Management meeting and exceeding customer expectation 8th ch09
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Organizing Principles
Chapter 9
MANAGEMENT
Meeting and Exceeding Customer Expectations
EIGHTH EDITION
Prepared by
Deborah Baker
Texas Christian University
Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved
1
learning objectives
1. Explain the relationship between planning and
organizing
2. Explain the importance of the organizing process
3. List and discuss the five steps in the organizing
process
4. Describe and give an example of the four
approaches to departmentalization
5. Define authority, and explain how line, staff, and
Chapter 9
functional authority differ
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2
learning objectives
(continued)
6. Explain the concept of power and its sources
7. Discuss the following major organizing concepts and
how they influence organizing decisions
• Unity of direction
• Chain of command
• Line and staff departments
• Unity of command
Explain
the term “informal
• Delegation
• Responsibility
• Accountability
• Span of control
• Centralization and
organization”
decentralization
8.
9. Compare the informal organization to the formal
Chapter 9
organization
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11
Organizing Process
Organizing
Organizing
The management function that
establishes relationships
between activity and authority
Governed by plans that state where the
organization is going
Organization must be built or modified to ensure
those plans are executed
Chapter 9
Resources must be concentrated in a unified way
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4
Downsizing
11
Chapter 9
Downsizing
Downsizing
Also known as rightsizing, it
calls for shrinking both the size
of the company and the number
of employees
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22
Benefits of Organizing
1.
1. ItIt clarifies
clarifies the
the work
work environment
environment
2.
2. ItIt creates
creates aa coordinated
coordinated environment
environment
3.
3. ItIt achieves
achieves the
the principles
principles of
of unity
unity of
of direction
direction
Chapter 9
4.
4. ItIt establishes
establishes the
the chain
chain of
of command
command
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77
Organizing Concepts
Unity
Unityof
of
Direction
Direction
Chapter 9
Chain
Chainof
of
Command
Command
The establishment of one
authority figure for each
designated task of the
organization
The unbroken line of reporting
relationships from the bottom to
the top of the organization
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33
Five-Step Organizing Process
1.
1. Reviewing
Reviewing plans
plans and
and goals
goals
2.
2. Determining
Determining work
work activities
activities
3.
3. Classifying
Classifying and
and grouping
grouping activities
activities
Chapter 9
4.
4. Assigning
Assigning work
work and
and delegating
delegating authority
authority
5.
5. Designing
Designing aa hierarchy
hierarchy of
of relationships
relationships
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Chapter 9
33
Five-Step Organizing Process
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9
Chapter 9
33
Five-Step Organizing Process
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Chapter 9
33
Five-Step Organizing Process
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Chapter 9
33
Five-Step Organizing Process
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Chapter 9
33
Five-Step Organizing Process
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Chapter 9
33
Five-Step Organizing Process
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33
Specialization of Labor
Chapter 9
Specialization
Specialization
of
ofLabor
Labor
Division of labor
Breaks a potentially complex
job down into simpler tasks
or activities
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15
Specialization of Labor
33
Specialization
High
High
Efficiency
Low
Each employee
completes a few basic
operations, such as
assembling the VCR
frame.
Each employee
assembles one
component of a VCR.
Chapter 9
Each employee
assembles a
complete VCR.
Low
Low
Job Satisfaction
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High
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33
Advantages of Work Specialization
Work can be performed more efficiently
Employees gain skill and expertise
Facilitates the process of employee
selection
Decreases training requirements
Allows managers to supervise more
Chapter 9
employees
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33
Disadvantages of Work
Specialization
Jobs can become too simplified
Employees become bored and tired
– safety problems and accident rates
increase
– absenteeism rises
Chapter 9
– quality of work may suffer
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Classifying and Grouping Activities
44
Simultaneous
The
The Principle
Principle of
of Functional
Functional Similarity
Similarity
1.
1. Examine
Examine each
each activity
activity to
to determine
determine its
its
general
general nature
nature
2.
2. Group
Group the
the activities
activities into
into these
these related
related areas
areas
Chapter 9
3.
3. Establish
Establish the
the basic
basic department
department design
design for
for
the
the organizational
organizational structure
structure
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Chapter 9
44
Departmentalization
Functional
Functional
Based
Based on
on specialized
specialized
activities
activities of
of the
the business
business
Geographical
Geographical
Based
Based on
on territory
territory
Product
Product
Based
Based on
on product
product activities
activities
Customer
Customer
Based
Based on
on the
the needs
needs of
of
specific
specific customer
customer groups
groups
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44
Departmentalization Examples
Functional
Functional
}
•
•
•
•
Geographical
Geographical
}
•
•
Southern Region
Northern Region
}
•
•
•
•
Helicopter Division
Power Systems Division
Aircraft Engine Division
Elevator Products Division
}
•
•
•
Pharmaceutical
Professional
Final customer
Chapter 9
Product
Product
Customer
Customer
Finance
Production
Marketing
Human Resources
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44
Horizontal Structuring
Important
Important Effects
Effects
1. It defines the working relationships
between operating departments
2. It makes the final decision on the span
Chapter 9
of control of each manager
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44
Horizontal Structuring
Span
Spanof
of
Control
Control
Chapter 9
Organization
Organization
Chart
Chart
The number of subordinates
under the direction of a manager
The complete organizational
structure shown visually
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Chapter 9
44
Organization Chart
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44
Organization Chart
1. Who reports to whom
2. How many subordinates work for each manager
3. The channels of official communication
4. How the company is departmentalized
5. The work being done in each position
6. The hierarchy of decision making
Chapter 9
7. The types of authority relationships
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