MGT492: Managing People & Organizations

1. MGT492: Managing People & Organizations Lecture 13: Chapter 6: Organizing and delegating work Instructor: Dr. Aisha Azhar COMSATS Virtual Campus

2. Last lecture overview • Corporate-Level Strategy • Growth and grand strategies • Portfolio Analysis • Entrepreneurial strategy mix • Business level strategies • Competitive & functional level strategies • Product life cycle

3. Learning Outcomes

4. Learning Outcomes (cont’d)

5. Principles of Organizations Exhibit 6–1

6. Balanced Responsibility and Authority • Responsibility • The obligation to achieve objectives by performing required activities. • Authority • The right to make decisions, issue orders, and use resources. • Accountability • The evaluation of how well individuals meet their responsibility.

7. Balanced Responsibility and Authority (cont’d) • Delegation • The process of assigning responsibility and authority for accomplishing objectives. • Flexibility • The ability to adapt to exceptions to the rules, policies, and procedures of the organization.

8. Authority • Formal Authority (or Structure) • The organizationally-sanctioned way of getting the job done. • Organizational charts illustrate formal lines of authority in firms. • Informal Authority • The patterns of relationships and communication that develops in an organization that is not sanctioned by the organization.

9. Authority (cont’d) • Scope of Authority • The degree of authority assigned to a position in an organization; scope broadens at higher organizational levels. Exhibit 6–2

10. Levels of Authority • Inform Authority • Inform a superior of action alternatives and the superior makes the decision. • Recommend Authority • List alternatives/actions and recommend one action; superior makes action decision. • Report Authority • Select and implement a course of action, reporting action to superior. • Full Authority • Acting independently without supervision.

11. Line and Staff Authority • Line Authority • The responsibility to make decisions and issue orders down the chain of command. • Staff Authority • The responsibility to advise and assist line and other personnel. • Functional authority • The right of staff personnel to require compliance by line personnel with organizational policies and procedures. • Dual line and staff authority • Staff personnel exercise line authority within their own departments.

13. Authority Exhibit 6–3

14. Organization Design • Contingency Factors Affecting Structure • Environment (mechanistic versus organic) • Production technology • Strategy (“structure follows strategy”) • Size of the organization (larger = more formal) • Organization Chart • A graphic illustration of the organization’s management hierarchy and departments and their working relationships. • Management level, chain of command, division and type of work, and departmentalization.

15. Organization Chart Exhibit 6–4

16. Departmentalization Exhibit 6–5a

17. Departmentalization (cont’d) Exhibit 6–5b

18. Matrix Departmentalization Exhibit 6–6

19. New Approaches to Departmentalization • Horizontal Team Organization • Has an all-directional focus to increase speed of response, individual accountability, flexibility, knowledge sharing, and coordination. • New Venture Units • A group of employees who volunteer to develop new products or ventures for employees. • High-involvement organization (greenfields) • A team approach to setting up a new facility with a flat organizational structure.