Supervisory Organizing at the Department Level

Supervisory Organizing at the Department Level Supervision: Concepts and Practices of Management, Second Canadian Edition Hilgert, Leonard, Shemko, and Docherty © 2005 by Nelson, a division of Thomson Canada Limited

Learning Objectives • Identify the organizing function of management. • Discuss the impact of the informal organization and informal group leaders and how supervisors should deal with them. • Explain the unity of command principle and its applications. • Define the span of management principle and the factors that influence its application.

Learning Objectives 5. Describe departmentation and alternative approaches for grouping activities and assigning work. 6. Explain the meaning of line and staff authority and how these influence organizational structures and supervisory relationships. 7. Describe how functional authority may be granted to specialized staff for certain purposes.

Learning Objectives 8. Explain the advantages of the matrix (project management) organizational structure. 9. Define and discuss organizational tools that are useful in supervisory organizing efforts. 10. Define downsizing (restructuring) and its implications for organizational principles.

Organizing as a Function Organization A group structured by management to carry out designated functions and accomplish certain objectives

Organizations are People • People are the substance and essence of any organization irrespective of structure • Sound organizational structures should support the mutual goals of effective work performance and high job satisfaction

The Informal Organization • Primarily represents social relationships and informal work groups • Arises to satisfy the needs of members that the formal organization does not satisfy • Can have a strong influence on employee behaviour—for good or bad

The Supervisor’s Response to the Informal Organization • Accept and understand it • Group harmonious work teams • Avoid disrupting informal groups that support department objectives • Redistribute work assignments or adjust work schedules to deal with negative influences as necessary • Gain cooperation and good will of informal group leaders

Unity of Command • Each employee should report directly to only one immediate supervisor • You can’t serve two masters

Span of Management • There is an upper limit to the number of employees a supervisor can manage effectively • Results in separate operating units with mid-level managers and supervisors in charge

Factors Influencing the Span of Management • Supervisory competence • Specialized staff assistance • Employee abilities • Location of employees • Nature and complexity of activities • Objective performance standards

Managerial Levels Organizational structures tend to be taller when spans of management are narrower, and structures tend to be flatter when spans of management are wider.

Departmentation • Division of work: jobs can be divided into smaller components and specialized tasks to increase efficiency and output • Departmentation: process of grouping activities and people into organizational units • Department: set of activities and people over which a manager or supervisor has responsibility and authority

Approaches to Departmentation • Functional • Product or Service • Geographic • Customer • Process and Equipment • Time • Mixed

Assigning Work Principle of organizational stability: no organization should become overly dependent on one or several key “indispensable” individuals

Authority • Line authority: the right to direct others and require them to conform to company decisions, policies, rules, and objectives • Staff authority: the right and duty to provide counsel, advice, support, and service in an area of expertise

Line Organizational Structure A line organizational structure consists entirely of line authority arrangements with a direct chain of authority relationships

Line and Staff Organizational Structure • Specialized staff departments are created to offer advice and counsel to line managers • Staff managers have expertise in specialized areas (e.g. HR, law, accounting, etc.) • Line managers are free to accept or reject the advice of staff managers as they see fit

Functional Authority • The right granted to specialized staff people to give directives concerning matters within their expertise • Line managers must comply with the directives of the staff specialists

The Matrix Organizational Structure The matrix-type organizational structure: • Is superimposed on the line-staff structure • Adds project teams or group assignments that cross departmental lines

Tips for Project Teams • Create a vision • Have a well-qualified, well-trained employee group committed to company objectives • Support and encourage team work • Reward team and individual performance

Organizational Tools • Departmental organization charts • Organization manuals • Job descriptions • Job specifications

In an Era of Downsizing • Reduced number of middle-level managers • Loss of one or more organizational levels • Widened span of management • Need to become more knowledgeable about more aspects of operations

Self-Directed Work Teams(SDWTs) Employee groups who are given wide latitude and considerable authority to make many of their own job-related decisions. Also known as self-managed work teams.

Re-engineering • Restructuring process based more on process than on department or function • Focuses on customer needs and services • May create a horizontal corporation

Horizontal Corporation A very flat firm resulting from restructuring by customer process

Virtual Corporation • Companies become temporary partners or networks that share skills, employees, and access to markets to exploit opportunities • The ultimate project-type organization

Supervisory Organizing at the Department Level