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Organizational Management. Chapter 4. I. What is an Organization?. Is a group of two or more people working together in a predetermined fashion to achieve a common goal(s). Lets define some terms:. Organizing

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i what is an organization
I. What is an Organization?
  • Is a group of two or more people working together in a predetermined fashion to achieve a common goal(s).
lets define some terms
Lets define some terms:
  • Organizing
    • The process of grouping resources and activities to accomplish some end result in an efficient and effective manner.
  • Organizational Structure
    • A fixed pattern of
      • Positions within the organization
      • Relationship among those positions
more terms
More terms
  • Organizational Chart
    • A diagram that represents the positions and relationships within an organization.
  • Chain of command
    • Is the line of authority that extends from the highest to the lowest levels of the organization
ii dimensions of organizational structure
II. Dimensions of organizational Structure
  • 5 steps to the organizational process
    • Job design
      • Divide the work into separate parts and assign those parts to positions within the organization.
        • This determines the degree of specialization within the organization
    • Group the various positions in to manageable units.
        • This creates the nature and Degree of departmentalization
    • Distribute responsibility and authority
        • This creates the nature and degree of centralization
dimensions of organizational structure
Dimensions of organizational structure
  • Determine the number of subordinates who will report to each manager.
    • This is called the span of management.
  • Distinguish between positions that have direct authority and positions that re used for support.
    • Establishes the chain of command
i job design
I. Job Design
  • Job Specialization
    • Is the separation of all organizational activities into distinct tasks and the assignment of different tasks to different people.
possible solutions of job specialization
Possible Solutions of Job Specialization.
  • Three Solutions
    • Job Rotation
      • Is the systematic shifting of employees from one job to another.
      • Example: Many car companies do this now….
    • Job Enlargement
      • The worker is given more things to do within the same job.
possible solutions of job specialization1
Possible Solutions of Job Specialization
  • Job Enrichment is perhaps the most advanced alternative to job specialization.
    • Provides workers with both more tasks to do and more control over how they do their work.
      • Work is assigned in complete units
      • Builds more depth and complexity to jobs
      • Works best when employees seek more challenging work.
downside of specialization
Downside of Specialization
  • People get bored with the Job.
why use specialization
Why use specialization?
  • Usually thejob is to largefor one person to handle by themselves. So we give responsibility to others to help the process.
  • If the person learns one task that person should becomevery productivewith that task.
  • Time is notlost moving from one job to another.
  • Easier to design specialized equipment for those who do the job.
  • Easier to train new employeesfor a very specialized job.
ii departmentalization
  • Is the process of grouping jobs into manageable units according o some reasonable scheme.
  • Departmental Basis – is how the jobs are grouped.
    • By function
      • Groups all jobs together that relate to the same organizational activity
iv departmentalization
  • By Product
    • Is the groping together of all activities related to a particular product or product group.
  • By Location
    • Grouped together because of geographic location
  • By Customer
    • Grouped together by needs of various customer groups
  • By Process
    • Grouped by what the organization and the workers do for the product

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iii delegation decentralization centralization
III. Delegation, Decentralization, Centralization
  • Step three in the organizing process to distribute power in the organization
    • Delegation of Authority
      • Is the assigning of part of a managers work and power to a subordinate.
      • Steps to delegating authority
        • Manger must assign responsibility.
        • Manager must grant authority.
        • manager must create accountability
barriers to delegation of authority why would i not want to delegate authority to someone
Barriers to Delegation of AuthorityWhy would I not want to delegate authority to someone?
  • One reason is that the persons who delegates remains accountable for work.
  • A manager may fear that a subordinate will do to good of a job and top management will notice.
  • Some managers are so disorganized that they can not simply plan and assign work in an effective way.
decentralization of authority
Decentralization of Authority
  • The general pattern of delegation throughout an organization determines the extent to which that organization is decentralized or centralized.
decentralized or centralized organization
Decentralized or Centralized Organization
  • Decentralized -
    • An organization in which management consciously attempts to spread authority to the lower management levels.
  • Centralized
    • An organization that systematically works to concentrate authority at the upper levels of management
a few things about a decentralized organization
A few things about a decentralized organization.
  • The external environment of where the organization operates
    • The more complex and unpredictable the environment, the more likely it is that top management will make most of the decisions.
    • The riskier the decision the more chance the organization will be centralized
    • How capable is the lower management at making decisions.
iv span of management
IV. Span of Management
  • Span of management or span of control.
    • It is the number of subordinates that directly report to one manager.
  • Wide and Narrow spans of control.
wide span of control flat span of control
Wide Span of Control (flat span of control)

When a manager has a large number of subordinates

organizational height
Organizational Height
  • Is the number of layers, or levels of management in a firm.
    • The span of management plays a direct role in determining the height of the organization
      • Is spans are narrow- more levels are needed. Resulting in a tall organization
      • If spans are wider – fewer levels are needed
IN a tall organization
    • Administrative costs are higher, more mangers needed.
    • Communication is distorted
  • Flat organization
    • Costs are less, administrative duties are more, more pressure on the managers to perform.
v line and staff management
V. Line and Staff management
  • Last major organizational dimension is the chain of command (lines of authority)
    • Line management positions
      • Is part of the chain of command, and a person in this type of position makes decisions and gives orders to subordinates to achieve the goals of the organization.
      • They can make decisions and issue directives that relate to the organizations goals
      • Example: Department Heads
Staff management positions
    • Is a position created to provide support, advice and expertise to someone in the chain of command.
    • Usually have either advisory authority or functional authority.
    • Example: Principals or Assistant Principals.
      • Advisory authority
        • Simply the expectation that line mangers will consult the appropriate staff manager when making decisions.
      • Functional authority
        • Stronger authority.
        • Is the authority of staff mangers to make decisions and issue directives, but only about their own area of expertise
        • Ex. A legal advisor can decide whether to retain a particular clause in a contract, but not what price to charge for a new product.
conflict for line staff mangers
Conflict for line-staff mangers
  • Staff mangers often have more formal education and are sometimes younger (perhaps more ambitious) than line mangers
  • Line mangers -May perceive staff mangers as a threat to their own authority
  • Line managers- may resent depending on the expertise of the staff mangers
  • Staff managers may become resentful if their expert recommendations are not adopted by line management
elements of organizational structure
Elements of Organizational Structure
  • We discussed the 5 dimensions of organizational structure.
    • Job Design
    • Departmentalization
    • Delegation
    • Span of management
    • Line and staff management
swot analysis
  • Please look at the handout that I gave you….

SWOT ANALYSIS explanation.htm

This is in your shared drive.

Today along with finishing the market analysis you should read the article on

SWOT analysis and do both a personal analysis and a business analysis.

3 newer elements that effect your companies organizational structure
3 newer elements that effect your companies organizational structure
  • Work Schedules
    • Different types of work schedules
      • Compressed work schedule
        • An arrangement whereby a employee works a full forty hours per week, but in fewer than standard 5 days.
          • Usually work 4 – 10 hour days, and have a three day weekend.
      • Flexible work week
        • Employee chooses the hours during which he or she will work, subject to certain limitations
          • Core time – when all employees must be at work
          • Flexible time – when employees may choose whether to be at work.
          • All employees must work 8 hours per day…
          • Ex. Real estate agent
work week scheduling
Work week scheduling
  • Job Sharing
    • Is an arrangement where two people share one full-time job
      • Secretaries do this a lot
scheduling sim
Scheduling Sim…..
  • Please begin to work on Work Schedule
    • Will need two of them.
    • One for your business
    • One for the simulation
  • Types of committees used within an organization
    • Ad hoc committee
      • Committee created for a specific short-term purpose.
      • Ex. Used to reviewing the firm’s employee benefits plan.
    • Standing committee
      • Is a relatively permanent committee charged with performing some recurring task.
        • Budget review committee
Task Force
    • Is a committee established to investigate a major problem or pending decision
advantages disadvantages of committees
Advantages/disadvantages of committees
  • Advantages
    • Members bring more information, and knowledge to task at hand
    • Tend to make more accurate decisions and to transmit their results through the organization mare effectively.
  • Disadvantages
    • Deliberation may take to long
    • Unnecessary compromise may take place
      • Some people of the committee may feel obligated to listen to one person or another. I'll scratch your back you scratch mine?
coordination techniques of committees
Coordination Techniques of committees
  • The coordination of organizational resources so that there is minimize in duplication and maximize effectiveness.
    • There has to be a managerial hierarchy
      • Who is in charge?
    • Resources have to be coordinated
    • Complex situations
      • Create a liaison – person who is the “go between” two departments.
      • A task force or committee may be established.
forms of organizational structure
Forms of Organizational Structure
  • We have been spending the last couple of classes discussing the parts of the puzzle and now we will put them all together to create a actual structure.

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1 bureaucratic structure
1. Bureaucratic Structure
  • Is a management system based on a formal framework of authority that is carefully outline and precisely followed.
  • Major Characteristics
    • High level of job specialization
    • Departmentalized by function
    • Precise and formal patterns of delegation
    • High degree of centralization’
    • Narrow spans of management (tall organization)
    • Clearly defined line and staff positions, with formal relationships between the two.
organic structure
Organic Structure
  • Is a management system founded on cooperation's and knowledge-based authority. An organic structure is likely to have the following dimensions:
    • Low level of job specialization
    • Departmentalization by product, location, or customer
    • General and informal patterns of delegation
    • A high degree of decentralization
    • Wide spans of management
    • Less clearly defined line and staff positions, with less formal relationships between the two
matrix structure
Matrix Structure
  • Is an organizational structure that combines vertical and horizontal lines of authority.
  • Matrix structure occurs when product departmentalization is superimposed on a functionally departmentalized organization
  • Authority flows both down and across


4 stages of the matrix structure
4 stages of the matrix structure
  • The firms is organized as a functional structure
  • A smaller number of interdepartmental groups are created to work on important projects
  • More groups are created, and they become an integral and important part of the organization
  • The firm becomes what is called a natural matrix.
advantages of matrix s
Advantages of matrix’s
  • Very flexible
  • People become deeply committed to their special projects – improves motivation
  • Staff development from doing a number of jobs
  • People communicate more as they become liaisons between their project groups and their functional departments
disadvantages of matrix s
Disadvantages of matrix’s
  • Can cause confusions about who ahs authority in various situations
  • These groups may take longer to resolving issues than working alone.
  • May be more expensive because more mangers and support staff are needed.
informal organizations
Informal Organizations
  • Describes the pattern of behavior and interaction that stems from personal rather than official relationships.
  • Informal groups
    • Is one that is created by the member of the group themselves to accomplish goals that may or may not be relevant to the organization.
      • Company softball team
      • Union
how do informal organizations communicate
How do informal organizations communicate.
  • Through the grapevine……..
  • Informal form of communication.