What key organizational principles guided Post & Schell in its reorganization?
How has authority changed at Post & Schell?
What organizational design did Post & Schell adopt?
What type of job design does Post & Schell use?
What prioritization and delegating issues does Post & Schell face?
Exhibit 5 – 1 ● Organizing Questions
Exhibit 5 –2 ● Principles of Organization
Unity of command and direction
Chain of command
Span of management (flat and tall organizations)
Division of labor (specialization, departmentalization, integration)
Balanced responsibility and authority
Coordination Methods Direct Contact Liaisons Integrators Committees Boundary Roles
Balanced Responsibility and Authority
The obligation to achieve objectives by performing required activities.
The right to make decisions, issue orders, and use resources.
The evaluation of how well individuals meet their responsibilities.
Balanced Responsibility and Authority (cont’d)
The process of assigning responsibility and authority for accomplishing objectives.
The ability to adapt to exceptions to the rules, policies, and procedures of the organization.
Formal Authority (or Structure)
The organizationally-sanctioned way of getting the job done.
Organizational charts illustrate formal lines of authority in firms.
The patterns of relationships and communication that evolve as employees interact and communicate that is not sanctioned by the organization.
Scope of Authority
A hierarchy that narrows as it flows down the organization.
Exhibit 5 –3 ● Scope of Authority Responsibility and Authority
Join the Discussion Ethics & Social Responsibility
Breaking the Rules
Is it unethical to be flexible and break the law against kickbacks?
Why are kickbacks illegal? Who benefits from kickbacks, who gets hurt by them, and how?
What would you do in this situation? (Would you start giving kickbacks yourself? Blow the whistle on sales reps to their managers? Blow the whistle to an outside source like the government or the media? Do nothing?)
Levels of Authority
Authority to Inform
Inform a superior of alternative actions and the superior makes the decision.
Authority to Recommend
List alternative decisions/actions and recommend one action; the superior makes action decision.
Authority to Report
Select and implement a course of action, and report the action to the superior.
Act independently without supervision.
Line and Staff Authority
The responsibility to make decisions and issue orders down the chain of command.
The responsibility of staff personnel to advise and assist other personnel.
The right of staff personnel to issue orders to line personnel in established areas of responsibility.
Dual line and staff authority
Staff personnel exercise line authority within their own departments.
Line and Staff Authority (cont’d)
Staff Authority (cont’d)
Work for only one manager and help the manager in any way needed.
Help anyone in the organization who needs it.
Centralized and Decentralized Authority
Important decisions are made by top managers.
Important decisions are made by middle and first-line managers.
Exhibit 5 –4 ● Types and Levels of Authority
Contingency Factors Affecting Structure
Environment (mechanistic versus organic)
Strategy (“structure follows strategy”)
Size of the organization (larger = more formal)
A graphic illustration of the organization’s management hierarchy and departments and their working relationships.
The level of management hierarchy, chain of command, the division and type of work, and departmentalization.
Exhibit 5 –5 ● Organization Chart
The grouping of related activities into units.
Types of Departmentalization
Organizing departments around essential input activities, such as production, sales, and finance, that are managerial or technological functions.
Organizing departments around goods (or services).
Organizing departments around the needs of different types of customers.
Establishing separate unites in each area in which the enterprise does business.
Exhibit 5 –6 ● Types of Departmentalization
Hybrid structures using combinations of functional and product departmentalization.
Combines functional and product departmentalization.
Unity of command violation
Based on semiautonomous strategic business units.
Uses a conglomerate structure of unrelated business units: autonomous profit centers.
Exhibit 5 –7 ● Matrix Departmentalization
New Approaches to Departmentalization Departmentalization Virtual Organizations Learning Organizations Network Structures Horizontal Team Organizations
The process of identifying tasks that each employee is responsible for completing.
Affects job satisfaction and productivity.
Exhibit 5 –8 ● Job Design Options Integrated Self-managed Work Teams Rotate jobs (job rotation) Add tasks (job enlargement) Increase task variety and employee responsibility (job enrichment) Job Expansion Eliminate tasks Combine tasks Change task sequence Job Simplification
Exhibit 5 –9 ● The Job Characteristics Model
Do I need to be personally involved because of my unique knowledge or skills?
Is the task my responsibility, or will it affect the performance or finances of my department?
When is the deadline—is quick action needed?
Delegate (D) priority: The task is delegated if the answer to question 1 is no.
High (H) priority: Assign the task a high priority if you answer yes to all three questions.
Medium (M) priority: Assign the task a medium priority if you answer yes to question 1 but no to one of the remaining two questions.
Low (L) priority: Assign the task a low priority if you answer yes to question 1 but no to both questions 2 and 3.
Exhibit 5 – 10 ● Prioritized To-Do List
Write the task that you must perform on the task line.
Answer the three priority questions by placing a Y (yes) or N (no) in the relevant column.
Assign a priority to the task by placing the letter D (delegate), H (high), M (medium), or L (low) in the priority column.
Determine which task to complete now .
More time for other high-priority tasks.
Trains employees and improves their self-esteem.
Enriches jobs and improves personal and work outcomes.
Reluctance to stop doing tasks personally.
Fear of employee’s failure to accomplish task.
Threatened by employee’s success.
Exhibit 5 – 11 ● What to Delegate and What Not to Delegate
Join the Discussion Ethics & Social Responsibility
Delegating Destroying Documents
Is it ethical and socially responsible to delegate the task of destroying documents that may potentially be used as evidence of wrongdoing?
What would you do if your boss asked you to destroy documents and you thought the goal was to cover up evidence of wrongdoing by the firm? (Would you just do it? Say nothing but neglect to do it? Question your boss’s motives? Look closely at what you were asked to destroy? Check with your boss’s boss to make sure it's okay to do it? Tell the boss you will not do it? Tell the boss to do it himself or herself? Blow the whistle to an outside source?)
If you were charged with destroying evidence, do you believe it would be a good defense to say, “I was only following orders”?
Exhibit 5 – 12 ● The Delegation Process 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. 3. Develop a plan. 4. Establish control checkpoints and hold employees accountable.