© 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as
permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
PowerPoint Presentation by Charlie Cook
The University of West Alabama
Learning Objectives
1. Identify the basic elements of organizations.
2. Describe the alternative approaches to designing jobs.
3. Discuss the rationale and the most common bases for
grouping jobs into departments.
4. Describe the basic elements involved in establishing
reporting relationships.
5. Discuss how authority is distributed in organizations.
6. Discuss the basic coordinating activities undertaken by
organizations.
7. Describe basic ways in which positions within an
organization can be differentiated
© 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as
permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
11–2
The Elements of Organizing
• Organizing
 Deciding how to best group
organizational activities and
resources.
• Organization Structure
 The set of building blocks
that can be used to
configure an organization.
© 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as
permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
11–3
Designing Jobs
• Job Design
 The determination of an individual’s work-related
responsibilities.
• Job Specialization (Division of Labor)
 The degree to which the overall task of the
organization is broken down and divided into smaller
component parts.
© 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as
permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
11–4
Designing Jobs (cont’d)
• Benefits of Job Specialization
1. Workers can become proficient at a task.
2. Transfer time between tasks is decreased.
3. Specialized equipment can be more easily
developed.
4. Employee replacement becomes easier.
• Limitations of Job Specialization
 Boredom and dissatisfaction with mundane tasks.
 Anticipated benefits do not always occur.
© 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as
permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
11–5
Adam Smith’s Example of Job Specialization
Making a pin (nail) requires 18 tasks
1 worker doing all 18 tasks might make
20 pins (nails) a day.
20 workers = (20 x 20) = 400 pins
______________________________
With specialization:
20 workers make 100,000 pins a day.
1 worker = 5,000 pins
20 pins vs. 5,000 pins per worker
© 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as
permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
11–6
Alternatives to Job Specialization
Job Specialization
Alternatives
Job
Rotation
Job
Enlargement
© 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as
permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Job
Enrichment
11–7
Alternatives to Job Specialization
Job Specialization
Alternatives
Job
rotation
Job
enrichment
Job
enlargement
Work
teams
Job
characteristics
approach
© 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as
permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
11–8
Job Characteristics: Core Dimensions
Skill Variety
The number of tasks a person does in a job
Task Identity
The extent to which the worker does a complete or
identifiable portion of the total job
Task Significance
The perceived importance of the task by the worker
Autonomy
The degree of control the worker has over how the work
is performed
Feedback
The extent to which the worker knows how well the job
is being performed
Growth Need
Strength
The desire for people to grow, develop, and expand their
capabilities that is their response to the core dimensions
© 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as
permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
11–9
11.1
The Job Characteristics Approach
© 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as
permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
11–10
Alternatives to Specialization (cont’d)
• Work Teams
 An alternative to job specialization that allows the
entire group to design the work system it will use to
perform an interrelated set of tasks.
© 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as
permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
11–11
Management Challenge Question
• You will be leading your company’s transition
team after the acquisition of your company by
a much larger competitor.
• What organizing problems would you anticipate
will arise in merging the two companies?
© 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as
permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
11–12
Grouping Jobs: Departmentalization
• Departmentalization
 The process of grouping jobs according to some
logical arrangement.
• Rationale for Departmentalization
 Organizational growth exceeds the owner-manager’s
capacity to personally supervise all of the
organization.
 Additional managers are employed and assigned
specific employees to supervise.
© 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as
permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
11–13
11.2 Bases for Departmentalization
Product
Function
Customer
Location
© 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as
permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
11–14
Functional Departmentalization
• Advantages
 Each department can be
staffed by functionalarea experts.
 Supervision is facilitated
in that managers only
need be familiar with
a narrow set of skills.
 Coordination inside each
department is easier.
• Disadvantages
 Decision making
becomes slow and
bureaucratic.
 Employees narrow their
focus to their department
and lose sight of broader
goals and issues.
 Accountability and
performance are difficult
to monitor.
© 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as
permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
11–15
Product Departmentalization
• Grouping activities around
products or product groups.
• Advantages
 All activities associated
with one product are
integrated and coordinated.
 Speed and effectiveness
of decision making are
enhanced.
 Performance of individual
products or product groups
can be assessed.
• Disadvantages
 Managers may focus
on their product to the
exclusion of the rest of
the organization.
 Administrative costs
may increase due to
each department having
its own functional-area
experts.
© 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as
permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
11–16
Customer Departmentalization
• Grouping activities to respond to and interact
with specific customers and customer groups.
 Advantage

Skilled specialists can deal with unique customers or
customer groups.
 Disadvantage

A large administrative staff is needed to integrate activities of
various departments.
© 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as
permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
11–17
Location Departmentalization
• The grouping of jobs on the basis of
defined geographic sites or areas.
 Advantage

Enables the organization to respond easily to unique
customer and environmental characteristics.
 Disadvantage

Large administrative staff may be needed to keep
track of units in scattered locations.
© 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as
permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
11–18
Other Forms of Departmentalization
• Alternative Groupings
 By specific units of time
 By sequence.
 By customer characteristics, products, or services
• Other Considerations
 Departments are often called by other names.

Divisions, units, sections, and bureaus
 Organizations are likely to employ multiple bases of
departmentalization, depending on level.
© 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as
permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
11–19
Establishing Reporting Relationships
Reporting Relationships
Considerations
Chain of
Command
Scalar
Principle
© 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as
permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Span of
Management
11–20
Reporting Relationships
• Chain of Command
 A clear and distinct line of authority among
the positions in an organization.
 Unity of Command

Each person within an organization must have a clear
reporting relationship to one and only one boss.
 Scalar Principle

A clear and unbroken line of authority must extend from
the bottom to the top of the organization.
© 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as
permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
11–21
Span of Management
• Span of Control
 The number of people reporting to a manager.
 A. V. Graicunas

Subordinate interactions
– Direct—manager’s relationship with each subordinate.
– Cross—among the subordinates themselves.
– Group—between groups of subordinates.

Formula for the number of interactions of all types:
I = N(2N/2 + N – 1), where I is the total number of
interactions and N is number of subordinates.
© 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as
permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
11–22
Span of Management (cont’d)
• Narrow Versus Wide Spans
 Ralph C. Davis

Operative span for lower-level managers of up to 30 workers.

Executive span for middle and top managers set at 3 to 9.

Span depends on managers’ jobs, company growth rate, and
similar factors.
 Lyndall Urwick and General Ian Hamilton

Executive span should never exceed six persons.
© 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as
permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
11–23
Establishing Reporting Relationships:
Tall versus Flat Organizations
• Tall Organizations
 Are more expensive
because of the number
of managers involved.
• Flat Organizations
 Lead to higher levels
of employee morale
and productivity.
 Foster more communication
 Create more administrative
problems because of the
number of people through
whom information must
pass.
responsibility for the
relatively few managers.
 Create more supervisory
responsibility for managers
due to wider spans of
control.
© 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as
permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
11–24
11.3
Tall Versus Flat Organizations
© 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as
permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
11–25
11.1 Factors Influencing the Span of Management
1. Competence of supervisor and subordinates
(the greater the competence, the wider the potential span)
2. Physical dispersion of subordinates
(the greater the dispersion, the narrower the potential span)
3. Extent of nonsupervisory work in manager’s job
(the more nonsupervisory work, the narrower the potential span)
4. Degree of required interaction
(the less required interaction, the wider the potential span)
5. Extent of standardized procedures
(the more procedures, the wider the potential span)
6. Similarity of tasks being supervised
(the more similar the tasks, the wider the potential span)
7. Frequency of new problems
(the higher the frequency, the narrower the potential span)
8. Preferences of supervisors and subordinates
© 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as
permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
11–26
Distributing Authority
• Authority
 Power that has been legitimized by the organization.
• Delegation
 The process by which managers assign a portion of
their total workload to others.
• Reasons for Delegation
 To enable the manager to get more work done by
utilizing the skills and talents of subordinates.
 To foster development of subordinates by having
them participate in decision making and problem
solving.
© 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as
permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
11–27
11.4
Steps in the Delegation Process
© 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as
permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
11–28
Problems in Delegation
• Manager
 Reluctant to delegate.
 Disorganization
prevents planning work
in advance.
 Subordinate’s success
threatens superior’s
advancement.
 Lack of trust in the
• Subordinate
 Reluctant to accept
delegation for fear of
failure.
 Perceives no rewards
for accepting additional
responsibility.
 Prefers to avoid any
risk and responsibility.
subordinate to do well.
© 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as
permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
11–29
Decentralization and Centralization
• Decentralization
 Systematically delegating power and authority
throughout the organization to middle- and
lower-level managers.
• Centralization
 Systematically retaining power and authority
in the hands of higher-level managers.
© 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as
permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
11–30
Factors in the Choice of Centralization
Organization’s
Centralization Choice
External
environment’s
complexity and
uncertainty
History of the
organization
© 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as
permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Nature
(cost and risk)
of decisions to
be made
11–31
Coordinating Activities
• Coordination
 The process of linking the activities of the various
departments of the organization.
• The Need for Coordination
 Where departments and work groups are
interdependent; the greater the interdependence,
the greater the need for coordination.
© 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as
permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
11–32
Coordinating Activities:
Forms of Interdependence
• Pooled interdependence
 When units operate with little interaction; their output
is simply pooled at the organizational level.
• Sequential interdependence
 When the output of one unit becomes the input of
another unit in sequential fashion.
• Reciprocal interdependence
 When activities flow both ways between units.
© 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as
permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
11–33
Major Forms of Interdependence
Sequential
Input
Reciprocal
Output
Input Output
Input Output
Pooled
Input
Input
Output
Input
© 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as
permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Input
Output
11–34
Structural Coordination
Management
Hierarchy
Rules and
Procedures
Task
Forces
Structural
Coordination
Techniques
Managerial Liaison
Roles
© 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as
permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Integrating
Departments
Electronic
Coordination
11–35
Structural Coordination Techniques
• The Managerial Hierarchy
 Placing one manager in charge of
interdependent departments or units.
• Rules and Procedures
 Routine coordination of activities using rules and
procedures that set priorities and guidelines for
actions.
• Managerial Liaison Roles
 A manager coordinates interdependent units by
acting as a common point of contact, facilitating
the flow of information.
© 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as
permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
11–36
Structural Coordination… (cont’d)
• Task Forces
 Used with multiple units when coordination is
complex, requiring more than one individual and the
need for coordination is acute.
 Disbanded when need for coordination has been met.
• Integrating Departments
 Permanent organizational units that maintain internal
integration and coordination on an ongoing basis.
 May have authority and budgetary controls.
• Electronic Coordination
 E-mail, electronic scheduling, PDAs, cell phones
© 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as
permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
11–37
Differentiating Between Positions
• Line Positions
 Positions in the direct chain of command responsible for the
achievement of an organization’s goals.

Have formal (legitimate) authority.
• Staff Positions
 Positions intended to provide expertise, advice, and support to
line positions.


Have advisory authority; can give compulsory advice.
Have functional authority to enforce compliance with organizational
policies and procedures.
• Administrative Intensity
 The degree to which managerial positions are concentrated in
staff positions.
© 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as
permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
11–38
KEY TERMS
•
•
•
•
•
•
•
•
•
•
•
•
•
organizing
organization structure
job design
job specialization
job rotation
job enlargement
job enrichment
job characteristics approach
work teams
departmentalization
functional departmentalization
product departmentalization
customer departmentalization
•
•
•
•
•
•
•
•
•
•
•
•
•
location departmentalization
chain of command
span of management
authority
delegation
centralization
coordination
pooled interdependence
sequential interdependence
reciprocal interdependence
line position
staff position
administrative intensity
© 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as
permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
11–39