BUILDING BLOCKS OF ORGANIZING

1. BUILDING BLOCKS OF ORGANIZING 1. DESIGNING JOBS 2.GROUPING JOBS 3. ESTABLISHING REPORTING RELATIONSHIPS BETWEEN JOBS 4. DISTRIBUTING AUTHORITY AMONG JOBS 5. COORDINATING ACTIVITIES BETWEEN JOBS 6. DIFFERENTIATING BETWEEN JOBS

2. GROUPING TASKS INTO JOBS: JOB DESIGN • JOB SPECIALIZATION/DIVISION OF LABOR • BENEFITS OF SPECIALIZATION • 1. WORKERS PERFORMING SMALL, SIMPLE TASKS WILL B ECOME VERYPROFICIENT • AT THAT TASK. • 2. TRANSFER TIME BETWEEN TASKS DECREASES. • THE MORE NARROWLY DEFINED A JOB IS, THE EASIER IT IS TO DEVELOP SPECIALIZED • 3. EQUIPMENT TO ASSIST WITH THE JOBS. • IN THE CASE OF ABSENCE THE MANAGER IS ABLE TO TRAIN SOMEONE NEW AT • 4. RELATIVELY LOW COST • LIMITATIONS OF SPECIALIZATION • 1. WORKERS WHO PERFORM HIGHLY SPECIALIZED JOBS MAY BECOME BORED AND • DISSATISFIED THAT IT OFFERS NO CHALLENGE OR STIMULATION. • 2. THE ANTICIPATED BENEFITS OF SPECIALIZATION DO NOT ALWAYS OCCUR. • ALTERNATIVES TO SPECIALIZATION • JOB ROTATIONS • JOB ENLARGEMENT • JOB ENRICHMENT • WORK TEAMS

3. DIVISION OF LABOR: A SUMMARY DIVISION OF LABOR HIGH LOW HIGHLY GENERAL TASK HIGHLY SPECIALIZED TASK DEGREE OF SPECIALIZATION USUALLY SMALL ORGANIZATION USUALLY LARGE ORGANIZATION TYPICAL ORGZIZATION SIZE TENDS TO BE INEFFICIENT TENDS TO BE HIGHLY EFFICIENT ECONOMIC EFFICIENCY

4. ESTABLISHING REPORTING RELATIONSHIPS • CHAIN OF COMMAND • UNITY OF COMMAND • SPAN OF MANAGEMENT • CHOOSING THE SPAN. • A.V.GRAICUNAS • RALPH C.DAVIS. • LYNDALL F.URWICK. • PROBLEMS WITH ORGANIZATIONAL LEVELS. • LEVELS ARE EXPENSIVE • LEVELS COMPLICATE COMMUNICATION • LEVELS COMPLICATE PLANNING AND CONTROL. • FACTORS DETERMINING AN EFFECTIVE SPAN. • DETERMINING THE APPROPRIATE SPAN.

5. FLAT ORGANIZATION CEO FLAT HIERARCHY RELATIVELY WIDE SPAN OF CONTROL

6. TALL ORGANIZATION CEO TALL HIERARCHY RELATIVELY NARROW SPAN OF CONTROL

7. FACTORS DETERMINING AN EFFECTIVE SPAN 1. TRAINING OF SUBORDINATES 2. CLARITY OF DELEGATION OF AUTHORITY 3. CLARITY OF PLANS 4. USE OF OBJECTIVE STANDARDS 5. RATE OF CHANGE 6. COMMUNICATION TECHNIQUES 7. AMOUNT OF PERSONAL CONTACT NEEDED 8. VARIATION BY ORGANIZATIONAL LEVEL

8. DETERMINING THE APPROPRIATE SPAN 1. COMPETENCE OF SUPERVISOR AND SUBORDINATES 2. PHYSICAL DISPERSION OF SUBORDIANTES. 3. EXTENT OF NON-SUPERVISORY WORK IN MANAGER’S JOB 4. DEGREE OF REQUIRED INTERACTION 5. EXTENT OF STANADERIZED PROCEDURES. 6. SIMILARITY OF TASKS BEING SUPERVISED. 7. FREQUENCY OF NEW PROBLEMS 8. PREFERENCES OF SUPERVISORS AND SUBORDINATES

9. FACTORS INFLUENCING THE SPAN OF MANAGEMENT NARROW SPAN (A GREAT DEAL OF TIME SPENT WITH SUBORDIANTES) RELATED TO: WIDE SPAN (VERY LITTLE TIME SPENT WITH SUBORDIANTES) RELATED TO: THOROUGH SUBORDINATE TRAINING LITTLE OR NO TRAINING INADEQUATE OR UNCLEAR AUTHORITY DELEGATION CLEAR DELEGATION TO UNDERTAKE WELL-DEFINED TASKS UNCLEAR PLANS FOR NONREPETITIVE OPERATIONS WELL DEFINED PLANS FOR REPETITIVE OPERATIONS NONVERIFIABLE OBJECTIVES AND STANDARDS VERIFIABLE OBJECTIVES USED AS STANDARDS FAST CHANGES IN EXTERNAL AND INTERNAL ENVIRONMENTS SLOW CHANGES IN EXTERNAL AND INTERNAL ENVIRONMENTS

10. GROUPING JOBS: DEPARTMENTALAIZATION “THE PRACTICE OF GROUPING JOBS ACCORDING TO SOME LOGICAL ARRANGEMENTS” 1. DEPARTMENTATION BY SIMPLE NUMBERS 2. DEPARTMENTATION BY TIME 3. FUNCTIONAL DEPARTMENTATION 4. DEPARTMENTATION BY TERRITORY 5. CUSTOMER DEPARTMENTATION 6. PROCESS DEPARTMENTATION 8. DEPARTMENTATION BY PRODUCT

11. A FUNCTIONAL ORGANIZATION GROUPING PRESIDENT MARKETING ENGINEERING PRODUCTION FINANCE MARKET RESEARCH ENGINEERING ADMIN: PRODUCTION PLANNING FINANCIAL PLANNING MARKETING PLANNING PRELIMINARY DESIGN INDUSTRIAL ENGINEERING BUDGETS ADVERTISING ELECTRICAL ENGINNERING PRODUCTION ENGINEERING GENERAL ACCOUNTING SALES ADMIN: MECHANICAL ENGINEERING PURCHASING COST ACCOUNTING SALES HYDRAULIC ENGINEERING TOOLING STATISTICAL PROCESSING PACKAGING GENERAL PRODUCTION QUALITY CONTROL

12. ADVANTAGES AND DISADVANTAGES OF FUNCTIONAL DEPARTMENTALIZATION ADVANTAGES • IS A LOGICAL REFLECTION OF FUNCTIONS • MAINTAINS POWER AND PRESTIGE OF MAJOR FUNCTIONS • FOLLOWS PRINCIPLE OF OCCUPATIONAL SPECIALIZATION • SIMPLIFIES TRAINING • FURNISHES MEANS OF TIGHT CONTROL AT TOP DISADVANTAGES • DEEMPHASIS OF OVERALL COMPANY OBJECTIVES. • OVERSPECIALIZED AND NARROWS VIEWPOINTS OF KEY PERSONNEL. • REDUCES COORDINATION BETWEEN FUNCTIONS • RESPONSIBILITY FOR PROFITS IS AT THE TOP ONLY • SLOW ADAPTATION TO CHANGES IN ENVIRONMENT. • LIMITS DEVELOPMENT OF GENERAL MANAGERS

13. DEPARTMENTATION BY TERRITORY OR GEOGRAPHY PRESIDENT MARKETING PERSONNEL PURCHASING FINANCE CENTRAL REGION WESTERN REGION SOUTHWEST REGION SOUTHEAST REGION EASTERN REGION PERSONNEL ENGINEERING PRODUCTION ACCOUNTING SALES

14. ADVANTAGES AND DISADVANTAGES OF GEOGRAPHICAL DEPARTMENTALIZATION ADVANTAGES • PLACES RESPONSIBILITY AT A LOWER LEVEL • PLACES EMPHASIS ON LOCAL MARKETS AND PROBLEMS • IMPROVES COORDINATION IN A REGION • TAKES ADVANTAGES OF ECONOMIES OF LOCAL OPERATIONS • BETTER FACE-TO-FACE COMMUNICATION WITH LOCAL INTERESTS • FURNISHES MEASURABLE TRAINING GROUND FOR GENERAL MANAGERS DISADVANTAGES • REQUIRES MORE PERSONS WITH GENERAL MANAGER ABILITIES • TENDS OF MAKE MAINTENANCE OF ECONOMICAL CENTRL SERVICES DIFFICULT AND MAY REQUIRE SERVICES SUCH AS PERSONNEL OR PURCHASING AT THE REGIONAL LEVEL • INCREASES PROBLEM OF TOP MANAGEMENT CONTROL

15. CUSTOMER DEPARTMENTATION PRESIDENT COMMUNITY-CITY BANKING CORPORATE BANKING INSTITUTIONAL BANKING REAL ESTATES & MORTGAGE LOANS AGRICULTURAL BANKING

16. ADVANTAGES AND DISADVANTAGES OF CUSTOMER DEPARTMENTATION ADVANTAGES • ENCOURAGES CONCENTRATION ON CUSTOMER NEEDS • GIVES CUSTOMERS FEELING THAT THEY HAVE AN UNDERSTANDING SUPPLIER(BANKER) • DEVELOPS EXPERTENESS IN CUSTOMER AREA DISADVANTAGES • MAY BE DIFFICULT TO COORDINATE OPERATIONS BETWEEN COMPETING CUSTOMER DEMANDS • REQUIRES MANAGERS AND STAFF EXPERT IN CUSTOMERS’ PROBLEMS • CUSTOMER GROUPS MAY NOT ALWAYS BE CLEARLY DEFINED(FOR EXAMPLE, LARGE CORPORATE FIMS VS OTHER CORPORATE BUSINESSES)

17. PROCESS OR EQUIPMENT DEPARTMENTATION PRESIDENT ENGINEERING ENGINEERING ENGINEERING ENGINEERING ENGINEERING PUNCH PRESSES WELDING ELECTROPLATING

18. ADVANTAGES AND DISADVANTAGES OF PROCESS DEPARTMENTATION ADVANTAGES • ACHIEVES ECONOMIC ADVANTAGE • USES SPECIALIZED TECHNOLOGY • UTILIZES SPECIAL SKILLS • SIMPLIFIES TRAINING DISADVANTAGES • COORDINATION OF DEPARTMENTS IS DIFFICULT • RESPONSIBILITY FOR PROFIT IS AT THE TOP • IS UNSTUITABLE FOR DEVELOPING GENERAL MANAGERS

19. PRODUCT ORGANIZATION PRESIDENT GENERAL MANAGER ASSISTANT MANAGER ASSISTANT MANAGER ASSISTANT MANAGER PRODUCT GROUP 1 PRODUCT GROUP 2 PRODUCT GROUP 3 PRODUCTION PRODUCTION PRODUCTION SALES SALES SALES RESEARCH RESEARCH RESEARCH ACCOUNTING ACCOUNTING ACCOUNTING

20. DEPARTMENTATION BY PRODUCT PRESIDENT MARKETING PERSONNEL PURCHASING FINANCE INSTRUMENT DIVISION INDICATOR LIGHTS DIVISION INDUSTRIAL TOOLS DIVISION ELECTRONIC METER DIVISION ENGINEERING ACCOUNTING ENGINEERING ACCOUNTING PRODUCTION SALES PRODUCTION SALES

21. ADVANTAGES AND DISADVANTAGES OF CUSTOMER DEPARTMENTATION ADVANTAGES • PLACES ATTENTION AND EFFORT ON PRODUCT LINE • FACILITATES USE OF SPECIALIZED CAPITAL, FACILITIES, SKILLS AND KNOWLEDGE • PERMITS GROWTH AND DIVERSITY OF PRODUCTS AND SERVICES • IMPROVES COORDINATION OF FUNCTIONAL ACTIVITIES • PLACES RESPONSIBILITY FOR PROFITS AT THE DIVISION LEVEL • FURNISHES MEASURABLE TRAINING GROUND FOR GENERAL MANAGERS DISADVANTAGES • REQUIRES MORE PERSONS WITH GENERAL MANAGER ABILITIES • TENDS TO MAKE MAINTENANCE OF ECONOMICAL CENTRAL SERVICES DIFFICULT • PRESENTS INCREASED PROBLEM OF TOP MANAGEMENT CONTROL

22. MATRIX ORGANIZATION IN ENGINEERING DIRECTOR OF ENGINEERING CHIEF OF PRELIMINARY DESIGN CHIEF OF PRELIMINARY DESIGN CHIEF OF PRELIMINARY DESIGN CHIEF OF PRELIMINARY DESIGN PROJECT A MANAGER PROJECT B MANAGER PROJECT C MANAGER PROJECT D MANAGER

23. ADVANTAGES AND DISADVANTAGES OF MATRIX ORGANIZATION ADVANTAGES • IS ORIENTED TOWARD END RESULTS • PROFESSIONAL IDENTIFICATION IS MAINTAINED • PINPOINTS PRODUCT-PROFIT RESPONSIBILITY DISADVANTAGES • CONFLICT IN ORGANIZATION AUTHORITY EXISTS • POSSIBILITY OF DISUNITY OF COMMAND EXISTS • REQUIRES MANAGER EFFECTIVE IN HUMAN RELATIONS

24. PROJECT ORGANIZATION IN ENGINEERING DIRECTOR OF ENGINEERING PROJECT A MANAGER PROJECT B MANAGER PROJECT C MANAGER PROJECT D MANAGER PRELIMINARY DESIGN ELECTRICAL ENGINEER PRELIMINARY DESIGN ELECTRICAL ENGINEER MECHANICAL ENGINEER HYDRAULIC ENGINEER MECHANICAL ENGINEER HYDRAULIC ENGINEER METALLURGICAL ENGINEER METALLURGICAL ENGINEER

25. DISTRIBUTING AUTHORITY AMONG JOBS • POWER • AUTHORITY • RESPONSIBILITY • AUTHORITY & RESPONSIBILITY PARITY PRINCIPLE. • DELEGATION OF AUTHORITY. • DELEGATION HAS DUAL CHARACTERISTICS • KINDS OF DELEGATION • REASONS FOR DELEGATION • PROCESS OF DELEGATION • THE ART OF DELEGATION • PERSONAL ATTITUDES TOWARD DELEGATION • WHY MANGERS DO’T DELEGATE • GETTING MANAGERS TO DELEGATE • CENTRALIZATION VS DECENTRALIZATION • FACTORS DETERMINING THE DEGREE OF DECENTRALIZATION OF AUTHORITY • ADVANTAGES AND DISADVANTAGES OF DECENTRALIZATION.

26. REASONS FOR DELEGATION 1. TO ENABLE THE MANGERS TO GET MORE WORK DONE 2. SUBORDINATES HELP EASE THE MANAGER’S BURDEN BY DOING MAJOR PORTIONS OF THE ORGANIZATION’S WORK. 4. A SUBORDINATE MAY HAVE MORE EXPERTISE IN ADDRESSING A PARTICULAR PROBLEM THAN THE MANAGER DOES 5. DELEGATIN ALSO HELPS DEVELOP SUBORDINATES

27. PROCESS OF DELEGATION STEP 1 STEP 2 STEP 3 STEP 4 DETERMINING THE RESULTS EXPECTED FROM A POSITION ASSIGNING RESPONSIBILITY GRANTING AUTHORITY CREATING ACCOUNTABILITY MANAGER MANAGER MANAGER MANAGER SUBORDINATE SUBORDINATE SUBORDINATE SUBORDINATE

28. PERSONAL ATTITUDES TOWARD DELEGATION WHY MANAGER’S DON’T DELEGATE 1. RECEPTIVENESS 2. WILLINGNESS TO LET GO 3. WILLINGNESS TO LET OTHERS MAKE MISTAKES. 4. WILLINGNESS TO TRUST SUBORDINATES. 5. WILLINGNESS TO ESTABLISH AND USE BROAD CONTROLS. 1. TENDENCY OF HUMAN BEING TO WANT TO DO THINGS PERSONALLY 2. LACK OF ASSUMING THE MANAGERIAL ROLE WHEN PROMOTED TO THE MANAGERIAL RANKS 3. FEAR OF BEING EXPOSED 4. UNCONSIOUS ACCEPTANCE OF THE INDISPENSIBLE PERSON THEORY 5. DESIRE TO DOMINATE 6.UNWILLINGNESS TO ACCEPT RISKS 7. ATTITUDE THAT SUBORDINATES IS INCAPABLE OF USING AUTHORITY PROPERLY

29. GETTING MANAGERS OT DELEGATE 1. MAKE THE POTENTIAL DELEGATOR FEEL SECURE 2. REALIZE THE NEED FOR AND BELIEVE DEEPLY IN DELEGATION 3. ESTABLISHING A WORK CLIMATE FREE FROM FEAR AND FRUSTRATION. 4. TIE IN WITH INTELLIGENT PLANNING. 5. DETERMINE HOW THE DELEGATOR KEEPS A HAND IN DUTIES 6. DETERMINE WHAT TO DELEGATE AND PROVIDE ADEQUATE AUTHORITY. 7. CHOOSE THE DELEGATEE WISELY. 8. GIVE ASSISTANCE TO DELEGATOR

30. CENTRALIZED ORGANIZATION PRESIDENT VP SALES VP PRODUCTIION VP FINANCE PURCHASING COST RESEARCH STANDARD ENGINEERING PUBLIC RELATIONS MANAGER PLANT 1 MANAGER PLANT 2 MANAGER PLANT 3 MANAGER PLANT 4 DEPARTMENTS DEPARTMENTS DEPARTMENTS DEPARTMENTS

31. DECENTRALIZED ORGANIZATION PRESIDENT VP SALES VP PRODUCTION VP FINANCE MANAGER PLANT 1 MANAGER PLANT 2 MANAGER PLANT 3 MANAGER PLANT 4 PURCHASING PURCHASING PURCHASING PURCHASING ENGINEERING RESEARCH RESEARCH RESEARCH COST ENGINEERING COST COST STANDARDS COST STANDARDS ENGINEERING STANDARDS PUBLIC RELA DEPARTMENTS DEPARTMENTS DEPARTMENTS

32. FACTORS DETERMINING THE DEGREE OF DECENTRALIZATION OF AUTHORITY 1. COSTLINESS OF DECISION 2. DESIRE FOR UNIFORMITY OF POLICY 3. SIZE AND CHARACTER OF THE ORGANIZATION. 4. MANAGEMENT PHILOSOPHY 5. DESIRE FOR INDEPENDENCE 6. AVAILABILITY OF MANAGERS 7. CONTROL TECHNIQUES 8. BUSINESS DYNAMICS: THE PACE OF CHANGE

33. ADVANTAGES OF DECENTRALIZATION 1. RELIEVES TOP MANGEMENT OF SOME BURDEN OF DECISION MAKING AND FORCES UPPER LEVEL MANAGERS TO LET GO. 2. ENCOURAGES DECISION MAKING AND ASSUMPTION OF AUTHORITY AND RESPONSIBILITY. 3. GIVES MANAGERS MORE FREEDOM AND INDEPENDENCE IN DECISION MAKING. 4. PROMOTES ESTABLISHMENT AND USE OF BROAD CONTROLS WHICM MAY INCREASE MOTIVATION 5. MAKES COMPARISON OF PERFORMANCE OF DIFFERENT ORGANIZATIONAL UNITS POSSIBLE. 6. FACILITATES SETTING UP OF PROFIT CENTERS 7. FACILITATES PRODUCT DIVERSIFICATION 8. PROMOTES DEVELOPMENT OF GENRAL MANAGERS 9. AIDS IN ADAPTATION TO FAST-CHANGING ENVIRONMENT

34. LIMITATIONS OF DECENTRALIZATION 1. MAKES IT MORE DIFFICULT TO HJAVE A UNIFORM POLICY 2. INCREASE COMPLEXITY OF COORDINATION OF DECENTRALIZED ORGANIZATIONAL UNITS 3. MAY RESULT IN LOSS OF SOME CONTROL BY UPPER-LEVEL MANAGERS. 4. MAY BE LIMITED BY INADEQUATE CONTROL TECHNIQUES. 5.MAY BE CONSTRAINED BY INADEQUATE PLANNING AND CONTROL SYSTEMS. 6. CAN BE LIMITED BY THE AVAILABILITY OF QUALIFIED MANAGERS. 7. INVOLVES CONSIDERABLE EXPENSES FOR TARINING MANAGERS 8. MAY BE LIMITED BY EXTERNAL FORCES (NATIONAL LABOR UNIONS, GOVT CONTROLS, TAX POLICIES) 9. MAY NOT BE FAVORED BY ECONOMIES OF SCALE OF SOME OPERATIONS