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  1. Organizing

  2. What does it seem that managers over-delegate responsibility or pawn off their jobs to people below them? • Who do you handle complaints form employee that they might have about upper management and how they are treated by them?

  3. How do you arrange people to do the things which they can do the best? • What is the average size of a group that managers manage?

  4. Previous slide was an organizational chart • Describes the arrangement of work positions within an organization (it reflect the formal or official organizational structure). • Different ways to organize.

  5. Rondell--high tech company with rapidly changing Tech. Frank was recently hired. Predecessor lasted 10 months and one before him took to drinking. Problem in ES.

  6. ES does pre-production lay out and design. Doc Reeves has many new ideas (over 900/year) and ES expected to modify pre-production changes quickly. Reeves underestimates time to implement.

  7. Sales delivery dates get set further behind. Sales complains about resolving disputes between ES and production

  8. Production complains about sloppy work in ES (Schwab). Forbus gets “a sack” for a Christmas present. Reason--costly delays that influenced customer satisfaction.

  9. What would you do with Rondell. Are the problems Forbus or the structure? Assume you are on the management team and will make a recommendation.

  10. Organizing in a team • Pretty much deciding how to break up the work and who does what. • Importantly, how to communicate and set up the work flow (who does what first). • Time components. • Allocating resources is not a significant issue.

  11. Big issue • Work collaboratively. • Specialize.

  12. Key Issues--Relevant to Rondell • Differentiation—the degree task are divided into subtasks and performed by specialized individuals • Task differentiation by what employees do • Cognitive differentiation by what employees think.

  13. Need for differentiation • Specialization of tasks • Devote resources towards critical needs such as technology, customer segments, or stakeholders. • Tied to Mission/strategy/operational plans

  14. How does Rondell do differentiation?

  15. Integration • Various parts of the organization cooperate and interact with each other • Human resources and material resources • Efficient use of materials and people

  16. HOW TO IMPROVE SUBSYSTEM Integration Rules and procedures Direct contact among managers Liaison roles Task forces Teams Matrix organizations

  17. Think about consequences if no integration.

  18. How does Rondell do integration?

  19. Management • Constantly addressing organizing in higher positions. Given goals how can we best allocate are material resources and human resources to meet those goals from efficiency perspective and from goal success perspective.

  20. In project teams • Task force model/teams is integration. Direct communication

  21. Functional structure • Groups together people with similar skills. • Rondell--research and engineering, production, and sales • Best when few product lines and competing demands for different products.

  22. Advantages (Expertise and efficiency) • Task assignments consistent with technical training. • Technical Problem solving. • Clear career paths. • Efficient use of resources time and cost within units.

  23. Disadvantages • Poor communication across functions • Too many problems get resolved at the top. • Loss of responsibility for getting product to market. • Self-centered viewpoints.

  24. Divisional structures • Groups people with diverse skills to work on the same product or with similar clients and customers.

  25. Advantages over functional • Improved coordination (integration) • Responsibility assigned for product/service. Greater customer satisfaction with product or service. • Greater flexibility to adapt to environmental changes.

  26. disadvantages • Divisions fight for resources • Loss of efficiencies (capital and human resources). (poor differentiation) • Lack of sharing of expertise across products. • New product development limited.

  27. movie • Done individually. • Does Chrysler have a divisional or functional design. Why was this design effective. How did this influence employee behavior?

  28. Overlay to create efficiencies • Larger Staff functions such as human resources or import/export • See page 10 Provide advice and support to line managers. • In reality it often does rules and constraints.

  29. New Trends • Increased delegation--distributing and entrusting work to others (empowerment). • Increased responsibility and accountability. • See page 214 of text for delegation. • Trust and accountability are key.

  30. Current Trends (cont) • Flatter organizations--wider spans of control and shorter chains of command.

  31. Wider spans of control associated with • Less controlling/ more empowerment • decentralized decision making push the decision making authority down to the lowest level possible.

  32. Example of company with new methods • Nucor See p. W 39

  33. Steel bars, sheets, joists and girders, decking, grinding balls, fasteners, prefab buildings, and bearings. Started with just steel bars. Recycled steel in Mini meels • 9 facilities in all • 7000 employees

  34. Think small in spite of growth • Flat organization with Wide spans of control • Delegation • Incentive systems

  35. layers • Top executives • General managers (by divisions) • Department supervisor • Supervisor • hourly employee • Example no shift supervisors just department supervisor

  36. incentives • Weekly between 80-150% base pay • annual if outstanding performance of company.

  37. Revisting Rondell • What should we do to get them to work together. Nothing is perfect. What could be done to improve the situation?

  38. Summary • Differentiation and integration • Examined different ways to differentiate and integrate. • Current trends toward employee empowerment/accountability. Promoting integration