BUSİNESS MANAGEMENT

➢ Examine objectives,

➢ Design job activities to reach those objectives,

➢ Group similar activities to specific jobs, and

➢ Assign individuals to those jobs.

Design Choices

Mechanistic Form

Organic Form

Decision making

Centralized

Decentralized

Chain of Command

Clear cut

Looser

Spans of Control

Narrow

Wide

Formalization

High

Low

Work Activities

Rigid departmentalization

Collaborative teams

Legitimate Power – based on a person’s right in the formal hierarchy to make demands.
Reward Power – based on a person’s ability to compensate another for compliance.
Expert Power – based on a person’s skill and knowledge.
Referent Power – based on a person’s perceived attractiveness, worthiness and a right to others’ respect.
Coercive Power – based on the belief that a person can punish others for noncompliance.
Informational Power – based on a person’s ability to control the information that others need to accomplish something

Effective management – Managers can pass routine work activities to subordinates so they can focus on important issues. Delegation reduces the workload of managers.
Employees’ development – Employees have opportunities to develop their skills, utilize their talents and gain work experience.
Employee’s motivation – When managers share their responsibilities and authority, employees may gain the feeling of belongingness and trust and become more motivated.
Organizational growth – Delegation leads to division of labor and work specialization that brings effective coordination within the organization, which is important for organizational growth.
Basis of hierarchy – Delegation establishes manager/employee relationship that is a basis for management hierarchy.

• Manipulation and cooptation: Managers can try to influence others by the selective use of information or the structuring of events. Cooptation involves giving an individual or a group desirable roles in the change process.
• Explicit and implicit coercion: Managerscan force people to accept a change or lose something (such as rewards, promotions or loss of jobs). This can be used when the firm is in a crisis situation or when there are no other options.