1. Introduction to Management
Welcome to MT140
Introduction to Management
Unit 4 Seminar – Organizing

2. Agenda General Questions and Announcements Introduction
Organizational Structures
Levels of Authority within a Business
Delegation
Conclusion of Seminar 2

3. What Managers Do: POLC
P = Planning: The management function of systematically making decisions about goals and activities that an individual, a group, a work unit, or the overall organization will pursue.
O = Organizing: The management function of assembling and coordinating human, financial, informational, and other resources needed to achieve goals.
L = Leading: The management function that involves the manager’s efforts to stimulate high performance by employees.
C = Control: The management function of monitoring performance and making needed changes. 3

4. Organizational Structures
Two Broad Structures:
Mechanistic Structures: Intended to promote internal efficiency. A formal structure.
Organic Structures: Depend heavily on informal structures of employee networks. A more flexible and changeable form.
Differentiation versus Specialization:
Differentiation is created by division of labor and job specialization.
Work specialization refers to an organizational structure that is composed of many different units that work on many different kinds of tasks, using different skills and work method
Two dimensions to an organization’s structure: Vertical and Horizontal
Division of Labor is taking a large task and breaking it down into smaller pieces

5. Vertical Organizational Structure
Hierarchical Lines of Authority
Board of Directors
Chief Executive Officer
Upper Management Team
Middle Management Team
First Line Managers
Individual Contributors
CEO
SVP, Finance
VP, Corporate Planning
VP, Finance Initiatives
SVP,
Human Resources
VP, Compensation

6. Vertical Organizational Structure
Span of Control: Determines a manager’s authority.
Delegation: The assignment of authority and responsibility to a subordinate at a lower level in the hierarchy.
Responsibility: Means that a person is assigned a task that they are supposed to complete.
Accountability: The right of the subordinate’s manager to expect specific performance and to take corrective action if the subordinate fails to do so.
Decentralization: Spreads the decision-making power to lower levels
within the organization.

7. Horizontal Organizational Structure
Departmentalization: The subdividing of larger organizations into smaller subunits.
Line Departments: Those that have responsibility for the primary activities of the firm.
Staff Departments: Those that provide specialized or professional skills to support the line departments.

8. Organizational Structure
Line Departments: Those that have responsibility for the primary activities of the firm.
Staff Departments: Those that provide specialized or professional skills to support the line departments.
All firms Departmentalize which means they subdivide their organizations into smaller subunits. The basic approaches to Departmentalization are:
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.
Functional organization: jobs (and departments) are specialized and grouped according to business functions and the skills they require: finance, etc
Advantages: 1. Economies of scale can be realized, 2.Monitoring of the environment is more effective, 3.Performance standards are better maintained, 4.People have greater opportunity for specialized training and in-depth skill development, 5.Decision making and lines of communication are simple and clearly understood
Disadvantages: 1.Care more about their own function then the company as a whole, 2.May reduce focus on overall product quality and customer satisfaction, 3.Expertise in one area vs total company, 4.Conflict between areas and communication falls off, 5.Promotes functional differentiation but not functional integration
Divisional organization: which groups all functions into a single division and duplicates functions across all the divisions. Could be product, customer or geographical
Advantage: ability to focus on customer needs and provide faster, better service
Disadvantage: duplication of activities across many customer groups and geographic areas is expensive
matrix organization :is a hybrid form of organization in which functional and divisional forms overlap. Managers and staff personnel report to two bosses—a functional mgr and a divisional manager—creating a dual line of command
Advantages: 1.Decision making is decentralized to a level where information is processed properly and relevant knowledge is applied, 2. Extensive communications networks help process large amounts of information, 3.With decisions delegated to appropriate levels, higher mgmtt levels are not overloaded with operational decisions, 4. Resource utilization is efficient bc key resources are shared across several program/products at the same time, 5. Employees learn the collaborative skills needed to function in an env characterized by frequent meetings and more informal interactions, 6. Dual career ladders are elaborated as more career options become available on both sides of the organization.
Disadvantages: 1. Confusion can arise because people do not have a single superior to whom they feel primary responsibility, 2.The design encourages managers who share subordinates to jockey for power, 3.The mistaken belief can arise that matrix management is the same thing as group decision making—in other words, everyone must be consulted for every decision, 4.Too much democracy can lead to not enough action.
network organization is: a collection of independent, mostly single-function firms that collaborate to produce a good or service. A very flexible version of the network organization is the dynamic network It is composed of temporary arrangements among members that can be assembled and reassembled to meet a changing competitive environment. The members of the network are held together by contracts that stipulate results expected rather than by hierarchy and authority. Poorly performing firms can be removed and replaced.

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

10. Any questions ?

11. Organizational Integration
Critical for managers to consider integration and coordination so all parts of the business work together
Standardization coordinates work through rules and routines
Formalization
Coordination by Plan
Mutual Adjustment
Coordination requires COMMUNICATION
Standardization constrains actions and integrates various units by regulating what people do. People often know how to act—and how to interact—because standard operating procedures spell out what they should do. For example, managers may establish standards for which types of computer equipment the organization will use. This simplifies the purchasing and training processes (everyone is on a common platform) and helps the different parts of the org
To improve coordination, organizations may also rely on formalization —the presence of rules and regulations governing how people in the organization interact. Simple, often written, policies regarding attendance, dress, and decorum, for example, may help eliminate a good deal of uncertainty at work.
If laying out the exact rules and procedures by which work
should be integrated is difficult, organizations may provide more
latitude by establishing goals and schedules for interdependent
units. Coordination by plan does not require the same high
degree of stability and routinization required for coordination
by standardization. Interdependent units are free to modify and
adapt their actions as long as they meet the deadlines and targets
required for working with others.
Ironically, the simplest and most flexible approach to coordination
may just be to have interdependent parties talk to one
another. Coordination by mutual adjustment involves
feedback and discussions to jointly figure out how to approach
problems and devise solutions that are agreeable to everyone.
The popularity of teams today is in part due to the fact that they
allow for flexible coordination; teams can operate under the
principle of mutual adjustment.

12. Organizational Agility
Agility: being able to act, and act fast, to meet customer needs and respond to other outside pressures
The particular structure the organization adopts to accomplish agility will depend on
its strategy
its customers
its technology

13. Organizational Structure - Strategy
Core competencies
Strategic Alliance
Learning Organization
High Involvement Organization
Organization size has a huge impact!!

14. Organizational Structure - Customers
To meet customer needs, organizations focus on quality improvement
Total Quality Management - a way of managing in which everyone is committed to continuous improvement of his or her part of the operation. TQM is a comprehensive approach to improving product quality and thereby customer satisfaction.
Six Sigma

15. Organizational Structure - Technology
Technology - can be viewed as the methods, processes, systems, and skills used to transform resources (inputs) into products (outputs)
Mass Customization
Lean manufacturing
Just in Time
lean manufacturing, - based on a commitment to making an operation both efficient and effective; it strives to achieve the highest possible productivity and total quality, cost-effectively, by eliminating unnecessary steps in the production process and continually striving for improvement. Rejects are unacceptable, and staff, overhead, and inventory are considered wasteful. In a lean operation, the emphasis is on quality, speed, and flexibility more than on cost, efficiency, and hierarchy.
One way to compete based on time is to set up just-in-time
(JIT) operations. JIT calls for subassemblies and components
to be manufactured in very small lots and delivered to the next
stage in the process precisely at the time needed, or just in
time.” A

16. Week 4 Tasks Finish Chapter 6 reading - pgs 126-152
Participate in discussion
Complete Homework assignment
Complete Quiz
ALL TASKS ARE TO BE COMPLETED BY
TUESDAY NIGHT AT MIDNIGHT

17. Instructor Contact Information
me at – I will return your within 24 hrs in most cases
AOL Instant Messenger Screen Name: tnjhoov
Office Hours – Monday nights 8 – 9 pm EST – Ask questions and get a response immediately. For more personal questions please send me an . 17

18. See you next week!
After this seminar has concluded, there will be a recording in the archives located in the seminar room. It may be selected by date.

19. Thank You for Joining Me This Evening!
Good Night All!