Managing Engineering and Technology

Fifth Edition
Morse and Babcock

Organizing
Chapter 5

Chapter Objectives
Analyze the different forms of an
organization
Explain different organizational
structures
Describe the differences in line and staff
relationships
Describe the use and value of teams

Organizing
Arrange and relate the work, so that it can be
done efficiently by people - Specifically:
Ensure that important work is done,
Provide continuity
Form
basis for salary administration
Aid
delegation
Promote
growth and diversification Encourage
teamwork, and
Stimulate creativity

What Is Organizing?
Deciding how best to
group organizational
activities and
resources.
What are the building
blocks of organizing?
Organization Structure:
The set of elements that
can be used to configure
an organization.

Why Do You Have to

Organize an Organization?
Because all the
structural elements
of the company
and how those
elements work
together are used
to manage the total
organization.

Organizing Leads to Decision

Making
Decision making is
part of planning
that involves
selecting a course
of action.
When the manager
is organized,
activities are
coordinated.

Some Purposes of Organizing

Divides work to be done into specific jobs and
departments.
Assigns tasks and responsibilities associated with
individual jobs.
Coordinates diverse organizational tasks.
Clusters jobs into units.
Establishes relationships among individuals,
groups, and departments.
Establishes formal lines of authority.
Allocates and deploys organizational resources.
108

Organizing Own Workplace

Set priority of daily work (attend meetings,
make phone calls, write emails, block out
time to do creative work, discourage
disruptions, keep conversations short,
maintain to-do lists, prioritize tasks, etc.)
Create a file system for efficient retrieval
Develop ones own system for names and
contact information

Legal Forms of Organization

Sole Proprietorship
Few legal restrictions
Owner forced to make all decisions
Profits taxed once

Legal Forms of Organization

Partnership
Two or more partners
Easy to organize
Partners do individual tax
Unlimited liability for partners
debts

Legal Forms of Organization

Limited Liability Company (LLC)
Owners have limited personal liability
Only taxed once

Legal Forms of Organization

Corporations
Owned by shareholders
No liability beyond stock
Taxed twice, once the corporation
profits, later the dividends
Subject to many state and federal
controls

Legal Forms of Organization

Cooperatives
Owned by users and customers
Usually tax free
E.g. Cooperative Housing societies

Develop Organizational
Structures
Identify and group work so that it can
be done efficiently by people
Choices: (1) functional, (2)
discipline, (3) product/regional, (4)
matrix, (5) team

15

Functional Organization
Technical Director

Mechanical Design

Electrical Design

System Engineering

Quality Control

Production Engineering

16

Functional Organizations
(Pros and Cons)
Permits hierarchy of
skills
Facilitates
specialization
Simplifies coordination
Permits use of current
technologies and
equipment

Encourages excessive
centralization
Delays decision making
Compounds
communication line loss
Restricts development of
managerial skills
Limits personal growth

17

Functional Organizations
(When to Use)
Organizations with high relative stability
of work flow and limited product diversity
- certain manufacturing operations,
process industries
Startup companies
Organizations with narrow product
ranges, simple marketing pattern and few
production sites
18

Discipline-Based
Organization
Engineering Dean

Mechanical Engineering

Electrical Engineering

Chemical Engineering

Industrial Engineering

Civil Engineering

19

Discipline Organizations
Favored by universities,
governmental laboratories and other
R&D organizations
Promote innovative pursuits in
individual disciplines, allowing
employees to drill down to deeper
knowledge levels without requiring
much coordination with others.
20

Product Organization
Technical Director

Governmental Products

University Products

Consumer Products

Custom Products

Industrial Products

21

Regional Organization
President

North America

Latin America

Europe

Asia

Africa

22

Product/Regional Organization
(Pros and Cons)
Focuses on end products High costs due to
or geographical regions
layers, autonomy or
duplicated facilities
Facilitates coordination
Encourages management Requires management
talents
development
Changes take time to
Provides for
effect
decentralization
Promotes growth
23

Matrix Organization
Functional Control

Project A

Project-based
Control

Project B

Project C

Engineering

Production Logistics

Design

24

Matrix Organization
(Pros and Cons)
Project manager focus
on schedule and cost,
functional managers on
quality/expertise
Work load balance
Excellent for individuals
(to achieve exposure and
interactions)

Dual reporting
Severe conflicts among
managers
Delicate balance of
power (people versus
money/time)
Communications
problems

25

Matrix Organization
(Bases for Conflicts)
Project Managers:
Money under
control, mandate
to authorize work
with top
management
support
Rights to buy
services elsewhere

Functional Manager:
Manpower, skills
knowledge, facilities
Own funds to
support people

26

Team Organization
Functional Control
Team Leader

Member A

Member B

Member C

Member D
Engineering

Production Logistics

Design

27

Team Organization
Team members on loan from functional
organizations to eliminate organizational
conflicts
Team Leader in full control
Short term high-priority tasks/projects
Examples: Product team, special task force
Purposes: (1) create recommendation, (2)
make or do things, and (3) run things
28

Spans of Control
How many intermediate managers needed
The number of employees who can be effectively
and efficiently supervised by a manager.
Depends on no. of people reporting to each
manager
Referred to as the span of management or span of
control
Examples on next slide

Contrasting Spans of Control

Spans of Control
Depend on
Subordinate training
Nature of jobs/Characteristics
of the work
Rate of change of activities and
personnel
Clarity of delegation
Staff assistance
Skills and abilities of the
manager

Employee
characteristics
Similarity of tasks
Complexity of tasks
Physical proximity of
subordinates
Standardization of
tasks

Trends in Spans of Control

Current trend to increase span of
control
Significant reduction in admin costs
More effective and efficient communication
Faster decisions and closer interaction
Requirement of training of personnel
Better leadership at all levels

Tall vs Flat Hierarchy

Line and Staff Relationships

Line
Traditionally those that accomplished main mission
of the organization e.g. production, sales and finance
in typical manufacturing organization.
A position in the direct chain of command that is
responsible for the achievement of an organizations
goals.

Staff
Those that helped the line accomplish these
objectives by providing some sort of advice or
service

Line and Staff Relationships

Staff: Advisory in nature, degree of
influence may vary
Provide advice on request
Recommendations when appropriate
Must be consulted by line but have
no direct authority
Concurring authority - veto authority
over line manager

Line and Staff Relationships

Staff

Line

Line and Staff Relationships

Functional: Specialized authority
As binding as line authority
No right to discipline for violation
Usually procedural
Budget formats
Computer systems

Cafeteria

Line and Staff Relationships

Service:
Centralized support functions
Custodial (Building maintenance)
Security
Medical

Woodward & Aston Studies

Unit
Production of units to customers orders
Skilled craftsmen using general purpose equipment

Mass
Production of large batches, assembly line
Less skilled workers, specialized equipment

Process
Continuous process production systems, highly
automated
High capital investment per worker, skilled workers

Teams

Small group of people

Serve interests of its members
Exchange ideas freely and clearly
Have common goals
Committed to achieving goals
Each team member treated equally

Team Discipline
For achieving blow-the-roof-off performance,
teams must have discipline: (1) common
purpose, (2) specific goals of performance, (3)
complementary skills, (4) commitment to how
the work gets done (each pulling the same
weight), (5) mutual accountability - commitment
and mutual trust, being accountable to each
other - being in the boat together

41

Team Learning
Team must learn quickly all needed
skills (process of working together,
use of design tools, communications)
Factors affecting team learning speed:
(1) composition (a mix of expertise)
(2) culture of risk taking allowing
experimentation
(3) people-oriented leadership Style
42

Roles of Team Members

Team Leader - Keeps team moving forward
Conceptual Thinker - Sources of original ideas, with
imagination and vision
Harmonizers - Assuring team harmony, foster
collaboration, resolving conflicts
Technicians - Specialists with expertise
Planners/implementers - Bring methods to tasks of
team, autocrats with inflexibility
Facilitators - Offering help and support, being
adaptable
43

Role of Team Members

(contd)
Critical Observers - Making sure the team is

on target
Radicals - Not accepting conventional
thinking and solutions, offering new
approaches to problem-solving
Power Seekers - Wanting to be right all the
time, shaping the teams view
Diplomats - Coordinating inter-team
relationship, getting information for the team
44

Check Team Player Mentality

Do you compliment your co-workers when you observe them
doing a good job?
Are you enthusiastic about helping your teammates in any way
you can?
Do you always do your job thoroughly and completely?
Do you take advantage of every opportunity to support the team
effort?
Do you have a professional respect for everyone on your team?
Can you follow through and support policies and rules with
which you personally disagree?
Do you attempt to avoid undermining those around you for
personal gains?

45

Check Team Player Mentality

Are you enthusiastic about your company and the direction in
which it is headed?
Do you show appreciation for the efforts of others and
acknowledge their contributions to the big picture?
Do you seek new relationships and acquaintances through the
company?
Do you take responsibility for your mistakes and easily admit
when you are wrong?
Does your attitude have a positive effect on those around you?
Are you personally dedicated to making the company the best
in the industry?

46

Team Stages
Formation Stage - Members get together
to have roles and responsibilities defined
Gelling Stage - Members of like minds
will form subgroups and stay close
together
Unison Stage - All team members are
getting highly organized with a common
goal
47

Computer Technologys
Impact on the Work Force
Factory workers will require a higher
level of skills

Visualization
Conceptual thinking
Knowledge of production process
Statistical inference
Oral and visual communication
Attentiveness
Individual responsibility