Professional Documents
Culture Documents
-boundary-spanning role a job in which an individual acts as liaison between departments or organizations that are in frequent contact. c. REDUCING THE NEED FOR COORDINATION -creating slack resources -creating independent units
ORGANIZATIONAL DESIGN
-the decision-making process by which managers chose an organizational structure appropriate to the strategy for the organization and the environment in which members of the organization carry out that strategy.
DOWNSIZING a version of organizational restricting which results in decreasing the size of the organization and often results in a
flatter organizational structure; one way organizations convert to leaner, more flexible structures that can respond more readily to the pace of change in global markets. THE EFFECT OF DOWNSIZING as an increasing number of companies seek to remain competitive by cutting costs and reducing their workforces, more and more people are finding themselves out of their old jobs and in line for new ones
Division large organization department that resembles a separate business; may be devoted to making and selling specific products or servicing a specific market THREE PATTERNS OF PRODUCT / MARKET ORGANIZATION a. Division by product b. Division by geography generally used by service, financial, and other nonmanufacturing firms, as well as by mining and oil producing companies c. Division by customer - the organization is divided according to the different ways customers use products
C. MATRIX ORGANIZATION
Matrix Structure - an organizational structure in which employee reports to a both functional or division manager and to a project or group manager
INFORMAL ORGANIZATIONAL STRUCTURE - the undocumented and officially unrecognized relationships between
members of an organization that inevitably emerge out of the personal and group needs of employees
SOURCES OF POWER
1. Reward power power derived from the fact that one person, known as the influencer, has the ability to reward another person, known as an influence, for carrying out orders, which may be expressed or implied 2. Coercive power based on the influencers ability to punish the influencee for not meeting requirements, is the negative side of reward power. Punishment may range from a reprimand to loss of a job 3. Legitimate power power that exists when a subordinate or influencee acknowledges that that the influencer has a right or is lawfully entitled to exert influence within certain bounds; also called formal authority 4. Expert power based on the perception or belief that the influencer has some relevant expertise or special knwledge that the influencee does not 5. Referent power based on the influencees desire to identify with or imitate the influencer
Are sensitive to the source of their power. They keep their actions consistent with peoples expectations. Recognize the different costs, risks, and benefits of the five bases of power. They draw on whichever power base is appropriate to a particular situation or person. Appreciate that each of the five power bases has merit. They try to develop their skills and credibility so they can use whichever method is best.
4. 5. 6.
Possess career goals that allow them to develop and use power. They seek jobs that will build their skills, make people feel dependent on them, and employ a type of power with which they are comfortable. Act maturely and exercise self-control. They avoid impulsive and egotistical displays of their power, and they try not to be unnecessarily harsh on others around them. Understand that power is necessary to get things done. They feel comfortable using power.
AUTHORITY
A form of power often used more broadly to refer to a peoples ability to wield power as a result of qualities such as knowledge or titles such as judge.
FORMAL AUTHORITY
The type of power that we associate with organizational structure and management. THE BASIS OF FORMAL AUTHORITY 1. CLASSICAL VIEW. A classical view of authority is that authority originates at some very high level, and then is lawfully passed down from level to level. 2. ACCEPTANCE VIEW. Finds the basis of authority in the influencee rather than in the influencer. KINDS OF AUTHORITY 1. LINE AUTHORITY. The authority of those managers directly responsible, throughout the organizations chain of command, for achieving organizational goals. 2. STAFF AUTHORITY. The authority of those groups of individuals who provide line managers with advice and services. 3. FUNCTIONAL AUTHORITY. The authority of members of staff departments to control the activities of other departments as they relate to specific staff responsibilities.
DELEGATION
The act of assigning formal authority and responsibility for completion of specific activities to a subordinate. ADVANTAGES OF DELEGATION 1. Maximizes the effectiveness of employees 2. Speeds up decision making GUIDELINES FOR EFFECTIVE DELEGATION A. PREREQUISITES
a. THE MANAGERS WILLINGNESS TO GIVE EMPLOYEES FREEDOM TO ACCOMPLISH DELEGATED TASKS. This means letting them choose methods and solutions different from the ones the manager would have chosen. b. OPEN COMMUNICATION BETWEEN MANAGERS AND EMPLOYEES c. THE MANAGERS ABILITY TO ANALYZE SUCH FACTORS AS THE ORGANIZATIONS GOALS, THE TAKSS REQUIREMENTS, THE EMPLOYEES CAPABILITIES B. TASKS OF EFFECTIVE DELEGATION a. DECIDEWHICH TASKS CAN BE DELEGATED b. DECIDE WHO SHOULD GET THE ASSIGNMENT c. PROVIDE SUFFICIENT RESOURCES FOR CARRYING OUT THE DELEGATED TASKS d. DELEGATE THE ASSIGNMENT e. BE PREPARED TO RUN INTERFERENCE, IF NECESSARY f. ESTABLISH A FEEDBACL SYSTEM
1. Proximity to the market having the same person procure accounts, receive payments, and handle collections and renewals provides the customer with a more personalized level of Service 2. Local Knowledge an employees knowledge of the community can provide critical in the decision to grant a loan 3. Customer Acceptance and Knowledge Local employees are also possessed of a better understanding of a customers need due to local economic trends\ 4. Dealers Comfort dealers also feel more comfortable doing business with the person who will be servicing the dealers customer. FACTORS INFLUENCING DECENTRALIZATION 1. Environmental Influences markets characteristics, competitive pressures, and availability of materials 2. The Organizations Size and Growth rate 3. Other Characteristics of the Organization such as costliness of given decisions, top management preferences, the organizations culture, and abilities of lower-level managers OTHER CHARACTERISTICS OF THE ORGANIZATION a. The cost and risk associated with the decision b. An individual managers preference and confidence in employees c. The organizational culture d. The abilities of lower-level managers
JOB DESIGN
The division of an organizations work among its employees.
PLANNING PROCEDURES 1. Planning for future needs by deciding how many people with what skills the organization will need 2. Planning by future balance by comparing the number of needed employees to the number of present
employees who can be expected to stay with the organization 3. Planning for recruiting or laying off employees 4. Planning for the development of the employees to be sure the organization has a steady supply of experienced and capable personnel
B. RECRUITMENT
The development of a pool of job candidates in accordance with a human resource plan.
C. SELECTION
The mutual process whereby the organization decides whether or not to make a job offer and the candidate decides whether or not to accept it.
6. Physical examination ensures effective performance by applicant; protect other employees against diseases; establishes health record on applicant; protects firm against unjust workers compensation claims. 7. Job offer fills a job vacancy or position.
D. SOCIALIZATION OR ORIENTATION
A program designed to help employees fit smoothly into an organization.
2. FORMAL SYSTEMATIC APPRAISAL a formalized appraisal process for rating work performance, identifying those deserving raises or promotions, and identifying those in need of further training COMPENSATION the general idea is that the more responsibility a manager has, the more compensation he or should earn she