‘+ Allocates and deploys organizational resources.
In Chapter 1 we defined organizing as arranging and structuring work to accomplish
‘organizational goals. It an important process during which managers design an organiza
tion's structure. Organizational structure
(See Exhibit 10-1.) When managers create or change the structure,
they're engaged in organi
Jor Specialization
At the Wilson Sporting Goods factory in Ada, Ohio, 150 workers (with an average tenure
exceeding 20 years) make every football used in the National Football League and most of
those used in college and high schoo! football games. To meet daily output goals, the work-
ers specialize in job tasks such as molding, stitching and sewing, lacing, and so forth.*
is an example of work specialization.
activity in order to increase work output, Is also known as division of labor, a concept we
troduced in the management history module.
‘Work specialization makes efficient use of the diversity of skills that workers have. In
‘most organizations, some tasks require highly developed skills: others can be performed by
employees with lower skill levels, [fall workers were engaged in al the steps of, say, a
ianufacturing process, all woul need the skills necessary to perform both the most de=
‘manding and the least demanding jobs. Thus, except when performing the most highly
skilled or highly sophisticated tasks, employees would be working below their skill levels.
In addition, skilled workers are paid more than unskilled workers, and, because wages tend,
toreflect the highest level of skill, all workers would be paid at highly skilled rates to do easy
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tion no longer leads to productivity. That’s why companies such as Avery-Dennison, Ford
Australia, Hallmark, and! American Express use minimal work specialization and instead
sive employees a broad range of tasks todo.
/Departmentalization
Does your college have a department of student services or financial aid department? Are
‘you taking this course through a management department? After deciding what job tasks will
be done by whom, common work activities need to be grouped back together so work gets
departments such as front desk operations, sales and catering, housckceping and laundry, and
maintenance.) Exhibit 10-3 illustrates each type of departmentalization as well as the advan-
tages and disadvantages of each.
TODAY'S VIEW. Most large organizations continue to use combinations of most or all of
these types of departmentalization. For example, a major Japanese electronics firm organ-
divisions along functional lines its manufacturing units around processes, its sales,
uni its sales regions into four customer groupings.
Black & Decker organizes its divisions along functional lines. its manufacturing units
around processes, its sales around geographic regions, and its sales regions around cus
‘tomer groupings.
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