MGMT 3720 Lecture 8 Outline of Last Lecture Chapter 14- Conflict and negotiationI. Traditional and interactionist view of conflictII. 3 types of conflict & 3 loci of conflictIII. Conflict processIV. Distributive and integrative conflictV. Five steps of negotiationVI. Individual differences & negotiationVII. Roles and functions of third-party negotiationsOutline of Current Lecture Chapter 15- Foundations of organization structureI. 6 elements of an organization’s structureII. Characteristics of a bureaucracyIII. Matrix organizationIV. Virtual organizationV. Boundaryless organizationsVI. How organizational structures differ and contrasting mechanistic and organic modelsVII. Behavioral implications of different organizational designsThese notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.Current LectureAn organizational structure defines how job tasks are formally divided, grouped, and coordinated.Key questions for designing a proper organizational structure:1. To what degree are activities subdivided into separate jobs? Answer: Work specialization2. On what basis will jobs be grouped togetherAnswer: Departmentalization3. To whom do individuals and groups report?Answer: Chain of command4. How many individuals can a manager efficiently and effectively direct?Answer: Span of control5. Where does decision-making authority lieAnswer: Centralization and decentralization6. To what degree will there be rules and regulations to direct employees and managers?Answer: FormalizationWork specialization, or division of labor, describes the degree to which activities in the organization are subdivided into separate jobs. In essence, an entire job is broken into a numberof steps, each completed by a separate individual. -By the late 1940s, most manufacturing jobs in industrialized countries were being done this way. - Employee skills at performing a task increase through repetition. - Training for specialization is more efficient from the organization’s perspective. - It increases efficiency and productivity, encouraging the creation of special inventions and machinery. - For much of the first half of this century, managers viewed work specialization as an unending source of increased productivity. - Management saw this as a means to make the most efficient use of its employees’ skills. Example of specialization:Henry Ford became rich and famous by building automobiles on an assembly line, demonstrating that work can be performed more efficiently by using a work specialization strategy. Every Ford worker was assigned a specific, repetitive task. By breaking jobs up into small standardized tasks, Ford was able to produce cars at the rate of one every ten seconds, while using employees who had relatively limited skills. Key to success of specialization: Employees need to be easily replaceable/ quick to trainDisadvantages of specialization- Boredom, fatigue, stress, low productivity, poor quality, increased absenteeism, and highturnover- When employees get really bored, they often start to act up.Fixes: enlarging the scope of job activities, job rotation, etc could increase productivityDepartmentalization- grouping jobs together so common tasks can be coordinated. Ways to group jobs together1. Functions performed: One of the most popular ways to group activities Example: a manufacturing manager might organize his or her plant by separating engineering, accounting, manufacturing, personnel, and purchasing specialists into common departments. The advantage to this type of grouping is obtaining efficiencies from putting like specialists together. 2. The type of product or service The major advantage to this type of grouping is increased accountability for product performance under a single manager. 3. Geography or territory Example: The sales function may have western, southern, mid-western, and eastern regions. 4. Type of customer. Example: Microsoft reorganized around four customer markets: consumers, large corporations, software developers, and small businesses. The assumption is thatcustomers in each department have a common set of problems and needs that can best be met by having specialists for each.Chain of command- an unbroken line of authority that extends from the top of the organization to the lowest part, and clarifies who reports to whom- It was a basic cornerstone in the design of organizations, but it is far less important today. The concepts of chain of command have less relevance today because of technology and the trend of empowering employees. Example: A low-level employee today can access information in seconds that a generation ago was available only to top managers. Operating employees are empowered to make decisions previously made only by management. - The popularity of self-managed and cross-functional teams, and the creation of new structural designs that include multiple bosses all contribute to why authority and unity of command hold less relevance. - Despite all these obstacles to the chain of command, many organizations find they can be most productive by enforcing the chain of command.- Two complementary concepts are: 1. Authority- the rights given to management to give orders and expect the orders to be obeyed2. Unity of command- It states that a person should have only one superior to whom he/she is directly responsible. This helps preserve the concept of an unbroken line of authority.Examples teacher used: 1. a judge system, where you take your case to the lower court, and if it doesn’t get solved,you go to the next level higher court, etc, until you get to the Supreme Court. You go up the chain of command.2. While working for the bill gates company, instead of talking to your direct manager about a problem, you email bill gates himself about the problem. This breaks the chain of command.3. You wouldn’t call the president first if you have a problem with a grade you got from your teacher. First you would talk to your teacher about it, then the principle of the school, etc. If you did call the president first, then you would be breaking the chain of command.Span of control: How many employees can a manager can efficiently and effectively direct? The wider or larger the span is, the more efficient the organization. - Reducing the number of managers (a.k.a. making the span wider) results in significant savings. Wider spans are more efficient in terms of cost.