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AUTHORITY & CONTROL

AUTHORITY & CONTROL. CHAPTER 3. Ezgi – Yeliz – Gökhan – Ayşe – Gökçe. AUTHORITY: Authority is the right or power delegated to people in an organization to make decisions, act, and direct the others to act. ACCOUNTABILITY: Accountability is the answerability of an employee to his or her boss.

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AUTHORITY & CONTROL

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  1. AUTHORITY & CONTROL CHAPTER 3 Ezgi – Yeliz – Gökhan – Ayşe – Gökçe

  2. AUTHORITY: Authority is the right or power delegated to people in an organization to make decisions, act, and direct the others to act. ACCOUNTABILITY: Accountability is the answerability of an employee to his or her boss. Ezgi – Yeliz – Gökhan – Ayşe – Gökçe

  3. ORGANIZATIONAL CHART ACCOUNTABILITY AUTHORITY Ezgi – Yeliz – Gökhan – Ayşe – Gökçe

  4. HIERARCHY: Hierarchy is the number of levels of authority within an organization. • THE EMERGENCE OF HIERARCHY: An organization’s hierarchy begins to emerge when the organization experiences problems in coordinating and motivating employees. As an organization grows, employees increase in number and begin to specialize, performing widely different kinds of tasks; the level of differentiation increases; and coordinating employees’ activities becomes more difficult. Ezgi – Yeliz – Gökhan – Ayşe – Gökçe

  5. Flat Structure Tall Structure Ezgi – Yeliz – Gökhan – Ayşe – Gökçe

  6. SIZE AND HEIGHT LIMITATIONSThe increase in the size of the managerial component in an organization is less than proportional to the increase in size of the organization as it grows. Ezgi – Yeliz – Gökhan – Ayşe – Gökçe

  7. Ezgi – Yeliz – Gökhan – Ayşe – Gökçe

  8. STARRING • Human Resources Manager “Gökhan ÜNNÜ” • Human Resources Assistant “Nazlı Ayşe AYYILDIZ” • Human Resources Personnel • Ezgi DUMAN • Gökçe ERTİN • Yeliz AYANGİL Ezgi – Yeliz – Gökhan – Ayşe – Gökçe

  9. PROBLEMS WITH TALL HIERARCHIES • COMMUNICATION PROBLEMS • MOTIVATION PROBLEMS • BUREAUCRATIC COSTS Ezgi – Yeliz – Gökhan – Ayşe – Gökçe

  10. Parkinson's law: ‘Work always expands to take the time allowed.’ Itmeans that tasks may take longer than the estimated time, but they almost never take less. When the hierarchical level becomes a status tool,subordinates tend to expand their work to fill the time available. The Parkinson’s Law Problem Ezgi – Yeliz – Gökhan – Ayşe – Gökçe

  11. The Minimum Chain of Command Chain of Command is an unbroken line of authority that links all people in the organization and shows who reports to whom.Unity of Command means that each employee is held accountable to only one supervisor.According to the Min. Chain of Command, organization should choose the min. number of hierarchical levels consistent with its goals. Ezgi – Yeliz – Gökhan – Ayşe – Gökçe

  12. Span of Control Span of Control is the number of subordinates a manager directly manages. • The greater the managers’ and the subordinates’ expertise, the broader an effective span of control can be. • When the tasks are complex and dissimilar, a manager’s span of control needs to be narrow. Ezgi – Yeliz – Gökhan – Ayşe – Gökçe

  13. ceo ceo M M M M M M M S S S S S S S S S S S S S S S S S S S S Ezgi – Yeliz – Gökhan – Ayşe – Gökçe

  14. Horizontal Differentiation • Horizontol Differentiation leads to the emergence of specialized subunits. • Each subunit has its own hierarchical level under the principle of ‘ Min. Chain of Command’. Ezgi – Yeliz – Gökhan – Ayşe – Gökçe

  15. Centralization • Centralization means that decision authority is located near the top of the organization. • As the organizational hierarchy becames taller and the number of managers increases, communication and coordination problems grow. When this happens, the organization loses sight of its goals. • A solution to the problem of too many managers and levels is to decentralize authority. • With decentralization less direct managerial supervision is needed. Ezgi – Yeliz – Gökhan – Ayşe – Gökçe

  16. Standardization • Managers can gain control over organizational activities by standardizing work activities to make them predictable. • Organizations standardize activities by creating detailed work rules and by socializing employees to organizational norms and values. • Standardization also allows upper-level managers to delegate responsibilities more confidently when subordinates have clearly specified procedures to follow. Ezgi – Yeliz – Gökhan – Ayşe – Gökçe

  17. THE PRINCIPLES OF BUREAUCRACY • Max Weber (1864-1920), a German sociologist, developed principles for designing a hierarchy so that it effectively allocates decision-making authority and control over resources. • Bureaucracy is a form of organizational structure in which people can be held accountable for their actions because they are required to act in accordance with well-specified rules and standard operating procedures. Ezgi – Yeliz – Gökhan – Ayşe – Gökçe

  18. Principle OneA bureaucracy is founded on the concept of rational-legal authority. • Rational-legal authority is the authority a person possesses because of his or her position in an organization. • We obey a policeman not because he wears an impressive uniform and carries a gun but because he holds the position of policeman, which brings with it certain powers, rights, and responsibilities that compel obedience. Ezgi – Yeliz – Gökhan – Ayşe – Gökçe

  19. Principle TwoOrganizational roles are held on the basis of technical competence, not because of social status, kinship, or heredity. • In a well-designed hierarchy, roles are occupied by people because they can do the job, not because of whom they are or whom they know.

  20. Principle ThreeA role’s task responsibility and decision-making authority and its relationship to other roles in the organization should be clearly specified. • Clear specification of roles avoids many problems that can arise when people interact. Such as: • Role conflict • Role ambiguity Ezgi – Yeliz – Gökhan – Ayşe – Gökçe

  21. Role Conflict • It occurs when two or more people have different views of what a person should do and as a result, make conflicting demands on the person. • For example: The sales manager wants a strategy based on direct mail while your advertising manager prefers you to use radio and TV. Ezgi – Yeliz – Gökhan – Ayşe – Gökçe

  22. How to overcome role conflict? • The solution is easy: • The principle of reporting to a single boss, termed unity of command in classical works is a good one but often it is out of reach in most organizations. Ezgi – Yeliz – Gökhan – Ayşe – Gökçe

  23. Role Ambiguity • The uncertainty that occurs for a person whose tasks or authority are not clearly defined. • Role ambiguity has further been found to be correlated with • decreased motivation, • decrease in quality of work life, • decrease in organizational commitment, • increase in withdrawal behaviors Ezgi – Yeliz – Gökhan – Ayşe – Gökçe

  24. Effects Of Role Conflict & Role Ambiguity Role Conflict Role Ambiguity Tension Dissatisfaction Increase in turnover rates Ezgi – Yeliz – Gökhan – Ayşe – Gökçe

  25. To sum up: Role Clarity is a must: Moving from a state of role ambiguity to a state of role clarity has been described as role clarification. Organizational conditions significantly contribute to role ambiguity. Such as: • organizational complexity • rapid organizational change • managerial philosophies about communications. Ezgi – Yeliz – Gökhan – Ayşe – Gökçe

  26. Principle Four The organization of roles in a bureaucracy is such that a lower office in the hierarchy is under the control and supervision of a higher office. Ezgi – Yeliz – Gökhan – Ayşe – Gökçe

  27. Principle Five Rules, standard operating procedures and norms should be used to control the behavior and the relationship between roles in a organization.  Rules: Formal written instructions that specify a series of actions to be taken to achieve a given end.  Norms: Unwritten standards of behavior that govern how people act and lead the others. Ezgi – Yeliz – Gökhan – Ayşe – Gökçe

  28. Principle Six Administrative acts, decisions and rules should be formulated and put in writing. Ezgi – Yeliz – Gökhan – Ayşe – Gökçe

  29. The Advantages Of Bureaucracy • There is no question about each person’s role in the organization. • Individuals can be held accountable for what they do. This will reduce the transaction costs. • The specification of roles and the use of norms, rules decrease the costs associated with monitoring the work of subordinates. • Increases integration and coordination. • Fosters differantiation, increases the organization’s core competencies and improves the ability to compete in the market. Ezgi – Yeliz – Gökhan – Ayşe – Gökçe

  30. Why is bureaucracy considered a “dirty word” by some people? Ezgi – Yeliz – Gökhan – Ayşe – Gökçe

  31. THE INFLUENCE OF THE INFORMAL ORGANIZATION • The importance of understanding the way in which the network of personal relationships that develops over time in an organization, in which is known as the informal organization, affects the way the formal hierarchy works is illustrated in the following Organizational Insight. Ezgi – Yeliz – Gökhan – Ayşe – Gökçe

  32. Dysfuntions of The Informal Organizations • Conflicting objectives • Restriction of output • Conformity • Blocking of ambition • Inertia • Resistance to change Ezgi – Yeliz – Gökhan – Ayşe – Gökçe

  33. Functions of Informal Organizations • Makes for a more effective total system • Lightens the workload on management • Fills in gaps in manager’s abilities • Provides a safety valve for employee emotions • Improves communication Ezgi – Yeliz – Gökhan – Ayşe – Gökçe

  34. Salient Dimensions • Technical • Sociotechnical • Social Ezgi – Yeliz – Gökhan – Ayşe – Gökçe

  35. RESTRUCTURING THE ORGANIZATION • Restructring: The process by which managers change task and authority relationships to improve organizational effectiveness. Ezgi – Yeliz – Gökhan – Ayşe – Gökçe

  36. Downsizing • Empowerment • Self-managed teams • Contingent workers Ezgi – Yeliz – Gökhan – Ayşe – Gökçe

  37. Downsizing: The process by which managers examine the organizational hierarchy and lay of managers and workers to reduce bureaucratic costs. • Empowerment: The process of giving employees troughout an organization the authority to make important decisions and to be responsible for their customers. Ezgi – Yeliz – Gökhan – Ayşe – Gökçe

  38. Self-managed teams: Work groups consisting of people who are jointly responsible for ensuring that the team accomplishes its goal and who lead themselves. • Contingent workers: Workers who are employed for temporary periods by an organization and who receive no indirect benefits such as health insurance or pensions. Ezgi – Yeliz – Gökhan – Ayşe – Gökçe

  39. 13-01-1198 Ezgi DUMAN • 13-01-1200 Yeliz AYANGİL • 13-01-1202 Gökhan ÜNNÜ • 13-01-1221 Nazlı Ayşe AYYILDIZ • 13-01-1237 Gökçe ERTİN

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