basic elements of organizing

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Basic Elements of OrganizingBasic Elements of Organizing

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In this chapter you will learnIn this chapter you will learn

• Definition of Organizing

• Definition of organizational structure

• The Elements of Organizing

• 1. Designing Jobs– Job Specialization– Benefits and Limitations of

Specialization– Alternatives to Specialization

2. Grouping Jobs: Departmentalization– Rationale – Common Bases and advantage and

disadvantages of each base

3. Establishing Reporting Relationships– Chain of Command– Narrow Versus Wide Spans– Tall Versus Flat Organizations– Determining the Appropriate SOC

• Definition of Organizing

• Definition of organizational structure







4. Distributing Authority– The Delegation Process– Decentralization and Centralization

5. Coordinating Activities– The Need for Coordination– Structural Coordination Techniques

6. Differentiating Between Positions– Differences Between Line and Staff– Administrative Intensity




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The Elements OrganizingThe Elements 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.

• 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.

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Hierarchical OrganisationIn a hierarchical organisation employees are ranked at various levels within the organisation, each level is one above the other. At each stage in the chain, one person has a number of workers directly under them, within their span of control.

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Macquarie's six business Groups

Macquarie's organizational approach is designed to be non-hierarchical. Management of the organization is largely delegated to the Executive Committee, a central group comprising the Chairman, Managing Director, Deputy Managing Director, Head of Risk Management and heads of the Bank's six major business Groups.Within overall guidelines and specific parameters set by the Board and Executive Committee, the six business Groups have substantial discretion in the conduct of their various businesses. Business activities are carried out by Divisions, which focus on particular products and markets. Outside the major business Groups is a specialist business, Macquarie Direct Investment, which is responsible for managing the Bank's private equity activities.

Macquarie Bank - Organisation Structure

http://www.macquarie.com.au/au/about_macquarie/company_profile/mgmt_organisation/six_groups.htm

11–6

Basic elements organizingBasic elements organizing

– Job DesigningJob Designing

– DepartmentalizationDepartmentalization

– Reporting Reporting RelationshipsRelationships

– Distribution of Distribution of Authority Authority

– CoordinationCoordination

– DifferentiationDifferentiation

– Job DesigningJob Designing

– DepartmentalizationDepartmentalization

– Reporting Reporting RelationshipsRelationships

– Distribution of Distribution of Authority Authority

– CoordinationCoordination

– DifferentiationDifferentiation

Basic Elements of Organizing

1-Job Design 2- Departmentalization

3- Reporting Relationship 4- Distributing Authority

5- Coordination 6- Differentiation

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Designing JobsDesigning Jobs

• What is ‘Designing Jobs’?• How would you design jobs for an entire

organization?• Define ‘Job Specialization - JS’?• What are the benefits of JS?• What are the limitations of JS?• Define the following terms:

– Job Rotation– Job Enlargement– Job Enrichment– Team work– Job- Characteristics Approach

• What is ‘Designing Jobs’?• How would you design jobs for an entire

organization?• Define ‘Job Specialization - JS’?• What are the benefits of JS?• What are the limitations of JS?• Define the following terms:

– Job Rotation– Job Enlargement– Job Enrichment– Team work– Job- Characteristics Approach

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Job DesignJob Design

Determination of an individual’s work-related responsibilities.

Determination of an individual’s work-related responsibilities.

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Job Specialization (Division of Job Specialization (Division of Labor)Labor)

The degree to which the

overall task of the organization is broken down and

divided into smaller component parts

The degree to which the

overall task of the organization is broken down and

divided into smaller component parts

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Making a nail dilemma?Making a nail dilemma?• How many tasks does it

take to make a nail?– 18

• How many nails can one worker make in a day, if he/she is doing all the tasks?– 20

• How many nails can be made by 20 workers?– 20 * 20 = 400 nails

• How many tasks does it take to make a nail?– 18

• How many nails can one worker make in a day, if he/she is doing all the tasks?– 20

• How many nails can be made by 20 workers?– 20 * 20 = 400 nails

• How many steps does it take to make a nail?– 18

• How many nails can one worker process in a day, if he/she is specialized in one task one?– 5000

• How many nails by 20 workers?– 20 * 5000 = 100,000 nails

• How many steps does it take to make a nail?– 18

• How many nails can one worker process in a day, if he/she is specialized in one task one?– 5000

• How many nails by 20 workers?– 20 * 5000 = 100,000 nails

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Adam Smith’s ExampleAdam Smith’s Exampleof Job Specializationof 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

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

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+ & - Job Specialization+ & - Job Specialization

Benefits•Proficient•Transfer time •Specialized equipment •Replacement

Limitations•Boredom and dissatisfaction •Anticipated benefits do not always occur.

Benefits•Proficient•Transfer time •Specialized equipment •Replacement

Limitations•Boredom and dissatisfaction •Anticipated benefits do not always occur.

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Alternatives to Job SpecializationAlternatives to Job Specialization

•Job Rotation•Job Enlargement•Job Enrichment•Team Work •Job Characteristics Approach

•Job Rotation•Job Enlargement•Job Enrichment•Team Work •Job Characteristics Approach

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Classify the following into: Work Teams, Job Classify the following into: Work Teams, Job Enrichment, Job Enlargement and Job Enrichment, Job Enlargement and Job Rotation.Rotation.

• An operator has four different jobs. He spends three weeks on each of these jobs and then starts the cycle over again with the first job of the operation.

• Sulma’s job is a data entry operator. Her job has been redesigned and now she also has a higher level responsibility in the PR. Now she is also responsible to reply customers complaints.

• Fatima is a typist for the sales section. Her job has been redesigned to include typing for the advertising section as well.

• Ahmed, Sulman and Ali are working as a group. They have the full autonomy to design the work system that they will use to perform an interrelated set of tasks.

• An operator has four different jobs. He spends three weeks on each of these jobs and then starts the cycle over again with the first job of the operation.

• Sulma’s job is a data entry operator. Her job has been redesigned and now she also has a higher level responsibility in the PR. Now she is also responsible to reply customers complaints.

• Fatima is a typist for the sales section. Her job has been redesigned to include typing for the advertising section as well.

• Ahmed, Sulman and Ali are working as a group. They have the full autonomy to design the work system that they will use to perform an interrelated set of tasks.

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Alternatives to SpecializationAlternatives to Specialization

• Job Rotation– Systematically moving employees from one job to another in

an attempt to reduce employee boredom. Most frequent use today is as a training device for skills and flexibility.

• Job Enlargement– An increase in the total number of tasks workers perform.

• Job Enrichment– Increasing both the number of tasks the worker does and the

control the worker has over the job.

• Job Rotation– Systematically moving employees from one job to another in

an attempt to reduce employee boredom. Most frequent use today is as a training device for skills and flexibility.

• Job Enlargement– An increase in the total number of tasks workers perform.

• Job Enrichment– Increasing both the number of tasks the worker does and the

control the worker has over the job.

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Alternatives to JSAlternatives to JS

• 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.

• 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.

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Alternatives to Specialization: Alternatives to Specialization: Job Characteristics Job Characteristics ApproachApproach

• Skill variety

• Task identity

• Task significance

• Autonomy

• Feedback

• Skill variety

• Task identity

• Task significance

• Autonomy

• Feedback

• The number of tasks a person does in a job.

• the extent to which the worker does a complete or identifiable portion of the total job

• the perceived importance of the task

• the degree of control the worker has over how the work is performed

• the extent to which the worker knows how well the job is being performed.

• The number of tasks a person does in a job.

• the extent to which the worker does a complete or identifiable portion of the total job

• the perceived importance of the task

• the degree of control the worker has over how the work is performed

• the extent to which the worker knows how well the job is being performed.

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Assess the jobs below using the dimensions of the job characteristics Assess the jobs below using the dimensions of the job characteristics approach approach * Assembly line operator responsible to put lids on the moving jam jars* Assembly line operator responsible to put lids on the moving jam jars* A dentist* A dentist

Skills Variety Number of tasks is high Number of Tasks is limited

Tasks Identity Worker does a minute or unidentifiable portion of the total job

Worker does a complete or identifiable portion of the total job

Task Significance The perceived importance of the task is high

The perceived importance of the task is low

Autonomy The employee has low control over how the work is performed

The employee has high control over how the work is performed

Feedback The employee clearly and immediately knows how well the job is being performed.

It takes time for the employee to formally know well the job has been performed

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Assess the jobs below using the dimensions of the job characteristics Assess the jobs below using the dimensions of the job characteristics approach approach

* Assembly line operator responsible to put lids on the moving jars* Assembly line operator responsible to put lids on the moving jars

Skills Variety Number of Tasks is limited

Tasks Identity Worker does a minute or unidentifiable portion of the total job

Task Significance the perceived importance of the task is low

Autonomy The employee has low control over how the work is performed

Feedback It takes time for the employee to know well the job has been performed

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Assess the jobs below using the dimensions of the job characteristics Assess the jobs below using the dimensions of the job characteristics approach approach

* A dentist* A dentist

Skills Variety Number of tasks is high

Tasks Identity Worker does a complete or identifiable portion of the total job

Task Significance the perceived importance of the task is high

Autonomy The employee has high control over how the work is performed

Feedback The employee clearly and immediately knows how well the job is being performed.

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Which of the following job dimensions will lead the Which of the following job dimensions will lead the dentist to experience the specified psychological dentist to experience the specified psychological state state

• The dentist will experience meaningfulness of his work because his job includes

a) High skills varietyb) High task identityc) High task significanced) High Autonomye) High Feedback

• The dentist will experience that he/she is responsible for the work done because his/her job is designed with


• The dentist will experience meaningfulness of his work because his job includes


• The dentist will experience that he/she is responsible for the work done because his/her job is designed with


• The dentist will experience that he/she has knowledge of the actual results of his/her activities because his/her job is designed witha) High skills variety

b) High task identity

c) High task significance

d) High Autonomy

e) High Feedback

• The dentist will experience that he/she has knowledge of the actual results of his/her activities because his/her job is designed witha) High skills variety

b) High task identity

c) High task significance

d) High Autonomy

e) High Feedback

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Matching the person & the jobMatching the person & the job• You have been asked to design jobs

for the following job candidates. Use the Job Characteristics Approach to design the jobs.

– Jassim is highly motivated, exercises self control, fast learner ,independent and is a risk taker. He is always on the look for new challenges.

– Abullah is a reserved person, who likes to be told what to do and strictly follows the orders. He is risk averse.

• Whom would you describe as a person who is eager to grow. In other words who has strong desire to develop, and expand his capabilities.

– (a) Jassim– (b) Abullah

• You have been asked to design jobs for the following job candidates. Use the Job Characteristics Approach to design the jobs.

– Jassim is highly motivated, exercises self control, fast learner ,independent and is a risk taker. He is always on the look for new challenges.

– Abullah is a reserved person, who likes to be told what to do and strictly follows the orders. He is risk averse.

• Whom would you describe as a person who is eager to grow. In other words who has strong desire to develop, and expand his capabilities.

– (a) Jassim– (b) Abullah

• Would you design a job for Jassim that is high on the five core dimensions of the job characteristics approach.

(a) Yes(b) No

• Would it be right to describe Jassim as person who has high growth needs.

(a) Yes(b) No

• Would you describe the job that you would design for Jassim as

– (a) strong on all five dimensions of the job characteristics approach

– (b) Low on all five dimensions of the job characteristics approach

• Would you design a job for Jassim that is high on the five core dimensions of the job characteristics approach.

(a) Yes(b) No

• Would it be right to describe Jassim as person who has high growth needs.

(a) Yes(b) No

• Would you describe the job that you would design for Jassim as

– (a) strong on all five dimensions of the job characteristics approach

– (b) Low on all five dimensions of the job characteristics approach

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Job Job Characteristics Characteristics

ApproachApproach

Core jobdimensions

Personal andwork outcomes

Criticalpsychologicalstates

Experiencedresponsibilityfor outcomesof the work

• Skill variety• Task identity• Task significance

• Autonomy

• FeedbackKnowledge of theactual results ofwork activities

Employeegrowth-needstrength

• High internalwork motivation

• High-quality workperformance

• High satisfactionwith the work

• Low absenteeismand turnover

Experiencedmeaningfulnessof the work

11–25

Grouping Jobs: Grouping Jobs: DepartmentalizationDepartmentalization

• 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.

• 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.

11–26

Building Block 2: Grouping Jobs: Departmentalization

• What is Departmentalization?

• From the facts below, draw an organization chart for Apex Computers. Specify the departmentalization bases for each hierarchical level.

Apex computers has two divisions for its main products, Computers and software. Manufacturing, Finance an Marketing are the departments in the Computers division. The Software division is has Marketing, Finance and Design departments. The Design department has two sections, Saudi Arabia and Bahrain. The Manufacturing Department has two sections, UEA and Oman. The Marketing Department in the Computer Division has two sections, Industrial Sales and Consumer sales. The Consumer Sales section has five units, Saudi Arabia, UAE, Bahrain, Oman and Qatar.

• What is Departmentalization?

• From the facts below, draw an organization chart for Apex Computers. Specify the departmentalization bases for each hierarchical level.

Apex computers has two divisions for its main products, Computers and software. Manufacturing, Finance an Marketing are the departments in the Computers division. The Software division is has Marketing, Finance and Design departments. The Design department has two sections, Saudi Arabia and Bahrain. The Manufacturing Department has two sections, UEA and Oman. The Marketing Department in the Computer Division has two sections, Industrial Sales and Consumer sales. The Consumer Sales section has five units, Saudi Arabia, UAE, Bahrain, Oman and Qatar.

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Bases for Departmentalization: Apex ComputersBases for Departmentalization: Apex Computers

DesignMarketingMarketing

Computers

President

Software

Manufac-turing

FinanceFinance

OmanUAE

Consumer sales

Industrial sales

BahrainSaudi Arabia

UAE Oman QatarSaudi Arabia

Bahrain

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Functional DepartmentalizationFunctional Departmentalization

• Advantages– experts.– Supervision is facilitated – Coordination

• Advantages– experts.– Supervision is facilitated – Coordination

• Disadvantages– slow and bureaucratic.– narrow focus – Accountability

• Disadvantages– slow and bureaucratic.– narrow focus – Accountability

•Is the grouping of jobs involving the same or similar activities.

•Is the grouping of jobs involving the same or similar activities.

11–30

Product Departmentalization Product Departmentalization FormForm

• Advantages– All in one– Speed and effectiveness – Performance assessment

• Advantages– All in one– Speed and effectiveness – Performance assessment

• Disadvantages– Product focus.– Administrative costs

• Disadvantages– Product focus.– Administrative costs

• Product Departmentalization

– The grouping of activities around products or product groups.

• Product Departmentalization

– The grouping of activities around products or product groups.

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Customer DepartmentalizationCustomer Departmentalization

• Customer Departmentalization– Grouping activities to respond to and interact with specific

customers and customer groups.

• Advantage– Skilled specialists can deal

with unique customers orcustomer groups.

• Disadvantage– A large administrative staff

is needed to integrate activities of various departments.

• Customer Departmentalization– Grouping activities to respond to and interact with specific

customers and customer groups.

• Advantage– Skilled specialists can deal

with unique customers orcustomer groups.

• Disadvantage– A large administrative staff

is needed to integrate activities of various departments.

11–32

Location DepartmentalizationLocation Departmentalization

• Location Departmentalization– The grouping of jobs on the basis of defined

geographic sites or areas.

• Advantage– Quick response

• Disadvantage– Large administrative

• Location Departmentalization– The grouping of jobs on the basis of defined

geographic sites or areas.

• Advantage– Quick response

• Disadvantage– Large administrative

Advantages and Disadvantages of Each Departmentalization BaseAdvantages and Disadvantages of Each Departmentalization Base

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Functional Product Customer Location Advantage (+) and Disadvantage (-)

+The department can be staffed with experts in the functional areas

+Supervision is facilitated as each individual manager has to deal with relatively narrow set of skills

+ All activities associated with a specific product or product group are easily integrated and coordinated. Therefore, the speed and effectiveness of decision making regarding a specific products is enhanced

+ All activities associated with a customers are easily integrated and coordinated. Therefore, the speed and effectiveness of decision making regarding a specific customers is enhanced as skilled specialists can deal with unique customers or customer groups.

+ All activities associated with a specific geographical areas are easily integrated and coordinated. Therefore, the speed and effectiveness of decision making regarding a specific geographical area is enhanced

+ the performance of individual products or product groups can be assessed more easily and objectively

-Accountability and performance becomes more difficult to measure

+Quick response to the specific needs of customers in a specific geographical area

-As the organization grows, decision making tend to become slower and more bureaucratic

-narrow focus as employees tend to concentrate on their own unit rather than the total organization

- A large administrative staff is needed to integrate activities of various departments.

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Other Forms of Other Forms of Departmentalization:Departmentalization:

•Time

•Sequence

•Time

•Sequence

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Other ConsiderationsOther Considerations

•Sometimes departments are called something different, such as:– Division.– Units.– Section.– Bureaus.

•Sometimes departments are called something different, such as:– Division.– Units.– Section.– Bureaus.

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Establishing Reporting Establishing Reporting RelationshipsRelationships

• 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.

• 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.

11–37

Chain of CommandChain of CommandChain of CommandChain of Command

Unity of Command – one and only one boss

Scalar Principal – clear and unbroken line of authority extending from the bottom to the top

02-05-I200-SL

11–38

Span of Control (SOC)Span of Control (SOC)

Number of people who report to a particular manager

Number of people who report to a particular manager

02-12-I200-SL

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Span of ControlSpan of Control

Narrow Span of control

02-12-I200-SL

11–40

Span of ControlSpan of Control

Narrow - Effective span of control

02-12-I200-SL

Narrow - Effective span of control

Narrow - Effective span of controlWide Span of Control

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Optimum Span of Control ?Optimum Span of Control ?

1 2 3 4 5

Supervisor

1 2 3 4 5

Supervisor

02-13-I200-SL

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? What is the optimum SOC? What is the optimum SOC

A. V. Graicunas

•Subordinate interactions

• I = N(2N/2 + N - 1)

A. V. Graicunas

•Subordinate interactions

• I = N(2N/2 + N - 1)

• Ralph Davis– Operative span for

lower-level managers up to 30 workers.

– Executive span for middle and top managers at 3 to 9.

• Al-Qosaibi– Refer to article

• Ralph Davis– Operative span for

lower-level managers up to 30 workers.

– Executive span for middle and top managers at 3 to 9.

• Al-Qosaibi– Refer to article

Highlight the appropriate type

Advantages (+) or Disadvantages (-)

Tall Organization

Flat Organization

- Expensive (Why?)

Tall Organization

Flat Organization

- Communication is relatively more difficult

Tall Organization

Flat Organization

+ leads to higher levels of employees moral and productivity

Tall Organization

Flat Organization

-Create more supervisory responsibility for managers due to the wider spans of control.

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Tall Versus Flat OrganizationsTall Versus Flat OrganizationsPresident

President

Tall Organization

Flat Organization

11–45

Establishing Reporting Establishing Reporting Relationships:Relationships:

Tall versus Flat OrganizationsTall versus Flat Organizations• Tall Organizations

– expensive

– communication problems

• What type of SOC is associated with tall organization?

• Tall Organizations– expensive

– communication problems


• Flat Organizations– higher levels of employee

morale and productivity

– Create more supervisory responsibility for managers due to wider spans of control.


• Flat Organizations– higher levels of employee

morale and productivity

– Create more supervisory responsibility for managers due to wider spans of control.


11–46

Determining the Appropriate Span:Determining the Appropriate Span:Factors Influencing the Span of Factors Influencing the Span of

ManagementManagement1. Competence of supervisor and subordinates - the greater the

competence, the (wider, narrower) the potential span.

2. Physical dispersion of subordinates - the greater the dispersion, the (narrower, wider) the potential span.

3. Extent of nonsupervisory work in a manager’s job - the more nonsupervisory work, the (narrower, wider) the potential span.

4. Degree of required interaction - the less required interaction, the (wider, narrower) the potential span.

5. Extent of standardized procedures -the more procedures, the (wider, narrower) the potential span.

6. Similarity of tasks being supervised - the more similar the tasks, the (wider, narrower) the potential span.

7. Frequency of new problems - the higher the frequency, the (narrower, wider) the potential span.

8. Preferences of supervisors and subordinates.

Table 11.1

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Determining the Appropriate Span:Determining the Appropriate Span:Factors Influencing the Span of Factors Influencing the Span of

ManagementManagement1. 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 a 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 nar-rower the potential span).

8. Preferences of supervisors and subordinates.

Table 11.1

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Distributing AuthorityDistributing 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.

• Temporary

• Reasons for Delegation– get more work done – development of subordinates

• Authority– Power that has been legitimized by the organization.

• Delegation– The process by which managers assign a portion of their

total workload to others.

• Temporary

• Reasons for Delegation– get more work done – development of subordinates

11–49

Steps in the Delegation ProcessSteps in the Delegation Process

Manager

Step 1Assigning

responsibility

Step 3Creating

accountability

Step 2Grantingauthority

Manager

Subordinate

Manager

Subordinate

ManagerManager

Subordinate

Figure 11.4

11–50

Steps in the Delegation ProcessSteps in the Delegation Process

Manager

Step 1Telling the subordinated

to do the job

Step 3Establishing

Obligation

Step 2Power

Manager

Subordinate

Manager

Subordinate

ManagerManager

Subordinate

11–51

Problems in DelegationProblems in Delegation

• Manager

– Reluctant to delegate

– Disorganized manager

– Threat

– Trust issue

• Manager

– Reluctant to delegate

– Disorganized manager

– Threat

– Trust issue

• Subordinate

– Fear of failure

– Avoidance of risk and responsibility

– no rewards

• Subordinate

– Fear of failure

– Avoidance of risk and responsibility

– no rewards

11–52

Decentralization and Decentralization and CentralizationCentralization

• Decentralization– The process of systematically delegating power

and authority throughout the organization to middle- and lower-level managers.

• Centralization– The process of systematically retaining power

and authority in the hands of higher-level managers.

• Factors Determining the Choice of Centralization– The complexity and uncertainty of the external environment.– The history of the organization.– The nature (cost and risk) of the decisions to be made.

• Decentralization– The process of systematically delegating power

and authority throughout the organization to middle- and lower-level managers.

• Centralization– The process of systematically retaining power

and authority in the hands of higher-level managers.

• Factors Determining the Choice of Centralization– The complexity and uncertainty of the external environment.– The history of the organization.– The nature (cost and risk) of the decisions to be made.

11–53

Coordinating ActivitiesCoordinating Activities

• Coordination

– The process of linking the activities of the various

departments of the organization.

• The Need for Coordination - Interdependence -

• Coordination

– The process of linking the activities of the various

departments of the organization.

• The Need for Coordination - Interdependence -

11–54

Coordinating Activities: Coordinating Activities: Three Major Forms of Three Major Forms of InterdependenceInterdependence

• When the output of one unit becomes the input of another unit in an ordered fashion.

a) Pooled interdependence

b) Sequential interdependence

c) Reciprocal interdependence

• When units operate with little interaction; their output is simply gathered at the organizational level.




• When the output of one unit becomes the input of another unit in an ordered fashion.




• When units operate with little interaction; their output is simply gathered at the organizational level.




• When activities flow both ways between units.




• When activities flow both ways between units.




11–55

Coordinating Activities:Coordinating Activities:Three Major Forms of Three Major Forms of

InterdependenceInterdependence• 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.

• 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.

11–56

InputInput OutputOutput

SequentialSequential

Three Major Forms of Three Major Forms of InterdependenceInterdependence

PooledPooled

InputInput

InputInput

InputInput

OutputOutput

OutputOutputInputInput

OutputOutputInputInputOutputOutputInputInput

ReciprocalReciprocal

In Kmart the nature of work in the Loading and

Unloading sections is highly interrelated

The nature of the Finance and Project Management

Department is acute

In Kmart, lunching a new product requires

temporary coordinating between many units

2 groups of employeesworking on different

shipments for thesame destination. One manager is

Acting as a point of contactbetween the two groups

In Kmart, everyone knows that the truck shipment

has priority over mail shipment

Structural Coordination Techniques

Coordination Techniques

Select the appropriate coordinating technique to each of the cases

1- Rules and Regulations- Routine coordination

activates can be handled via Rules and Regulations

2-Liaison Roles- A manager in a liaison

role coordinates interdependent units

3-Managerial Hierarchy – Placing one manager in

charge of two interdependent units

4- Integrating Department-Creating a permanent

department to coordinate between to highly interdependent units

5- Taskforce- Creating a temporary

taskforce to manage the coordination

11–58

Structural Coordination TechniquesStructural Coordination Techniques• Routine coordination activities can be

handled via formal predetermined steps that set priorities and guidelines for actions.a) The Managerial Hierarchyb) Rules and Proceduresc) Liaison Rolesd) Task Forcese) Integrating Departments

• Placing one manager in charge of interdependent departments or units.a) The Managerial Hierarchyb) Rules and Proceduresc) Liaison Rolesd) Task Forcese) Integrating Departments

• A manager coordinates interdependent units by acting as a common point of contact, facilitating the flow of information.a) The Managerial Hierarchyb) Rules and Proceduresc) Liaison Rolesd) Task Forcese) Integrating Departments

• Routine coordination activities can be handled via formal predetermined steps that set priorities and guidelines for actions.a) The Managerial Hierarchyb) Rules and Proceduresc) Liaison Rolesd) Task Forcese) Integrating Departments

• Placing one manager in charge of interdependent departments or units.a) The Managerial Hierarchyb) Rules and Proceduresc) Liaison Rolesd) Task Forcese) Integrating Departments

• A manager coordinates interdependent units by acting as a common point of contact, facilitating the flow of information.a) The Managerial Hierarchyb) Rules and Proceduresc) Liaison Rolesd) Task Forcese) Integrating Departments

• Used with multiple units when coordination is complex, requiring more than one individual, and the need for coordination is acute. This type of coordination is disbanded when the need for coordination has been met.

a) The Managerial Hierarchyb) Rules and Proceduresc) Liaison Rolesd) Task Forcese) Integrating Departments

• Permanent organizational units that maintain internal integration and coordination on an ongoing basis. It may have authority and budgetary controls.


• Used with multiple units when coordination is complex, requiring more than one individual, and the need for coordination is acute. This type of coordination is disbanded when the need for coordination has been met.


• Permanent organizational units that maintain internal integration and coordination on an ongoing basis. It may have authority and budgetary controls.


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Structural Coordination Structural Coordination TechniquesTechniques

• The Managerial Hierarchy– Placing one manager in charge of interdependent

departments or units.

• Rules and Procedures– Routine coordination activities can be handled via rules and

procedures that set priorities and guidelines for actions.

• Liaison Roles– A manager coordinates

interdependent units by acting as a common point of contact, facilitating the flow of information.

• The Managerial Hierarchy– Placing one manager in charge of interdependent

departments or units.

• Rules and Procedures– Routine coordination activities can be handled via rules and

procedures that set priorities and guidelines for actions.

• Liaison Roles– A manager coordinates

interdependent units by acting as a common point of contact, facilitating the flow of information.

11–60

Structural Coordination Structural Coordination Techniques (cont’d)Techniques (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 the 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.

• Task Forces– Used with multiple units when coordination

is complex requiring more than one individual and the need for coordination is acute.

– Disbanded when the 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.

Designing JobsJob SpecializationBenefits and Limitations of SpecializationAlternatives to Specialization

Rationale Common Bases Product Customer Location Functional

Chain of Command Unity of Command Scalar PrincipleSpan of ControlNarrow Versus Wide SpansTall Versus Flat Organizations

The Delegation ProcessDecentralization and Centralization

The Need for CoordinationTypes of CoordinationStructural Coordination Techniques

Differences Between Line and StaffAdministrative Intensity

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In this chapter you will learntIn this chapter you will learnt

• Definition of Organizing?• Definition of organizational structure







• Definition of Organizing?• Definition of organizational structure













basic elements of organizing

Documents

business activities

major business groups

specialist business

organization structurethe

job specialization js

entire organization

basic elements of organizing11

limitations of js