1. Introduction to Management
Welcome to AB140
Introduction to Management
Unit 4 Seminar – Organizing

2. Agenda General Questions and Announcements Introduction Unit 4
Organizational Structures
Differentiation and Integration
Span of Control
Centralized vs. Decentralized Decision Making
Delegation
Conclusion of Seminar 2

3. 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?

4. 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.

5. Organizational Structures
Mechanistic Structures
Formal structure
Intended to promote internal efficiency
Represented by organizational chart
Depends on reporting and authority relationships
Organic Structures
Informal structure
Intended to respond more quickly to change in markets
Depends on informal structures of employee networks
Encourages working as teammates over boss/employee relationship

6. Differentiation
Differentiation created by Division of Labor and Job Specialization
Division of Labor
Work of organization subdivided into smaller tasks
Job Specialization
Smaller tasks performed by individuals and units

7. Differentiation (cont.)
Differentiation High
Companies in complex, dynamic environment
Many subunits and specialists
Differentiation Low
Companies in simple, stable environment

8. Integration
Procedures that link various parts of organization to achieve overall mission
Requires coordination and communication
More highly differentiated firm = Greater need for integration among units

9. Vertical and Horizontal Structures
Vertical Structure Shapes Company’s
Reporting relationships
Authority
Responsibility
Accountability
Horizontal Structure Shapes Company’s
Departments
Functions
Divisions
Networks

10. Organizational Chart Illustrated (Sandwich Blitz, Inc.)

11. Vertical Structure: Span of Control
Determines authority in firms’ vertical structure
Defined as the number of subordinates who report directly to an executive or supervisor
Narrow Span of Control
Many reporting levels
Wide Span of Control
Flat organization
Fewer reporting levels

12. Conditions for Wide Span of Control
Work clearly defined
Subordinates highly trained with access to information
Manager highly capable and supportive
Jobs are similar and performance measures comparable
Subordinates prefer autonomy to close supervisory control

13. Vertical Structure: Centralized vs. Decentralized Decision-Making Power
Important decisions usually made at the top
Decentralized
More decisions made at lower levels

14. Vertical Structure: Delegation
Delegation: assignment of authority and responsibility to subordinate at lower level
Responsibility: a person is assigned task to carry out
Authority: person has power and right to make decisions, give orders, draw on resources
Accountability: subordinate’s manager has right to expect that job will be performed
Ultimate responsibility and accountability still lies with manager that delegates

15. Horizontal Organizational Structures
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.

16. Any questions ?

17. Unit 4 Coursework
Reading: Chapter 6 in the Bateman and Snell text pp
Discussion: Focus on delegation; Reflect on your personal experience with delegating responsibilities or having responsibilities delegated to you
Assignment: Focus on authority and span of control relative to organizational chart for Sandwich Blitz, Inc. There are 4 questions in total. Response should include a paragraph of approx words per question.
Review: Five multiple choice questions relative to the Bateman and Snell reading on pages

18. Thank You for Attending