Principles of OrganizationsBalanced Responsibility and AuthorityBalanced Responsibility and Authority (cont’d)AuthorityLevels of AuthorityLine and Staff AuthorityOrganization DesignOrganization ChartDepartmentalizationDepartmentalization (cont’d)Matrix DepartmentalizationNew Approaches to DepartmentalizationJob DesignPriority Determination QuestionsPrioritized To-Do ListDelegation and ManagersWhat and What Not to DelegateSteps in the Delegation ModelCopyright © 2003 by South-Western/Thomson Learning. All rights reserved. 6–1Principles of OrganizationsPrinciples of OrganizationsExhibit 6–1Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. 6–2Balanced Responsibility and AuthorityBalanced Responsibility and Authority•Responsibility–The obligation to achieve objectives by performing required activities.•Authority–The right to make decisions, issue orders, and use resources.•Accountability–The evaluation of how well individuals meet their responsibility.Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. 6–3Balanced Responsibility and Authority (cont’d)Balanced Responsibility and Authority (cont’d)•Delegation–The process of assigning responsibility and authority for accomplishing objectives.•Flexibility–The ability to adapt to exceptions to the rules, policies, and procedures of the organization.Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. 6–4AuthorityAuthority•Formal Authority (or Structure)–The organizationally-sanctioned way of getting the job done.–Organizational charts illustrate formal lines of authority in firms.• Informal Authority–The patterns of relationships and communication that develops in an organization that is not sanctioned by the organization.Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. 6–5Levels of AuthorityLevels of Authority•Inform Authority–Inform a superior of action alternatives and the superior makes the decision.•Recommend Authority–List alternatives/actions and recommend one action; superior makes action decision.•Report Authority–Select and implement a course of action, reporting action to superior.•Full Authority–Acting independently without supervision.Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. 6–6Line and Staff AuthorityLine and Staff Authority•Line Authority–The responsibility to make decisions and issue orders down the chain of command.•Staff Authority–The responsibility to advise and assist line and other personnel.–Functional authority•The right of staff personnel to require compliance by line personnel with organizational policies and procedures.–Dual line and staff authority•Staff personnel exercise line authority within their own departments.Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. 6–7Organization DesignOrganization Design•Contingency Factors Affecting Structure–Environment (mechanistic versus organic)–Production technology–Strategy (“structure follows strategy”)–Size of the organization (larger = more formal)•Organization Chart–A graphic illustration of the organization’s management hierarchy and departments and their working relationships.•Management level, chain of command, division and type of work, and departmentalization.Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. 6–8Organization ChartOrganization ChartExhibit 6–4Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. 6–9DepartmentalizationDepartmentalizationExhibit 6–5aCopyright © 2003 by South-Western/Thomson Learning. All rights reserved. 6–10Departmentalization (cont’d)Departmentalization (cont’d)Exhibit 6–5bCopyright © 2003 by South-Western/Thomson Learning. All rights reserved. 6–11Matrix DepartmentalizationMatrix DepartmentalizationExhibit 6–6Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. 6–12New Approaches to DepartmentalizationNew Approaches to Departmentalization•Horizontal Team Organization–Has an all-directional focus to increase speed of response, individual accountability, flexibility, knowledge sharing, and coordination.–New Venture Units•A group of employees who volunteer to develop new products or ventures for employees.–High-involvement organization (greenfields)•A team approach to setting up a new facility with a flat organizational structure.Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. 6–13Job DesignJob Design•Job Design–The process of combining task that each employee is responsible for completing.Exhibit 6–7Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. 6–14Priority Determination QuestionsPriority Determination QuestionsExhibit 6–9Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. 6–15Prioritized To-Do ListPrioritized To-Do ListModel 6–1Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. 6–16Delegation and ManagersDelegation and Managers•Benefits–More time for other high-priority tasks.–Trains employees and improves their self-esteem.–Enriches jobs and improves personal and work outcomes.•Obstacles–Reluctance to stop doing tasks personally.–Fear of employee’s failure to accomplish task.–Threatened by employee’s success.Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. 6–17What and What Not to DelegateWhat and What Not to DelegateExhibit 6–10Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. 6–18Steps in the Delegation ModelSteps in the Delegation ModelModel 6–21. Explain the need for delegating and the reasons for selecting the employee.1. Explain the need for delegating and the reasons for selecting the employee.2. Set objectives that define responsibility, the level of authority, and the deadline.2. Set objectives that define responsibility, the level of authority, and the deadline.3. Develop a plan.3. Develop a plan.4. Establish control checkpoints and hold employees accountable.4. Establish control checkpoints and hold employees