Organizing. zWhat does it seem that managers overdelegate responsibility or pawn off their jobs to people below them. zWho do you handle complaints form.

Organizing

What does it seem that managers overdelegate 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.

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

L en S ym m esC on tro lle r

D ave S ch wabF ac to ry S u p er

R a lp h S im p sonE xec V P

D oc R eevesD ir. R esearch

F red R og ersD ep u ty D ir.

F ran k F orb u sE n g . S ervices

F ran k F orb u sD irec to r o f E n g in eerin g

R on P orte rV P S a les

B ill H u n tP res id en t

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.

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.

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.

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

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

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.

L en S ym m esC on tro lle r

D ave S ch wabF ac to ry S u p er

R a lp h S im p sonE xec V P

D oc R eevesD ir. R esearch

F red R og ersD ep u ty D ir.

P erson XE n g . S ervices

W h o wan ts th is job ?D irec to r o f E n g in eerin g

R on P orte rV P S a les

B ill H u n tP res id en t

Key definitions (p. 219)Organizing arranges people and

resources to work towards a goal.Organizational structure is the

system of tasks, reporting relationships and communication linkages.

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.

Big issueWork collaboratively.Specialize.

As a mid to upper level managerOrganizing is what you focus. How

do you get departments to work with each other.

Rather than focusing on people in a group, you focus on the departments.

Why importantPriorities of important areas. Those that

report directly to the President are most important for strategic purposes. Not all are equally important.

Working relationships (task flow) and communications effectiveness internally.

Managing external relationships with key stakeholders (customer).

Key Issues--Relevant to RondellDifferentiation--degree of difference

between subsystems in an organization

Time orientationObjectivesInterpersonal orientationFormal structure

Need for differentiationSpecialization of tasksDevote resources towards critical

needs such as technology, customer segments, or stakeholders.

Tied to Mission/strategy/operational plans

How does Rondell do differentiation?

IntegrationThe level of coordination achieved

among subsystemsHuman resources and material resourcesEfficient use of materials and peopleAvoid displacement of operational plans

over strategic plans.Be certain to read p. 293 on How to

improve integration.

HOW TO IMPROVESUBSYSTEM Integration

Rules and proceduresDirect contact among managers Liaison roles Task forces Teams Matrix organizations

Think about consequences if no integration.

How does Rondell do integration?

ManagementConstantly 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.

Functional structureGroups together people with similar

skills.Rondell--research and engineering,

production, and sales Best when few product lines and

competing demands for different products.

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.

DisadvantagesPoor communication across functionsToo many problems get resolved at

the top.Loss of responsibility for getting

product to market.Self-centered viewpoints.

Divisional structuresGroups people with diverse skills to

work on the same product or with similar clients and customers.

Advantages over functionalImproved coordination (integration)Responsibility assigned for

product/service. Greater customer satisfaction with product or service.

Greater flexibility to adapt to environmental changes.

disadvantagesDivisions fight for resourcesLoss of efficiencies (capital and

human resources). (poor differentiation)

Lack of sharing of expertise across products.

New product development limited.

movieDone individually.Does Chrysler have a divisional or

functional design. Why was this design effective. How did this influence employee behavior?

Overlay to create efficienciesLarger Staff functions such as human

resources or import/exportSee page 10 Provide advice and

support to line managers.In reality it often does rules and

constraints.

New TrendsIncreased delegation--distributing

and entrusting work to others (empowerment).

Increased responsibility and accountability.

See page 214 of text for delegation.Trust and accountability are key.

SAS Airlines

Current TrendsIncreased Team--cross functional

teams brings together members from different functional departments.

ProblemViolates Unity in chain of command

Current Trends (cont)Flatter organizations--wider spans of

control and shorter chains of command.

Wider spans of control associated withLess controlling/ more empowermentdecentralized decision making (Stew

Leonard).

Example of company with new methodsNucor See p. W 39

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 all7000 employees

Think small in spite of growthFlat organization with Wide spans of

controlDelegationIncentive systems

layersTop executivesGeneral managers (by divisions)Department supervisorSupervisorhourly employeeExample no shift supervisors just

department supervisor

incentivesWeekly between 80-150% base payannual if outstanding performance of

company.

Revisting RondellWhat should we do to get them to

work together. Nothing is perfect. What could be done to improve the situation?

SummaryDifferentiation and integrationExamined different ways to

differentiate and integrate. Current trends toward employee

empowerment/accountability. Promoting integration