Fluent Essays

by using the attached power point  explain how can a company minimize the adverse effect of downsizing? with your opinion. 150 words. second, relates to an ethical consideration from Chapter 3 - Decision Making, Problem Solving. Explain the role of ethics in the supervisor's decision-making process. write in a short apa format, no less than 300 words per answer in written content with multiple academic resources and citations to support the content of the case study. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. CHAPTER 4 FUNDAMENTALS OF ORGANIZING ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Identify the advantages and disadvantages of the functional, product, and matrix departmentalization approaches Explain the principles of unity of command and span of control Describe the difference between line and staff Understand how to avoid excessive conflict between line and staff Explain the three types of authority found in organizations LEARNING OBJECTIVES * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Understand the stages of organization growth Distinguish between centralization and decentralization Discuss the benefits and costs of downsizing Explain the four types of contemporary organizational approaches Understand the relationship between management philosophy, strategy, and newer forms of organization LEARNING OBJECTIVES * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. One-person organization Organization with assistants added Line organization: Concerned with the primary functions of the firm Production, sales, and office administration/ finance Line-and-staff organization: Staff positions are added to serve the basic line departments Helps accomplish the organization objectives more effectively STAGES IN GROWTH OF AN ORGANIZATION * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Quick, decisive action on problems is possible because authority is centralized Lines of responsibility and authority are clearly defined Evasion of responsibility is minimized and accountability is maximized ADVANTAGES OF LINE ORGANIZATION * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Determining how activities are to be grouped Types Service Process Territory Customer Functional Product Matrix DEPARTMENTALIZATION * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. EXHIBIT 4.7 - FUNCTIONAL DEPARTMENTALIZATION AT THE TOP MANAGEMENT LEVEL * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Maintains the power and prestige of the major functions Creates efficiency through the principles of specialization Centralizes the organization’s expertise Permits tighter top-management control of the functions Minimizes costly duplications of personnel and equipment ADVANTAGES OF FUNCTIONAL DEPARTMENTALIZATION * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Responsibility for total performance rests at the top Narrow functional focus limits the training of managers to take over the top position Coordination between and among functions becomes complex and more difficult as the organization grows in size and scope Functional responsibilities are identified by causing subgroup loyalties, identification, and tunnel vision DISADVANTAGES OF FUNCTIONAL DEPARTMENTALIZATION * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. EXHIBIT 4.8 - EXAMPLE OF PRODUCT DEPARTMENTALIZATION * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Attention can be directed toward specific product lines or services Coordination of functions at the product division level is improved Profit responsibility can be better placed Easier for the organization to obtain or develop executives who have managerial experience in running a total entity ADVANTAGES OF PRODUCT DEPARTMENTALIZATION * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. More personnel and material resources are required Unnecessary duplication of resources and equipment maybe caused Greater burden for top management to establish effective coordination and control DISADVANTAGES OF PRODUCT DEPARTMENTALIZATION * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. EXHIBIT 4.9 - EXAMPLE OF MATRIX DEPARTMENTALIZATION * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. DISADVANTAGES OF MATRIX DEPARTMENTALIZATION * Permits open communication and coordination of activities among the relevant functional specialists Its flexibility enables the organization to respond rapidly to change Advantages Lack of clarity and coordination in assigned roles Conflict occur when: Requirements result in decisions contrary to the philosophy and viewpoint of the home office Team members are assigned to more than one project Lack of roots for employees due to the temporary nature of assignments Disadvantages © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Everyone should report to and be accountable to only one boss Reasons for its importance Prevents duplication and conflict when orders and instructions are passed down Decreases confusion and blame games UNITY OF COMMAND PRINCIPLE * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Provides an opportunity for a supervisor and the employees to: Learn about each other’s strengths and weaknesses Develop supportive relationships Realize their individual and group potential in achieving organizational objectives Promotes higher morale UNITY OF COMMAND PRINCIPLE * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. There is a limit to the number of people a person can supervise effectively Narrower span of control at the top Top-level managers - Solve a variety of different, nonrecurring problems Middle managers - Develop long-range plans, work with outside interest groups, and coordinate the activities of the organization First-level managers - Are concerned with clearly defined areas of operation SPAN OF CONTROL PRINCIPLE * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. EXHIBIT 4.11 - NARROW, WIDE, AND VERY WIDE SPANS OF CONTROL * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. EXHIBIT 4.12 - FACTORS CONTRIBUTING TO A NARROW OR WIDE SPAN OF CONTROL * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The greater the supervisor’s capacity, the more people he or she can supervise General supervision is more effective than close supervision New developments in management Wider spans of control save the company money REASONS FOR THE TENDENCY TOWARD WIDER SPANS OF CONTROL * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. EXHIBIT 4.13 - FACTORS CONTRIBUTING TO A NARROW OR WIDE SPAN OF CONTROL * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Line personnel: Carry out the primary activities of a business Staff personnel: Have the expertise to assist line people and aid top management Reasons for the conflicts between line and staff Staff personnel give direct orders to line personnel Lack of good human relations practices Confusions due to the overlapping of authority and responsibility RELATIONSHIPS BETWEEN LINE AND STAFF * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Belief that staff people are not knowledgeable about the conditions at the operating level Attempt of the staff people to influence line decisions against line managers’ wishes Misuse of staff personnel by the top management Narrow viewpoint of the organization by the departments RELATIONSHIPS BETWEEN LINE AND STAFF * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Delineating authority Types of authority Advisory authority: Authority of staff departments to serve and advise line departments Line authority: Power to directly command or exact performance from others Functional authority: Staff person’s limited line authority over a given function Having effective communication between people and between departments AVOIDING EXCESSIVE LINE-STAFF CONFLICT * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Decentralization: Extent to which authority is delegated from one unit of the organization to another Decentralized organization Important decisions related to their units are made by the middle and lower levels of management Centralized organization Important decisions that concerns all the units or levels are made by the top management DECENTRALIZATION VERSUS CENTRALIZATION * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. FACTORS AFFECTING DECENTRALIZATION Top-management philosophy History of the organization’s growth Geographic location(s) Quality of managers Availability of controls Economy Mergers, acquisitions, and joint ventures External business environment * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Eliminating unnecessary levels of management To become leaner and more efficient Benefits Immediate cost reductions Speedier decision making Communication improves in all directions Increased responsiveness to customers Faster product delivery Tendency for each level to justify its existence is removed DOWNSIZING * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Costs Loss of control Loss of loyal, effective managers when done in an insensitive manner Morale problems and threatened job security for remaining employees Increased workloads Diminished chances of promotion Social costs for the dismissed employees Remaining managers must adapt to vague lines of authority and develop team building skills DOWNSIZING * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Focusing on the remaining employees by developing strategy of support Developing strategic plans for growth and development for the organization Developing effective work teams Reengineering: Rethinking and redesigning processes to improve the cost, quality, service, and speed Can be very expensive WAYS TO GET BEYOND DOWNSIZING * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Work units - Functional to process teams Jobs - Simple tasks to multidimensional work Roles - Controlled to empowered Job preparation - Preparation to education Focus of compensation - Activity to results TYPES OF CHANGES OCCURRING AFTER REENGINEERING * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Advancement criteria - Performance to ability Values - Protective to productive Managers - Supervisors to coaches Organizational structure - Hierarchical to flat Executives - Scorekeepers to leaders TYPES OF CHANGES OCCURRING AFTER REENGINEERING * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. EXHIBIT 4.14 - NORDSTORM’S INVERTED PYRAMID Source: Based on description found in Robert Spector and Patrick D. McCarthy, The Nordstrom Way: The Inside Story of America’s #1 Customer Service Company (New York: Wiley, 1996). * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Wagon wheel: Organization form with: Hub of the wheel - Customers Series of spokes - Business functions or teams Outer rim - Chief executive and the board THE WAGON WHEEL AND TEAM STRUCTURES * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Team structure: Utilizes permanent and temporary cross-functional teams to improve horizontal coordination and cooperation Provide speed and flexibility to meet the challenges associated with the dynamic business environments Provide the opportunity to use the diverse talents to achieve effective outcomes THE WAGON WHEEL AND TEAM STRUCTURES * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. EXHIBIT 4.16 - EXAMPLE OF A VIRTUAL NETWORK * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Firms are shifting to increased decentralization, team development, and empowerment due to global competition Strategies identified by Michael Porter Cost leadership strategy: Attempts to lower costs below competitors by focusing on creating efficiencies within organizational systems Differentiation strategy: Gaining a competitive advantage through goods and/or services that are unique or different from the competition MANAGEMENT PHILOSOPHY, STRATEGY, AND ORGANIZATION * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. TYPES OF VARIABLES * Determine the course of developments and the results achieved by the organization Include independent variables that can be altered or changed by the organization and its management Causal variables Reflect the internal state and health of the organization Intervening variables Dependent variables that reflect the achievements of the organization End-result variables © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. EXHIBIT 4.18 - ORGANIZATIONAL STRATEGY AND STRUCTURE: A FIT PERSPECTIVE * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Advisory authority Cost leadership strategy Decentralization Departmentalization Differentiation strategy Downsizing Functional authority Functional departmentalization Inverted pyramid Line-and-staff organization Line authority Line organization Line personnel Matrix departmentalization Network structure Product departmentalization Reengineering Span of control principle Staff personnel Team structure Unity of command principle Wagon wheel IMPORTANT TERMS * * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. CHAPTER 3 DECISION MAKING, PROBLEM SOLVING, AND ETHICS ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Explain the role of decision making in the supervisor’s job Discuss why supervisors need to make so many decisions Define decision making and identify at least four elements involved Discuss how decisions are made Name some factors to keep in mind when making decisions LEARNING OBJECTIVES * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Decide whether to use the individual approach or the group approach when making decisions Discuss some ways of improving decision making Explain the role of ethics in the organization’s and supervisor’s decision making LEARNING OBJECTIVES * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ROLE OF DECISION MAKING IN MANAGEMENT * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ROLE OF DECISION MAKING IN MANAGEMENT * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. EXHIBIT 3.1 - DECISION MAKING IS THE HEART OF SUPERVISORY MANAGEMENT * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Reason why supervisors make more decisions They operate on a production oriented, day-to-day, and person-to-person basis Employees look for more direction, assistance, guidance, and protection from them Spend more time socializing with others The lower the level of management, the greater the span of management Span of management: Number of immediate employees a manager can supervise effectively DECISIONS AND SUPERVISORS * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Considering and selecting a course of action from among alternatives to produce a desired result Elements Decision may not be needed Decisions involve the future Conscious process Involves more than one alternative solution DECISION MAKING * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. EXHIBIT 3.2 - DECISION-MAKING PROCESS * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. TYPES OF DECISIONS * Routine and repetitive decisions Handled in a systematic way Programmed decisions Occur infrequently Require a different response each time Non-programmed decisions © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Opportunity: Chance for development Problem: Existing unsatisfactory situation causing anxiety or distress Supervisors should: Identify problems and their cause(s) Analyze complex and involved situations Solve problems by removing their cause(s) Recognize that opportunities represent progress HOW DECISION MAKING AND PROBLEM SOLVING RELATE * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Progress and advancement comes from: Seeking and identifying opportunities Recognizing the emotions, needs, and motivations of the people involved Analyzing ways of satisfying them HOW DECISION MAKING AND PROBLEM SOLVING RELATE * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Define the idea or problem Develop alternatives Alternatives: Possible courses of action that can satisfy a need or solve a problem Collect, interpret, and evaluate information about each alternative STEPS IN DECISION MAKING * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Select the preferred alternative Cost/benefit analysis: Estimating and comparing the costs and benefits of alternatives Risk analysis Risk: Possibility of defeat, disadvantage, injury, or loss Implement the decision Follow up and evaluate Make changes, if needed STEPS IN DECISION MAKING * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Helps identify an individual’s personal style Dimensions that are directly related to decision making and problem solving Sensing versus intuition Thinking versus feeling MYERS-BRIGGS TYPE INDICATOR® (MBTI®) * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. EXHIBIT 3.6 - CHARACTERISTICS OF DIFFERENT PERSONALITY TYPES Source: Reproduced by special permission of the publishers, Consulting Psychologists Press, Inc., Palo Alto, CA 94303, from Introduction to Type by Isabel Briggs Myers. Copyright 1980 by Consulting Psychologists Press, Inc. All rights reserved. Further reproduction is prohibited without the publisher’s consent. * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. EXHIBIT 3.6 - CHARACTERISTICS OF DIFFERENT PERSONALITY TYPES Source: Reproduced by special permission of the publishers, Consulting Psychologists Press, Inc., Palo Alto, CA 94303, from Introduction to Type by Isabel Briggs Myers. Copyright 1980 by Consulting Psychologists Press, Inc. All rights reserved. Further reproduction is prohibited without the publisher’s consent. * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Provides guidelines on the extent to which subordinates are involved in decision making or problem solving Factors affecting employee involvement in decisions Situation Quality of information available Importance of subordinates’ acceptance of the decision Time to make the decision THE VROOM-YETTON MODEL * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ALTERNATIVE PARTICIPATION STYLES * Making the decision with the current available information Obtaining necessary information from the subordinates and then making the decision Autocratic Getting pointers from subordinates individually and then making the decision Sharing the problem with subordinates in a group meeting and getting suggestions after which a decision is made Consultative Generating and evaluating the alternatives together with the subordinates and reaching a solution Group consensus © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. EXHIBIT 3.8 - DECISION TREE, GOVERNING GROUP PROBLEMS * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Synergy: The whole is greater than the sum of the parts Applicable in the use of teams and ad hoc task forces in problem solving Creativity: Developing something unique or original Right-hemispheric functions are frequent catalyst for solution alternatives SYNERGY AND CREATIVITY * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Right-hemisphere functions are used as thought generators Left-brained functions are used to evaluate and judge which insights are good and cost effective Results in effective whole-brained creativity DEFERRED JUDGMENT * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Freely thinking of ideas without evaluating them as they are generated Guidelines for participating team members Favor quantity over quality Refrain from judging contributions Avoid censoring Feel free to offer variants and build on one another’s ideas BRAINSTORMING * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Used to: Define all possible problems Redefine problems Determine all possible cause for a problem List all possible actions for implementing the chosen solution BRAINSTORMING * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Makes use of fluency and flexibility to achieve creativity Fluency: Ability to let ideas flow Flexibility: Ability to use free association to generate or classify ideas in categories Involves considerable participation in the process Final decision is made by one person CRAWFORD SLIP TECHNIQUE * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Structured group technique for generating ideas Techniques used Round-robin individual responses Group sharing without criticism Written balloting Brainstorming NOMINAL GROUPING TECHNIQUE * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Ethics: Standards used to judge the rightness or wrongness of one person’s behavior toward others Levels of behavior from highest to lowest Personal ethics Adherence to professional and organizational code of ethics Adherence to the law of the land ETHICAL CONSIDERATIONS * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. EXHIBIT 3.11 - THE THREE PILLARS OF ETHICAL ORGANIZATIONS * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Alternatives Brainstorming Cost/benefit analysis Crawford Slip Technique Creativity Decision making Decision tree Ethical organization Ethics Flexibility Fluency IMPORTANT TERMS Myers-Briggs Type Indicator (MBTI) Nominal grouping technique (NGT) Nonprogrammed decisions Opportunity Problem Programmed decisions Risk Synergy Span of management Vroom-Yetton model * * © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.