15-6 Division of Labor The Extent to Which Jobs Are Specialized Ways that Division of Labor Can Occur Work can be divided into different personal specialties Occupational and professional specialties e Work can be divided into different activities necessitated by the natural sequence of the work the organization d oes Horizontal specialization Work can be divided along the vertical plane of an organization Hierarchy of authority McGraw-HillArwin Copyright@ 2002 by The McGraw-Hill Companies, Inc. All rights reserved
McGraw-Hill/Irwin Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. 15-6 Division of Labor Ways that Division of Labor Can Occur: ⚫ Work can be divided into different personal specialties. ⚫ Occupational and professional specialties ⚫ Work can be divided into different activities necessitated by the natural sequence of the work the organization does. ⚫ Horizontal specialization ⚫ Work can be divided along the vertical plane of an organization. ⚫ Hierarchy of authority The Extent to Which Jobs Are Specialized
15-7 Delegation of Authority Extent to which managers allow subordinates to make decisions without approval of hign er management and exact obedience from others Reasons to Delegate or Reasons to Centralize Decentralize Authority Authority ● Encourages management iNcreases training costs development hEightens fear and resistance ● Leads to a more o Raises administrative competitive climate costs ● Enables managers t0 o Duplicates eforts and exercise more autonomy some functions Mcgraw-hillarwin Copyright @2002 by The McGraw-Hill Companies, Inc. All rights reserved
McGraw-Hill/Irwin Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. 15-7 Reasons to Delegate or Decentralize Authority ⚫Encourages management development ⚫Leads to a more competitive climate ⚫Enables managers to exercise more autonomy Delegation of Authority Extent to which managers allow subordinates to make decisions without approval of higher management and exact obedience from others Reasons to Centralize Authority ⚫Increases training costs ⚫Heightens fear and resistance ⚫Raises administrative costs ⚫Duplicates efforts and some functions
15-8 Functional Departmentalization OMB Company Engineering Manufacturing Marketing finance Personnel Maior Advantage Major Disadvantage Creatingefficiency and more cost Sacrificing organizational goals effective units for departmentalones Mcgraw-hillarwin Copyright@ 2002 by The McGraw-Hill Companies, Inc. All rights reserved
McGraw-Hill/Irwin Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved. 15-8 Functional Departmentalization Major Advantage Creating efficiency and more cost effective units Engineering Finance Personnel Major Disadvantage Sacrificing organizational goals for departmental ones Manufacturing OMB Company Marketing