MGMT 3000 1st Edition Lecture19 Outline of Last Lecture I Organization II Departmentalization Outline of Current Lecture I Chain of command II Authority III Job specialization IV Organization Process Current Lecture Chain of command Vertical line of authority that clarifies who reports to whom throughout the organization Unity of command workers should report to just one boss Authority Line and staff can be used to differentiate both authority and functions within an organization Line authority right to command immediate subordinates in chain of command Staff authority right to advise but not command others who are not subordinates in chain of command Line function An activity that contributes directly to creating or selling the company s products Staff functions do not contribute directly to creating or selling the firm s product but support line activities o Legal accounting human resources etc Delegation of authority assignment of direct authority and responsibility to a subordinate to complete tasks for which manager is normally responsible First manager transfers full responsibility for assignment to the subordinate These 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 Second manager gives subordinate full authority over the budget resources and personnel needed for the job Third the subordinate now has the authority and responsibility to do the job and is accountable for getting job done Degree of centralization Centralization of Authority Location of most authority at upper levels of an organization Decentralization location of significant amount of authority in the lower levels of the organization Standardization solving problems by consistently applying same rules procedures and processes Job specialization Occurs when a job comprises a smaller part of larger task or process Easy to learn low in variety high in repetition Methods to improve specialized jobs o Job rotation attempts to overcome disadvantages of specialization by periodically moving workers form one specialized job to another to give them more variety o Job enlargement increases number of different tasks that a worker performs within one particular job o Job enrichment increase number of tasks and gives workers authority and control over meaningful decisions about work Job characteristics model An approach to job redesign that seeks to formulate jobs in ways that motivate workers and lead to positive work outcomes Internal motivation motivation that comes form the job rather than from outside rewards such as a raise or praise from the boss o Occurs if workers feel that performing the job well itself is rewarding o Workers experience work as meaningful and responsibility for outcomes Core Job Characteristics Positive psychological states arise form jobs that are strong on 5 characteristics 1 Skill variety number of different activities performed in a job 2 Task identity degree to which a job requires completion of whole and identifiable piece of work 3 Task significance degree to which a job is perceived to have a substantial impact on others inside or outside the organization 4 Autonomy Degree to which a job gives workers the discretion freedom or independence to decide how and when to accomplish the work 5 Feedback Amount of information the job provides to workers about their work performance Job redesign characteristics used to strengthen a job s core characteristics 1 Combine tasks increases skill variety and task identity 2 Work can be formulated into natural work units by arranging tasks according to meaningful groups 3 Establishing client relationships increases skill variety autonomy and feedback by giving employees direct contact with clients and customers 4 Vertical loading is pushing some managerial authority down to workers 5 Opening feedback channels finding additional ways to give employees direct frequent feedback bout job performance Organizational processes 2 kinds of organizational designs are appropriate 1 Mechanistic organizations include specialized jobs and responsibilities precisely defined unchanging roles and rigid change of command based on centralized authority and vertical communication a Works in stable environments 2 Organic organizations include broadly defined jobs and responsibilities loosely defined changing roles and decentralized authority and horizontal communication based on task knowledge a Works in dynamic changing environments Reengineering fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical contemporary measures of performance such as cost quality service and speed Empowerment Empowering workers Permanently passing decision making authority from managers to workers Empowerment A feeling of intrinsic motivation in which workers perceive their work to have meaning and perceive themselves to be competent have an impact and be capable of self determination Behavior Formality Behavior informality Workplace atmospheres are characterized by spontaneity casualness and interpersonal familiarity Behavior Formality Workplace atmospheres are characterized by routine and regimen specific rules about how to behave and impersonal detachment Modular organizations outsource all remaining business activities to outside companies suppliers specialists or consultants Reduce costs Loss of control noncore activities that are outsourced may become source of advantage Suppliers can become competitors Virtual organizations part of a network in which companies share skills costs capabilities markets and customer with each other Let companies share costs fast and flexible provide better products Can be difficult to control quality management skills are required