After reading please answer these questions and make sure the responses are not short Identify a Current Event Article related to a topic in Chapter4and respond in complete sentencesto the following questions What is the name of the current event article Provide a link or citation How is thiscurrentevent article related to this chapter Provide a short synopsis of the article Explain why you thought this article was interesting Organizing Organizing Arranging and grouping jobs, allocating resources, and assigning work in a department so that activities can be accomplished as planned Organizing is arranging and grouping jobs, allocating resources, and assigning work in a department so that activities can be accomplished as planned As previously mentioned, the top management team in an organization typically establishes the overall organization structure They determine, for instance, how many levels there will be from the top of the organization to the bottom, and the extent to which lower level managers will have to follow formal rules and procedures in carrying out their jobs Organizational Structure Every organization has a structure Basic organizing principles work specialization span of control chain of command authority and responsibility centralization versus decentralization departmentalization Every organizationlarge and small, for profit and not for profit, and so onhas a structure The early writers in management developed a number of basic organizing principles that continue to offer valuable guidance to supervisors today work specialization, span of control, chain of command, authority and responsibility, centralization versus decentralization, and departmentalization Work Specialization Work specialization The process of breaking down a job into a number of steps with each step being completed by a different individual Assembly line production is an example of work specialization Work specialization means that, rather than an entire job being done by one individual, it is broken down into a number of steps that are each completed by a separate individual In essence, individuals specialize in doing part of an activity rather than the entire activity Assembly line production, in which each worker does the same standardized task over and over again, is an example of work specialization Span of Control Span of control The number of employees a supervisor can efficiently and effectively direct It is not efficient for a supervisor to direct only one or two employees Conversely, it's pretty obvious that the best of supervisors would be overwhelmed if he or she had to directly oversee several hundred people This, then, brings up the span of control question How many employees can a supervisor direct efficiently and effectively Exhibit 4 1, Contrasting spans of control An important trend has been taking place in organizations Spans of control have expanded almost universally (see Exhibit 4 1) The reason is that it is a way for an organization to reduce costs For example, by doubling the span size, you cut the number of supervisors needed in half This is one of the basic premises of downsizing Chain of Command Chain of command The continuous line of authority in an organization Unity of command A principle that states that an employee should have one and only one supervisor to whom he or she is directly responsible The chain of command is the continuous line of authority that extends from upper organizational levels to the lowest levels, and clarifies who reports to whom It helps employees answer questions such as, Whom do I go to if I have a problem or To whom am I ultimately responsible Such questions led early management writers to the conclusion that an employee should have one and only one supervisor to whom he or she is directly responsible Authority Authority Rights inherent in a supervisory position to give orders and expect those orders to be obeyed Line authority The authority that entitles a supervisor to direct the work of his or her employees, and to make certain decisions without consulting others Authority refers to rights inherent in a supervisory position to give orders and expect the orders to be obeyed Each supervisory position has specific rights that incumbents ac There are three different types of authority relations line, staff, and functional The most straightforward and easiest to understand is line authority This is the authority that gives the supervisor the right to direct the work of his or her employees, and make certain decisions without consulting others Staff authority A limited authority that supports line authority by advising, servicing, and assisting Functional authority Control over individuals outside one's own direct areas of responsibility Staff authority supports line authority by advising, servicing, and assisting, but it is typically limited For example, the assistant to the science department head at a university has staff authority She acts as an extension of the department head She can give advice and suggestions, but they needn't be obeyed However, she may be given the authority to act for the department head In such cases, she gives directives under the line authority of her boss A third type of authority, functional authority , represents rights over individuals outside one's own direct areas of responsibility For example, it is not unusual for a supervisor in a manufacturing plant to find that his or her immediate boss has line authority over him or her, but that someone in corporate headquarters has functional authority over some of his or her activities and decisions Exhibit 4 2, Organization chart depicting line, staff, and functional authority relationships Responsibility Responsibility Supervisory obligations such as achieving a unit's goals, keeping costs within budget, following organizational policies, and motivating employees Supervisory jobs come with authority They also come with responsibility Supervisors are responsible for achieving their unit's goals, keeping costs within budget, organizational policies, and motivating their employees Authority without responsibility creates opportunities for abuse Making Decisions Centralization Decision making responsibility is in the hands of top management Decentralization The pushing down of decision making authority to those closest to the problems One of the questions that needs to be answered in the organizing function is, At what level are decisions made Centralization is a function of how much decision making authority is pushed down to lower levels in the organization Centralization and decentralization, however, are not either or concepts Rather, it's a degree phenomenon No organization is completely centralized or completely decentralized Few, if any, organizations could effectively function if all their decisions were made by a select few people (centralization), or if all decisions were pushed down to the level closest to the problems ( decentralization ) Departmentalization Departmentalization Grouping departments based on work function, product or service, target customer or client, geographic territory, or the process used to turn inputs into outputs Coordination is facilitated by putting specialists together in departments under the direction of a manager Creation of these departments is typically based on the work functions being performed, the product or service being offered, the target customer or client, the geographic territory being covered, or the process being used to turn inputs into outputs No single method of departmentalization was advocated by the early writers The method or methods used should reflect the grouping that would best contribute to the attainment of the organization's objectives and the goals of individual units Functional departmentalization Grouping activities into independent units based on the functions performed Product departmentalization Grouping activities into independent units based on the problems or issues related to a product One of the most popular ways to group activities is by functions performed, or functional departmentalization A supervisor might find his or her plant separated into work unitssuch as engineering, accounting, information systems, human resources, and purchasing Product departmentalization is a method used at Bombardier Ltd , a Canadian company Each major product area in the corporation is placed under the authority of a senior manager who is a specialist in, and is responsible for, everything having to do with his or her product line Exhibit 4 3, Functional departmentalization Exhibit 4 4, Product departmentalization Exhibit 4 4 illustrates the product departmentalization method used at Bombardier Ltd , a Canadian company Departmentalization continued Customer departmentalization Grouping activities around common customer categories Geographic departmentalization Grouping activities into independent units based on the geography or territory The assumption underlying customer departmentalization is that customers in each department have a common set of problems and needs that can best be met by having specialists for them Another way to departmentalize is on the basis of geography or territory, or geographic departmentalization The sales function might have western, southern, mid western, and eastern regions Exhibit 4 5, Customer departmentalization Exhibit 4 6, Geographic departmentalization Departmentalization continued Process departmentalization Grouping activities around a process this method provides a basis for the homogeneous categorizing of activities The final form of departmentalization is called process departmentalization , which groups activities on the basis of work or customer flow Exhibit 4 7, Process departmentalization Simple Structure Simple structure A nonelaborate structure, low in complexity, with little formalization, and with authority centralized in a single person a flat organization with only two or three levels Most organizations start as an entrepreneurial venture with a simple structure This organization design reflects the owner as president with all employees reporting directly to him or her A simple structure is defined more by what it is not than by what it is It is not an elaborate structure The simple structure is a flat organization it usually has only two or three vertical levels with a loose body of empowered employees in whom the decision making authority is centralized Functional Structure Functional structure An organization in which similar and related occupational specialties are grouped together The functional structure merely expands the functional orientation to make it the dominant form for the entire organization The strength of the functional structure lies in the advantages that accrue from work specialization Putting like specialties together results in economies of scale, minimizes duplication of personnel and equipment, and makes employees comfortable and satisfied because it gives them the opportunity to talk the same language as their peers The most obvious weakness of the functional structure, however, is that the organization frequently loses sight of its best interests in the pursuit of functional goals Divisional Structure Divisional structure An organization made up of self contained units The divisional structure is an organization design made up of self contained units or divisions Each division is generally autonomous with a division manager responsible for performance, and holding complete strategic and operational decision making authority In most divisional structures, central headquarters provides support servicessuch as financial and legal servicesto the divisions Of course, the headquarters also acts as an external overseer to coordinate and control the various divisions Divisions are, therefore, autonomous within given parameters Matrix Structure Matrix structure A structure that weaves together elements of functional and product departmentalization, and creating a dual chain of command The matrix structure combines the advantages of functional specialization with the focus and accountability that product departmentalization provides Each program is directed by a supervisor who staffs his or her project with people from the functional departments The addition of this vertical dimension to the traditional horizontal functional departments, in effect, weaves together elements of functional and product departmentalizationhence the term matrix Exhibit 4 8, A matrix structure in an aerospace firm Exhibit 4 8 illustrates the matrix structure of an aerospace firm Notice that along the top of the figure are the familiar functions of engineering, accounting, human resources, manufacturing, and so forth Other Structures Project structure Employees work continuously on projects at the completion of a project, they start a new project Team based structure An organization that consists entirely of workgroups or teams Instead of a matrix structure, many organizations are using a project structure in which employees continuously work on projects Unlike the matrix structure, a project structure has no formal departments where employees return at the completion of a project Instead, employees take their specific skills, abilities, and experiences to other projects In a team based structure , the entire organization consists of workgroups or teams that perform the organization's work In such a structure, it goes without saying that team members have the authority to make decisions that affect them because there is no rigid chain of command in these work arrangements Boundaryless organization An organization that is not defined or limited by boundaries or categories imposed by traditional structures Virtual organization Consists of a small core of full time employees and outside specialists temporarily hired as needed to work on projects A boundaryless organization is an organization design that is not defined or limited by boundaries or categories imposed by traditional structures Former General Electric (GE) chairman Jack Welch coined the term because he wanted to eliminate vertical and horizontal boundaries within GE, and break down external barriers between the company and its customers and suppliers Typically, a virtual organization consists of a small core of full time employees and outside specialists temporarily hired as needed to work on projects The inspiration for this structural approach comes from the film industry where people are essentially free agents moving from project to project and applying their skills in directing, talent casting, costuming, makeup, and set design as needed Network organization Uses its own employees to do some work activities and networks of outside suppliers to provide other needed product components or work processes Another attempt to minimize or eliminate organizational boundaries comes in the form of a network organization This arrangement uses its own employees to do some work activities and networks of outside suppliers to provide other needed product components or work processes Often referred to as a modular organization by manufacturing firms, this structural approach allows organizations to concentrate on what they do best by contracting out other activities to companies that do those activities best The Learning Organization Learning organization An organization that has developed the capacity to adapt and change continuously A learning organization is an organization that has developed a capacity to continuously adapt and change because all of its members take an active role in identifying and resolving work related issues In learning organizations, employees are practicing knowledge management by continually acquiring and sharing new knowledge, and are willing to apply that knowledge in making decisions or performing their work Job Descriptions Job description A written statement of job duties, working conditions, and operating responsibilities A job description is a written statement of what an employee does, how the job is done, and why it is done It typically portrays job duties, working conditions, and operating responsibilities Delegation Empowerment An increase in the decision making discretion of workers Delegation Allocation of duties, assignment of authority, assignment of responsibility, and creation of accountability Contemporary supervisors need to learn to empower others Empowerment means increasing your employees' involvement in their work through greater participation in decisions that control their work and by expanding responsibility for work outcomes Two ways to empower people are to delegate authority to them and to redesign their jobs Delegation is frequently depicted as a four step process (1) allocation of duties, (2) delegation of authority, (3) assignment of responsibility, and (4) creation of accountability

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After reading please answer these questions and make sure the responses are not short. Identify a Current Event Article related to a topic in Chapter4and

After reading please answer these questions and make sure the responses are not short.

Identify a Current Event Article related to a topic in Chapter4and respond in complete sentencesto the following questions:

What is the name of the current event article? Provide a link or citation.
How is thiscurrentevent article related to this chapter?
Provide a short synopsis of the article.
Explain why you thought this article was interesting.

Organizing

Organizing -Arranging and grouping jobs, allocating resources, and assigning work in a department so that activities can be accomplished as planned

Organizingis arranging and grouping jobs, allocating resources, and assigning work in a department so that activities can be accomplished as planned. As previously mentioned, the top management team in an organization typically establishes the overall organization structure. They determine, for instance, how many levels there will be from the top of the organization to the bottom, and the extent to which lower-level managers will have to follow formal rules and procedures in carrying out their jobs.

Organizational Structure

Every organization has a structure
Basic organizing principles:
- work specialization
- span of control
- chain of command
- authority and responsibility
- centralization versus decentralization
- departmentalization
Every organizationlarge and small, for-profit and not-for-profit, and so onhas a structure. The early writers in management developed a number of basic organizing principles that continue to offer valuable guidance to supervisors today: work specialization, span of control, chain of command, authority and responsibility, centralization versus decentralization, and departmentalization.

Work Specialization

Work specialization- The process of breaking down a job into a number of steps with each step being completed by a different individual
Assembly-line production is an example of work specialization
Work specializationmeans that, rather than an entire job being done by one individual, it is broken down into a number of steps that are each completed by a separate individual. In essence, individuals specialize in doing part of an activity rather than the entire activity. Assembly-line production, in which each worker does the same standardized task over and over again, is an example of work specialization.

Span of Control

Span of control- The number of employees a supervisor can efficiently and effectively direct
It is not efficient for a supervisor to direct only one or two employees. Conversely, it's pretty obvious that the best of supervisors would be overwhelmed if he or she had to directly oversee several hundred people. This, then, brings up the span of controlquestion: How many employees can a supervisor direct efficiently and effectively?

Exhibit 4-1, Contrasting spans of control

An important trend has been taking place in organizations. Spans of control have expanded almost universally (see Exhibit 4-1). The reason is that it is a way for an organization to reduce costs. For example, by doubling the span size, you cut the number of supervisors needed in half. This is one of the basic premises of

downsizing.

Chain of Command

Chain of command- The continuous line of authority in an organization
Unity of command- A principle that states that an employee should have one and only one supervisor to whom he or she is directly responsible
The chain of commandis the continuous line of authority that extends from upper organizational levels to the lowest levels, and clarifies who reports to whom. It helps employees answer questions such as, "Whom do I go to if I have a problem?" or "To whom am I ultimately responsible?" Such questions led early management writers to the conclusion that an employee should have one and only one supervisor to whom he or she is directly responsible.

Authority

Authority - Rights inherent in a supervisory position to give orders and expect those orders to be obeyed
Line authority- The authority that entitles a supervisor to direct the work of his or her employees, and to make certain decisions without consulting others
Authority refers to rights inherent in a supervisory position to give orders and expect the orders to be obeyed. Each supervisory position has specific rights that incumbents ac There are three different types of authority relations: line, staff, and functional. The most straightforward and easiest to understand is line authority. This is the authority that gives the supervisor the right to direct the work of his or her employees, and make certain decisions without consulting others.
Staff authority- A limited authority that supports line authority by advising, servicing, and assisting
Functional authority- Control over individuals outside one's own direct areas of responsibility
Staff authoritysupports line authority by advising, servicing, and assisting, but it is typically limited. For example, the assistant to the science department head at a university has staff authority. She acts as an extension of the department head. She can give advice and suggestions, but they needn't be obeyed. However, she may be given the authority to act for the department head. In such cases, she gives directives under the line authority of her boss.
A third type of authority, functional authority, represents rights over individuals outside one's own direct areas of responsibility. For example, it is not unusual for a supervisor in a manufacturing plant to find that his or her immediate boss has line authority over him or her, but that someone in corporate headquarters has functional authority over some of his or her activities and decisions.

Exhibit 4-2, Organization chart depicting line, staff, and functional authority relationships

Responsibility

Responsibility - Supervisory obligations such as achieving a unit's goals, keeping costs within budget, following organizational policies, and motivating employees
Supervisory jobs come with authority. They also come with responsibility.Supervisors are responsible for achieving their unit's goals, keeping costs within budget, organizational policies, and motivating their employees. Authority without responsibility creates opportunities for abuse.

Making Decisions

Centralization - Decision-making responsibility is in the hands of top management
Decentralization - The pushing down of decision-making authority to those closest to the problems
One of the questions that needs to be answered in the organizing function is, "At what level are decisions made?" Centralizationis a function of how much decision-making authority is pushed down to lower levels in the organization. Centralization and decentralization, however, are not either-or concepts. Rather, it's a degree phenomenon. No organization is completely centralized or completely decentralized. Few, if any, organizations could effectively function if all their decisions were made by a select few people (centralization), or if all decisions were pushed down to the level closest to the problems (decentralization).

Departmentalization

Departmentalization - Grouping departments based on work function, product or service, target customer or client, geographic territory, or the process used to turn inputs into outputs
Coordination is facilitated by putting specialists together in departments under the direction of a manager. Creation of these departments is typically based on the work functions being performed, the product or service being offered, the target customer or client, the geographic territory being covered, or the process being used to turn inputs into outputs. No single method of departmentalization was advocated by the early writers. The method or methods used should reflect the grouping that would best contribute to the attainment of the organization's objectives and the goals of individual units.
Functional departmentalization- Grouping activities into independent units based on the functions performed
Product departmentalization- Grouping activities into independent units based on the problems or issues related to a product
One of the most popular ways to group activities is by functions performed, or functional departmentalization. A supervisor might find his or her plant separated into work unitssuch as engineering, accounting, information systems, human resources, and purchasing. Product departmentalizationis a method used at Bombardier Ltd., a Canadian company. Each major product area in the corporation is placed under the authority of a senior manager who is a specialist in, and is responsible for, everything having to do with his or her product line.

Exhibit 4-3, Functional departmentalization

Exhibit 4-4, Product departmentalization

Exhibit 4-4 illustrates the product departmentalizationmethod used at Bombardier Ltd., a Canadian company.

Departmentalization continued...

Customer departmentalization- Grouping activities around common customer categories
Geographic departmentalization- Grouping activities into independent units based on the geography or territory
The assumption underlying customer departmentalizationis that customers in each department have a common set of problems and needs that can best be met by having specialists for them. Another way to departmentalize is on the basis of geography or territory, or geographic departmentalization. The sales function might have western, southern, mid-western, and eastern regions.

Exhibit 4-5, Customer departmentalization

Exhibit 4-6, Geographic departmentalization

Departmentalization continued...

Process departmentalization- Grouping activities around a process; this method provides a basis for the homogeneous categorizing of activities
The final form of departmentalization is called process departmentalization, which groups activities on the basis of work or customer flow.

Exhibit 4-7, Process departmentalization

Simple Structure

Simple structure- A nonelaborate structure, low in complexity, with little formalization, and with authority centralized in a single person; a "flat" organization with only two or three levels
Most organizations start as an entrepreneurial venture with a simple structure. This organization design reflects the owner as president with all employees reporting directly to him or her. A simple structureis defined more by what it is not than by what it is. It is not an elaborate structure. The simple structure is a "flat" organization; it usually has only two or three vertical levels with a loose body of empowered employees in whom the decision-making authority is centralized.

Functional Structure

Functional structure- An organization in which similar and related occupational specialties are grouped together
The functional structuremerely expands the functional orientation to make it the dominant form for the entire organization. The strength of the functional structure lies in the advantages that accrue from work specialization. Putting like specialties together results in economies of scale, minimizes duplication of personnel and equipment, and makes employees comfortable and satisfied because it gives them the opportunity to "talk the same language" as their peers. The most obvious weakness of the functional structure, however, is that the organization frequently loses sight of its best interests in the pursuit of functional goals.

Divisional Structure

Divisional structure- An organization made up of self-contained units
The divisional structureis an organization design made up of self-contained units or divisions. Each division is generally autonomous with a division manager responsible for performance, and holding complete strategic and operational decision-making authority. In most divisional structures, central headquarters provides support servicessuch as financial and legal servicesto the divisions. Of course, the headquarters also acts as an external overseer to coordinate and control the various divisions. Divisions are, therefore, autonomous within given parameters.

Matrix Structure

Matrix structure - A structure that weaves together elements of functional and product departmentalization, and creating a dual chain of command
The matrix structurecombines the advantages of functional specialization with the focus and accountability that product departmentalization provides. Each
program is directed by a supervisor who staffs his or her project with people from the functional departments. The addition of this vertical dimension to the traditional horizontal functional departments, in effect, weaves together elements of functional and product departmentalizationhence the term matrix.

Exhibit 4-8, A matrix structure in an aerospace firm

Exhibit 4-8 illustrates the matrix structure of an aerospace firm. Notice that along the top of the figure are the familiar functions of engineering, accounting, human resources, manufacturing, and so forth.

Other Structures

Project structure- Employees work continuously on projects; at the completion of a project, they start a new project
Team-based structure- An organization that consists entirely of workgroups or teams

Instead of a matrix structure, many organizations are using a project structurein which employees continuously work on projects. Unlike the matrix structure, a project structure has no formal departments where employees return at the completion of a project. Instead, employees take their specific skills, abilities, and experiences to other projects. In a team-based structure, the entire organization consists of workgroups or teams that perform the organization's work. In such a structure, it goes without saying that team members have the authority to make decisions that affect them because there is no rigid chain of command in these work arrangements.

Boundaryless organization- An organization that is not defined or limited by boundaries or categories imposed by traditional structures
Virtual organization- Consists of a small core of full-time employees and outside specialists temporarily hired as needed to work on projects
A boundaryless organizationis an organization design that is not defined or limited by boundaries or categories imposed by traditional structures. Former General Electric (GE) chairman Jack Welch coined the term because he wanted to eliminate vertical and horizontal boundaries within GE, and break down external barriers between the company and its customers and suppliers.
Typically, a virtual organizationconsists of a small core of full-time employees and outside specialists temporarily hired as needed to work on projects. The inspiration for this structural approach comes from the film industry where people are essentially "free agents;" moving from project to project and applying their skills in directing, talent casting, costuming, makeup, and set design as needed.
Network organization- Uses its own employees to do some work activities and networks of outside suppliers to provide other needed product components or work processes
Another attempt to minimize or eliminate organizational boundaries comes in the form of a network organization. This arrangement uses its own employees to do some work activities and networks of outside suppliers to provide other needed product components or work processes. Often referred to as a modular organization by manufacturing firms, this structural approach allows organizations to concentrate on what they do best by contracting out other activities to companies that do those activities best.

The Learning Organization

Learning organization- An organization that has developed the capacity to adapt and change continuously
A learning organizationis an organization that has developed a capacity to continuously adapt and change because all of its members take an active role in identifying and resolving work-related issues. In learning organizations, employees are practicing knowledge management by continually acquiring and sharing new knowledge, and are willing to apply that knowledge in making decisions or performing their work.

Job Descriptions

Job description- A written statement of job duties, working conditions, and operating responsibilities
A job descriptionis a written statement of what an employee does, how the job is done, and why it is done. It typically portrays job duties, working conditions, and operating responsibilities.

Delegation

Empowerment - An increase in the decision-making discretion of workers
Delegation - Allocation of duties, assignment of authority, assignment of responsibility, and creation of accountability
Contemporary supervisors need to learn to empower others. Empowermentmeans increasing your employees' involvement in their work through greater participation in decisions that control their work and by expanding responsibility for work outcomes.
Two ways to empower people are to delegate authority to them and to redesign their jobs.
Delegation is frequently depicted as a four-step process: (1) allocation of duties, (2) delegation of authority, (3) assignment of responsibility, and (4) creation of accountability.