4

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• Supervision in Organizations
• Chapter 4
• Organizing an Effective
• Department

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Learning OutcomesAfter reading this chapter, I
will be able to

• Define organizing.
• Describe why work specialization should increase
  economic efficiency.
• Contrast line and staff authority.
• Differentiate between centralized and
  decentralized decision making.
• Identify the five different ways by which
  management can departmentalize.

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Learning Outcomes (contd)After reading this
chapter, I will be able to

• Contrast the different organizational structures.
• Explain what is meant by the term learning
  organization.
• Discuss the value of job descriptions
• Identify the four-step process of delegation

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What is Organizing?

• Organizing defined
• Arranging and grouping jobs, allocating
• resources, and assigning work so that
  activities can be accomplished as planned (p. 95)

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What is Work Specialization?

• Work Specialization
• jobs being broken down into steps, each step
  being completed by a separate individual
• Example assembly line production
• Challenges
• Boredom
• Fatigue
• Increased absenteeism
• High turnover
• Solution
• Allowing workers to complete an entire piece of
  work
• Create Teams

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What is Span of Control?

• Span of Control
• the number of employees a supervisor can
  efficiently and effectively direct (5 30
  people)
• Depends on the following factors
• Experience/Competence of Supervisor
• Varied job duties
• Employees abilities
• Complexity of employees activities
• Departments formal rules regulations

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What is the Chain of Command?

• Chain of Command defined
• The continuous line of authority that extends
  from upper organizational levels to the lowest
  levels clarifies who reports to whom (p. 98)
• Chain of Command Principle
• Subordinate should have one and only one
  supervisor to whom he/she is directly
  responsible.

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What is Authority?

• Authority
• The rights inherent in a supervisory position
  to give orders and expect the orders to be
  obeyed.
• Line Authority the right to direct the work of
  his/her
  employees make certain decisions w/o
  consulting others
• Staff Authority supports line authority by
  advising, servicing,
  assisting, but they neednt be obeyed by
  the subordinate
  (ex. Assistant Department Chair)
• Functional Authority represents control over
  individuals outside ones own direct
  areas of
  responsibility

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Responsibility vs. Authority

• Responsibility
• Supervisors are obligated to achieve their
  units goals, keep costs within budget, follow
  organizational policies, motivate their
  subordinates through obligation
• Responsibility must equal Authority!!
• Authority the right to hire, reward,
  discipline, fire

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Where are Decisions Made?

• Where are decisions made?
• Centralization the design of any organization
  requiring top management to make
  decisions (problems/decision making flow
  up to senior executives)
• Decentralization people closets to the
  problems make decision

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Departmentalization

• Departmentalization defined
• grouping departments based on work functions
  (functional), product or service (product),
  target customer or client (customer), geographic
  territory (geographic), or the process used to
  turn inputs into outputs (process) in the
  attainment of the organizations objectives.

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5 Ways to Departmentalize

• Functional departmentalization
• The grouping of activities by functions performed
• most directly take advantage of work
  specialization

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5 Ways to Departmentalize cont

• Product departmentalization
• The grouping of activities by product produced
  where the supervisor, who is a specialist in, has
  the authority and responsibility for everything
  to do with his/her product line

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5 Ways to Departmentalize cont

• Customer departmentalization
• The grouping of activities by common customers
• Example Setting up department to meet special
  requirement from customers (ex.
  Continuing Education
  Evening/Weekend Classes)

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5 Ways to Departmentalize cont..

• Geographic departmentalization
• The grouping of activities by territory
• Advantage Puts decision-making authority close
  to where the work is being done

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5 Ways to Departmentalize cont..

• Process departmentalization
• The grouping of activities by work or customer
  flow

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Organizational Structural Configuration

• Mintzbergs five-sector logo
• Operating core
• People who perform basic work (line workers)
• Administrative Component
• Managers/supervisors (line supervisor)
• Strategic Apex
• Focus on outside environment (executives)
• Techno structure
• Specialist/analysts (engineers)
• Support staff
• Perform tasks that facilitate work (secretaries)

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Structural Configuration

• Simple structure
• Two Levels
• Strategic apex
• Operating level
• Characteristics
• Mom Pop Shops
• Loose body of empowered employees
• Today, more organizations are using this
  structure
• Benefits
• Structure is very flexible adaptable
• One person directs the entire operation
• Challenges
• Lack of strategic planning (boss too close to
  operations)
• Authority can block change
• only effective in small organization
• Risky decisions depend upon one person

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Structural Configuration cont

• Functional Structure (Professional Bureaucracy)
• Characteristics
• An organization structure in which similar
  related occupational specialties are group
  together
• Operating core is larger than other structural
  parts
• Few managerial levels exist between the strategic
  apex and professors (flat organizational
  structure)
• Examples Universities (EIU or U of Illinois)
• Benefits
• Capitalize on work specialization
• Challenges
• organization frequently looses sight of its
  pursuit of functional goals.
• Dealing with incompetence and irresponsibility
• Respond slow to change

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Structural Configuration cont

• Divisionalized Form
• Organization made up of self-contained units or
  divisions
• Work accomplished through quasi-autonomous units
  (multispecialty hospital) serving defined markets
• Division heads (presidents) are accountable to
  the corporate office
• As long as the division performs, they have free
  reign
• Benefits
• Division managers have full responsibility for a
  product or service
• Structure frees headquarters of being responsible
  for day-to-day operations more focus on
  strategic planning
• Responsive
• Challenges
• Headquarters may lose touch with operations
• Duplication of activities and resources
  contributing to higher costs
• Example Marketing Research for each division

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Organizational Structure cont

• Matrix Organization
• Creates a dual chain of command which explicitly
  violates the Principle of Chain of Command
• Employees in a matrix structure would have two
  managers
• functional departmental supervisor
• their product or project supervisor

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Organizational Structure cont

• Team-Based
• An organization that consists entirely of work
  groups or teams
• Keys to success
• Employees trained to work within a team structure
• Receive cross-functional training
• Be compensated for their cross-functional roles

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Organizational Structure cont

• Learning Organization
• An organization that has developed the capacity
  to continuously adapt and change because all
  members take an active role in identifying and
  resolving work-related issues.

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Organizing Your Employees

• How do you Identify the Tasks to be Done?
• Identify specific tasks that must be completed by
  your subordinates
• From the list of tasks, combine tasks that need
  to be accomplished (Work specialization)
• Develop job descriptions
• Assign jobs/tasks to operative employees
• Ensure workloads are balanced

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Purpose of Job Descriptions

• Job Description
• a written statement of what a jobholder does,
  how the job is done, and why it is done.
• Why should you write a job description
• It provides you with a formal document describing
  what each employee is supposed to be doing
• used in performance appraisal
• compare actual performance to desired performance
• Helps employee learn their job duties and
  clarifies the results that you expect them to
  achieve

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Empowering other through Delegation

• What is Delegation?
• a way to accomplish job tasks with each
  person taking a part of the work and
  responsibility which best uses and extends her
  skills.
• Four Step Process
• Allocation of duties
• Delegation of authority
• Assignment of responsibility
• Creation of accountability

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Why Delegate?

• Here are a few good reasons to delegate
• To build individual confidence and increase
  motivation.
• To share the power and responsibility.
• To provide growth experiences and to model the
  value of skill development.
• To create a sense of importance and belonging for
  the employee.
• To encourage independence, initiative, and
  creative problem solving.

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Steps for Successful Delegation

• Clearly describe the results you want.
• Explain how the results fit into the teams or
  organizations big picture.
• Together establish the boundaries and limitations
  of the work.
• State and agree upon the benchmark, checkpoints,
  and deadlines that will ensure successful
  accomplishment.
• Be sure to give the individual the authority to
  complete the task.

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Steps for Successful Delegation cont

• Secure commitment from the individual ask
  directly for it.
• Specify chain of command for problem solving.
• Be specific in detailing what success or failure
  will look like.
• What will be the impact of success in this task
  for the team, organization, and individual?
• What will be the impact of failure in this task
  for
• the team, organization, and individual?