Reasons for Organizing 1. Establish lines of authority 2.

Improve the efficiency and quality of work through synergism, which can result from : Division of labor Increased coordination

3. Improve communication. Types of Division of Labor 1. Vertical division of labor Based on establishing lines of authority Defines the levels of vertical organizational structure Facilitates the flow of communication Based on specialization of work. Basic premise more work can be produced with the same effort through increased efficiency and quality due to task specialization. Horizontal Division Advantages: Fewer skills required per person Skills for selection/ training are easier to supply Proficiency in the job develops through practice Promotes efficient use of each workers skills. Concurrent operations are made possible Product conformity is increased when each piece is produced by the same person.

2. Horizontal division of labor

Disadvantages: Job boredom and degradation of the employee

Division of labor Job Scope : refers to the number of different types of tasks performed on the job Job depth : Refers to the freedom of employees to plan and organize their own work, work at their own pace, and move around and communicate as desired. ( high level manager has many decision opportunities) Parity Principle- Delegation States that authority and responsibility must coincide. Management reluctance to delegate is caused by : Fear that subordinates will fail Belief that is easier to do the task oneself. Fear that subordinates will look too good Humans attraction to power Comfort in doing the tasks of the previous job held. Preconceived ideas about employees Desire to set the right example.

Other Authority Principles Unity of command An employee should have one, and only one, immediate manager. Scalar principle

Authority in the organization flows through the chain of managers one link at a time, ranging from the highest to the lowest ranks.

Also referred to as chain of command

Span of management The number of subordinates a manager can effectively management Also reffered

Elements for Empowerment Participation Employees must be actively and willingly engaged in their jobs with a want to improve their work processes and relationship

Innovation Employees must be given permission and encouragement to innovate and not atick to the old methodology Access to Information Employees at every level should make deicisions about choosing information perfaining to job performance. Accountability

Implementing Empowerment Steps in implementing empowerment : Restructure organizational units to be smaller, less complex , and less dependent on other units for decision making and action Minimize the number of organizational rules Emphasize an pro-empowerment attitude and personal accountability in the organization. Provide education and training for personal empowerment.

Organization Structure : A framework that defines the boundaries of the formal organization and within which the organization operates. Factors Affecting Organization Structure 1. Strategy Good structure + be prepared to win! Alfred Chandler described a pattern in the evolution of organization structure : Changing strategy Leads to administrative problems Followed by a decline in performance Revised structure Subsequent return to economic health

2. Size Measured by sales volume/ number of employees Small organization Less specialized Less standardized More centralized More specialized More standardized More decentralized

Larger organization -

3. External Environment Mechanistic Systems (established) Rigid functional duties Precise job description Fixed authority and responsibility Instructions and decisions issued by superiors Well- developed organizations. Organic Systems ( dynamic) Less formal job descriptions. Greater emphasis on adaptability More participation Information and advice is given Less fixed authority.