Part 3 - Organizing and Staffing

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Source: Management - A Global Perspective

by Weihrich and Koontz 11th Edition

Organizing and Staffing


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Organizing is

y The identification and classification of requiredactivities.

y Thegrouping ofsimilaractivitiesnecessary to

attain objectives.y The assignment of each group to a manager with theauthoritynecessary to supervise it.

y The provision for coordinationhorizontally(on the

same or a similar organizational level) and vertically(e.g., between corporate headquarters, division, anddepartment) in the organization structure.


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Organization

y It is aformalizedintentionalstructureof

roles or positions.

y

It includes allthe behaviorsof allparticipants.

y It is the totalsystemof social and cultural

relationships.


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Formal Organization

y Formal Organization means the intentionalstructure of roles in formally organized

enterprise.

y Individual effort in group situation must bechanneled towardgroupandorganizational

goals.


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Formal Organization


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Formal Organization


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Informal Organization

y It is a network ofinterpersonalrelationshipsthat arise when people associate with each other.

y It can also be described as anyjointpersonalactivitywithoutconscious jointpurpose,although contributing to joint results.


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Formal and Informal Organizations


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Formal and

Informal Organizations


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Formal and Informal Organizations


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Organizational Levels and the Span of

Management*

y While thepurposeoforganizing is to make humancooperation effective, the reason for levels of organization isthe limitation of the span of management.

y Awidespanof management is associated with a feworganizational levels; a narrowspan, with many levels.


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Organization Structures with Narrow and Wide

Spans


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Factors Determining an Effective Span


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Organizational Division: The Department

yOne aspect of organizing is the establishment of

departments.y Adepartment is a distinct area, division, or

branch of an organization over which a manager

has authority for the performance of the specified

activities.


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Organization Structure

1. Departmentation byEnterprise Function

It is the grouping of activities according to

the functions of the enterprise.


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2. Departmentation byTerritoryor Geography

It is the grouping of activities by area or

territory that is common in enterprises

operating over wide geographic areas.


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3. Departmentation byCustomer Group

It is the grouping of activities that reflects a

primary interest in customers.


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4. Departmentation byProduct

It is the grouping of activities according toproducts or product line, especially in

multiline, large enterprises.


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5. Matrix Organization

It is the combining of functional and projector product patterns of departmentation in thesame organization structure.


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Line / Staff Authority and

Decentralization

Authorityand Power

Power is the ability of individuals or groups toinduce or influence the beliefs or actions of

other persons or groups.

Authority is the right in a position to exercisediscretion in making decisions affecting others.


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Bases of Power1. Legitimate Power

It normally arises from and derives from our culturalsystem of rights, obligations, and duties whereby aposition is accepted by people as beinglegitimate.

2. Expertnessofapersonora group

This is the power of knowledge. Physicians,lawyers, and university professors may haveconsiderable influence on others because they are

respected for their specialized knowledge.3. Referent Power

It is an influence that people or groups may exercisebecause people believe in them and their ideas.


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Bases of Power

4. Reward Power

It refers to the power that arises from the

ability of some people to grant rewards.

5. Coercive Power

It is the power to punish, whether by

firing a subordinate or by withholding amerit pay increase.


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Line / Staff Concepts and

Functional Authority

1. Scalarprinciple

The clearer the line of authority, the clearer will be the

responsibility for decision making and the more effective

will be organizational communication.

2. Lineauthority

The relationship in which a superior exercises direct

supervision over a subordinate.

3.Staffrelationship Its nature is advisory.


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Decentralization of Authority

Decentralization is the tendency to

disperse decision-making authority inan organized structure.


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The Art of Delegation

PersonalAttitudes toward Delegation

yReceptiveness

An underlying attribute of managers who will

delegate authority is a willingness to give

other peoples ideas a chance.

Decision making always involves some

discretion, and a subordinates decision is notexactly the one a superior would have made.


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yWillingnesstolet go

A manager who will effectively delegate authoritymust be willing to release them to make decisions

to subordinates.A major fault of some managers who move up the

executive ladderor of the pioneer who has builta large business from the small beginning of, say, a

garage machine shopis that they want tocontinue making decisions for the positions theyhave left.


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y Willingnesstoallowmistakes bysubordinates

Although no responsible manager would sit idly by and let

a subordinate make a mistake that would endanger the

company or the subordinates position in the company,continualchecking on the subordinate to ensure that no

mistakes are ever made will make true delegation

impossible.

Since everyone makes mistakes, a subordinate must beallowed to make some, and their cost must considered an

investmentinpersonaldevelopment.


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The Art of Delegationy WillingnesstotrustsubordinatesSuperiors have no alternative to trusting their

subordinates, for delegation implies a trustful attitudebetween them.

y Willingnesstoestablishanduse broadcontrolsSince superiors cannot delegate responsibility for

performance, they should not delegate authority unlessthey are willing to find means ofgetting feedback, thatis, of assuring themselves that authority is being used tosupport enterprise or departmental goals and plans.


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Three (3) Elements of Delegation

1. Responsibility means that a person is assigneda task that he or she is supposed to carry out.

2.Authority means that the person has the powerand the right to give orders, draws upon resources,and do whatever else is necessary to fulfill theresponsibility.

3.A

ccou

ntability

means that the subordinatesmanager has the right to expect the subordinate toperform the job and to take corrective action in theevent the subordinate fails to do so.


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Recentralization of Authority and

Balance as the Key to Decentralization

yRecentralizationis centralization of

authority that was once decentralized;

normally not a complete reversal ofdecentralization, as the authority delegated

is not wholly withdrawn.


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Staffingy It is defined as filling, and keeping filled, positions in

the organizational structure.

yWork specializationdegree to which the worknecessary to achieve organizational goals is broken

down into various jobs.y Job design specification of task activities

associated with a particular job (e.g. a job as anadministrative assistant may include typing, filing and

photocopying, or it could involve such activities ascoordinating travels and meetings, investigatingtrouble spots, and making decisions about a certainrange of issues).


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Staffing

Approaches to Job Design

y Job simplificationthe process of designing jobs so thatjobholders have only a small number of narrow activitiesto perform.

y Job rotation practice of periodically shifting workersthrough a set of jobs in a planned sequence.

y Job enlargementthe allocation of a wider variety ofsimilar tasks to a job in order to make it more challenging.

y Job enrichmentprocess ofupgrading the job-taskmix in order to increase significantly the potential forgrowth, achievement, responsibility, and recognition.


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Job Simplification


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Job Rotation


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Job Enlargement


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Movement of Personnel RECRUITMENT is the process of encouraging,

inducing, or influencing applicants to apply for a certainvacant position.

SELECTION is the process of getting the most qualifiedapplicant from among different job seekers.

TRAINING is the systematic development of theattitude/knowledge/behaviour patterns for the adequateperformance of a given job or task.

TRANSFER refers to the shifting of an employee fromone position to another without increasing his duties,responsibilities, or pay.

PROMOTION refers to the shifting of an employee to anew position to which both his status and

responsibilities are increased.


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Movement of Personnel

y OUTPLACEMENT is the process of helping people who have beendismissed from the company to regain employment elsewhere.

y LAY-OFF is a type of separation, temporary and involuntary, usuallytraceable to a negative business condition

y DISCHARGE is a permanent separation of an employee, at the willof an employer, if a person is not competent in his job, guilty of

breaking rules like delinquency and insubordination, and otherviolations

y RESIGNATION is voluntary and permanent separation of anemployee due to due to low morale, low salary, etc.

y RETIREMENT can either be voluntary or involuntary; if an employee

retires upon reaching the number of years of services in a company asprovided for by its policies or upon reaching the age of 65.

y PERFORMANCEAPPRAISAL is the process of defining,measuring, evaluating, and recording expectations from employeeperformance.

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Part 3 - Organizing and Staffing