Chapter 8. Structuring Organizations for Todays Challenges

matrix organizations violate some traditional managerial principles

-to develop a new product, a project manager may be given temporary authority to "borrow" line personnel form production, marketing, and other line functions. -the employees work together to complete the project and then return to their regular positions. Thus, no one actually reports to more than one manager at a time.

max weber used the word bureaucrat to describe a middle manager whose function was to implement top management's orders. -thus bureaucracy came to be to be the term for

an organization with many layers of managers

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) -self-managed means that they are empowered to make decisions without management approval. The barriers among design, engineering, marketing, distribution, and other functions fall when interdepartmental teams are created.

no matter the size of the business, the principles of organization

are much the same

centralize authority occurs when decisions making is done:

at the top level of management

when a company compares its practices, processes, and products against the world's best organization

benchmarking

when comepeitos like walmart and target compare their processes to try tim love their methods, it is an example of

benchmarking

both line and line and staff organizational structures may suffer from inflexibility.

both allow for established lines of authority and communication and work well in organizations with stable environments and slow product development ( such as firm selling household appliances). -in such firms, clear lines of authority and relatively fixed organizational structures are assets that ensure efficient operations.

a cross functional team that includes supplies, disturbots, and customer goes beyond organizational

boundaries

when a firm like target compares itself to walmart to improve its practices or processes in order to become better tan walmart - it is exemplifying benchmarking for a

competitive purpose

equally imoporotant to many businesses is the change in customer exepctations

consumers today expect high quality products and fast, friendly service-at a reasonable cost

a broad span of ______allows one supervisor to be responsible for many workers who work tasks are predictable and standardized

control

department managers are given authority and responsibility for the work of a department to:

control its entire process

those functions that the organization can do as well as or better than any other organization in the world are called

core competencies

macy's is a company that allows its managers in california to select different items for sale than those in maine because it has a

decentralized structure

dividing an organization into separate working units is called

departmentalization

the arrangement of jobs around the needs of various types of customers is known as

departmentalization by customer group

if a book seller was to separate its organization according to the types of books it sells its would be an example of:

departmentalization by product

a company may choose to ______ by process so employees are able to focus on learning a few critical skills such as cutting table legs to match a pattern

departmentalize

all orrganizations have 2 organizational systems -the forml organization

details lines of responsibility, authority, nad poostion -its the structure shown on organization charts

regardless of the size of the organization, the principles of organizing include:

dividing up the task to be done and deciding what work needs to be done

once the department manager determines the work that needs to be done, the next step is dividing the tasks among department employees -this step is known as

division of labor

when a house painting company divides workers into those who prepare the surface, those who paint the trim, and those who paint the walls, it is an example of

division of labor

in a decentralized organization the decision making authority is designated as far ____ the chain of command as possible

down

as effective as the informal organization may be in creating group cooperation it can still be equally powerful in resisting management directives

employees can form unions, go on strike together, and generally disrupt operations -learning to create the right corporate culture and work within the informal organization is this a key to managerial success

advantages of departmentalization by function

employees develop in depth skills and continue to progress and the company can achieve economies of scale

cross functional teams should be

empowered and collaborative -they work best when leadership is shared.

giving employees such authority is called

empowerment -empowerment only works when employees are given the proper training and resources to respond

one solution is to the temporary or short term nature of matrix temas is to

establish long lived teams and empower them to work closely with suppliers, customers, and others

some companies create _______ structure because the sales department has geographic departments, production is by function, and marketing is by customer groups

hybrid

following theories like Fayol's and weber's managers in the late 1900s began designing organizations so that managers could control workers. Many companies are still organized that way, with everything set up in a hierarchy -a hierarchy

is a system in which one person is at the top of the organization and there is ranked is sequential ordering from the top down of managers and others who are responsible to that person. -since one person cant keep track of thousands of workers, the top manager needs many lower-level managers to help

in one your business courses you are assigned a team project. DUring your first meeting you separate the project duties according to each person's degree major. -this is a known as the division of

labor

Henri Fayol published his book administration Industrielle et general in 1919. Fayole introduced such principles : -order

materials and people should be placed and maintained in the proper location

if an organization temporarily borrow its specialists from different functional areas to accomplish a common project, it is implementing what type of organization?

matrix organization

implications for organization design

most organizations are no longer self sufficient or self contained -rather they are part of a vast network of global businesses that work closely together -an organization chart showing what people do within any one organization is simply not complete because the organization is part of a much larger system of firms. -a modern chart would show people in different organizations and indicate how they are networked

because of technology an organization is no longer self contained. as a result the modern organization chart would show people in different organizations and indicate how they are

networked

line organization follow Fayol's traditional management rules because the managers give

orders and enforce discipline

a company departmentalized when it divides its

organizational functions into separate units -department managers are needed to control the whole process

Julius plans to start a lawn-mowing business. While writing the business plan, he determines the work that needs to be done. -this step in building an organization is known as

organizing

innovations like the mass of cars can create econoprodcutionmies of scale -however, over time this benefit becomes less because

other companies copy the processes

a small retail chain called bike away has found it cheaper and more efficient to have pay check process their payroll and tax work. -this is an example of

outsourcing

what exemplify line personnel in the line-and-staff organization

production workers and packaging personnel

max weber book the theory of social abd economic organizations, promoted the

pyramid-shaped organizational structure that become popular in large firms -weber put great trust in managers and felt the firm would do well if employees simply did what they were told -the less decision making they had to do, the better

some of the best organizations have cultures that emphasize service to others, especially customers.

the atmosphere reflects friendly, caring people who enjoy working together to provide a good product at a reasonable price. -companies that have such cultures have less need for close supervision of employees -that usually means fewer policy manuals; organization charts; and formal rules, procedures, and controls

chain of command

the line of authority that moves from the top of a hierarchy to the lowest level

span of control describes

the optimal number of subordinates a manager supervises or should supervise. -at lower levels where work is standardized, its possible to implement a broad span of control -the appropriate span gradually narrows at higher levels of the organization, because work becomes less standardized and managers need more face-to-face communication

line personnel are those responsible for the achievement of organizational goals such as making a product. they include such employees as

the supervisor of a department that cuts out tablestops

all organizations have 2 organizational systems -informal organization

the system that develops spontaneously as employees meet and form cliques, relationships, amd lines of authority separate from the formal organization -its the human side of the organization that doesn't show or any organization chart

The informal organization's nerve center is the grapevine,

the system through which unofficial information clows between and among managers and employees -key people in the grapevine usually have considerable influence

a line organization does not have any specialists who provide managerial support

there is no legal department, accounting department, human resource development, or information technology ( IT) department.

according to john mackey of whole foods, cross-functional self managed teams work best when

they are empowered,, they are collabortive, and leadership is shared

large organizations use flat structure to

try to match the friendliness of small firms, whose workers often know customers by name. -the flatter organizations become, the border their spans of control, which means some managers lose their jobs.

a 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. -many small businesses are organizing this way. -all the the general employees report to the shift manager, and he or she reports to the general manager or owner

a temporary networked organization made up of replaceable firms that join and leave as needed is called

virtual corporation

today, you can take classes online and have live discussion boards from your own home. This type of interaction os similar tp that experience within a

virtual corporation

managers used to more traditional organization forms may have trouble adapting to the impermanence of

virtual organization structures

flat organizational structures

with fewer layers of management and a broad psano f control ( many people report to each manager)

broad span of control disadvantages

-fewer chances for advancement -overworked managers -loss of control -less management expertise

advantages of centralized authority

-greater top management control -more efficiency -simpler distribution system -stronger brand/corporate image

companies that are the most successful in adapting to change have these common traits

1- they listen to customers 2- they have inspirational managers who drive new ideas throughout the organisation 3-they often have had a close call with going out of business

line organizations follow all ______ traditional management rules

Fayol's -line managers can issue orders, enforce discipline, and adjust the organization as conditions change

some firms use a combination of departmentalization techniques to create a hybrid forms

a company could departmentalized by function, geographic location, and customer groups

n line-and-staff structures, staff managers provide advice and support to line departments on specialized matters such as

finance, engineering, human resource, and the law

an tagoes of a ________ organization structure is that lower level employees have authority to respond more quickly to customer needs

flat

an organization structure that has only a few levels of managers who have a broad span of control is called a

flat organization

a traditional way to departmenize is by

function, such as design, production, marketing, and accounting

Henri Fayol published his book administration Industrielle et general in 1919. Fayole introduced such principles : -division of labor

functions are to be divided into areas of specialization such as production, marketing and finance.

companies in other countries often outsource their functions to companies in the U.S. -we call that _________ and its the source of many jobs

insourcing

line managers are those who have the authority to

issues orders, adjust to changing conditions, and enforce discipline

one solution to the temporary nature of matrix teams is to establish

long-lived teams and empower them to work closely with suppliers, customers, and others to quickly and efficiently bring out new, high quality products while giving great service. -cross functional self managed teams

flat structure can 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.

Henri Fayol published his book administration Industrielle et general in 1919. Fayole introduced such principles : -authoirty

managers have the right to give orders and the power to enforce obedience -authority and responsibility are related: whenever authority is exercised, responsibility arises

a large organization might use a flat organization structure in under to

match the flexibility of small firms

advantages to centralized authority

more efficiently, simpler distribution system, and greater top-management control

the key to success is

remaining flexible enough to adapt to the changing times -often that means going back to basic organizational principles and rebuilding the firm on a sound foundation

many organizations benefit from expert staff advice on

safety, legal issues, quality control, database management, motivation, nad investing -staff personnel strengthen the line positions and are like well-paid consultants on the organization's payroll

employees who advise and assist line managers in meeting their goals are called

staff personnel

the type of structure in a firm where there are several levels of managers each with a narrow span of control is called a

tall organization

in a virtual corporation the replaceable firms are joined together on

temporary basic to create a flexible organization

when a firm has completed its outsourcing process, the remaining functions are its core competencies

those functions it can do as well as or better than ant other organization in the world

some reasons to name department managers for each department created during departmentalization

to assure the department's accountability and to maintain control of the whole process

what are some of the goals of developing an organization chart?

to show who reports to whom and to show relationships among people

reasons to perform departalization

a small business expanding

when isolation between the production and marketing departments is so great that production does not get appropriate feedback, -it is an example of

disadvantage to departmentalization

one important difference between line and staff personnel is the authority -staff personnel

have authority to advise line personnel and influence their decisions, but they cant make policy changes themselves -the line manager may seek or ignore the advice from staff personnel

Today's trend is to expand the span of control because:

organizations save by reducing the number of middle managers and the workforce is better educated at all levels

departmentalization divides

organtionns tino sperate units -the traditional way to departmentalize is by function-such as design, production, marketing, and accounting -departmentalization groups workers according to their skills, expertise, or resource use so that they can specialize and work together more efficiently. -it may also save costs and thus improve efficiency

some organizations that follow Weber's principles are less effective than UPS because

they dont allow employees to respond quickly to new challenges

weber empahsiezed

-job descriptions -written rules, decision guidelines, and detailed records -consistent procedures, regulations, and policies --staffing and promotion based on qualifications

disadvantages of centralized authority

-less responsiveness to customers -less empowerment -interorganizational conflict -lower morale away from headquarters

the process of setting up individual departments to do specialized tasks is called

departmentalization

you can see how your business might evolve into a company with several departments: production, marketing, accounting, and maintenance -the process of setting up individual departments to do specialized tasks is called

departmentalization -finally, you'll assign authority and responsibility to people so that you can control the whole process

in the old "us-versus-them" system of organizations, where managers and employees were often at odds, the informal system hindered effective management

in more open organizations, managers, and employees work together to set objectives and design procedures. -the informal organization is an invaluable managerial asset that can promote harmony among workers and establish the corporate culture

UPS does much of the shipping for LLBean by sharing information electronically in

real time

Henri Fayol published his book administration Industrielle et general in 1919. Fayole introduced such principles : -subordination of individual interests to the general interest

workers are to think of themselves as a coordinated team -the goals of the team are more important than the goals of individual workers

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

hierarchy

organizational chart is a visual device that shows

relationships among people and divides the organization's work; it shows who reports to whom

Henri Fayol published his book administration Industrielle et general in 1919. Fayole introduced such principles : -esprit de coprs

a spirit of pride and loyalty should be created among people in the firm

if an organization cant does as well as the best in, say, shipping, it will try to outsource the function to an organization like UPS or FedEx that specializes in shipping. -outsourcing

assigning one or more functions-such as accounting, production, security, matinaance, and legal work-to outside organizations.

when an organization is set up as a bureaucracy:

they rely on rules and regulations for decision making

business growth led to economics of scale

this term refers to the fact that companies can reduce their production costs by purchasing raw materials in bulk. -thus the average cost of goods decreases as production levels rise. -over time, ushc innovations became less meaningful as other companies copied the processes

Henri Fayol published his book administration Industrielle et general in 1919. Fayole introcued such pricniples : -unity of command

each worker is to report to one, and only one, boss

to empower employees, firms must reorganize dramatically to make frontline workers their most important people -restructuring

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

in large businesses, a line organization may have the disadvantages of being

too inflexible, of having few specialist or experts to advise people along the line, and of having lengthy lines of communication -thus a line organization may be unable to handle complex decisions related to thousands of products and tons of paperwork. Such organizations usually turn to a line-and-staff form of organization

departmentation advantages :

-employees can develop skills in depth and progress within a department as they master more skills -the company can achieve economies of scale by centralizing all the resources it needs and locate various experts in that area -employees can coordinate work within the function, and top management can easily direct and control various departments' activities

the matrix structure was developed in the aerospace industry and is now familiar in areas such as banking, management consulting firms, accounting firms, ad agencies, and school systems -among its advantages

-it gives managers flexibility in assigning people to projects -it encourages inter-organizational cooperation and teamwork -it can produce creative solutions to product development problems -it makes efficient use of organizational resources

disadvantages to the matrix organization

-it requires good interpersonal skills -it can confuse employees about whose orders to follow -its costly and complex

the matrix structure was developed in the aerospace industry and is now familiar in areas such as banking, management consulting firms, accounting firms, ad agencies, and school systems -among its disadvantages

-its costly and complex -it can confuse employees about where their loyalty belongs-with the project manager or with their functional unit -it requires good interpersonal skills as well as cooperative employees and managers to avoid communication problems -it may be only a temporary solution to a long-term problem

disadvantages of decentrlized

-less efficiency -complex distribution system -less top management control -weakened corporate image

narrow span of control disadvantages

-less empowerment -higher costs -delayed decision making -less responsiveness to customers

narrow span of control advantages

-more control by top management -more chances for advancement -greater specialization -closer supervision

while the ease and immediacy of communication created by technology may be powerful, being constantly connected to work does have its downsides

-psycologvailly exhausting -stress affects employee performance -it's unlikely that all companies will enact policies disconnecting employees from the office.

broad span of control advantages

-reduced costs -more responsiveness to customers -faster decision making -more empowerment

characteristics of a matrix organisation

-specialists from different parts of the organization work together temporarily -specialists from different parts of the organization work on specific projects -specialists from different parts of the organization remain part of the line and staff structure

benchmarking

compares an organization's practices, processes, and products against the world's best -benchmarking also has a more directly competitive purpose.

a firm can departmentalize by product

-a book publisher might have a trade book department ( for books sold to the general public), a textbook department, and a technical book department, each with separate development and marketing processes. -usch product focused departmentalization usually results in good customer relations

advantages of decentralized authority

-better adaptation to customer wants -more empowerment of workers -faster decision making -higher morale

when deisgning responsive organizations, firms have to make decisions about several organizational issues:

-centralization versus decentralization -span of control -tall versus flat organization structures -departmentalization

disadvantages of departmentalization by function include

-departments may not communicate well -employees may identify with their department's goals rather than the organization's. The purchasing department may find a good value somewhere and buy a huge volume of goods. -the company's response to external changes may be slow -people may be trained to take different managerial responsibilities; rather they tend to become narrow specialists. -department members may engage in groupthink ( they think alike) and may need input from outside to become more creative.

Henri Fayol published his book administration Industrielle et general in 1919. Fayole introcued such pricniples :

-unity of command -hierarchy of authority -division of labor -subordination of individual interests to the general interest -authority -degree of centralization -clear communication channels -order -equity -esprit de coprs

centralized authority occurs when

decision making is concentrated at the top level of management -while this organizational structure has the advantage of providing strong global control, it limits the flexibility to immediately respond to regional or local market changes and trends

decentralized authority occurs when

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

the owner of a flower shop as 3 employees. Two employees are better at arranging are better at arranging flowers in a vase while the third is skilled at preparing the flowers to be arranged. Separating the employees by these skills is called

job specialization

dividing tasks into smaller jobs is called

job specialization -the success of a firm often depends on management's ability to identify each worker's strengths and assign the right talks to the right person -many jobs can be done quickly and well when each person specializes.

matrix organization -in other words,

a product manager can borrow people from different departments to help design and market new product ideas.

the line organization has direct lines of ____ that extend from the top manager to employees at the lowest level of the organization

communication, authority, and responsibility

whether it involves customers, suppli.ers, distributors or the government, networking sues

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

a few firms find that its most efficient to separate activities by process

a firm makes leather coats may have one department cut the leather, another dye it, and a third sew the coat together -such specialization enables employees to do a better job because they can focus on learning a few critical skills

Henri Fayol published his book administration Industrielle et general in 1919. Fayole introduced such principles : -equity

a manager should treat employees and peers with respect and justice

some organization departmentalized by customer group

a pharmaceutical company might have one department for the consumer market, another that calls on hospital ( insutinal market), and another that targets doctors.

line personnel have the authority to issue orders and discipline employees, while staff personnel have the ability to _____ and influence

advise

to minimize the disadvantages of simple line organizations, many organizations today have both line and staff personnel. -staff personnel

advise and assist line personnel in meeting their goals, and include those in marketing research, legal advising, information technology, and human resource management

Henri Fayol published his book administration Industrielle et general in 1919. Fayole introduced such principles : -clear communication channels

all workers should be able to reach others in the fim quickly and easily

Henri Fayol published his book administration Industrielle et general in 1919. Fayole introduced such principles : -hierarchy of authority

all workers should know to whom they report

for a department to operate effectively, the organization must

allocate it sufficient resources such as funds and personnel

to minimize the disadvantages of simple line organizations, many organizations today have both line and staff personnel. -line personnel

are responsible for directly achieving organizational goals, and injude production workers, distribution people, and marketing personal

when a supervisor is responsible for 20 or more workers assembling computers or cleaning movie theaters, it is an example of a

broad span of control

in a line and staff organization, those who advise line personnel but do not have the authority to issue direct orders to them are the

company's staff personnel

organizing groups into working units usually called departments, units, groups, or divisions is called

departemnization

organizing or structuring begins with

determining what work needs to be done and then dividing up the task among the three of you; this is called a division of labor

structuring an organization, then consists of

devising a division of labor; setting up teams or departments to do specific tasks( like production and accounting) ; and assigning responsibility and authority to people. -it also includes allocating resources ( such as funds for various departments), assigning specific tasks, and establishing procedures for accomplishing the organizational objectives

organizations historically tried to do all functions themselves.

each had its own department for accounting, fiance, marketing, production, and so on. -today's organizations look to other organizations for help in areas where they do not generate world-class quality.

the trend today is to expand the span of control as organization adp[t

empowerment, reduce the number of middle managers, ad hire more talented and better educated lower-level employees -information technology also allows managers to handle more information, so the psan can be broader still

the current trend in organizations is to

expand the span of control

when a company departmelzies by areas of business like japan, america, nad australia it is exemplifying departmentalization by

geographic location

younger people today are called digital natives because they

grew up with the internet and cell phones; using high tech devices is second nature to them.

a few service-oriented organizations have turned the traditional organizational structure upside down -inverted organization

has contact people ( like nurses) at the top and the chief executive officer at the bottom -management layers are few, and the manager's job is to assist and support frontline people, not boss them around -companies based on this organizational structure support frontline personnel with internal and external databases, advanced communications systems, and professional assistance. -this means frontline people have to be better educated, better trained, and better paid than in the past. It takes a lot of trust for top managers to implement such a system-but when they do, the payoff in customer satisfaction and profits is often well worth the effort

one important difference between line and staff personnel is authority -line personnel

have formal authority to make policy decisions

drawbacks of a tall organization structure

high amount of paperwork generated, a higher cost to support the many levels of staff, and messages can get distorted through the various levels

drawbacks of a tall organization structure ex/

high amount of paperwork generated, a higher cost to support the many levels of staff, and messages can get distorted through the various levels

once you have formed an organization, you must be prepared to adapt the structure to changes in the market.

introducing change is thus one of the hardest challenges facing any manager. -if you have old facilities that are no longer efficient, you have to get rid of them.

any organizational change is bound to cause some stress and resistance among members. Firms adopt best when their culture is already change-ortined. -organizational ( or coperate) culture

is the widely shared values within an organization is reflected in its stories, traditions, and myths.

matrix organizations violate traditional managerial principles, yet can be more efficient -this contradiction can be attributed to which of the following attributes

it can produce creative solution to problems -it encourages interorganizational cooperation and teamwork

a positive result of departmentalization by product

it results in good customer relations

the informal organization is often too unstructured and emotional to allow carefully, reasoned decision making on critical matters. Its extremely effective however

itin generating creative solutions to short-term problems and creating camaraderie and teamwork among employees

an organizational culture can also be negative

its where you feel no one cares about service and or quality -their mood pervades the atmosphere, and patrons become unhappy or upset

some firms group their units by geographic location because customers vary so greatly by region

japan ,europe, and south america may deserve separate departments, with obvious benefits

max weber's principles of organization resembled Fayold's. -in addition, weber emphasized what principles?

job descriptions; written rules, decision guidelines, and derail records; and consistent procedures, regulations, and policies

today's economy, however, is dominated by high-growth industries like telecommunications, nanotechnology, robotics, biotechnology, and aerospace, where competition is stuff and the life cycle of new ideas is short. -emphasis is on product development, creativity, special projects, rapid communication, and interdepartmental teamwork. From those changes grew the popularity of the

matrix organization -in which specialists from different parts of the organization work together temporarily on specific projects, but still reminap art of a line and staff structure

a chain of 3 local restaurants has decided to ________ its payroll and tax reporting to a firm that specializes in that function

outsource

not until the 1900s and the introduction of mass production ( methods for efficiently producing large quantities of goods) did production

processes and business organization become so complex

a potential real problem with matrix management is that

project teams are not permanent -they form to solve a problem and then break up -there is little chance for cross-functional learning because teams work together so briefly

organization were designed so that no person had more than one boss, lines of authority were clear, and everyone knew to whom to respect. Naturally those principles tended to be written down as rules, policies, and regulations as organization grew larger -that process of rulemaking has often led to

rather rigid organizations that haven;t always responded quickly to consumer requests

the present moment or the actual time in which something takes place is called

real time

organizational chart

shows relationship among people: who is accountable for the completion of specific work, and who reports to whom -finally, you'll mentor the environment to see what competitors are doing and what customers are demanding. -then you must adjust to the new realities. -you might have to make some organizational changes to offer even better service at competitive prices

networked organizations are so closely linked online that each can find out what the others are doing in real time -real time

simply means the present moment or the actual ti,e in which an event takes place.

weber bleived

that large organizations demanded clearly established rules and guidelines to be followed precisely. -in other words, he was in favor of bureaucracy

managing change, then, has become a critical managerial function

that sometimes includes changing the whole organizational structure -many organizations in the past were designed more to facilitate management than to please the customer -companies designed many rules and regulations to give managers control over employees

Henri Fayol published his book administration Industrielle et general in 1919. Fayole introduced such principles : -degree of centralization

the amount of decision-making power vested in top management should vary by circumstances. -in a small organisation its possible to centralize all decision making power in the top manger -in a larger organization, some decision making power, for both major and minor issues, should be delegated to lower level managers and employees

what would be the result of a departmentalization process

the creation of a group of specialists to process the human resources functions of the business and the creation of a group including only accountants to process financial transactions

the ford motor company's core competencies is

the manufacture and marketing of automobiles and trucks

if employees want to introduce work changes

they ask a supervisor ( the first level or management), who ask his or her manager, who asks a manger at the next level up, and so on. -this led to empowering employees

the internet created whole new opportunities,s not only to sell to customers directly but also to ask them questions and provide them with any information they want

to win market share, companies must coordinate the efforts of their traditional departments and their information technology staff to create friendly, easy-to-manage interactions.

McDonald's belives that purchasing, promotion, and other such decisions are best handled centrally too. -however

today's rapidly changing markets, added to global differences in consumer tastes, tend to favor some decentralization and thus more delegation of authority

the internet has allowed companies to send-real time data to organizational partners as they are developed or collected -the result is

transparency, which occurs when a company is so open to other companies that electronic information is shared as if the companies were one. -with these integration, two comopes can work as closely as two departments in traditional firms

networked organizational structures lead to be flexible. -such a temporary network, make of replaceable firms that join and leave as needed, is a

virtual corporation -this is quite different from a traditional organizational structure; in fact, traditional managers sometimes have trouble adapting to the speed of change and the impermanence of relationships in networking.

cross-functional teams work best when the voice of the customer is brought in, especially in product development tasks. -suppliers and distributes should be on the team as well a cross-functional team that includes customers, suppliers, and distributors go beyond organization businesses

when suppliers and distributors are in other countries, cross-functional teams may share market information across national boundaries. -government coordinators may assist such projects, letting cross-functional teams break the barriers between government and business -cross-functional teams are only one-way businesses can interact with other companies.

the key to a productive culture is ,mutual trust

you get such trust by giving it. -the very best companies stress high moral and ethical values such as honesty, reliability, fairness, environmental protection, and social involvement