Griffin Chap 11

8/22/2019 Griffin Chap 11

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Slide content created by Charlie Cook, The University of West Alabama

Copyright Houghton Mifflin Company. All rights reserved.

Chapter Eleven

Basic Elements ofOrganizing


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Copyright Houghton Mifflin Company. All rights reserved. 112

Learning Objectives

After studying this chapter, you should be able to:1. Identify the basic elements of organizations.

2. Describe alternative approaches to designing jobs.

3. Discuss the rationale and the most common bases for

grouping jobs into departments.4. Describe the basic elements involved in establishing reporting

relationships.

5. Discuss how authority is distributed in organizations.

6. Discuss the basic coordinating activities undertaken byorganizations.

7. Describe basic ways in which positions within an organizationcan be differentiated.


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The Elements Organizing

Organizing Deciding how to best

group organizationalactivities andresources.

OrganizationStructure The set of building

blocks that can beused to configure anorganization.


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Designing Jobs

Job Design

The determination of an individuals work-

related responsibilities.

Job Specialization (Division of Labor)

The degree to which the overall task of the

organization is broken down and divided

into smaller component parts.


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Designing Jobs (contd)

Job Specialization (Division of Labor)

Benefits of Specialization

Workers can become proficient at a task.

Transfer time between tasks is decreased.

Specialized equipment can be more easily developed.

Employee replacement becomes easier.

Limitations of Specialization

Employee boredom and dissatisfaction with mundanetasks.

Anticipated benefits do not always occur.


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Adam Smiths Example

of Job Specialization

Making a pin (nail) requires 18tasks

1 worker doing all 18 tasks might make

20 pins (nails) a day.

20 workers = (20 x 20) = 400 pins

______________________________

With special izat ion :

20 workers make 100,000 pins a day.

1 worker = 5,000 pins

20 pins vs. 5,000 pins per worker


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Alternatives to Specialization

Job Rotation Systematically moving employees from one job to

another in an attempt to reduce employeeboredom.

Job Enlargement An increase in the total number of tasks workers

perform.

Job Enrichment

Increasing both the number of tasks the workerdoes and the control the worker has over the job.



Alternatives to

Specialization (contd) Job Characteristics Approach:

Core Dimensions Skill varietythe number of tasks a person does in a job.

Task identitythe extent to which the worker does a

complete or identifiable portion of the total job. Task significancethe perceived importance of the task.

Autonomythe degree of control the worker has over howthe work is performed.

Feedback the extent to which the worker knows how

well the job is being performed. Growth-Need Strength

The desire for some people to grow, develop, and expandtheir capabilities that is their response to the coredimensions.



Figure 11.1: The Job

Characteristics Approach



Alternatives to

Specialization (contd) Work Teams

An alternative to job specialization that allows theentire group to design the work system it will useto perform an interrelated set of tasks.



Grouping Jobs:

Departmentalization

Departmentalization

The process of grouping jobs according to some

logical arrangement.

Rationale for Departmentalization

Organizational growth exceeds the owner-

managers capacity to personally supervise all of

the organization.

Additional managers are employed and assigned

specific employees to supervise.



Grouping Jobs:

Departmentalization (contd)

Advantages Each department can

be staffed by functional-area experts.

Supervision is facilitated

in that managers onlyneed be familiar with anarrow set of skills.

Coordination insideeach department iseasier.

Disadvantages Decision making

becomes slow andbureaucratic.

Employees narrow their

focus to the departmentand lose sight oforganizational goals/issues.

Accountability andperformance are difficult

to monitor.

Functional Departmentalization

Grouping jobs involving the same or similar

activities.



Figure 11.2: Bases for

Departmentalization



Product Departmentalization

Form

Advantages All activities associated

with one product can beintegrated andcoordinated.

Speed and effectivenessof decision making areenhanced.

Performance of individualproducts or productgroups can be assessed.

Disadvantages Managers may focus on

their product to theexclusion of the rest ofthe organization.

Administrative costs mayincrease due to eachdepartment having itsown functional-areaexperts.

Product Departmentalization Grouping activities around products or product

groups.



Customer Departmentalization

Customer Departmentalization Grouping activities to respond to and interact with

specific customers and customer groups.

Advantage Skilled specialists can deal with unique customers

orcustomer groups.

Disadvantage

A large administrative staff is needed to integrateactivities of various departments.


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Location Departmentalization

Location Departmentalization The grouping of jobs on the basis of defined

geographic sites or areas.

Advantage Enables the organization to respond easily to

uniquecustomer and environmental characteristics.

Disadvantage

Large administrative staff may be needed to keeptrack of units in scattered locations.


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Departmentalization

Other Forms of Departmentalization Grouping activities by time

By specific units of time

By sequence.

By a characteristic of the customer, product, or service

Other Considerations Departments are often called by other names.

Divisions, units, sections, and bureaus

Organizations are likely to employ multiple basesof departmentalization, depending on level.


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Establishing Reporting

Relationships

Chain of Command

A clear and distinct line of authority among the

positions in an organization.

Unity of Command

Each person within an organization must have a clear

reporting relationship to one and only one boss.

Scalar Principle

A clear and unbroken line of authority must extend from

the bottom to the top of the organization.


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Relationships (contd)

Narrow Versus Wide Spans Span of Management (Span of Control)

The number of people who report to a particularmanager.

A. V. Graicunas Subordinate interactions

Directmanagers relationship with each subordinate.

Crossamong the subordinates themselves.

Groupbetween groups of subordinates.

Formula for the number of interactions of all types: I = N(2N/2 + N - 1), where I is the total number of

interactions and N is number of subordinates.


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Relationships (contd)

Narrow Versus Wide Spans Ralph Davis

Operative span for lower-level managers of upto 30 workers.

Executive span for middle and top managersset at 3 to 9.

Span depends on managers jobs, companygrowth rate, and similar factors

Lyndall Urwick and General Ian Hamilton Executive span should never exceed six

E t bli hi R ti


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Relationships: Tall versus Flat

Organizations Tall Organizations

Are more expensive

because of the number of

managers involved.

Foster morecommunication problems

because of the number of

people through whom

information must pass.

Flat Organizations

Lead to higher levels of

employee morale and

productivity.

Create moreadministrative

responsibility for the

relatively few managers.

Create more supervisory

responsibility formanagers due to wider

spans of control.


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Figure 11.3: Tall

Versus Flat Organizations


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Table 11.1: Factors Influencing

the Span of Management


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Distributing Authority

Authority Power that has been legitimized by the

organization.

Delegation The process by which managers assign a portion

of their total workload to others.

Reasons for Delegation To enable the manager to get more work done by

utilizing the skills and talents of subordinates. To foster development of subordinates by having

them participate in decision making and problem.


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Figure 11.4: Steps in the

Delegation Process


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Problems in Delegation

Manager

Reluctant to delegate.

Disorganization prevents

planning work in

advance. Subordinates success

threatens superiors

advancement.

Lack of trust in the

subordinate to do well.

Subordinate Reluctant to accept

delegation for fear offailure.

Perceives norewards foraccepting additionalresponsibility.

Prefers to avoid anyrisk andresponsibility.


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Decentralization and

Centralization

Decentralization Systematically delegating power and authority

throughout the organization to middle- and lower-level managers.

Centralization Systematically retaining power and authority in the

hands of higher-level managers.

Factors Determining Choice of Centralization

External environments complexity and uncertainty History of the organization

Nature (cost and risk) of the decisions to be made.


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Coordinating Activities

Coordination

The process of linking the activities of the

various departments of the organization.

The Need for Coordination Departments and work groups are

interdependent; the greater the

interdependence, the greater the need forcoordination.


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Coordinating Activities: Three

Major Forms of Interdependence

Pooled interdependence

When units operate with little interaction; their

output is simply pooled at the organizational level.

Sequential interdependence When the output of one unit becomes the input of

another unit in sequential fashion.

Reciprocal interdependence

When activities flow both ways between units.


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Structural Coordination

Techniques

The Managerial Hierarchy Placing one manager in charge of interdependent

departments or units.

Rules and Procedures Routine coordination activities can be handled via

rules and procedures that set priorities andguidelines for actions.

Liaison Roles

A manager coordinates interdependent units byacting as a common point of contact, facilitatingthe flow of information.


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Structural Coordination

Techniques (contd)

Task Forces Used with multiple units when coordination is

complex, requiring more than one individual andthe need for coordination is acute.

Disbanded when need for coordination has beenmet.

Integrating Departments Permanent organizational units that maintain

internal integration and coordination on anongoing basis.

May have authority and budgetary controls.

Electronic Coordination

E-mail, electronic scheduling, PDAs, cell phones


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Differentiating Between

Positions

Line Positions Positions in the direct chain of command

responsible for the achievement of anorganizations goals.

Have formal (legitimate) authority.

Staff Positions Positions intended to provide expertise, advice,

and support to line positions. Have advisory authority; can give compulsory advice.

Have functional authority to enforce compliance withorganizational policies and procedures.

Administrative Intensity The degree to which managerial positions are

concentrated in staff positions.


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Key Terms

organizing organization structure

job design

job specialization

job rotation

job enlargement

job enrichment

job characteristicsapproach

work teams departmentalization

functionaldepartmentalization

productdepartmentalization

customer

departmentalization location

departmentalization

chain of command

span of management

authority

delegation

centralization

coordination

pooled interdependence


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Key Terms (contd)

sequentialinterdependence

reciprocal

interdependence line position

staff position

administrativeintensity

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