ORGANIZING AND WORK

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Chapter 12

• ORGANIZING AND WORK

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Management Talk

• We believe that all people want to be involved
  in decisions that affect them, care about their
  jobs and each other, take pride in themselves and
  in their contributions, and want to share in the
  success of their efforts.
• The Saturn Team, in concert with the UAW and
  General Motors

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Objectives

• Recognize the reasons for organizing work
• Understand how businesses prevent their workers
  from losing interest in their jobs
• Explain why managers need to delegate authority
  and responsibility

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Understanding Management

• The Saturn company began in the mid-1980s as the
  brainchild of a group of 99 General Motors
  employees. Working conditions at the companys
  Spring Hill, Tennessee, plant are different from
  the typical assembly line factory. Saturn team
  members have the freedom to improve the
  production process. Within a few years, Saturn
  won awards for the quality of its vehicles.
  Other companies now look to Saturn for new and
  effective ways to manage workers

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Management Skills

• How might involving employees in making decisions
  help factory operations run more smoothly?
• You are in charge of building your schools
  homecoming dance with 20 volunteers. How would
  you organize them?

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Sec. 12.1 Designing Organizations

• What ways do you organize your personal lives?
• What does authority mean to you?
• What role does authority play in
• Parenting
• Education
• Levels of government

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What Youll Learn

• How organizing helps groups of people achieve
  results they could not achieve alone
• Three reasons why businesses organize workforces
• Nine characteristics of successful organizations
• How businesses prevent workers from losing
  interest in highly specialized jobs
• Why businesses decentralize their operations

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Why is this important?

• Without a well-defined organization, no business
  can be successful

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What is an Organization?

• A group of people working together in a
  coordinated effort to reach certain goals
• Efficiency
• Effectiveness
• Better Results
• Managers role in organization
• To ensure that everyone in the organization works
  together in a coordinated manner

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Why do Businesses Organize Their Workforces?

• To create clear lines of authority
• To improve productivity
• To make it easier for people within a company to
  communicate with each other
• To increase profit
• Provide a sense of stability and belonging when
  working for an effective organization

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Establishing Lines of Authority

• Authority Power based on the rights that come
  with a position
• President Can order troops into battle
• CEO To make important decisions
• Store Managers To approve returns or offer
  discounts on damaged merchandise
• Ensures that those making decisions are qualified
  and are made at the appropriate level
• Chain of Command The line of authority within
  an organization

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Advantages of a Well-Defined Chain of Command

• Makes it easy for all to understand who is in
  charge
• Problems are addressed at the lowest possible
  level

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Disadvantages of a Well-Defined Chain of Command

• Can create problems in structure is too rigid or
  too complicated
• Too many layers!
• Assigning responsibility will be difficult
• Decisions are made slowly, often by people with
  only a limited understanding of the issues
  involved

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Improving Productivity

• Division of Labor The assignment of specific
  tasks to individuals or groups
• Specialization
• Groups of workers perform very specific tasks or
  sets of tasks based on a skill level
• Job Rotation
• Periodically moving workers from one job to
  another
• Job Scope
• Number of operations involved in a job
• Narrow Scope vs. Broad Scope
• Job Depth
• Freedom employees have to plan and organize their
  work, interact with co-workers, and work at their
  own pace

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Marshmallow Activity!!!

• Teams form assembly lines to build
  marshmallow/toothpick towers (at least 9 inches
  high), using 40 toothpicks and 40 marshmallows
• Post activity discussion
• Ask how the groups organized this project

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Improving Communication
Company Expectations
GoalsStrategiesPoliciesProcedures
Communicate Meetings, memos, e-mail, telephone
conversations, and informal encounters
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What Makes an Organization Effective?

• Knowing Your Customers and Responding to Their
  Needs
• To succeed in the business world, companies must
  change to keep up with customer needs
• What are some ways that Kodak has done this?
  (established first simple camera in 1888)

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Characteristics of Highly Effective Organizations

• Responsive to the market
• Customer centered
• Committed to maintaining networks and alliances
• Developed around a vision
• Focused on creating top-quality products and
  services
• Dedicated to positive learning and change
• Attentive to meeting responsibilities to
  customers, employees, suppliers, and society
• Committed to measuring their progress against
  world-class standards of excellence
• Able to respond to changing market conditions
  quickly

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What Makes an Organization Effective?

• Decentralization Managers at all levels make
  decisions
• Advantages
• Increases an organizations ability to respond to
  market changes by allowing decisions to be made
  by managers who are close to their customers
• Frees senior managers from many day-to-day tasks
• Increases lower-level managers job scope which
  increasing their responsibility and interest on
  the job
• Disadvantages
• Can result in a loss of managerial control
• Duplication of effort

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12. 1 Chapter Summary

• Organizations help individuals work together
  efficiently and effectively
• A well-defined chain of command defines who is in
  charge for all members of an organization
• The division of labor assigns specific tasks to
  individuals or groups
• Companies prevent boredom in specialized
  workforces by rotating jobs, widening job scope,
  and increasing job depth

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Sec. 12.2 Delegating Responsibility

• What do you respect about authority and how do
  you work best with it
• Teacher Student
• Parent Child
• Coach Player
• Supervisor Employee
• What are the advantages and disadvantages of
  working in teams?
• What role does responsibility play?

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What Youll Learn

• Three benefits of delegating
• Five reasons some managers are reluctant to
  delegate
• How managers delegate effectively

Why is this Important?
Managers cannot and should NOT make ALL
decisions themselves.
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Maintaining Authority

• Delegate To assign responsibility and authority
  for a task to another person
• Responsibility Obligation to perform assigned
  duties
• Subordinate Person holding a lower position
  within an organization
• Delegating to a Subordinate means
• Subordinate has been given the ability to act and
  make decisions
• How much of a role should managers have in
  hiring future subordinates to whom they will
  delegate responsibility?

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Enforcing the Unity of Command Principle

• Unity of Command An employee should have only
  one immediate supervisor
• Eliminates confusion
• Eliminates conflict of expectations
• Have you ever been in a situation at home, work,
  or school where the unity of command principle
  would have prevented a frustrating conflict of
  expectations?

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Maintaining Authority

• Establishing an Appropriate Span of Management
• (Span of control) Defines the number of
  subordinates a manager can effectively control
• Factors that control the quantity a manager can
  handle
• The complexity of the jobs subordinates perform
• The quality of the people who fill the positions
• The ability of the manager

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The team manager represents one who is more of a
team player than a boss. What are the benefits
of this new type of management?
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Maintaining Authority

• Giving Subordinates the Authority to Make
  Decisions
• Ensuring Accountability
• The obligation to accept responsibility for ones
  actions
• Allows managers to monitor the work of
  subordinates

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Why Delegate?

• Task is too time-consuming to handle alone
• Task is too routine to warrant a managers
  attention
• Task requires special skills that a manager may
  not possess
• Benefits of Delegating
• Decisions are made by people with the most direct
  knowledge of issues
• Employees feel that management has confidence in
  their abilities when work is delegated to them
• Employees are more committed
• Increase employees job skills and knowledge of
  the organization

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Learning to Delegate

• Analyze how you spend your time as manager
• Identify tasks that could be handled by
  subordinates
• Determine which subordinates could best handle
  them
• Make sure subordinate understands and accepts
  responsibility for the task he or she is being
  given
• Clearly define objectives of all tasks
• Set standards
• Provide appropriate training

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Reasons Managers Resist Delegating

• Fear that subordinates will not perform the task
  well
• Fear that subordinates will do the job too well,
  showing up the manager
• The belief that it is easier to perform the task
  oneself than to delegate it to someone else
• The natural tendency to want to hold on to power
• Comfort in performing the tasks one is used to
  performing

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12. 2 Chapter Summary

• Managers should delegate authority and
  responsibility for decision-making to
  subordinates
• The unity of command principle states that an
  employee should have one immediate supervisor
• The span of management defines the number of
  subordinates a manager can effectively control
• In successful delegation managers identify tasks
  to be delegated, choose a subordinate to handle
  tasks, and establish expectations

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Case Analysis

• Jim Waters is a detail man. Despite heading up a
  30-person marking department for a major
  corporation, he types all of his own
  correspondence, keeps track of all employees
  sick and vacation days, and makes all of his own
  travel arrangements. As his supervisor, you are
  concerned that he is spending too much time on
  tasks that could be handled by his assistant.
• Explain how and why you would like Mr. Waters to
  delegate some of his experiences

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Math Skills

• Cindy Giovanetti earns 6.25 an hour as a cashier
  at a video store. The manager of the store, Jon
  Laughlin, earns 12.00 an hour. Last week Jon
  put in 10 hours of overtime stocking the shelves
  with new products. He was paid 18.00 an hour.
• How much would the company save if Cindy had
  stocked the shelves during her regular working
  hours?