibility-there will always be exceptions to the rule. Flexibility is important to employees and customer satisfaction.Flexibility-there will always be exceptions to the rule. Flexibility is important to employees and customer satisfaction. 5–4

5. Copyright © 2009 South-Western/Cengage Learning. All rights reserved.5–5 Coordination Methods Direct Contact Liaisons -work in 1 dept but coordinate with the other depts. Integrators -ie project managers Committees Boundary Roles - coordinate with the external environment

6. Copyright © 2009 South-Western/Cengage Learning. All rights reserved.5–6

7. Copyright © 2009 South-Western/Cengage Learning. All rights reserved.5–7 Exhibit 5–3 ● Scope of Authority Responsibility and Authority

8. Copyright © 2009 South-Western/Cengage Learning. All rights reserved.5–8 Types of Authority Formal Authority (or Structure)Formal Authority (or Structure)  The organizationally-sanctioned way of getting the job done. of getting the job done.  Organizational charts illustrate formal lines of authority in firms. lines of authority in firms. Informal AuthorityInformal Authority  Relationships and communication that evolve as employees interact and communicate that is employees interact and communicate that is not sanctioned by the organization. not sanctioned by the organization. Scope of AuthorityScope of Authority  The authority narrows as it flows down the organization. the organization.

9. Copyright © 2009 South-Western/Cengage Learning. All rights reserved.5–9 Levels of Authority 1.Authority to Inform  Inform a superior of alternative actions and the superior makes the decision. 2.Authority to Recommend  List alternative decisions/actions and recommend one action; the superior makes action decision. 3.Authority to Report  Select and implement a course of action, and report the action to the superior. 4.Full Authority  Act independently without supervision.

10. Copyright © 2009 South-Western/Cengage Learning. All rights reserved.5–10 Line and Staff Authority Line AuthorityLine Authority  The responsibility to make decisions and issue orders down the chain of command. (Operations department and Marketing departments for example) Staff AuthorityStaff Authority  The responsibility to advise and help other personnel. (Human resources department and data processing department for example).  Functional authority  The right of staff personnel to issue orders to line personnel in established areas of responsibility, i.e., when a maintenance manager gives an order to the line personnel not to use a certain machine because it needs repairs.  Dual line and staff authority  Staff personnel exercise line authority within their own departments but may advise other departments, i.e., a public relations manager has line authority over his own department but may advise other departments.

11. Copyright © 2009 South-Western/Cengage Learning. All rights reserved.5–11 Centralized and Decentralized Authority- who makes the important decisions? Centralized AuthorityCentralized Authority  Important decisions are made by top managers. Decentralized AuthorityDecentralized Authority  Important decisions are made by middle and first-line managers. Most businesses are on a continuum between the two.Most businesses are on a continuum between the two.

12. Copyright © 2009 South-Western/Cengage Learning. All rights reserved.5–12

13. Copyright © 2009 South-Western/Cengage Learning. All rights reserved.5–13 Organizational Design Organization ChartOrganization Chart  A graphic illustration of the organization’s management hierarchy and departments and their working relationships.  The level of management hierarchy, chain of command, the division and type of work, and departmentalization.

14. Copyright © 2009 South-Western/Cengage Learning. All rights reserved.5–14 Exhibit 5–5 ● Organization Chart

15. Copyright © 2009 South-Western/Cengage Learning. All rights reserved.5–15 Departmentalization DepartmentalizationDepartmentalization  The grouping of related activities into units. Types of DepartmentalizationTypes of Departmentalization  Functional  Organizing departments around essential input activities, such as production, sales, and finance, that are managerial or technological functions.  Product (Service)  Organizing departments around goods (or services).  Customer  Organizing departments around the needs of different types of customers.  Territory (Geographic)  Establishing separate units in each area in which the enterprise does business.

16. Copyright © 2009 South-Western/Cengage Learning. All rights reserved.5–16 Exhibit 5–6 ● Types of Departmentalization

17. Copyright © 2009 South-Western/Cengage Learning. All rights reserved.5–17

18. Copyright © 2009 South-Western/Cengage Learning. All rights reserved.5–18

19. Copyright © 2009 South-Western/Cengage Learning. All rights reserved.5–19 Job Design Job DesignJob Design  The process of identifying tasks that each employee is responsible for completing.  Affects job satisfaction and productivity.  Empowering employees to be involved in designing their own jobs motivates them to increase productivity.  Google-20% of each employee’s time must be spent in creative pursuits (roughly 1 day a week). On that day they can work on any project of interest to them that could be used by Google. This is one of Google’s strategies to discover “the next big idea.”

20. Copyright © 2009 South-Western/Cengage Learning. All rights reserved.5–20 Exhibit 5–8 ● Job Design Options Job SimplificationEliminate tasks Combine tasks Change task sequence Job ExpansionRotate jobs (job rotation) Add tasks (job enlargement) Increase task variety and employee responsibility (job enrichment) Work Teams Job Characteristics Model Integrated -the team is given a number of tasks and assigns members and then rotates them. Self-managed –the team is assigned a goal and then the team does the management functions of planning, leading, organizing and controlling. Focuses on the 5 core job dimensions (skill variety, task identity, task significance, autonomy, and feedback) and psychological states of employees.

21. Copyright © 2009 South-Western/Cengage Learning. All rights reserved.5–21

22. Copyright © 2009 South-Western/Cengage Learning. All rights reserved.5–22 Setting Priorities Priority-Determination QuestionsPriority-Determination Questions 1.Do I need to be personally involved because of my unique knowledge or skills? 2.Is the task my responsibility, or will it affect the performance or finances of my department? 3.When is the deadline—is quick action needed? Assigning PrioritiesAssigning 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.

23. Copyright © 2009 South-Western/Cengage Learning. All rights reserved.5–23 Exhibit 5–10 ● Prioritized To-Do List 1.Write the task that you must perform on the task line. 2.Answer the three priority questions by placing a Y (yes) or N (no) in the relevant column. 3.Assign a priority to the task by placing the letter D (delegate), H (high), M (medium), or L (low) in the priority column. 4.Determine which task to complete now.

24. Copyright © 2009 South-Western/Cengage Learning. All rights reserved.5–24 Delegation BenefitsBenefits  More time for other high-priority tasks.  Trains employees and improves their self- esteem.  Enriches jobs and improves personal and work outcomes. ObstaclesObstacles  Reluctance to stop doing tasks personally.  Fear of employee’s failure to accomplish task.  Threatened by employee’s success.

25. Copyright © 2009 South-Western/Cengage Learning. All rights reserved.5–25 Exhibit 5–11 ● What to Delegate and What Not to Delegate

26. Copyright © 2009 South-Western/Cengage Learning. All rights reserved.5–26 Exhibit 5–12 ● The Delegation Process 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.