basic elements of principles of management. First comes organizing. organizing is basically maintaining an overall discipline and systematic rhythm in an organization. Organizing is essential in any business or corporate company. Organizing makes tasks easier and lets you keep track of every indoor and outdoor activity that is related to the operations of the company.
2. Organizing
Imagine asking a child to build a castle
with a set of building blocks. She selects
a few small blocks and other larger ones.
She uses some square ones, some
round ones, and some triangular ones.
The children’s activities—choosing
certain combinations of blocks and then
putting them together in unique ways—
are in many ways analogous to the
manager’s job of organizing.
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3. Organizing
Organizing is deciding how best to group
organizational elements.
Just as children select different kinds of building
blocks, managers can choose a variety of
structural possibilities.
And just as the children can assemble the
blocks in any number of ways, so, too, can
managers put the organization together in many
different ways.
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4. Six basic building blocks of
organizing
There are six basic building blocks that
managers can use in constructing an
organization:
designing jobs,
grouping jobs,
establishing reporting relationships between
jobs,
distributing authority among jobs,
coordinating activities among jobs, and
differentiating among positions.
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5. Designing Jobs
Job design involves conscious efforts to organize
tasks, duties and responsibilities into a unit of work
to achieve certain objectives.
According to Ricky W. Griffin, “Job design is the
determination of an individual’s work-related
responsibilities.”
For Example, for a machinist at Caterpillar, job
design might specify
what machines are to be operated,
how they are to be operated, and
what performance standards are expected.
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6. Job Specialization
Job specialization is the degree to which
the overall task of the organization is
broken down and divided into smaller
component parts.
Job specialization evolved from the
concept of division of labor.
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7. Adam Smith, an eighteenth-century
economist, first discussed division of labor in
his case study about how a pin factory used it
to improve productivity.
He described how one man pulled the wire
from a spool, another straightened it, a third
cut it, a fourth ground the point, and so on.
Smith claimed that ten men working in this
fashion were able to produce 48,000 pins in
a day, whereas each man working alone
could produce only 20 pins per day.
So total 20*10=200 maximum. (working
alone )
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8. Benefits of Job Specialization
First, workers performing small, simple tasks
will become very proficient at each task.
Second, transfer time between tasks
decreases. If employees perform several
different tasks, some time is lost as they stop
doing the first task and start doing the next.
Third, the more narrowly defined a job is, the
easier it is to develop specialized equipment
to assist with that job.
Fourth, when an employee who performs a
highly specialized job is absent or resigns, the
manager is able to train someone new at
relatively low cost.
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9. Limitations of Job Specialization
On the other hand, job specialization can
have negative consequences.
The foremost criticism is that workers who
perform highly specialized jobs may become
bored and dissatisfied.
The job may be so specialized that it offers no
challenge or stimulation.
Boredom and monotony set in, absenteeism
rises, and the quality of the work may suffer.
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10. Job Rotation
Job rotation involves systematically moving
employees from one job to another.
It reduces the boredom of doing the same
work again and again.
Job rotation is also being used more to
increase flexibility and lower costs.
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11. Job Enlargement
Job Enlargement was developed to
increase the total number of tasks workers
perform.
As a result, all workers perform a wide
variety of tasks, which presumably
reduces the level of job dissatisfaction.
For example, an employee performed 6
jobs before, now he is performing 8 jobs.
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12. Job Enrichment
Job enrichment attempts to increase both the
number of tasks a worker does and the
control the worker has over the job.
To implement job enrichment, managers
remove some controls from the job, delegate
more authority to employees, and structure
the work in complete, natural units.
These changes increase subordinates’ sense
of responsibility. Another part of job
enrichment is to continually assign new and
challenging tasks, thereby increasing
employees’ opportunity for growth and
advancement.
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13. Job Enlargement VS. Job Enrichment
1) A job design strategy in which the number of
tasks performed by a single job is increased is
known as Job Enlargement. Job Enrichment is
defined as a motivational tool, used by the
management in which the range of activities
performed by a single job is increased to
make it better than before.
2) Job Enlargement involves
quantitatively extending the scope of activities
carried out by the job whereas in Job
Enrichment improvements are made in the
existing job to increase its quality.
3) Job Enlargement reduces boredom and
monotony while performing a single task, on
and on. Conversely, Job Enrichment makes
the job more challenging, exciting as well as
creative. 13
14. Job Enlargement VS. Job Enrichment
4) Job Enlargement does not require additional
skills but job enrichment does.
5) The consequence of introducing job
enlargement is not always positive, but job
enrichment will produce positive outcomes.
6) Job Enlargement makes employees feel
more responsible and valuable, while Job
Enrichment brings satisfaction and efficiency
in employees.
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15. Job Characteristics Approach
The job characteristics approach suggests that
jobs should be diagnosed and improved along
five core dimensions:
1. Skill variety, the number of things a person
does in a job.
2. Task identity, the extent to which the worker
does a complete or identifiable portion of the
total job.
3. Task significance, the perceived importance of
the task.
4. Autonomy, the degree of control the worker
has over how the work is performed.
5. Feedback, the extent to which the worker
knows how well the job is being performed.
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17. Work Teams
Under this arrangement, a group is given
responsibility for designing the work system to
be used in performing an interrelated set of
tasks.
In the typical assembly-line system, the work
flows from one worker to the next, and each
worker has a specified job to perform. In a
work team, however, the group itself decides
how jobs will be allocated.
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18. Departmentalization
Departmentalization refers to the process of
grouping jobs according to some logical
arrangement.
When organizations are small, the owner–
manager can personally oversee everyone
who works there.
As an organization grows, however,
personally supervising all the employees
becomes more and more difficult for the
owner–manager.
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Jobs are grouped according to some plan. The logic
embodied in such a plan is the basis for all
departmentalization.
19. Common Bases for Departmentalization
1. Functional Departmentalization
The most common base for
departmentalization, especially among
smaller organizations, is by function.
Functional departmentalization groups
together those jobs involving the same or
similar activities.
The computer department at Apex has
manufacturing, finance, and marketing
departments.
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20. 2. Product Departmentalization
Product departmentalization, a second
common approach, involves grouping and
arranging activities around products or
product groups.
Apex Computers has three product-based
departments at the highest level of the firm.
personal computer business,
laptop and
the software business.
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21. 3. Customer Departmentalization
Customer departmentalization means
grouping activities to respond to and interact
with specific customers or customer groups.
Apex’s computer business has two distinct
departments—
industrial sales and
consumer sales.
The industrial sales department handles
marketing activities aimed at business
customers, whereas the consumer sales
department is responsible for wholesaling
computers to retail stores catering to
individual purchasers.
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22. 4. Location Departmentalization
Location departmentalization means grouping
jobs on the basis of defined geographic sites
or areas. The manufacturing branch of Apex’s
computer business has two plants—one in
Dhaka and another in Chittagong.
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Transportation companies, police departments, and the
Banks all use location departmentalization.
23. 5. Other Forms of Departmentalization
One of the machine shops of Baker Hughes in
Houston, for example, operates on three
shifts. Each shift has a superintendent who
reports to the plant manager, and each shift
has its own functional departments. Time is
thus the framework for many organizational
activities.
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24. Span of Management
Span of management means the number of
employees or subordinates a manager can
effectively supervise. In other words, it refers to
the number of people who report to a particular
manager.
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26. Tall Versus Flat Organizations
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What difference does it make whether the
organization is tall or flat?
One early study at Sears found that a flat structure
led to higher levels of employee morale and
productivity.
Researchers have also argued that a tall structure
is more expensive (because of the larger number
of managers involved) and that it fosters more
communication problems (because of the
increased number of people through whom
information must pass).
27. Tall Versus Flat Organizations
27
On the other hand, a wide span of management in a
flat organization may result in a manager’s having
more administrative responsibility (because there
are fewer managers) and more supervisory
responsibility (because there are more
subordinates reporting to each manager).
If these additional responsibilities become
excessive, the flat organization may suffer.
Wide spans of management result in flat organizations,
which may lead to improved employee morale and
productivity as well as increased managerial responsibility.
Many organizations today, including IBM and General
Electric, are moving toward flat structures to improve
communication and flexibility.
29. Factors Influencing the Span of
Management
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1. Competence of supervisor and subordinates
(the greater the competence, the wider the
potential span)
2. Physical dispersion of subordinates (the greater
the dispersion, the narrower the potential span)
3. Extent of nonsupervisory work in manager’s
job (the more nonsupervisory work, the narrower
the potential span)
4. Degree of required interaction (the less required
interaction, the wider the potential span)
30. Factors Influencing the Span of
Management
30
5. Extent of standardized procedures (the more
procedures, the wider the potential span)
6. Similarity of tasks being supervised (the more
similar the tasks, the wider the potential span)
7. Frequency of new problems (the higher the
frequency, the narrower the potential span)
8. Preferences of supervisors and subordinates
31. Authority
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Authority is the legitimate power and command
over the resources.
In other words, authority is power that has
been legitimized by the organization.
For example, when an owner–manager hires a
sales representative to market his products, he
needs to give the new employee appropriate
authority to make decisions about delivery
dates, discounts, and so forth.
32. Delegation
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Delegation is the process by which managers
assign a portion of their total workload to others.
In other words, delegation is the assignment of any
responsibility or authority to another person
(normally from a manager to a subordinate) to
carry out specific activities.
33. Reasons for Delegation
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1. The primary reason for delegation is to enable
the manager to get more work done.
2. Subordinates help ease the manager’s burden
by doing major portions of the organization’s work.
3. In some instances, a subordinate may have
more expertise in addressing a particular problem
than the manager does.
4. Delegation also helps develop subordinates. By
participating in decision making and problem
solving, subordinates learn about overall
operations and improve their managerial skills.
34. Centralization
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Centralization is the process of systematically
retaining power and authority in the hands of
higher-level managers.
In a centralized organization, decision-making
power and authority are retained at the higher
levels of management.
35. Decentralization
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Decentralization is the process of systematically
delegating power and authority throughout the
organization to middle and lower-level managers.
A decentralized organization is one in which
decision-making power and authority are delegated
as far down the chain of command as possible.
No organization is ever completely decentralized or
completely centralized; some firms position
themselves toward one end of the continuum, and
some lean the other way.
36. Centralization VS Decentralization
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BASIS FOR
COMPARISON
CENTRALIZATION DECENTRALIZATION
1. Meaning
The retention of powers
and authority with
respect to planning and
decisions, with the top
management, is known
as Centralization.
The dissemination of
authority, responsibility
and accountability to the
various management
levels, is known as
Decentralization.
2. Involves
Systematic and
consistent reservation
of authority.
Systematic dispersal of
authority.
3. Decision
Making
Comparatively faster Slow
37. Centralization VS Decentralization
37
BASIS FOR
COMPARISON
CENTRALIZATION DECENTRALIZATION
4. Advantage
Proper coordination
and Leadership
Sharing of burden and
responsibility
5. Power of
decision
making
Lies with the top
management.
Multiple persons have the
power of decision making.
76 Reasons
Inadequate control
over the organization
Considerable control over
the organization
7. Best suited
for
Small sized
organization
Large sized organization
38. Coordinating Activities
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Coordination is the process of linking the activities
of the various departments of the organization.
Structural
Coordination
Techniques
The Managerial
Hierarchy
Rules and
Procedures
Liaison Roles
Task Forces
Integrating
Departments
39. 39
The last building block of organization structure is
differentiating between line and staff positions in
the organization.
A line position is a position in the direct chain of
command that is responsible for the achievement
of an organization’s goals.
A staff position is intended to provide expertise,
advice, and support for line positions.
Differentiating Between Positions
The most obvious difference between line and staff is
purpose—line managers work directly toward
organizational goals, whereas staff managers advise
and assist.
