Chap07

© 2007 Thomson/South-Western. All rights reserved.© 2007 Thomson/South-Western. All rights reserved.

PowerPoint Presentation by Charlie CookPowerPoint Presentation by Charlie CookThe University of West AlabamaThe University of West Alabama

Organizing for Organizing for Effectiveness Effectiveness and Efficiencyand Efficiency

ChapterChapter

77

Part 3 Organizing Challenges in the 21st CenturyPart 3 Organizing Challenges in the 21st Century

© 2007 Thomson/South-Western. All rights reserved. 7–2

1.1. Explain why organizing is an important managerial Explain why organizing is an important managerial function, describe the process of organizing, and function, describe the process of organizing, and outline the primary stages of the process.outline the primary stages of the process.

2.2. Discuss the concept of job design and identify the Discuss the concept of job design and identify the core job dimensions that define a job.core job dimensions that define a job.

3.3. Explain how and why the perspectives on job design Explain how and why the perspectives on job design have evolved.have evolved.

4.4. Describe the job-design approaches that came from Describe the job-design approaches that came from the classical management, behavioral management, the classical management, behavioral management, and employee/work team–centered perspectives.and employee/work team–centered perspectives.

LEARNING OBJECTIVESLEARNING OBJECTIVESWhen you have finished studying this chapter, When you have finished studying this chapter, you should be able to:you should be able to:


5.5. Understand both the vertical and horizontal Understand both the vertical and horizontal associations that exist between individuals and work associations that exist between individuals and work groups within the organization.groups within the organization.

6.6. Define delegation and discuss why it is important for Define delegation and discuss why it is important for managers to delegate.managers to delegate.

7.7. Explain why managers often fail to delegate and Explain why managers often fail to delegate and suggest methods for improving delegation skills.suggest methods for improving delegation skills.

LEARNING OBJECTIVES LEARNING OBJECTIVES (cont’d)(cont’d)When you have finished studying this chapter, When you have finished studying this chapter, you should be able to:you should be able to:


What is Organizing?What is Organizing?

• OrganizingOrganizing

The process of determining:The process of determining:

The tasks to be done.The tasks to be done.

Who will do them.Who will do them.

How those tasks will be How those tasks will be managed and coordinated.managed and coordinated.


Figure 7.1Figure 7.1 The Process of OrganizingThe Process of Organizing


Job DesignJob Design

• The set of tasks and activities that are grouped The set of tasks and activities that are grouped together to define a particular job.together to define a particular job.

• Job descriptions detail the responsibilities and Job descriptions detail the responsibilities and tasks associated with a given job.tasks associated with a given job.


Table 7.Table 7.1 1 Job Description of a Director of Internet CommunicationsJob Description of a Director of Internet Communications

• Develop and implement communication projects, content through completion.

• Develop editorial and graphical guidelines for communication projects.

• Monitor compliance with adherence to communication guidelines.

• Ensure that all communications are consistent in message and tone.

• Direct technical staff in other departments.

• Monitor developments in technology/communication media.

• Perform related duties as assigned.


Table 7.Table 7.2 2 The Core Dimensions of a JobThe Core Dimensions of a Job

Source: Adapted from J. R. Hackman, G. Oldham, R. Janson, and K. Purdy, “A New Strategy for Job Enrichment.” Copyright © 1975 by the Regents of the University of California. Reprinted from California Management Review 17 (1975): 4. By permission of The Regents.

Core Job Dimension

Skill variety

Task identity

Task significance

Autonomy

Feedback

Effect of Dimension

Meaningfulness of the work

Responsibility for outcomes of the work

Knowledge of results of the work activities


Core Job DimensionsCore Job Dimensions

• Skill VarietySkill Variety The degree to which a job challenges the job holder The degree to which a job challenges the job holder

to use various skills and abilities.to use various skills and abilities.

• Task IdentityTask Identity The degree to which a job requires the completion of The degree to which a job requires the completion of

an identifiable piece of work.an identifiable piece of work.

• Task SignificanceTask Significance The degree to which a job contributes to the overall The degree to which a job contributes to the overall

efforts of the organization.efforts of the organization.


Core Job Dimensions Core Job Dimensions (cont’d)(cont’d)

• AutonomyAutonomy The degree to which job holders have freedom, The degree to which job holders have freedom,

independence, and decision-making authority.independence, and decision-making authority.

• FeedbackFeedback The information provided to job holders regarding the The information provided to job holders regarding the

effectiveness of their efforts.effectiveness of their efforts.


The Evolution of Job Design TheoryThe Evolution of Job Design Theory

• The production worker has now become the The production worker has now become the knowledge worker.knowledge worker.

Classical PerspectivesClassical Perspectives

Behavioral Management PerspectivesBehavioral Management Perspectives

Employee-Centered and Team-Centered Employee-Centered and Team-Centered PerspectivesPerspectives


Classical PerspectivesClassical Perspectives

• Focus on efficiency.Focus on efficiency.

• Born of classical management and scientific Born of classical management and scientific management theories based on the concepts of management theories based on the concepts of division of labor and specialization.division of labor and specialization.

Jobs are highly structured and rigidly defined. Jobs are highly structured and rigidly defined.


Table 7.Table 7.33 Potential Advantages and Disadvantages of Job SpecializationPotential Advantages and Disadvantages of Job Specialization


Behavioral PerspectivesBehavioral Perspectives

• Focus on motivation, satisfaction, and Focus on motivation, satisfaction, and productivity.productivity.

Became popular during the movement toward the Became popular during the movement toward the human relations school of thought.human relations school of thought.

Led to the development of more innovative Led to the development of more innovative approaches to job design including:approaches to job design including:

Job enlargementJob enlargement

Job enrichmentJob enrichment

Job rotationJob rotation


Job EnlargementJob Enlargement

• Programs designed to broaden job scope.Programs designed to broaden job scope.

Job scopeJob scope refers to the number of different activities refers to the number of different activities required in a job and the frequency with which each required in a job and the frequency with which each activity is performed.activity is performed.

While While job enlargement programsjob enlargement programs have typically been have typically been considered as a means of enriching jobs, sometimes considered as a means of enriching jobs, sometimes reducing job scope has a positive impact on reducing job scope has a positive impact on productivity and job satisfaction.productivity and job satisfaction.


Job Depth and Job EnrichmentJob Depth and Job Enrichment

• Job DepthJob Depth Refers to the degree of control given to a job holder to Refers to the degree of control given to a job holder to

perform their job.perform their job. Closes the gap between planning, doing and Closes the gap between planning, doing and

controlling a particular set of activities.controlling a particular set of activities. Jobs that have high job depth typically rate more Jobs that have high job depth typically rate more

favorably on the core job dimensions than jobs with favorably on the core job dimensions than jobs with low job design.low job design.

• Job EnrichmentJob Enrichment Can be an effective means of motivating employees Can be an effective means of motivating employees

and improving job satisfaction.and improving job satisfaction.


Job RotationJob Rotation

• Assigning individuals to a variety of job Assigning individuals to a variety of job positions.positions.

Employees rotate through a number of job positions Employees rotate through a number of job positions that are at approximately the same level and have that are at approximately the same level and have similar skill requirements.similar skill requirements.

While job rotation has proven particularly beneficial in While job rotation has proven particularly beneficial in manufacturing settings, it can also be used effectively manufacturing settings, it can also be used effectively in service organizations.in service organizations.


Participatory PerspectivesParticipatory Perspectives

• Focus on quality.Focus on quality.

• Are not intended to replace previous methods of Are not intended to replace previous methods of job design rather to supplement both the job design rather to supplement both the mechanistic and the behavior theories of job mechanistic and the behavior theories of job design.design.

• The most popular approaches are:The most popular approaches are: Business process reengineeringBusiness process reengineering

Employee-centered work redesignEmployee-centered work redesign

Self-managed teamsSelf-managed teams


Business Process ReengineeringBusiness Process Reengineering

• A method of enhancing competitiveness through A method of enhancing competitiveness through improved product and service quality and improved product and service quality and operational efficiency.operational efficiency. A process of assessing company’s operations and A process of assessing company’s operations and

rebuilding the organization system with a focus on:rebuilding the organization system with a focus on: Improving efficiency.Improving efficiency. Identifying redundancies.Identifying redundancies.Eliminating non-value added activities.Eliminating non-value added activities.Reducing waste in all possible ways.Reducing waste in all possible ways.

Execution of reengineering has proven difficult for Execution of reengineering has proven difficult for many companies.many companies.


Employee-Centered Work RedesignEmployee-Centered Work Redesign

• Links the mission of the organization with the Links the mission of the organization with the needs of the individual by allowing employees to needs of the individual by allowing employees to design their work roles to benefit the design their work roles to benefit the organization and themselves.organization and themselves.

• Benefits of redesign include:Benefits of redesign include: Improved productivity and job satisfaction.Improved productivity and job satisfaction.

Fosters a climate that supports cooperation between Fosters a climate that supports cooperation between individuals and work groups.individuals and work groups.

Consistent with quality improvement efforts.Consistent with quality improvement efforts.

Helps employees achieve work/life balance.Helps employees achieve work/life balance.


Self-Managed TeamsSelf-Managed Teams

• Shifts the focus from the individual to the work Shifts the focus from the individual to the work group.group. Responsibility for a substantial portion of the Responsibility for a substantial portion of the

organization’s activities is assigned to a team of organization’s activities is assigned to a team of individuals who must determine the best way to fulfill individuals who must determine the best way to fulfill those responsibilities.those responsibilities.

Self-managed teams are considered cross-functional Self-managed teams are considered cross-functional teams.teams.


Organizational RelationshipsOrganizational Relationships

• The working relationships that exist within an The working relationships that exist within an organization affect how its activities are organization affect how its activities are accomplished and coordinated.accomplished and coordinated.

• These relationships are defined by:These relationships are defined by:

Chain of commandChain of command

Span of controlSpan of control

Line and staff responsibilitiesLine and staff responsibilities

DelegationDelegation


Chain of Command and Unity of Chain of Command and Unity of CommandCommand• Chain of CommandChain of Command

The line of authority and responsibility that flows The line of authority and responsibility that flows throughout the organization.throughout the organization.

• Unity of CommandUnity of Command A principle that each employee in the organization is A principle that each employee in the organization is

accountable to one, and only one, supervisor.accountable to one, and only one, supervisor.


Span of ControlSpan of Control

• The number of employees reporting to a The number of employees reporting to a particular manager.particular manager. In theory, when tasks are very complex, span of In theory, when tasks are very complex, span of

control should be relatively narrow.control should be relatively narrow. In contrast, where jobs are highly standardized and In contrast, where jobs are highly standardized and

routine (low complexity), a manager will not need to routine (low complexity), a manager will not need to spend as much time supporting individual spend as much time supporting individual subordinates, and the span of control may be larger.subordinates, and the span of control may be larger.


Line and Staff ResponsibilitiesLine and Staff Responsibilities

• Line PersonnelLine Personnel Those organizational members that are directly Those organizational members that are directly

involved in delivering the products and services of the involved in delivering the products and services of the organization.organization.

• Staff PersonnelStaff Personnel Those organizational members that are not directly Those organizational members that are not directly

involved in delivering the products and services to the involved in delivering the products and services to the organization, but provide support for line personnel.organization, but provide support for line personnel.


Figure 7.Figure 7.2 2 Alternative Ways to Structure an OrganizationAlternative Ways to Structure an Organization

Source:: Adapted from The Structuring of Organizations by Mintzberg, © 1991. Reprinted by permission of Prentice-Hall, Inc., Upper Saddle River, NJ.


Authority and ResponsibilityAuthority and Responsibility

• AuthorityAuthority The formal right inherent in an organizational position The formal right inherent in an organizational position

to make decisions. to make decisions.

• Formal authorityFormal authority Authority inherent in an organizational position.Authority inherent in an organizational position.

• Informal authorityInformal authority Ability to influence others that is based on personal Ability to influence others that is based on personal

characteristics or skills.characteristics or skills.

• ResponsibilityResponsibility The obligation to perform the duties assigned.The obligation to perform the duties assigned.


Accountability and DelegationAccountability and Delegation

• AccountabilityAccountability Responsibility to the supervisor for results of Responsibility to the supervisor for results of

decisions made and actions taken with delegated decisions made and actions taken with delegated authority.authority.

• DelegationDelegation The process of transforming the responsibility for a The process of transforming the responsibility for a

specific activity or task to another member of the specific activity or task to another member of the organization, and…organization, and…

Empowering that individual to accomplish the task Empowering that individual to accomplish the task effectively.effectively.


The Process of DelegationThe Process of Delegation

• Decide which goals/tasks to delegate.Decide which goals/tasks to delegate. Teach the department or organization mission.Teach the department or organization mission. Find a capable person.Find a capable person. Teach/train the person.Teach/train the person.

• Assign ResponsibilityAssign Responsibility Refers to the employee’s obligation to complete the Refers to the employee’s obligation to complete the

activities that he or she has been assigned.activities that he or she has been assigned.

• Grant AuthorityGrant Authority Authority is the right to marshal resources and make Authority is the right to marshal resources and make

decisions necessary to fulfill work responsibilities.decisions necessary to fulfill work responsibilities.


The Process of Delegation (cont’d)The Process of Delegation (cont’d)

• Establishing AccountabilityEstablishing Accountability Where there is accountability for performance, Where there is accountability for performance,

employees understand that they must justify their employees understand that they must justify their decisions and actions with regard to the tasks for decisions and actions with regard to the tasks for which they have assumed responsibility.which they have assumed responsibility.


The Delegation TriangleThe Delegation Triangle

Responsibility

AuthorityAccountability


Benefits of DelegationBenefits of Delegation

• Leads to a more involved and empowered workforce.Leads to a more involved and empowered workforce.

• Improved response time as a result of decisions and Improved response time as a result of decisions and information not needing to be passed up and down the information not needing to be passed up and down the organization.organization.

• Leads to better decision making.Leads to better decision making.

• Provides opportunity for employee to develop analytical Provides opportunity for employee to develop analytical and problem solving skills.and problem solving skills.

• Provides managers the opportunity to accomplish more Provides managers the opportunity to accomplish more complicated, difficult, or important tasks.complicated, difficult, or important tasks.


Reasons for Failing to DelegateReasons for Failing to Delegate

• The “time crunch.”The “time crunch.”

• Lack of confidence in the abilities of Lack of confidence in the abilities of subordinates.subordinates.

• Managers try to avoid the potential pitfalls of Managers try to avoid the potential pitfalls of dual accountability.dual accountability.

• Managers may be insecure about their own Managers may be insecure about their own value to the organization.value to the organization.


Learning to Delegate EffectivelyLearning to Delegate Effectively

1.1. Match the employee to the task.Match the employee to the task.

2.2. Be organized and communicate clearly.Be organized and communicate clearly.

3.3. Transfer authority and accountability with the Transfer authority and accountability with the task.task.

4.4. Choose the level of delegation carefully.Choose the level of delegation carefully.


Figure 7.Figure 7.3 3 Degree of DelegationDegree of Delegation

Source: Adapted from M. E. Haynes, “Delegation: There’s More to It Than Letting Someone Else Do It!” 9–15. Reprinted, by permission of publisher, from Supervisory Management, January 1980. © 1980, American Management Association, New York. All rights reserved.


Implications for Leaders: Organizing Implications for Leaders: Organizing TipsTips• Identify the tasks and activities that must be completed Identify the tasks and activities that must be completed

in order for goals to be achieved.in order for goals to be achieved.

• Design jobs so that job holders will find their jobs Design jobs so that job holders will find their jobs interesting and challenging.interesting and challenging.

• Understand the potential advantages and disadvantages Understand the potential advantages and disadvantages of specialization, job enlargement, job enrichment, and of specialization, job enlargement, job enrichment, and job rotation.job rotation.

• Understand the importance of chain of command and Understand the importance of chain of command and span of control.span of control.

• All successful managers delegate authority. Learn how All successful managers delegate authority. Learn how to delegate well and hold people accountable.to delegate well and hold people accountable.

Technology

Chap07