Welcome to AB140

1. Welcome to AB140 Unit 4 Seminar Organizing Introduction to Management

2. Agenda • General Questions and Announcements • Unit 5 Review • Introduction to Organizing • Differentiation and Integration • Span of Control • Centralized vs. Decentralized Organization • Conclusion of Seminar

3. Unit 4 Questions • Any Unit 4 Questions?

4. Unit 5 Assignments • Discussion Board • Seminar • Review - take often • Quiz – take one time, timed

5. Unit 5 Assignments - DB Discussion Board • Dalman and Lei have decided to meet a venture capital group in New York to discuss the possibility of internal expansion of Sandwich Blitz, Inc., and to find out if acceptable financing can be arranged. Dalman has always been the one who could voice the Sandwich Blitz vision. He has usually been the visible “voice” for the company while Lei has usually worked behind the scenes to handle financial matters. They are both worried in this situation. Dalman is afraid that he lacks the financial background to satisfy these financiers. Lei is afraid that she might not have the marketing skills needed to convince this group of the unique capabilities of Sandwich Blitz. • Refer to your unit readings, particularly the section about leading and managing. • In your judgment, what is Sandwich Blitz more in need of in this situation: 1. A manager or a leader? 2. What is the difference between the two? 3. How would you resolve this dilemma if you were Dalman or Lei?

6. Unit 5 Assignments - Quiz You can take this ONE (1) time. Two hour time limit. • Ten (10) questions • All about Power • Situational • Coercive • Legitimate • Reward • Reverent You will see your score. The rest will be available August 16,.

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8. Organizing Introduction In Unit 4, we are considering: • That organizing is one of the primary functions of management. • That organizational structures have vertical and horizontal dimensions, each having unique characteristics. (Continued on next slide…)

9. Introduction to Organizing, Cont’d. • That the organization chart depicts the positions in the organization and the way they are arranged. • That delegation is a fundamental feature of management at every level of management.

10. Delegate What is it? Explain.

11. Delegate • The assignment of new or additional responsibilities to a subordinate. • Requires a subordinate to report back to his or her boss about how effectively the assignment was carried out. • Fundamental feature of management at all levels

12. Is this delegation? Ask an employee for help. Tell them you want to upgrade the personal computers. Have him/her call NitPic Office Equipment. Then state the following: I want to move up to a Core 2 Duo processor with 4 gigs of RAM and at least a 500-gigabyte hard drive. Ask them to give you a demonstration, and let them try it out. Have them write up a summary of their needs and the potential applications they see for the new systems. Then prepare for me a report with the costs and specifications of the upgrade for the entire department. Oh, yes, be sure to ask for information on service costs.

13. Organization Chart • Organizing is one of the primary functions of management. • Organizational structures have vertical and horizontal dimensions

14. Organizational Structures • Two Broad Structures: • Mechanistic Structures • Organic Structures

15. Mechanistic Organization • Mechanistic organization – a formal structure intended to promote internal efficiency. • Hierarchical, bureaucratic, organizational structure characterized by • centralization of authority • Formalization of procedures and practices • Specialization of functions • Mechanistic organizations are relatively simpler and easy to organize. • Difficulty with rapid change • What are some mechanistic organizations?

16. Organic Organization • An organizational form that emphasizes flexibility characterized by: • Broader responsibilities that change as the need arises • Communication through advice and information • Decentralized decision making and influence • Expertise is highly valued • Reliance on judgment rather than rules • Obedience to authority is less important than commitment to the organization’s goals. • Employees depend more on one another and relate more informally and personally. What are some organic organizations?

17. YOU • Which do you feel suits you best, organistic or mechanistic? • Why?

18. Vertical • Authority within an organization, the board of directors, the chief executive officer, and hierarchical levels.

19. Vertical Structure: • Hierarchical lines of authority: • Board of Directors • Chief Executive Officer • Upper Management Team • Middle Management • First Line Management Span of Control: Determines a manager’s authority.

20. Vertical Structure • Delegation: The assignment of authority and responsibility to a subordinate at a lower level in the hierarchy. • Responsibility: Means that a person is assigned a task that they are supposed to complete. • Accountability: The right of the subordinate’s manager to expect specific performance and to take corrective action if the subordinate fails to do so. • Decentralization: Spreads the decision-making power to lower levels • within the organization.

21. Horizontal Structure • Deals with issues of departmentalization that create functional, divisional, and matrix organizations.

22. Horizontal Structure • Departmentalization: The subdividing of larger organizations into smaller subunits. • Line Departments: Those that have responsibility for the primary activities of the firm. • Staff Departments: Those that provide specialized or professional skills to support the line departments.

23. Horizontal • A firm may be subdivided by: • Functions: Like production, human resources, accounting, etc. • Divisions: To reflect diverse firm needs. Each division having its own functional subunits. • Matrix: A hybrid form combining both functional and divisional characteristics. Involves multiple reporting relationships. • Network: A collection of mostly single-function firms that collaborate to produce a good or service.

24. Sandwich Blitz Org Chart

25. Differentiation / Specialization • Differentiation versus Specialization: • Differentiation is created by division of labor and job specialization. • Work specialization refers to an organizational structure that is composed of many different units that work on many different kinds of tasks, using different skills and work methods.

26. Differentiation and Integration • Think of an organization that you are familiar with. Think of the way work processes are usually handled within the business. • Let me know when you have it in your mind.

27. Differentiation and Integration • Are the main tasks in the workplace divided/routed to the various departments in the business Or • Do individuals from various departments across the business work according to projects or the particular situation at hand? Maybe some combination of both?

28. Differentiation = Division of Labor • In businesses that follow a differentiation structure, the work is divided among the unit (departments) of the business. • Individuals in the various units are skilled at specific functions. Examples are: marketing, human resources, finance, information technology, or other departmental name. • Can you name some departments in businesses that you are familiar with?

29. Integration = Coordination for Projects • Communication is cooperation is required to get the desired results, even in a differentiated structure. • Integration is that part of the business that provide and encourages linkages among the various functional areas to get the optimal results for a work project.

30. Span of Control What is meant by Span of Control? “Balance” is very important when making management decisions regarding span of control…the span should be appropriate for the type of work and workers involved and for the skill level of the manager involved.

31. Span of Control • The number of subordinates who report directly to an executive or supervisor • The optimal span of control maximizes effectiveness by balancing two considerations: • Must be narrow enough to permit managers to maintain control over subordinates • Must not be so narrow that it leads to overcontrol and an excessive number of managers overseeing a few subordinates

32. When should span be wide? • The work is clearly defined and unambiguous • Subordinates are highly trained and have access to information • The manager is highly capable and supportive • Jobs are similar and performance measures are comparable • Subordinates prefer autonomy to close supervisory control

33. Span of Control Which work environment do (or would) you prefer? Which work environment do you think that you’d perform more effectively in?

34. Centralized and Decentralized Organizations Do you recall a few years ago when many middle-managers were losing their jobs due to “decentralization”? What is decentralization? What’s the difference between decentralization and centralization? Which work environment do (or would) you prefer? Which work environment do you think that you’d perform more effectively in?

35. Questions

36. Thank You for Attending! This concludes our seminar for Unit 4. I appreciate your taking the time out to join me and to invest in the concepts.