The Organization Structure

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2 The Organization Structure A. Organization charts A series of boxes connected with one or more lines to graphically represent the organization s structure It provides an overall picture of how the entire organization fits together B. Departmentation The most common method of structuring an organization It can be functional or geographic C. Authority and the supervisor The right to issue directives and expend resources Authority of supervisors is determined by upper level management and implemented through the organization structure Supervisión y control M. En C. Eduardo Bustos Farías 2

3 The Organization Structure Line versus staff authority Line authority based on the supervisor-subordinate relationship; creating a direct line of authority from the top to the bottom of the organization structure Staff authority specialists in a particular field used to support and advise line personnel The largest number of supervisors are usually line managers Line and staff conflict staff specialists resent that they are only advisors to line managers, whereas line managers feel that staff always tries to interfere Supervisión y control M. En C. Eduardo Bustos Farías 3

4 The Organization Structure D. Centralized versus decentralized authority The degree of authority delegated by top management The more freedom the supervisor has to make decisions, the more decentralized the organization Empowerment is a form of decentralization that gives subordinates substantial authority to make decisions E. Responsibility and the supervisor Responsibility is accountability for reaching objectives, using resources properly, and adhering to organizational policy The term responsibility refers to job duties or the things that make up a supervisor's job F. Power and the supervisor Power is the ability to get others to respond favorably to instructions and orders Authority is the right to command and expend resources Supervisión y control M. En C. Eduardo Bustos Farías 4

5 Principles of Supervision Based on Authority The following are guides to assist the supervisor in the proper use of authority: A. Parity principle Authority and responsibility must coincide B. Exception principle Supervisors should concentrate their efforts on matters that deviate from the normal and let their employees handle routine matters C. Unity of command principle An employee should have one and only one immediate boss Supervisión y control M. En C. Eduardo Bustos Farías 5

6 Principles of Supervision Based D. Scalar principle on Authority Authority flows one link at a time from the top of the organization to the bottom (chain of command) E. Span of control principle -- The number of employees a supervisor can effectively mange. The supervisor s span depends on several factors: Complexity of the jobs The variety of the jobs The proximity of the jobs The quality of the people filling the jobs The ability of the supervisor Supervisión y control M. En C. Eduardo Bustos Farías 6

7 Delegating Authority and Responsibility In common use, delegation refers to the delegation of authority to assist the receiving party in completing assigned duties. Responsibility can be delegated in the sense of making employees responsible for certain actions, but it does not make the delegating party less responsible. Supervisión y control M. En C. Eduardo Bustos Farías 7

8 Delegating Authority and Responsibility A. Successful delegation includes the delegation of both authority and responsibility B. Assigning work: 1. Identify what work should be delegated 2. Decide which subordinates should handle each task 3. Communicate what needs to be done, not how C. Creating an obligation: 1. Tell the employee what is expected 2. Feelings of responsibility come from within the individual Supervisión y control M. En C. Eduardo Bustos Farías 8

9 Delegating Authority and Responsibility D. Granting permission (authority): Empowerment involves giving employees substantial authority to make decisions. The keys to successful empowering are: Express confidence in employee s abilities to perform at high levels Design jobs so that employees have considerable freedom Set meaningful and challenging goals Applaud good performance Encourage employees to take personal responsibility for their work Supervisión y control M. En C. Eduardo Bustos Farías 9

10 Why people are reluctant to delegate? A. Most supervisors are promoted from the ranks of operative employees, where performance is an individual function. A supervisor s performance is almost totally dependent on the performance of others. Problems occur when the new supervisor does not fully realize the difference. 1. If you want something done right, do it yourself 2. It is easier to do it myself 3. Fear of an employee looking too good 4. The human attraction for power 5. More confidence in doing detail work 6. Preconceived ideas about employees 7. Desire to set the right example Supervisión y control M. En C. Eduardo Bustos Farías 10

11 Delegating Authority and Responsibility B. Tasks that cannot be delegated -- The following things normally should not be delegated: 1. Planning activities 2. Assigning work 3. Motivational problems 4. Counseling employees 5. Resolving conflict situations 6. Tasks specifically assigned to the supervisor Supervisión y control M. En C. Eduardo Bustos Farías 11

12 Practical Tips For Effective Delegation Know your employees abilities Don t be afraid of over delegating Practice good communication skills when delegating Minimize overlap of authority Give employees some freedom in deciding how to implement their authority Assign related areas of authority and responsibility to each individual Once you have delegated, let the employees take over Do not expect perfection the first time Supervisión y control M. En C. Eduardo Bustos Farías 12

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14 Informal Work Groups Informal work groups are formed voluntarily by members of an organization. Interest groups members share a purpose or concern Informal groups formed around mutual interests fill important social needs Affect productivity, the morale of other employees,and the success of managers. Have power in an organization Managers seek to duplicate the satisfaction employees experience in an informal work group through formal work groups Supervisión y control M. En C. Eduardo Bustos Farías 14

15 Formal Work Groups Established by management to carry out specific tasks May exist for a short or long period of time Have a single goal Supervisión y control M. En C. Eduardo Bustos Farías 15

16 Group Norms A group norm is an understanding among group members concerning how those members should behave They may be extremely simple They many include expectations that group members will remain loyal to each other under any circumstances Group members expected to hold to them They do not govern every action in a group Members use their actions to show new members how to behave Supervisión y control M. En C. Eduardo Bustos Farías 16

17 Group Behavior Group Cohesiveness Refers to how strongly the individual members will stick together as a group Small group size Success and status of the group Outside pressures Stability of membership Communication Physical isolation Supervisión y control M. En C. Eduardo Bustos Farías 17

18 Group Behavior Group Conformity Abiding by the norms of the group A group generally seeks to control members behavior for two reasons Independent behavior can cause disagreement that threatens survival Creates an atmosphere of trust that allows members to work together and socialize comfortably Individuals tend to conform to group norms under certain conditions When group norms are similar to personal attitudes, beliefs,and behavior When they do not agree with the group s norms but feel pressure to accept them When the rewards for complying are valued or the sanctions imposed for noncompliance are devalued Group pressure and conformity Supervisión y control M. En C. Eduardo Bustos Farías 18

19 Group Behavior Groupthink When group members lose their ability to think as individuals and conform at the expense of their good judgment Supervisión y control M. En C. Eduardo Bustos Farías 19

20 The Importance of Teams Influencing Work Groups The results of the Hawthorne studies show that when groups of employees are singled out for attention, they tend to work more efficiently Supervisión y control M. En C. Eduardo Bustos Farías 20

21 The Importance of Teams Building Effective Teams Creating groups Building trust Influencing a team s cohesiveness Supervisión y control M. En C. Eduardo Bustos Farías 21

22 The Importance of Teams Quality Circles Composed of a group of employees that perform a similar service or function Membership is almost always voluntary The basic purpose is to discuss quality problems and to generate ideas that might help improve quality Members receive specialized training relating to quality Supervisión y control M. En C. Eduardo Bustos Farías 22

23 The Importance of Teams Self-Directed Work Teams Empowered to control the work they do without a formal supervisor Supervisión y control M. En C. Eduardo Bustos Farías 23

24 Groups and Leaders Gaining acceptance Encouraging participation Supervisión y control M. En C. Eduardo Bustos Farías 24

25 Supervision and Informal Work Groups Getting the Informal Work Group to Work With You Instead of Against You 1) Communicate openly 2) Encourage group participation in decision-making 3) Respect the informal leader 4) Remove production obstacles 5) Practice constructive discipline 6) Be sensitive to individual needs 7) Set a good example and be consistent 8) Attempt to provide group rewards 9) Support the group when possible 10) Set achievable goals for your work unit Supervisión y control M. En C. Eduardo Bustos Farías 25