Chapter 8

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What is one of the first steps to organize your business?

Organizing

Organizing is otherwise known as...

Structuring

What is the trend today for the span of control?

The trend today is to expand the span of control as organizations adopt empowerment, reduce the number of middle managers, and hire more talented and better educated lower-level employees. Information technology also allows managers to handle more information, so the span can be broader still.

Why do large organizations use flat structures?

To try to match the flexibility of smaller firms, whose workers often know customers by name.

Cross-functional self-managed teams

are groups of employees from different departments who work together on a long-term basis (as opposed to the temporary teams established in matrix-style organizations)

What are the four organizational issues?

centralization vs decentralization, span of control, tall vs flat organizational structures, and departmentalization

formal organization

details lines of responsibility, authority, and position

Job specialization

dividing up tasks into smaller jobs

Division of labor

dividing up the production process between multiple workers

line organization

has direct two-way lines of responsibility, authority, and communication running from the top to the bottom of the organization, with everyone reporting to only one supervisor

flat organizational structures

have fewer layers of management and a broad span of control (many people report to each manager). they respond readily to customer demands because lower-level employees have authority and responsibility for making decisions, and managers can be spared some day-to-day tasks

What are the moral and ethical values of the best companies?

honesty, reliability, fairness, environmental protection, and social involvement (and many others)

hybrid forms of business organizations

limited partnerships, s corporations, limited liability companies, limited liability partnerships

what are the four ways to structure an organization?

line organizations, line-and-staff organizations, matrix-style organizations, and cross-functional self-managed teams.

self-managed

means that they are empowered to make decisions without management approval

mass production

methods for efficiently producing large quantities of goods

What is seem in the evolving business environment?

more global competition, faster technological change, and pressure to preserve the natural environment

frontline workers

most important people

What is the key to a productive culture?

mutual trust

centralized authority

occurs when decision making is concentrated at the top level of management.

Decentralized authority

occurs when decision making is delegated to lower-level managers and employees more familiar with local conditions than headquarters management could be.

restructuring

redesigning an organization so it can more effectively and efficiently serve its customers.

line personnel

responsible for directly achieving organizational goals, and include production workers, distribution people, and marketing personnel.

hierarchy

system in which one person is at the top of the organization and there is ranked or sequential ordering from the top down of managers and others who are responsible to that person.

real time

the present moment or the actual time in which an event takes place.

why do some firms use a combination of departmentalization techniques?

to create hybrid forms

networking

uses communications technology and other means to link organizations and allow them to work together on common objectives.

What should cross-functional teams be?

Cross-functional teams should be empowered and collaborative. They work best when leadership is shared.


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