7-1

Structure and Fundamentals of

OrganizingCopyright © 2006 by South-Western, a division of Thomson Learning. All rights reserved.

Chapter 7

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Definitions Authority

The rights inherent in a managerial position to make decisions, give orders and utilize resources

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Definitions Authority

The rights inherent in a managerial position to make decisions, give orders and utilize resources

Delegation The process of assigning managerial authority

and responsibility to managers and employees lower in the hierarchy

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Definitions Mechanistic Organization (Bureaucratic)

Authority is centralized Tasks and rules are clearly specified Employees are closely supervised

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Definitions Mechanistic Organization (Bureaucratic)

Authority is centralized Tasks and rules are clearly specified Employees are closely supervised

Organic Organization (Non-Bureaucratic) Authority is decentralized Fewer rules and procedures Encouraged to respond to unexpected tasks

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Organic vs. Mechanistic Influencing Factors:

Size Technology Life Cycle

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Organic vs. Mechanistic Influencing Factors:

Size As an organization grows so does the need for rules,

regulations and procedures

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Organic vs. Mechanistic Influencing Factors:

Size Technology

Small Batch Technology Individual Job-Shops (Most Organic)

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Organic vs. Mechanistic Influencing Factors:

Size Technology

Small Batch Technology Individual Job-Shops (Most Organic)

Large Batch Technology Assembly Line (Mechanistic)

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Organic vs. Mechanistic Influencing Factors:

Size Technology

Small Batch Technology Individual Job-Shops (Most Organic)

Large Batch Technology Assembly Line (Mechanistic)

Continuous Process Technology (Organic) Machine Based Factories

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Organic vs. Mechanistic Influencing Factors:

Size Technology Life Cycle

Birth Stage – Non-Bureaucratic Youth (Growth) Stage – Pre-Bureaucratic Midlife Stage – Bureaucratic Maturity Stage – Very Bereaucratic

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Learning Organizations An organization that actively creates,

acquires, and transfers knowledge within itself and is able to modify its behavior to reflect new knowledge

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Learning Organizations Reasons Organizations Resist Learning

Competition Within an Organization Fragmentation and Specialization Fear of Risks

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Learning Organizations Quiz

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Span of Management The number of employees reporting to a

supervisor. Traditional view, seven or so per manager. Many organizations today, 30 or more per

manager. Generally if supervisors must be closely

involved with employees span should be small.

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Large Spans of Control Factors Work is stable or routine. Similar task is performed by everyone. A single location. Employees are highly trained. Rules and procedures are available. Support systems and personnel are available for

supervisor. Little time is required in nonsupervisory activities. Personal preferences and styles of management favor

a large span.

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Tall versus Flat Structure Span of control used in an organization determines

whether the structure is tall or flat. Tall structure has a narrow span and more hierarchical

levels. Flat structure has a wide span, is horizontally

dispersed and fewer hierarchical levels. The trend has been toward wider spans of control.

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Ex. 7.2 Reorganization to Increase Span of Management for President of an

International Metals Company

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Centralization versus Decentralization

Centralization – decision authority is located near the top of the organization.

Decentralization – authority is pushed downward to lower organizational levels.

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Figure 7.3 Five Approaches to Structural Design

daft figure 7.3.CLP

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Figure 7.3 (contd.)

daft marcic figure 7.3 contd..CLP

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Figure 7.3 (contd.)

daft marcic more figure 7.3.CLP

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Working in Teams

• Task Force . . . A temporary team or committee formed to solve a specific short-term problem.

• Team . . . Participants from several departments who meet to solve ongoing problems.

• Project Manager . . . A person responsible for coordinating the activities of several departments.

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Team Approach

Cross-functional teams consist of employees from various functional departments.

Permanent teams solve ongoing problems. Employees come from all functional areas.