what is management - novellanovella.mhhe.com/olc2/dl/582338/ghilyer1_im07_final.doc · web viewa...

ORGANIZING WORK

Other Teaching Tools 7.2

Video Notes 7.3

Brief Chapter Outline and Learning Goals 7.4

Lecture Outline and Lecture Notes 7.6

Notes for End-of-Chapter Materials 7.21

REVIEW QUESTIONS 7.21

DISCUSSION EXERCISE 7.1 JetBlue’s Fiasco Could Improve Flying 7.21

DISCUSSION EXERCISE 7.2 The Wiki Workplace 7.22

Career Management Notes 7.24

Lecture Links 7.33

LECTURE LINK 7-1 Mapping the Informal Organization 7.33

LECTURE LINK 7-2 Smith’s Folly 7.33

LECTURE LINK 7-3 Implementing the Traditional Managerial Rules 7.34

LECTURE LINK 7-4 Choosing the Right Span of Management 7.34

Bonus Internet Exercise 7.36

BONUS INTERNET EXERCISE 7-1 Which are the Best Companies 7.36to Work for?

Critical Thinking Exercises 7.37

CRITICAL THINKING EXERCISE 7-1 Managing a Family Business 7.37

CRITICAL THINKING EXERCISE 7-2 Group Project: Organizing 7.38Production

Bonus Case 7.40

BONUS CASE 7-1 Structural Collapse: Responsibility 7.40and Accountability

7.1

CH

APT

ER

7

OTHER TEACHING TOOLS

For a description of each of these valuable teaching tools, please see the Preface in this manual.

Student Learning ToolsStudent Online Learning Center (OLC) (www.mhhe.com/ghillyermanagement) Student Study GuideSpanish Translation Glossary (OLC)Spanish Translation Quizzes (OLC)

Instructor Teaching ToolsInstructor Online Learning Center (www.mhhe.com/ghillyermanagement)Annotated Instructor’s Resource ManualIRCD (Instructor’s Resource Manual, Test Bank, PowerPoints, EZtest)Asset Map PageOutPowerPoint Presentations (on IRCD and OLC)Test Bank Management at the Movies (DVD)Management Videos on DVD Enhanced Cartridge optionSpanish Translation Glossary (OLC)

7.2 MANAGEMENT: A REAL WORLD APPROACH: Instructor’s Resource Manual

VIDEO NOTES

Two video series are available for use with MANAGEMENT: A REAL-WORLD APPROACH.

Management at the Movies This innovative video collection includes video clips from twenty of the best Hollywood films.

The Video Notes section of this Instructor’s Resource Manual (beginning on page V.1) provides In-structor’s Teaching Notes for each of the video segments, along with Student Materials keyed to chapter concepts.

MOVIE 13. “Hoosiers” (“And Two More”) (4:10) This film is loosely based on the 1954 Milan High School basketball team. A veteran

coach starts his new assignment by kicking two players off the basketball team. It illustrates ef-fective and ineffective leadership.

Management Videos on DVDAlso included are twenty videos geared to individual chapter topics. The teaching notes for these

videos are also included in the Video Notes section of this Instructor’s Resource Manual, beginning on page V.50.

VIDEO 7: “Panera: Strategy A Recipe for Growth” (11:03)The Panera business model is examined. The video looks at how work is done within the

company to make it more effective.

CHAPTER 7: Organizing Work 7.3

►

►

►

►

►

►

BRIEF CHAPTER OUTLINE AND LEARNING GOALS

CHAPTER 7

Organizing Work

I. ORGANIZING WORKLEARNING OBJECTIVE 1Explain the importance and rationale behind organiz-ing work.

A. Reasons for Organizing

II. DIVISION OF LABORLEARNING OBJECTIVE 2Define division of labor.

III. POWER, AUTHORITY, AND RESPONSIBILITYLEARNING OBJECTIVE 3Distinguish between power, authority, and responsibility.

A. Sources of Authority

IV. CENTRALIZATION VERSUS DECENTRALIZATION LEARNING OBJECTIVE 4Explain the concept of centralization versus decentral-ization.

V. EMPOWERMENTLEARNING OBJECTIVE 5Define empowerment.

A. Self-Managed Work Teams

VI. PRINCIPLES BASED ON AUTHORITYA. Delegation: The Parity Principle

LEARNING OBJECTIVE 6Identify several reasons why managers are reluctant to delegate authority.

B. Unity of CommandC. Scalar PrincipleD. Span of Management


E. Workplace Changes in Organization


LECTURE OUTLINE AND LECTURE NOTES

THE WORLD OF WORK

Tony Tries to Delegate (Text pages 176-177)

Tony is spending considerable time working on the leadership development program and is get-ting behind in his duties as manager of Taco Barn. Understanding that things are not going to change in the immediate future, Tony is considering delegating some of the store responsibilities, but is not yet com-fortable taking this course of action.

1. Why wouldn’t Tony just withdraw from the survey project if it was affecting his work at Taco Barn?

Tony has not learned to handle new responsibilities in addition to his management duties. He is feeling the uncomfortable sensation of not being in control of his direct duties as manager of Taco Barn. While this is normal for a new manager, Tony is learning some valuable lessons about delegation and em-powerment that will help him manage his commitments and employees more effectively in his absence.

2. What’s wrong with Fred’s interpretation of “delegation”?

Fred was minimizing the delegation concept by excluding the training and development aspect. For delegation to be used effectively, managers must first decide what are jobs/responsibilities can be del-egated and then make sure employees have the skills and authority to carry out assigned duties. What Fred was minimizing was how important effective delegation is to a successful manager. Failure to mas-ter delegation is probably the single most frequently encountered reason managers fail.

3. Did Tony give Katie clear directions? Why or why not?

Tony reacted as though he was still an employee, not the store manager. Delegation is a develop-mental process that moves employees to becoming empowered (substantial authority to make decisions). For this to occur, certain elements must be in place. The elements include participation (employee wants to improve their job), innovation (employee has permission to innovate and change how things might be done), access to information (important information to improve their work), and accountability (held ac-countable for their actions).

Therefore, for Tony to have delegated these tasks to Katie, he needed to explain the delegation process so that she could have handled the delegated tasks successfully.

4. What should Tony have done here?

Tony needed to spend the necessary time explaining Katie’s increased role in the store. This could be a developmental process for her to learn more about store responsibilities and how this could lead to increased advancement in the Taco Barn system. Tony also needed to explain his expectations of her added responsibilities and what he expected as the outcome. Tony also needed to expand her duties by the delegation process, including increased empowerment (more authority to make decisions) as she pro-gresses in this new role.


►

LECTURE OUTLINE LECTURE NOTES

I. ORGANIZING WORKA. Basic Concepts 1. ORGANIZATION is a group of people

working together in some type of concentrated or coordinated effort to achieve objectives.

2. ORGANIZING is grouping activities, assigning activities, and providing the authority necessary to carry out the activities.

3. Basically, organizing is a division of la-bor accompanied by delegation of or-ganization authority.

4. The organizing structure is the framework that defines the formal organization.

5. The INFORMAL ORGANIZATION is the aggregate of the personal contacts and interactions and the associated groupings of people working within the formal organization.

B. Reasons for Organizing LEARNING OBJECTIVE 1Explain the importance and rationale behind organizing work. (Text pages 178-179)

1. Establishing clear lines of authority creates order within a group.

2. Organizing improves the efficiency and quality of work through synergy.

a. Synergy occurs when individuals or groups work together to produce a whole greater than the sum of the parts.

b. Successful organizations achieve a high level of synergy.

POWERPOINT 7-1Chapter Title (Refers to text page 176)

POWERPOINT 7-2Learning Objectives (Refers to text page 177)

POWERPOINT 7-3Organizing Work(Refers to text page 178)

LECTURE LINK 7-1Mapping the Informal Or-ganizationThe best way to manage informal organizations is to acknowledge their existence and then bring them out into the open. See complete lecture link on page 7.33 of this manual.



3. Organizing improves communication by clearly defining channels of com-munication.

C. Organizing allows people to: 1. increase specialization and division of

labor 2. use large-scale technology 3. manage the external environment 4. economize on transaction costs

5. exert power and control

CRITICAL THINKING EXERCISE 7-1Managing a Family BusinessManagement can be difficult in family firms. This exercise presents such a challenge. See complete exercise on page 7.37 of this manual.


►


II. DIVISION OF LABORLEARNING OBJECTIVE 2Define division of labor. (Text pages 179-180)

A. Vertical division of labor is based on establishing lines of authority.

1. It helps the flow of communication within the organization.

2. Vertical division of labor can vary from company to company (5 levels at Toyota; 15 at Ford.)

B. Horizontal division of labor is based on specialization, allowing more work to be performed with the same effort.

1. Advantages of horizontal division of la-bor:

a. Fewer skills are required per person.

b. The skills required for training are easier to supply.

c. Practicing the same job develops proficiency.

d. Using each worker’s best skills promotes efficient use of skills.

e. Simultaneous operations are made possible.

f. More conformity in the final product.

2. The major problem is job boredom. a. An example is the automobile

assembly line. b. When employees become bored,

productivity often declines. 3. Improving horizontal division of labor a. JOB SCOPE refers to the number

POWERPOINT 7-4Division of Labor(Refers to text pages 179-180)

CRITICAL THINKING EXERCISE 7-2Group Project: Organizing ProductionThis is a fun exercise to give students firs-hand experience in creating an organization – and producing a product. See complete exercise on page 7.38 of this manual.


►


III. POWER, AUTHORITY, AND RESPONSIBILITY

LEARNING OBJECTIVE 3Distinguish between power, authority, and responsibility. (Text pages 180-181)

A. Basic Definitions 1. POWER is the ability to influence,

command, or apply force. 2. AUTHORITY is the legitimate exercise

of power; the right to issue directive and expend resources; related to power but narrower in scope.

3. RESPONSIBILITY is accountability for attainment of objectives, the use of resources, and the adherence to organizational policy.

4. Once responsibility is accepted, performing assigned work becomes an obligation.

B. Sources of Authority 1. In the traditional view of authority, peo-

ple held authority because they occu-pied a certain position.

2. The acceptance theory of authority was developed by Mary Parker Follett and Chester Barnard.

a. It states that a manager’s source of authority lies with his or her subordinates, because they have power to accept or reject the man-ager’s command.

b. If an employee does not view the manager’s authority as legitimate, it doesn’t exist.

c. This view of authority recognizes the role of employee in determin-

POWERPOINT 7-5Power, Authority, and Responsibility (Refers to text pages 180-181)

LECTURE LINK 7-2Smith’s FollyA lesson in accountability from Kenneth Olsen, founder of Digital Equipment Corpo-ration (now part of Hewlett-Packard.) See completelecture link on page 7.33 of this manual.

BONUS CASE 7-1Structural Collapse: Responsibility and AccountabilityBecause of engineering errors and poor planning, the skywalks of a newly con-structed hotel collapsed, killing over 100 people. See complete case, discussion questions, and suggested an-swers on page 7.40 of this manual.

TEXT REFERENCEStudy Skills Box: Can You Read This?In the world of education, one cannot underscore the importance of reading. (Box in text on page 181.) An ad-ditional exercise and discus-sion is available in this chap-ter on page 7.32.


LECTURE OUTLINE LECTURE NOTESCASE INCIDENT 7.1

A Good Manager? (Text page 182)

Francis Russell, a highly motivated assistant general manager and sales manager for Webb En-terprises, and now heir apparent for the general manager position because of his high achievements as top salesman in the company. Russell takes pride in being highly organized; however, he is concerned that all the responsibilities might take a toll in his ability to out-work other employees in the company.

1. Do you think Francis is a highly motivated employee trying to do a good job? Explain your an-swer.

Francis has demonstrated that he works extremely hard to excel at his job, and the results show. However, Francis has failed to master a key management skill – delegation. He is making all the deci-sions, even the minor ones, and it is taking its toll. He is overworked and exhausted.

2. What problems do you see concerning Francis’s effectiveness as a manager?

Francis’ expansion of his responsibilities is creating problems in his ability to keep up with all the tasks required to remain effective. While this style has worked so far, Francis has to look at the dele-gation concept (exception principle.) He needs to choose the responsibilities that require his attention and let subordinates handle lesser duties. This will free him to do his job more effectively.

3. What options are available to help Francis?

Francis can identify employees that might be good candidates to delegate more responsibilities to and help them grow into increased roles within the company. This will include defining the added re-sponsibilities and empowering them to make decisions that lead to successful results.

4. Assuming you were Charlie, the general manager, what solutions would you recommend?

Charlie can support Francis by helping him understand the delegating process and monitoring Francis’ progress in this important function, especially as he moves up the ranks of the company. Most importantly, Charlie has to convince Francis that developing good employees through proper delegation is invaluable for the company. Today’s trend is toward more decentralization, which helps the company become more flexible and quicker to action. It relives executives from time-consuming detail work that can be delegated; it also provides groundwork through which employees can move up the ranks of the company. If Until Francis shares some of his existing responsibilities, he cannot take on any additional ones. Management is working through people to achieve objectives, not doing everything yourself.


►


IV. CENTRALIZATION VERSUS DECENTRALIZATION

LEARNING OBJECTIVE 4Explain the concept of centralization versus decentralization. (Text pages 182-184)

A. The authority of any position is limited. 1. External limits include laws, politics,

and social attitudes. 2. Internal limits are based on the

organization’s objectives.B. The tapered concept of authority is called a

scalar chain.C. Centralization and decentralization refer to

the degree of authority delegated by upper management.1. CENTRALIZATION means that little

authority is delegated to lower levels of management.

2. DECENTRALIZATION means a great deal of authority is delegated to lower levels of management.

3. The degree of decentralization increases as more decisions are made by lower levels of management.

4. The degree of delegated authority falls along a continuum.

D. The trend today is toward more decentral-ization.

1. It allows for more flexibility and quicker action and results in higher morale.

2. The major disadvantage of decentral-ization is potential loss of control and duplication of effort.

PROGRESS CHECK QUESTIONS (Text page 184)

POWERPOINT 7-6Centralization versus Decentralization(Refers to text pages 182-183)

TEXT FIGURE 7.1Tapered Concept of Authority (Text page 183)

TEXT FIGURE 7.2Centralized Versus Decentralized Authority (Text page 183)


►


V. EMPOWERMENTLEARNING OBJECTIVE 5Define empowerment. (Text pages 184-186)

A. EMPOWERMENT is a form of decentral-ization in which subordinates have author-ity to make decisions.

1. Managers express confidence in the ability of employees, and employees are encouraged to accept personal responsibility.

2. Under true empowerment, employees do whatever they have to do to take care of the customer.

3. Four elements are necessary for successful empowerment:

a. participation b. innovation c. access to information d. accountability 4. Empowerment can be difficult to imple-

ment in centralized organizations. 5. Today there is a trend toward in-

creased empowerment of employees.B. Self-Managed Work Teams 1. SELF-MANAGED WORK TEAMS

(also called self-directed or self-regu-lated work teams) are work units with-out a frontline manager and empowered to control their own work.

2. Employees are motivated by partici-pating in decisions that affect them.

POWERPOINT 7-7Empowerment(Refers to text pages 184-185)

BONUS INTERNETEXERCISE 7-1Which Are the BestCompanies to Work for?This exercise asks students to use the Internet to research which companies are rated best places to work. See complete exercise on page 7.36 of this manual.

CASE INCIDENT 7.2

The Vacation Request (Text page 185)


►

LECTURE OUTLINE LECTURE NOTESTom Blair really wants a week off to go fishing but finds out two other employees in the depart-

ment already have the week off. Tom knows his chances of getting the week off are slim to none, so he sends his request past his boss Luther to Luther’s boss, Harry (also a fishing partner). Weeks pass and Luther indirectly finds out that Tom has gone to Harry for approval for his week off to go fishing. Luther has noticed that this is becoming a pattern with other employees as well.

1. What should Harry have done?

Harry has undermined the unity of command rule that exists in the normal structure of a com-pany. By letting employees come directly to him for normal managerial functions that should be handled by Luther, he displaces Luther’s authority and disrupts his decision. Harry has to recognize what is oc-curring and take the necessary actions to direct employees to the immediate boss.

2. Who is at fault, Harry or Tom?

Tom is guilty of putting his own needs above that of his co-workers and department. Tom has a responsibility to follow the normal procedures that other workers are asked to do. The unity of command principle is necessary for direct supervisor decision making. On the other hand, Harry has to recognize that he is undermining the chain of command process for all workers. He needs to step back and not in-terfere unless abnormal conditions arise that call for his assistance.

3. Should Tom get his vacation? Why or why not?

Interesting discussion topic. All things considered, no – he shouldn’t get the vacation. He by-passed normal channels of authority-responsibility and went over the head of his boss. Other employees had asked for vacation before Tom did, and they should have priority.

4. What should Luther do to make sure this doesn’t happen again?

Luther has to define his job and responsibilities, and then communicate this to other managers in his chain of command. He should make it known that only extraordinary decisions should be passed up the chain of command to him. Luther also needs to emphasize this concept with Harry to make sure he does not undermine his goals and objectives in handling his direct managerial duties.

VI. PRINCIPLES BASED ON AUTHORITYA. Delegation: The Parity Principle

LEARNING OBJECTIVE 6Identify several reasons why managers are re-luctant to delegate authority. (Text pages 186-188)

1. Delegation occurs when one needs something done that one cannot do oneself.

a. Managers can delegate responsi-bility, but this doesn’t relieve them of responsibility.

POWERPOINT 7-8Principles Based on Authority (Refers to text pages 186-187)

TEXT REFERENCECareer Management Box: Understanding That Results Matter


LECTURE OUTLINE LECTURE NOTES 2. The PARITY PRINCIPLE states that

authority and responsibility must coincide.

a. Management must delegate sufficient authority to enable subordinates to do their jobs.

b. Employees must accept both authority and responsibility before delegation is completed.

3. Managers resist delegating authority for many reasons.

4. Advantages of delegation: a. The manager’s time is freed for

other tasks. b. Delegation develops subordinates

and satisfies customers. 5. How to delegate: a. First, decide which tasks can be

delegated. b. Next, clearly define objectives and

standards. c. To control the delegation, periodi-

cally check to ensure that things are going as planned.

6. A rule of thumb is to delegate authority and responsibility to the lowest organi-zation level that has the competence to accept them.

7. The EXCEPTION PRINCIPLE (also known as management by exception) states that managers should concentrate on matters that deviate significantly from normal and let subordinates handle routine matters.

Good grades, a successful job, and healthy relationships are the results of good habits, and other positive results usually follow. (Box in text on page 186.) An additional exercise and discussion is available in this chapter on page 7.24.

LECTURE LINK 7-3Implementing the Tradi-tional Managerial RulesEven if organizations don’t always follow the traditional rules, they are aware of the rules and try to adjust ac-cordingly. See complete lec-ture link on page 7.33 of this manual.

TEXT FIGURE 7.3Steps in the Delegation Process (Text page 187)

POWERPOINT 7-9How to Delegate(Refers to text pages 181-188)


LECTURE OUTLINE LECTURE NOTES a. Managers should concentrate on

those matters that require their abilities.

b. If employees are incompetent or insecurity, the exception principle can be hard to apply.

c. Superiors should avoid micro-managing, making everyday deci-sions that they have delegated to subordinates.

B. The UNITY OF COMMAND PRINCIPLE states that an employee should have one, and only one, immediate manager.

1. Problems arise when two managers tell the same employees to do different jobs at the same time.

2. Managers should make sure employ-ees clearly understand the lines of au-thority.

3. An organizational chart clarifies lines of authority and the chain ofcommand.

C. The SCALAR PRINCIPLE, also known as the chain of command, states that authority in the organization flows through the chain of managers one line at a time, ranging from the highest to the lowest ranks.

1. This principle is based on the need for communication and the unity of com-mand principle.

2. Generally, work is best coordinated through the scalar chain.

3. However, shortcuts in the scalar chain are sometimes desirable.

POWERPOINT 7-10Unity of Command(Refers to text pages 188-189)




9. What are the four elements that must be present for empowerment to thrive?

10. What is a self-managed work team?11. What are the seven reasons for a manager’s reluc-

tance to delegate authority?12. What is the exception principle?

D. The SPAN OF MANAGEMENT (also called the span of control) refers to the number of subordinates a manager can ef-fectively manage.

1. The early view was that a narrow span of management (no more than six sub-ordinates per manager) was best.

a. V. A. Graicunas analyzed subordi-nate-superior relationships in terms of a mathematical formula.

b. Lyndall Urwick first stated the con-cept of span of management in 1938.

2. Later the upper limit of five to six was criticized as being too restrictive.

3. More recently, the span of manage-ment concept has been revised. The span should be based on:

a. the complexity, variety, and proximity of the jobs

b. the quality of the people filling the jobs

c. the ability of the manager 4. Text Figure 7.4 summarizes the

factors affecting the manager’s span of management.

POWERPOINT 7-11Span of Management(Refers to text pages 189-191)

LECTURE LINK 7-4Choosing the Right Span of ManagementSeveral factors affect the number of people a manager can effectively supervise. See complete lecture link on page 7.34 of this manual.

TEXT FIGURE 7.4Factors Affecting the Span of Management (Text page 191)

ETHICAL MANAGEMENT (Text page 190)



In these circumstances, who has the greater ethical responsibility for the accident? The engi-neers who failed to recognize that the material information was incorrect? The developers whose tight schedules made checking the stress calculations impossible? Or the software developers, who supplied a faulty product?

Knowing information and not sharing it, especially when it involves human safety, carries a re-sponsibility that should be upheld and respected no matter the potential loss of profits or sales. As a re-sult, all parties are responsible for contributing to the final disaster because of their failure to make the right decisions. The developer of the product has a responsibility to implement tight quality controls considering how their product is to be used in the workplace. Furthermore, the engineers have to be ex-act and precise when they choose the right products. The end use of their product involves human beings whose lives are at risk if they make bad construction decisions that affect the quality and use of their buildings. And finally, the developers, who benefit from the finished product and take the risk of invest-ment for a return on their investment, still have a responsibility to make sure to choose reputable con-struction companies who share their risk if they construct poor buildings, etc. and create a liability for the users of their projects. (BONUS CASE 7-1 on page 7.40 discusses a similar situation, the 1981 col-lapse of the Kansas City Regency Hyatt Hotel. Over 100 people were killed when two catwalks col-lapsed due to engineering mistakes.).

E. Workplace Changes in Organizations 1. Flextime, or flexible working hours,

allows employee to choose when the start and end their workday.

a. All employees must be at work during a core period.

b. The use of flextime has increased dramatically.

c. Flex-time accommodates employees’ differing schedules.

2. Telecommuting is the practice of work-ing at home while traveling and being able to interact with the office.

a. Millions of Americans now work from their homes or cars.

b. Advantages include lower turnover and lower office costs.

c. The rise in the price of gasoline has also encouraged telecommut-ing.

POWERPOINT 7-12Workplace Changes in Organizations (Refers to text pages 191-192)


LECTURE OUTLINE LECTURE NOTES 3. Using work sharing, two or more part-

time employees perform a job that would normally be held by one full-time employee.

a. Job sharing is attractive to people who want to work part-time.

b. A critical factor is deciding how benefits are shared.


13. Explain the span of management (span of control).14. Think of an organization you work for (or have

worked for in the past). What is the span of manage-ment at your company?

15. Explain the following terms: flextime, telecommut-ing, and job sharing.

16. Would it be possible to introduce telecommuting at your company? Why or why not?

THE WORLD OF WORK

Be Careful What You Wish For (Text page 193)

Tony, frustrated handling all his new duties, has directed Katie to handle the routine supply or-der. Katie came in early on her shift to make a list of supply items the restaurant needed. After doing a through review, Katie called in her list that was several hundred dollars more than the normal weekly or-der. Even the salesperson pointed out how much larger the order was than normal.

1. What was Katie’s mistake here?

Katie was impressed that she was asked to do more to help the restaurant. In her enthusiasm she has placed a huge order without consulting Tony. Katie did not properly follow orders delegated by Tony. He instructed her “not to spend too much,” although this was very vague. She is new to the managerial process. Tony also is just learning how to delegate basic jobs to other. When the amount of money she was spending was questioned, she should have stopped and consulted with Tony before placing the order.

2. What contribution did Tony make to this situation?

Tony was initially pleased that he could delegate one of his duties to an employee, allowing him to think about other duties he needed to complete as manager of the restaurant. However, Tony was guilty of assuming the delegation of responsibility was going to be handled properly and did little to ensure that the outcome would be as he expected.

3. How do you think Tony will react?


Tony will learn first hand that delegation requires more than handing out duties. Employees must be delegated authority and assume responsibility. Empowering employees is a growth and development process that can have many possible outcomes depending on the employee and the levels of responsibili-ties that they are given. Tony initially will be disappointed in his handling of the situation, but he will learn that by becoming better at delegation; his time will be freed up to work on other areas of his job. Eventually this will raise the level of his performance and the performance of the restaurant.

4. How would you have handled this situation?

This is a good time to get student comments about their own experiences in delegating and how they view the process. The discussion should reinforce the main concepts of delegation, power, authority, and responsibility.


NOTES FOR END-OF-CHAPTER MATERIAL

REVIEW QUESTIONS

1. What is the difference between horizontal and vertical division of labor?

Vertical division of labor is based on establishing lines of authority. Horizontal division of labor is based on specialization, allowing more work to be performed with the same effort.

2. Discuss two approaches to viewing the sources of authority.

In the traditional view of authority, people hold authority because they occupy a certain position. The acceptance theory of authority was developed by Mary Parker Follett and Chester Barnard. It states that a manager’s source of authority lies with his or her subordinates, because they have power to accept or reject the manager’s command.

3. What is the unity of command principle?

The unity of command principle states that an employee should have one, and only one, immedi-ate manager. Problems arise when two managers tell the same employees to do different jobs at the same time.

4. As a manager, would you prefer a relatively large (more than seven subordinates) or small (seven or fewer subordinates) span of management? Why? What are the implications of your choice?

For most managers, fewer direct subordinates would be more desirable. The manager can spend more time with each employee and get more done. But the reality today is that management spans are get-ting wider as more decision making authority is delegated to lower levels of management.

DISCUSSION EXERCISE 7.1

JetBlue’s Fiasco Could Improve Flying

Jet Blue is working through the media to help correct its image following horrible flight delay problems. The bad public relations issue has lead to passenger refunds for late flight take offs and ar-rivals. This has other airline executives and advocate groups concerned about this type of customer re-fund policy.

1. JetBlue “bills itself as a ‘customer service’ company that just happens to fly airplanes.” How did such a customer service company reach a point where passengers were trapped in planes “in some cases for 8, 9, and 10 hours”?

JetBlue became victim of their own business model. Upper management develops the model or system of operation and through a series of management development and delegation, the system has to be carried out as planned. Therefore, either the upper management miscalculated the real staffing and manpower needs or there is a breakdown in delegation and responsibility that has lead to major break-downs in anticipated performance for the company.

2. What is the domino effect of canceled flights for hub-and-spoke carriers?


If one flight is late, then all the connecting flights will be late, cascading across the air traffic net-work. Factor in bad weather and higher than normal traffic, and you’ve got a nightmare.

3. Do you agree with David Neeleman’s decision to make such a public apology and such an ex-plicit commitment to a customer’s bill of rights? Why or why not?

There are possible negative consequences if customers began to feel they should be compensated for every blip in service. However, the situation JetBlue faced was extraordinary. Its reputation was based on customer service, and it had failed miserably. Needelman and JetBlue had to start practicing crisis management. The personal apology of the founder went a long way toward reassuring customers that this was a one-time problem.

4. Do you think Neeleman’s approach will be followed by other airlines? Why or why not?

It depends on the situation and the executive involved. Some managers would not feel comfort-able making such a public mea culpa. And for smaller glitches, it might not be needed.

A word of caution here. Providing penalty payments for delays will encourage crews to value speed over caution. The worst aviation disaster to date was the crash of two jumbo jets on the Canary Is-land of Tenerife in 1978. The pilot of the KLM jet made the fateful decision to take off without control tower permission partly because he and the crew were near “timing out,” and having to return to the ter-minal to wait for a fresh crew. The jet slammed into a Pan Am jet still taxiing on the same runway, killing over 500 people. Customer service should be a priority, but safety must be the top priority.

DISCUSSION EXERCISE 7.2

The Wiki Workplace

The Geek Squad, a tech computer repair company, is one example of companies using self orga-nized networks to communicate across company divisions. Some see this as potentially non-productive to the company’s goals and mission while many others see self-organization as being better. If you let peo-ple what the company's priorities are, and they get the excited, somehow it works out. The difference to-day is that these qualities can emerge organically as employees seize the new tools and collaborate across departmental and organizational boundaries. Thus the power of human capital is unleashed.

1. Why are these new collaboration tools “good for innovation and growth”?

Improving communications within an organization is always considered a positive outcome and in almost all cases, adds to the strength of the company. When a company is empowered, their employees demonstrate more initiative and perseverance in pursuing organizational goals.

2. What are the potential benefits of “unleashing the power of human capital”?

Employees become more connected with more employees of the various regions with less hassle and more enjoyment. In the process of collaboration, the Geek Squad employees brainstorm new products and services, manage projects, swap tips, and socialize with their peers. Others see it easier and less ex-pensive for workers to self-organize than to squeeze them into traditional business units.

3. Is there a downside to so much openness and self-organization?

The downside comes when companies are more comfortable working in a traditional organiza-tional settings and don’t understanding how to embrace the new methods of communication in use, appli-cation, and integration in their corporate environment. As companies are pushed to incorporate these new


communication tools, there will be a learning curve that may have some ups and downs. Organizations should set policies and provide guidelines for the company to follow.

4. Would blogs and wikis work at your company? Why or why not?

This discussion should resonate with young students who already use these tools in their every-day lives. A discussion about using the technologies in the workplace has interesting implications. To-day’s student probably view these communication advances more favorably based on their experiences and the sample case study they have just read.


CAREER MANAGEMENT NOTES

Understanding That Results Matter

Instructor’s Notes on Text Box Seven: Objectives to consider and implement to increase students knowledge, usage and understanding of the concepts.

Getting good grades, having a successful job and maintaining healthy relationships are the results of good habits and doing things the right way. Through good habits, positive results usually follow. In this following PLEO, you will have an opportunity to look at your current lifestyle and incorporate new and better habits that can be incorporated to help you achieve better results.

How to improve or get better outcomes: Results that matter!

STUDENT EXERCISE:

Complete the following Ten Exercises regarding job skills attainment and how you can improve the steps to job/career positioning necessary to meet your job/career goals.

Job Application

Job applications come in all shapes and sizes. Your information is essential to making the out-come a successful one.

Step One: If you have ever filled out a job application, there are basic questions that will be asked each time

you fill a new one out. Make sure you are prepared for these types of questions.

Step Two: Get a sample job application and look it over. What are the basic questions that you should be

able to answer? Highlight them in a yellow highlighter.

Step Three: With the same job application, what are questions that might be a bit more difficult to answer?

Highlight them with an orange highlighter.

Step Four: With the same job application, what are questions that might need additional information that you

should bring along to better answer and complete the application (questions like job/career goals, your personal strengths/weaknesses, pay level history, a copy of your resume, etc.)? Identify these questions and highlight them with a blue highlighter.

Step Five:


Now look at the job application. Glance at the highlighted colors on the application. Notice the flow of the application in terms of questions that you should be prepared to answer. Make sure you do so neatly and accurately. Finally, go out a get a few more job applications and continue the same process. Becoming familiar with this process will impress the potential new company that you are interested in and at the same time, convey to them you are experienced and serious about the job application process.

Proper Dress

You can always make an assumption about a person’s outward appearance. How we present our-selves is important as it relates to our company dress policies, our overall look to our customers, suppli-ers, and the general public that may or may not make the connection of who we are and the company that we work for.

Step One: Find out what the dress requirements that may or may not apply to your job. Some job duties re-

quire a company uniform (maintenance, fast food employees, etc.). Discuss any questions that you might have with your immediate supervisor regarding the dress policy.

Step Two: If you have some latitude of how you can dress for your position, a good rule of thumb would be

to look at other individuals that do similar work to determine the unofficial level of dress for the corre-sponding job classification. If you are in a sales position, a level of professional outward appearance will be important. Likewise, working in an office might require more dress clothes that working outside, in a warehouse, etc.

Step Three: After accessing the dress situation, what might be the expected level of dress for your job duties/

title? Can you dress accordingly or will you need to make changes?

Step Four: If dress changes are necessary, make them. Your dress on the job is in most cases important and

can be discussed at a time of job review, etc. Make your personal dress habits a strength to your entire job performance and effort.

Step Five: Remember, job dress is an outward message about your overall job classification, professional-

ism, personal grooming habits, and reflection to all about your job and its importance. Make sure you make the correct statement. It could matter when being considered for a raise or promotion and move you past others in the process. What personal grooming habits could you improve? Look at your dress, grooming habits and how you conduct yourself in the workplace.

Follow-Up

Job duties/assignments have a lot of completion points and when this occurs, mot often, some de-gree of follow-up is necessary.


Step One:Define what follow-up means to your job. What are the typical assignments and what are the de-

fined levels of success for each or most of these assignments?

Step Two:Write a list of jobs/assignments you have been involved in the past month and the outcome. Now

make notes as to what the amount or level of follow-up that was done in each case.

Step Three:Is there a pattern in the outcomes and the level of follow-up? Are there reports not being made or

individuals not being contacted that creates a less than anticipated job/project completion that should be occurring? Try to look at the follow-up procedures and 1) note the level of work you have invested in the assignment, and 2) write the level of outcome you expected at the time of completion. Make sure your notes are kept accurate and timely.

Step Four:In cases of less than expected outcomes, note the person or department for whom the work or

project was intended. Keep notes as to how the project was not completed as anticipated or expected and what might be the cause or causes for the breakdowns if breakdowns occur.

Step Five:Begin a follow-up log that can be used in your current job and can be also adapted to a new job or

new position with a new company should that occur. Use the same criterion and format that allows for good note taking and a personal evaluation of the expected outcome of each assignment/project.

Networking

In the world of finding jobs and helping others do the same, a system of networking can take place that facilitates this, often with good outcomes.

Step One:Record keeping is essential to networking. In business, many contacts are made. In most cases, it

can be worth keeping a business card or more formal or informal contact as situations allow.

Step Two:Develop a system that you can use to input names, business cards, phone numbers, etc. as a refer-

ence place for your developed contacts. Keep the system in place and up-to-date for best use.

Step Three:Monitor your system for old and outdated information. If you have moved, chances are certain

names and associations are not of much value. Likewise, if you have been active on certain charities and you relocate, you can pick up new associations by joining a new chapter of the same organization.

Step Four:


Look for ways to accentuate your networking system. Have you been active in the local commu-nity? Have you been involved in your local political situations that you could find new contacts or friendships?

Step Five:Write down five new ways of finding news contacts over the next twelve months. Keep a list of

what you intend to do and the results. If you fall short of the goal, reset you goals again after the twelve month period. Setting networking goals has many benefits, especially as you continue along your career. Who you know can be an asset, especially when you look at ways to advance your own career or help others to do the same. A system of helping others and being helped can take you a long way in your ca-reer.

Personal Qualities

What you bring to a job is a direct reflection of your own personal qualities. Your individuality has some value in the eyes of the company that hired you.

Step One:By now, you should have a pattern of how you view things and how you work towards getting as-

signments accomplished within the general guidelines of the company that has hired you. In a few list, what are your general qualities that define you as an adult person? Make that list.

Step Two:Once you have formed this list, what would be considered your real strengths? Likewise, what

would be considered your weaknesses? What does the overall picture look like?

Step Three:Begin now to accent your strengths. Are you good at leading others but are not utilizing this skill?

Are you good at details and could be an asset to your job/department by helping with organization be-cause of your good eye to details? Are you good at communication skills and could become more vocal or a spokesperson because of these good communication skills that you have?

Step Four:From your list, what are the main areas or weaknesses that you have identified? What can be done

to reduce the weak areas of your personality/performance to make you a better performer and overall as-set to your company?

Step Five:Putting it all together has tremendous value for your personal job and responsibilities and for the

overall benefit to the company. Having identified your strengths and weaknesses can help your career tremendously in that you now have a sense of what you do well and what you can improve upon to make you a better employee. Having identified these areas is a big step; doing something to use this information and put it in practice is even a bigger step. A wise man knows his strengths and limitations and looks even wiser when he handles himself accordingly!


Aptitude

Your willingness to do what is asked and ability to get along with co-workers has to be handled by your own way of seeing how this can work. Your aptitude is your overall ability to see the benefit of being a good employee and the potential it holds over the length of your career.

Step One:By definition, aptitude is how you handle things that happen to you, both good and bad. How you

respond to a bad situation in your department, for example, will ultimately define you as a person within the organization. Do you use excuses and blame others or do you take a share in the outcome and works towards the necessary changes needed to improve the overall situation from how it was previously? On the same hand, when your job/department performs well do you look for all the credit and overlook the entire team effort that it takes for a successful outcome?

Step Two:Given the two possible outcomes, how are you likely to respond in each situation? How have you

handled these types of situations in the past? What have you learned from them?

Step Three:Write down specific actions you have taken regarding less favorable and successful outcomes of

your job/department over your working career. Is there a consistent pattern? If so, what is this pattern like? Where are you in how your aptitude might be and where you would like it to be?

Step Four:Next, how did you feel in each situation that you have described? What emotions might you use

to define your overall feelings? Based on these emotions, how well were you in handling them? Explain what was handled well and what could have been handled better.

Step Five:Finally, how did you react or respond to the mentioned situations you have experienced in the

past? Going forward, use this same format to keep track of your own aptitude regarding the outcomes of your own job and the department you might be associated with. Keeping in touch with your dealings with success and failure has great value and can only be a tremendous asset to your own career if you have a handle on how you might react and move forward given the possible outcomes you know in advance might take place.

Skill Development & Usage

Your skills are always in use and sometime they are up to speed and sometimes they are not. Fur-thermore, your skills can be a true asset if used effectively.

Step One:If you were to think about yourself as a one-person contractor, what types of jobs/duties could

you perform without much guidance or supervision? In affect, what are you really good at? Are there things that come easy to you that might be difficult for others? Are you technically inclined or are you


good at verbal and written communications? Are you detail orientated or look at things in a much more general way?

Step Two:Identify what skill traits that would fit you currently? Make a list and look for a real definition of

your skills as they have accumulated to date.

Step Three:What might be the overall way to define what you are really good at? Are you currently doing

work that fits your own skills and personality?

Step Four:Given the assessment you have made, what can you do to further enhance your skills? Is there

more training or more time needed on the job/assignments to further advance you identified skill set?

Step Five:Is your current job utilizing your skill set to it best advantage? What could you be doing that

would be a better use of your talents and skills? What new job or assignments might be a better fit for you based on this skills analysis? What can you do to move closer to the idea job based on your best skills?

Job Dedication & Completion

How well you perform on your job has many variables. Ultimately, you are better served to be dedicated to your job/craft.

Step One:How do you personally define dedication? Are you always looking for ways to improve you job

performance/department to make it more productive and better positioned within the company?

Step Two:What do you do to make sure you have completely completed your job & duties? Do you stay

over your normal work time and make sure your work is done? Are you willing to pitch in and help a co-worker when he is struggling or falling behind in his job duties?

Step Three:Make a list of what you do and how you are dedicated to your job? What does this list look like?

How do you feel about this list?

Step Four:What are the strengths of you job dedication profile that you have created? What are areas that

you could improve upon? Are you a dedicated worker overall? If not, can you work at becoming one?

Step Five:Keep notes as to how you have been able to work harder at your job and how it has affected the

outcome. Also, make notes as to how your job or department might need to be changed, better staffed, du-


ties added or eliminated, tools or equipment needed to make the job/department better, etc. In practice, you are not only working at your job to make the outcome successful, but you are becoming a better agent for the company in terms of how the entire process could be changed and/or improved for the benefit of your area and the entire company. Remember, before you make suggestions and identify problem areas, consider your aptitude as identified in this chapter and how these same rules apply to your assessment and recommendations for improvement in this overall process.

Life Planning & Balance

Life planning is your own ability to balance your career, family, and personal goals that you have decided are important to you.

Step One:By now, you should have been able to identify what you consider your own career, family and

personal goals. Each is individually important. However, all three areas affect what you might state as be-ing your career goals, family goals, and personal goals.

Step Two:In a brief listing, what are your current career goals? What are your current family goals? What

are your current personal goals?

Step Three:How can you achieve your career goals based on your current situation? What must you consider

to effectively achieve your career goals? Likewise, to reach your family goals and your own personal goals?

Step Four:Have you written your family positioning statement? If so, what is it? If not, revisit page in chap-

ter two and learn more about writing your family positioning statement.

Step Five:How has this process helped you become more realistic about your job, and how well you adjust

and fit your family and personal goals into the equation? Likewise, how well does your family life oper-ate, as you have considered its importance as it relates to your job and personal goals? Finally, how have you adjusted your personal goals in this entire process? Do you see the balance that you should have in your life? Does this level of understanding help you to become less frustrated and more realistic in each area of your life? Has the process helped to improve your outlook and given you the ability to make changes and adjustments that you might find necessary along the way?

Education & Additional Training

A career that finds the most success will net be without a solid base of training and education. Ed-ucation is a college degree that fits your career plans.

Step One:


What is your current level education? What is formal (having attended a college or technical school) and informal (self-taught skills such as a computer technician, mechanic, etc.)?

Step Two:As it relates to your current job, what can you do to improve your performance and job status

with regards to formal training? Informal training?

Step Three:What are your means for attending more formal and informal training? Will your company pay

for all or part of the additional training that your think would help your career? If not all, how much? What obligation will you need to make to repay the company (years of service or repayment plan).

Step Four:Identify local and national schools that could be attractive to you with regards to formal training.

List ways you see that could be used to help you improve your skills with regards to informal training? What does this list look like?

Step Five:Based on your list above, map out timelines to what steps you would like to take to improve both

your formal and informal training. What people need to be involved in the approval process? Where are there policies regarding continuing training in your organization (in almost all cases, this can be found in the human resource department)? Finally, what can more training and learning do for your career? What short-term and long-term goals do you have that involve more training for you to achieve these goals?


STUDY SKILLS NOTES

Importance of Reading

Instructor’s Notes on Text Box Seven: Objectives to consider and implement to increase students knowledge, usage and understanding of the concepts.

Most time spent in the learning process is reading from text books, class notes, or additional re-search where evaluating large amounts of information occurs on a regular basis. College success largely hinges on the student’s ability to cover a variety of materials at various levels of difficulty all with the ob-jective of the student being able to interpret the information and use it accurately on tests, quizzes, and written papers that determines the student’s grades. The other variables that also factor in are the instruc-tor’s knowledge and views of the subject that come to the student in the form of class notes. Ultimately, the student’s ability to read and interpret subject matter comes from reading skills. Poor reading skills might make attaining passing grades a large hurdle over the course of a semester. Average reading will also have it’s limitations in consistently achieving high grades. However, superior reading skills will help a student become more efficient in obtaining the subject matter and, in most cases, be the bridge to con-verting obtained knowledge into a successful level of applied knowledge that usually equates to excellent grades during a student’s academic career.

What are your reading skills? What can be done to improve them? These skills might be worth the student’s time, considering the potential payoff. It is now time to investigate how to improve your reading skills. The risk for this evaluation is low, while the payoff in doing an honest self-evaluation is enormous.

STUDENT EXERCISE:

What might be the student’s most difficulty regarding reading? Is it word identification, compre-hension of the content, or lack of interest? Is it lack of training or a tremendously poor understanding of the subject matter? Find out what troubles students regarding reading in an open discussion and let other students help make suggestions as to how to make the reading experience better. Suggest that students do additional outside reading to improve their reading knowledge and comprehension.


LECTURE LINKS

LECTURE LINK 7-1

Mapping the Informal Organization

The best way to manage informal organizations is to acknowledge their existence and then bring them out into the open. This is best done through a process known as social network analysis. What you do is chart the flows of information among members of the firm and show those flows using arrows on a chart.

Although it may be tempting to map all the informal networks at one time, that would be very dif-ficult to do and the resulting map would be very, very complex. It is more effective for managers to iden-tify those functions or activities in a firm where connectivity is most needed to improve productivity and then map the corresponding networks of people.

How do you collect information from people to make a map of the interrelationships that occur in a firm? One way is to track e-mail correspondence. Another is to simply observe the behavior of people over time. Who visits whose office and how often? The best way may be to administer a simple 10- to 20-minute questionnaire. Questions would vary by firm and the intent of the research, but they would look something like this: “To whom do you talk regularly about work?” “From whom do you get your techni-cal information?” “To whom do you turn for advice before making an important decision?” “With whom are you most likely to discuss a new idea?” Questions can be tailored to the needs of individual managers. The idea is to see who goes to whom for information and support.

There is software available to help firms create maps that illustrate relationships among employ-ees. Each line on the map indicates a link between two employees and arrows show the direction of the relationship. After a map is drawn, interviews can be conducted to see how such relationships can be used to further the goals of the firm. People are more likely to participate honestly and freely if they know that people who are central to the firm will be compensated accordingly. The goal is not to discover the rumor mill, but to discover who are the real influencers and decision makers in the firm. Which managers are weak and which are strong?

In short, managers can work with employees to discover informal communication networks to optimize those networks and reward those in the firm who others turn to for advice, help, and support. Central connectors link most employees with one another; they provide the expertise that others rely on to get things done. Boundary spanners connect the informal network with other parts of the company or other networks. Peripheral specialists are sought for expertise on selected questions.i

LECTURE LINK 7-2

Smith’s Folly

Kenneth H. Olsen, founder of Digital Equipment Corporation, was known for his autocratic style. At the same time, however, he strongly believed in delegating responsibility, something other computer entrepreneurs have found difficult to do.

i Sources: Rob Cross and Laurence Prusak, “The People Who Make Organizations Go—or Stop,” Harvard Business Review, June 2002, pp. 105-112; and Rob Cross, Nitin Nohria and Andrew Parker, “Six Myths About Informal Net-works,” Sloan Management Review, Spring 2002, pp. 67-75.


In delegating responsibility, Mr. Olsen was always willing to forgive worker mistakes. John F. Smith, Digital’s 12th employee and vice president for twenty years, recalls buying a $7,000 soldering ma-chine, a huge investment at the time, which proved unreliable. He says he came in nights and weekends to adjust it so Mr. Olsen wouldn’t realize his error.

Ultimately, Mr. Smith bought a replacement machine, moved the lemon to a vacant storeroom, covered it with a canvas, and thought he had gotten away with it. He served as Chief Operating Office at Digital Equipment from 1986 through 1994. Much later he came across the machine and idly lifted the covering. He found a hand-lettered sign that read “Smith’s folly. (signed) Ken Olsen.”

LECTURE LINK 7-3

Implementing the Traditional Managerial Rules

Organizations today don’t always follow the traditional rules, but they are aware of the rules and try to adjust accordingly. For example, look at unity of command, where each worker is to report to one, and only one, boss. Firms today often have project teams or cross-functional teams where personnel from various functions are brought together under a new boss – the project manager – and thus have two bosses, one back at the department level and the project manager. Firms are aware of potential conflicts, however, and give the project manager full authority to manage the employee, and tell the department manager to release the worker from his or her control until notified otherwise. Similarly, firms have given up much of the idea of hierarchy. Workers may well be on the same level as their managers and are not subject to orders as they were in the past. They are often considered as equal parts of the team and no one can give orders to anyone else on the team.

Many companies are doing their best to get rid of the old division of labor among departments. When people work in teams, the old departmental specialization is discouraged. Each employee may be asked to help in design, marketing, and other areas to get a wider perspective. Nonetheless, there is often still a need for subordination of individual interests to the general interest. Workers are to think of them-selves as a coordinated team. The goals of the team are still more important than the goals of individual workers.

Many managers today are reluctant to give up what they consider to be their right to give orders and the power to enforce obedience. Authority and responsibility are related: Whenever authority is exer-cised, responsibility arises. “Empowerment” means that managers must give workers more authority and responsibility. That means that managers must shift their focus from telling people what to do to guiding, coaching, supporting, motivating, and training employees. Some traditional bosses find it very difficult to give up their old roles and have to leave the firm. Furthermore, rather than have centralized decision-mak-ing, more and more firms are delegating authority to lower-level managers.

Some managerial rules have stood the test of time. For example, it is still important to have clear communication channels. All workers should be able to reach others in the firm quickly and easily. There should also be order. Materials and people should be placed and maintained in the proper location. Fi-nally, there is still a need for equity and espirit de corps. A manager should treat employees and peers with respect and justice, and a spirit of pride and loyalty should be created among people in the firm. ii

LECTURE LINK 7-4

Choosing the Right Span of Managementii Sources: Allison Overholt, “Health and the Profit Motive,” Fast Company, February 2003, p. 38; and Marty Laubach, “Consent, Informal Organization and Job Rewards: a Mixed Methods Analysis,” Social Forces, June 1, 2005


No formula exists for determining the ideal span of control. Several factors affect the number of people a manager can effectively supervise. Variables in span of control include the following:

Capabilities of the manager. The more experienced and capable a manager is, the broader the span of control can be. (A large number of workers can report to that manager.)

Capabilities of the subordinates. The more the subordinates need supervision, the narrower the span of control should be. Employee turnover at fast-food restaurants, for example, is of-ten so high that managers must constantly be training new people and thus need a narrow span of control.

Geographical closeness. The more concentrated the work area is, the broader the span of control can be.

Functional similarity. The more similar the functions are, the broader the span of control can be.

Need for coordination. The greater the need for coordination, the narrower the span of con-trol might be.

Planning demands. The more involved the plan, the narrower the span of control might be.

Functional complexity. The more complex the functions are, the narrower the span of con-trol might be.

Other factors to consider include the professionalism of superiors and subordinates and the num-ber of new problems that occur in a day. In business, the span of control varies widely. The number of people reporting to a company president may range from 1 to 80 or more. The trend is to expand the span of control as organizations reduce the number of middle managers and hire more educated and talented lower-level employees. That is all included in the idea of empowerment. It’s possible to increase the span of control as employees become more professional, as information technology makes it possible for man-agers to handle more information, and as employees take on more responsibility for self-management.


BONUS INTERNET EXERCISE

BONUS INTERNET EXERCISE 7-1III

Which Are the Best Companies to Work for?Despite stories of bad bosses and demotivating bureaucracy, some companies are able to come up

with creative ways to keep employees engaged. Each year the Great Place to Work Institute ranks Amer-ica’s top employers in the annual “Best Companies to Work For.” Go to the Institute’s website (www.-greatplacetowork.com/best.) (Sometimes the web address for a location changes. You might need to search to find the exact location mentioned.)

1. List the top five companies.

2. Choose one company from the list and use an Internet search engine (such as www.google.com, www.ask.com, or www.yahoo.com) to research the company. Summarize the company’s back-ground and mission.

3. Follow the links to the Institute’s listing for the previous year. Are there any companies in com-mon for the two years?

iii The Internet is a dynamic, changing information source. Web links noted in this manual were checked at the time of publication, but content may change over time. Please review the website before recommending it to your stu-dents.


CRITICAL THINKING EXERCISES

CRITICAL THINKING EXERCISE 7-1

Managing a Family BusinessNicholas Stavros opened his first restaurant in Cedar City twenty-five years ago. Stavros’s fam-

ily-style Greek food and atmosphere proved popular, and three additional restaurants were opened in out-lying suburbs. One of Papa Nick’s children now runs each: Maria’s Stavros, Peter’s Stavros, and Eric’s Stavros. Nick Junior runs the original Nick’s Stavros.

The menu is consistent across all four restaurants, but each restaurant features a daily special pre-pared by the local chef. Customer comment cards consistently rank the quality of food as very high.

Papa Nick now divides his time between the restaurants and the family’s real estate holdings. Ma-jor decisions are made by Papa Nick. All employees at each restaurant report to the restaurant’s Stavros manager, providing some degree of decentralization.

Customer comment cards have begun to show some problem areas at Peter’s Stavros Restaurant. Service ratings have fallen to “fair,” and many customers have written specific comments about slow ser-vice and poor wait service attitude.

Because it is the newest restaurant, Eric’s Stavros has received more resources for advertising and promotion. The equipment is also significantly newer than that at the other three restaurants. Over time Maria, Peter, and Nick Junior have come to resent the attention Eric has received. The tension has be-come so high that the staff at Peter’s Stavros does not speak to the staff at Peter’s Stavros.

Papa Nick is reviewing two pieces of information. One, the profit margin from restaurant opera-tions has declined over the past year. And, finally, several employees have mentioned their desire to join a union.

Papa Nick has asked your advice for improving the performance of his restaurants. What advice would you give him? Outline a plan of action, with goals and timelines.


CRITICAL THINKING EXERCISE 7-2

Group Project: Organizing Production

You will need about 20 sheets of paper (regular-length scratch paper, old handouts, discarded photocopy paper, etc.) for each student and one large cardboard box for each group of students.

Designate groups of five to six students as “production groups” and one group as “evaluators.” Explain that each group is a production team. Each production group’s objective is to profitably produce as many quality paper airplanes as possible in 15 minutes. The planes’ quality is to be judged on the basis of (1) uniformity of design, (2) accuracy, and (3) distance of flight when tossed. Each plane must have a company logo to prevent confusion with the planes of other groups. Completed planes are to be placed in the cardboard box designated for each group.

The evaluation team’s task is to determine which production group meets the quality criteria and to verify the production teams’ profit. The evaluation team can plan its evaluation process while the pro-duction groups are in production. At the end of the 15-minute production period, each production team will calculate the profit for the production run.

Stage 1: Organizing for production (10 minutes). Each team will design your product, develop a sim-ple logo, build a prototype, assign duties, and discuss quality criteria: (1) uniformity of design, (2) accuracy, and (3) distance of flight.

Stage 2: Production (15 minutes). One member of each team should be designated “Financial Officer.” He or she will keep records of preliminary revenue and production costs. The rest of the team will be Production Staff, producing as many finished products as possible while meeting quality criteria.

Stage 3: Profit calculation. Have each production group use the profit calculation worksheet on the fol-lowing page to calculate profit. Each production unit (airplane) that meets quality criteria will be purchased for $2.50. Defective products will be valued at $0. Raw materials (paper) cost $1.00 per unit. Production equipment (box) costs $25 rental. Each team member will be paid $5 in labor cost.


PROFIT CALCULATION WORKSHEET

Each production unit (paper airplane) that meets quality criteria will be purchased for $2.50. De-fective products will be valued at $0. Raw materials (paper) cost $1.00 per unit. Production equipment (box) costs $25 rental. Each team member will be paid $5 in labor cost.

Revenue:

______ acceptable units @ $2.50 ________________

Expenses:

Raw material costs:

______ units of raw material @ $1.00 ________________(include defective units)

Equipment cost ____$25.00_______

Labor costs:

______ team members @ $5.00 each ________________

Total Expenses: ________________

Profit (Loss) ________________

(Revenue minus expenses)


BONUS CASE

BONUS CASE 7-1

Structural Collapse: Responsibility and Accountability

To publicize its newly opened nightspot, a major hotel instituted weekly “tea dances” in the lobby of the hotel. A local band played 1940’s era music while dancers competed in friendly contests. On a Fri-day night in July, the band was playing Duke Ellington’s “Satin Doll” when two skywalks spanning the lobby of the year-old hotel collapsed. Sixty-five tons of concrete, metal, glass, and dance spectators plunged four floors to the sidewalk below, killing 114 persons and injuring 216 others.

The investigation after the collapse revealed that the collapse resulted from poor judgment and a series of events that, in combination, produced a disastrous result. The study showed a history of over-sights, misunderstandings, and safety problems plaguing the 40-story, 780-room luxury hotel during con-struction and for months after its opening.

Mishaps aren’t uncommon on big projects, of course. But this huge project, which was built on an accelerated schedule, encountered a series of accidents and near-accidents during construction. At one point the building’s owner dismissed its general contractor and barred an inspection company from bid-ding on future company projects.

The hotel was erected using the “fast track” method, a fairly common procedure in which con-struction proceeds before all drawings are complete. With a $40 million construction loan outstanding and all building costs soaring, the owner wanted the hotel up and open as quickly as practical.

Design changes are common on fast track projects, making clear communications more critical than usual. The owners of the building had circulated a 27-page procedures manual explaining the proper channels for design changes and approved drawings. But the procedures weren’t always followed, and other mistakes slipped in. Because some connections were misplaced on the drawings, for instance, work-ers installed a sweeping cantilevered stairway without fully attaching it to a wall.

The skywalks fell as a result of a design change made during a telephone call between the struc-tural engineering company and the steel fabricator. Stress calculations would have shown that the re-designed skywalks were barely able to support their own weight, let alone the weight of dozens of dance spectators. However, court depositions of the two engineers who made the telephone redesign indicate that each person assumed it was the other’s responsibility to make new calculations, and neither did.

Edward Pfrang, then chief of the structures division of the National Bureau of Standards, a partic-ipant in the investigation, says, “One thing that’s clear after … [this] failure and a few others is that there isn’t a clear-cut set of standards and practices defining who is responsible in the construction process.”

DISCUSSION QUESTIONS FOR BONUS CASE 7-1

1. Who was responsible for the collapse? Explain.

2. Identify several key time points at which the problem could have been corrected.

3. Is this a failure of planning, organizing, leading, or controlling?

ANSWERS TO DISCUSSION QUESTIONS FOR BONUS CASE 7-1


1. Who was responsible for the collapse? Explain.

Identifying who is to blame is the function of the legal system. Clearly, many people shared in the blame, but not necessarily legally. Such a case shows the dangers of trying to get a project done quickly instead of safely.

2. Identify several key time points at which the problem could have been corrected.During construction. During the safety inspection. When the times were set for competition.

Safety considerations don’t take place at any one time. They must be in mind at ALL times.

3. Is this a failure of planning, organizing, leading, or controlling?This failure occurred at all three stages. (1) At the planning stage, because the project was hur-

ried. (2) At the organization stage because responsibility was not made clear. (3) At the control stage be-cause periodic inspections should have found the flaws.

This case is based on the collapse of the skywalk at the Kansas City Hyatt Regency on 1981. Hundreds of lawsuits were filed against its owner, Hallmark Cards Inc., its operator, Hyatt Hotels Corp, and against the building companies involved. One insurer, Columbia Casualty, has paid out more than $22 million in claims.


ENDNOTES


what is management - novellanovella.mhhe.com/olc2/dl/582338/ghilyer1_im07_final.doc · web viewa...

Documents