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?