How Work is Accomplished

The Concept of the Division of Work

Adam Smith’s Wealth of Nations By breaking complex jobs into separate operations in

which each worker can specialize total productivity increases geometrically

Concept Roots: No one person can be an expert in all areas Simplified tasks are easy to learn and can be done

with great efficiency A variety of jobs can be created

Inherent Negative Aspects: Less overall job satisfaction Less pride in achievement

Departmentalization and Span of Control

Span of Control The number of people reporting directly to a given manager In general a span of control should not exceed six or seven

Organizational Structures Tall Organizations:

Many layers of management Long decision making process Severely disadvantaged in industries and markets that are constantly

changing at a rapid pace Flat Organizations

Few levels of management Typically characterized by quicker decisions Less expensive (in terms of people) But much more taxing on individuals:

Increased work load Increased responsibility Long working hours that reach into personal time...

The Importance of Delegation

Delegation frees up a manager to handle broader responsibilities Complex problem solving Mentoring Crisis handling, etc.

Enriches the employees’ job By providing new opportunities Demonstrates confidence in his or her ability

Creates a widow to develop new skills Improves the chance of being promoted or being perceived as

an interracial player in the organization

Anatomy of Delegation Delegation is trust

Trust builds productivity and commitment Delegation is teaming

Teaming is the essence of good management and problem solving

Delegation is compromise Compromise is needed to move forward in many situations

Delegation is teaching As mentored individuals can only learn as they do within

complex business environments Delegation is timing

It is essential to know when to delegate timing when the situation and individual is ready to accept and grow with added responsibility...

Why it is Difficulty to Delegate

Many mangers lack faith in their employees

Managers can lack self confidence Fear of being outdone by their employees Enjoyment of doing certain tasks

Degrees of Delegation

The “just do it” philosophy (employee in full control)

Task is completely thrown over the wall to the employee

Build recommendation (employee in control of analysis)

Employee develops and lays out the best approach Then the final decision is made by the manager

Limited recommendation (employee in control of work application of analysis)

Manager decides on technique of analysis Employee does analysis Manger makes final decision

Organizational Design

The Classical Approach The Neoclassical Approach

The Classical Approach

A hierarchical structure based on formal authority The creation of a bureaucracy

Business, labor, religious, educational, and governmental systems depend on a large workforce arranged in a hierarchy to carry out specialized tasks based on internal rules and procedures

Chain of command oriented Promotions are based on ability, experience and

longevity

Apparent Disadvantage of Classical Approach

Too big Therefore slow to decision Can lose sight of goals and missions Very costly in terms of person power Tends to generate furious politics

The Neoclassical Approach

Individuals need work satisfaction “Douglas McGregor vs. The Bureaucracy

People don’t respond to formal authority in the long run

The business of work is the creation of the joy of work Without this only mediocre performance will prevail

There is a human need for self expression and accomplishment When these are blocked workers become less effective

Neoclassical Continued

Likert’s Theory Build a group that can make decisions and carry them

out! Mangers and work activities should enhance individual

members personal sense of worth and importance Make use of group decision making when appropriate Set and strive for high performance standards

The ideal organizational structure is where there is extensive group participation and teaming in supervision and decision making

The Environment Approach

Building and establishing the organizational design based on an understanding of the environment Stable Environment

Industry and markets are in a state of stasis May be extinct!

Changing Environment Industry and market change is constant But somewhat predictable

Turbulent Environment Change is sudden and may be often Very difficult to predict