Management Chapter 8
Staff Personnel
Advise and assist line personnel in meeting their goals
Adapting to market changes
Change isn't easy Get rid of old, inefficient equipment Use the internet
Span of Control
Describes the optimal number of subordinates a manager supervises or should supervise This expands as companies adopt empowerment
Formal Organization
Details lines of responsibility, authority and position
1) Departments may not communicate well 2) Employees may identify with their department's goals rather than the organizations 3) The company's response to external changes may be slow 4) People may not be trained to take different managerial responsibilities 5) Department members may engage in groupthink and may need outside input
Disadvantages of Departmentalization
Departmentalization
Divides organizations into separate units Workers are grouped by skills and expertise to specialize their skill
K2 Skis
Researched other companies' practices in order to create the best possible skis
Service
Some of the best organization cultures emphasize _____
Create a division of labor Set up teams or departments Allocate resources Assign tasks Establish procedures Adjust to new realties
Structuring an organization
Hierarchy
System in which one person is at the top and there is a ranked ordering from the top down of managers and others who are responsible to that person
Informal Organization
System that develops spontaneously as employees meet and form cliques, relationships and lines of authority outside the formal organization
Virtual Corporation
A temporary networked organization made up of replaceable firms that join and leave as needed
1) Employees develop skills and progress within a department as they master skills 2) The company can achieve economies of scale 3) Employees can coordinate work within the function and top management can easily direct activities
Advantages of Departmentalization
1) Managers have flexibility in assigning people to projects 2) Inter organizational cooperation and teamwork is encouraged 3) Creative solutions to product development problems are produced 4) Efficient use of organizational resources
Advantages of Matrix Style
Tall Organization Structures
An organizational structure in which the organization chart would be tall because of the various levels of management
Flat Organization Structures
An organizational structure that has few layers of management and a broad span of control
Cross functional self managed teams
Are groups of employees from different departments who work together on a long-term basis
Benchmarking
Compares an organization's practices, processes and products against the world's best
Functional Departmentalization
Departmentalizing by design, production, marketing and accounting
Structures
Determine the way the company responds to employee and customer needs
1) Costly and Complex 2) Employees may be confused about where their loyalty belongs 3) Good interpersonal skills and cooperative employees are a must 4) It's a temporary solution to a possible long-term problem 5) Teams are not permanent
Disadvantages of Matrix Style
Max Weber's Organizational Theory
Employees just need to do what they're told
Unity of command-each worker reports to one boss 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 Corps-spirit of pride and loyalty in firm
Fayol's Principles of Organization
Line organizations Line-and-staff organization Matrix-style organizations Cross-Functional Self-managed teams
Four Ways to structure an organization
Line Organization
Has direct two-way lines of responsibility, authority and communication running from the top to the bottom. Everyone reports to one supervisor No specialists, legal, accounting, human resources departments Managers issue orders, enforce discipline and adjust the organization to changes
Aspects of Weber Organizational Theory
Job descriptions Written Rules, decision guidelines and detailed records Consistent procedures, regulations and policies Staffing and promotion based on qualifications
Chain of Command
Line of authority that moves from the top of the hierarchy to the lowest level
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 me
Bureaucracy
Organization with many layers of management
Organizations based on Fayol's Principles
Organizations in which employees have no more than one boss; lines of authority are clear Rigid organizations that often don't respond to customers quickly
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
Organization chart
Shows relationships among people
Matrix Organization
Specialists from different parts of the organization work together temporarily on specific projects, but still remain part of a line and staff structure
Economies of Scale
The fact that companies can reduce their production costs by purchasing raw materials in bulks
Core Competencies
The functions an organization can do as well as or better than any other organization in the world
Organizational or Corporate Culture
The widely shared values within an organization that foster unity and cooperation to achieve common goals
Networking
Uses communication technology and other means to link organizations and allow them to work together on common objectives
Product Function Customer Group Geographic Location Process
Ways to departmentalize
Product development, creativity, special projects, communication and teamwork
What is emphasized in Matrix organizations?
