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Unit 9 – (chapters 9 and 10) Managing The Structure And Design Of Organization And Human Resource Management Learning Objectives 1. Identify the vertical and horizontal dimensions of organization structure. 2. Differentiate between authority, responsibility, and accountability. 3. Recognize when structural characteristics of centralization, span of control, formalization, and chain of command should be used. 4. Determine appropriate responses to major changes in the environment affecting human resources. 5. Comply with the legal framework governing human resources. 6. Develop tactics to implement desired human resource strategies. 7. Implement an effective performance appraisal program to capitalize on employees’ strengths and reduce employees’ weaknesses. Organizing 1. The deployment of resources to achieve strategic goals. It is reflected in: a. The organization’s division of labor that forms jobs and departments. b. Formal lines of authority. c. The mechanisms used for coordinating diverse jobs and roles in the organization. 2. Strategy indicates what needs to be done. 3. Organizing shows how to do it. Organization Structure Formal system of relationships 1. Lines of authority 2. Tasks assigned to individuals and units Dimensions of organization structure: 1. Vertical dimension 2. Horizontal dimension The Vertical Dimension of Organization Structure 1. Authority, Responsibility and Accountability 2. Span of control 3. Centralization 4. Decentralization 5. Formalization Unity of Command 1. Authority a. Line Authority b. Staff Authority 2. Responsibility a. Duty to perform an assigned task b. MBO c. Line Authority d. Chain of Command e. Line Managers f. Staff Authority g. Staff Managers h. Organization Chart Accountability The Vertical Dimension of Organization Structure 1. Span of control 2. Centralization 3. Decentralization 4. Formalization The Horizontal Dimension of Organization Structure 1. The organization structure element a. Divides work into specific jobs and tasks. i. Assigns jobs into units ii. (departments and/or teams) 2. Departmentalization: a. Functional b. Divisional c. Matrix Functional Approach to Departmentalization Advantages Disadvantages DIVISIONAL Approach to Departmentalization Advantages Disadvantages Matrix Approach to Departmentalization Advantages Disadvantages Skills for Managing Human Resources 1. HRM Skills 2. Congruency Skills 3. Performance Appraisal Skills 4. Hiring skills 5. Pay Allocation Skills 6. Training Skills Environment of Human Resources 1. Workforce diversity 2. Globalization 3. Unions 4. Legislation Key legislation affecting HR 1. Worker's Compensation Laws 2. Social security of 1935 3. Labor union law (1935, 1938, 1947) 4. Equal pay of 1963 5. Title VII of the Civil Rights Act (1964) 6. Age discrimination in Employment Act (1967) Legislation affecting HR 1. The Wagner Act 2. The Taft Hartley Act 3. The Landrum Griffin Act Unions 1. Declining Membership (Currently -- 13% in 2003) a. Strong employer challenges to unions b. Plant closures c. International competition d. Shrinking manufacturing sector 2. Labor Contract a. pay schedule b. fringe benefits 3. COLA Assertive Communication Skills 1. Recruitment 2. Selection 3. Reliability 4. Job Performance Staffing Process - Recruitment 1. Job Analysis 2. Job Description 3. Job Specification 4. Job Preview Staffing Process – Selection and Reliability 1. Validity a. Content Validity b. Empirical validity 2. Reliability Selection Devices 1. Application Forms 2. Letters of Recommendation 3. Ability Tests 4. Personality Tests 5. Honesty Tests 6. Physical Exams 7. Interview 8. Psychological Tests 9. Performance Simulation Tests Orientation New employees learn: 1. more about the company 2. what is expected of them in the job 3. to reduce the initial anxiety of a transition 4. to become familiar with co-workers 5. about work rules and personnel policies Compensation Decision Making Techniques to Stimulate Group Creativity 1. Total Compensation 2. Base Compensation 3. Pay Incentives 4. Indirect Compensation /Benefits Summary of Learning Objectives 1. Through the study of Managing the Structure and Design of Organizations and the purpose for Human Resource Management, you should now have a working knowledge of 2. vertical and horizontal dimensions of organization structure. 3. authority, responsibility, and accountability within organizations 4. structural characteristics of centralization, span of control, formalization, and chain of command. 5. appropriate responses to major changes in the environment affecting human resources. 6. Compliance with the legal framework governing human resources. 7. Ability to implement desired human resource strategies.
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