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* * Chapter Eight Adapting Organizations to Today’s Markets Copyright © 2010 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin
REORGANIZATION is for  EVERYONE * * Everyone’s Organizing ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],LG1 8-
STRUCTURING an ORGANIZATION * * Building an Organization from the Bottom Up ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],LG1 8-
THE CHANGING ORGANIZATION * * The Changing Organization ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],LG2 8-
PRODUCTION CHANGED  ORGANZIATION DESIGN * * The Development of Organization Design ,[object Object],LG2 ,[object Object],[object Object],8-
FAYOL’S PRINCIPLES * * Fayol’s Principles of Organization ,[object Object],[object Object],[object Object],[object Object],[object Object],LG2 ,[object Object],[object Object],[object Object],[object Object],[object Object],8-
ORGANIZATIONS BASED on  FAYOL’S PRINCIPLES * * Fayol’s Principles of Organization ,[object Object],LG2 ,[object Object],8-
WEBER’S PRINCIPLES * * Max Weber and Organizational Theory ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],LG2 8-
HIERARCHIES and COMMAND * * Turning  Principles into Organization Design ,[object Object],[object Object],[object Object],LG2 8-
TYPICAL ORGANIZATION CHART * * Turning  Principles into Organization Design LG2 8-
BUREAUCRATIC ORGANIZATIONS * * Turning  Principles into Organization Design ,[object Object],[object Object],[object Object],LG2 8-
Decisions required in structuring an organization ,[object Object],[object Object],[object Object],[object Object]
CENTRALIZATION or DECENTRALIZATION? * * Choosing Centralized or Decentralized Authority ,[object Object],LG3 ,[object Object],8-
SPAN of CONTROL * * Choosing the Appropriate Span of Control ,[object Object],[object Object],[object Object],[object Object],LG3 8-
ORGANIZATIONAL STRUCTURES * * Choosing Tall versus Flat Organization Structures ,[object Object],[object Object],[object Object],LG3 8-
FLAT ORGANIZATIONAL  STRUCTURE * * Choosing Tall versus Flat Organization Structures LG3 8-
DEPARTMENTALIZATION * * Weighing the Advantages and Disadvantages of Departmentalization ,[object Object],[object Object],LG3 8-
ADVANTAGES of DEPARTMENTALIZATION * * Weighing the Advantages and Disadvantages of Departmentalization ,[object Object],[object Object],[object Object],LG3 8-
DISADVANTAGES of DEPARTMENTALIZATION * * Weighing the Advantages and Disadvantages of Departmentalization ,[object Object],[object Object],[object Object],[object Object],[object Object],LG3 8-
FOUR WAYS to STRUCTURE an ORGANIZATION * * Organization Models ,[object Object],[object Object],[object Object],[object Object],LG4 8-
LINE ORGANIZATIONS * * Line Organizations  ,[object Object],[object Object],[object Object],LG4 8-
LINE PERSONNEL * * Line-and-Staff Organizations  ,[object Object],[object Object],LG4 8-
Line and staff organizations ,[object Object],[object Object],[object Object]
STAFF PERSONNEL * * Line-and-Staff Organizations  ,[object Object],LG4 8-
SAMPLE LINE-and-STAFF ORGANIZATION * * Line-and-Staff Organizations  LG4 8-
MATRIX ORGANIZATIONS * * Matrix-Style Organizations  ,[object Object],LG4 ,[object Object],8-
SAMPLE MATRIX  ORGANIZATION * * Matrix-Style Organizations  LG4 8-
ADVANTAGES of the  MATRIX STYLE * * Matrix-Style Organizations  ,[object Object],[object Object],[object Object],[object Object],LG4 8-
DISADVANTAGES of the  MATRIX STYLE * * Matrix-Style Organizations  ,[object Object],[object Object],[object Object],[object Object],[object Object],LG4 8-
CROSS-FUNCTIONAL  SELF-MANAGED TEAMS * * Cross-Functional Self-Managed Teams ,[object Object],[object Object],[object Object],LG4 8-
GOING BEYOND  ORGANIZATIONAL BOUNDARIES * * Going Beyond Organizational Boundaries ,[object Object],[object Object],[object Object],LG4 8-
REAL TIME BUSINESS * * Transparency and Virtual Organizations ,[object Object],[object Object],LG5 8-
TRANSPARENCY and VIRTUAL CORPORATIONS * * Transparency and Virtual Organizations ,[object Object],[object Object],LG5 8-
A VIRTUAL CORPORATION * * Transparency and Virtual Organizations LG5 8-
BENCHMARKING and  CORE COMPETENCIES * * Benchmarking and Core Competencies ,[object Object],[object Object],[object Object],LG5 8-
Prime ex of core competency ,[object Object]
ADAPTING to  MARKET CHANGES * * Adapting to Change ,[object Object],[object Object],[object Object],LG5 8-
RESTRUCTURING * * Restructuring  for Empowerment ,[object Object],[object Object],LG5 ,[object Object],8-
TRADITIONAL and INVERTED ORGANIZATIONS * * Restructuring  for Empowerment LG5 8-
ORGANIZATIONAL CULTURE * * Creating a Change-Oriented Organizational Culture ,[object Object],[object Object],[object Object],LG6 8-
FORMAL ORGANIZATION * * Managing the Informal Organization  ,[object Object],[object Object],[object Object],LG6 8-
INFORMAL ORGANIZATION * * Managing the Informal Organization  ,[object Object],LG6 ,[object Object],8-
LIMITATIONS of INFORMAL ORGANIZATIONS * * Managing the Informal Organization  ,[object Object],[object Object],LG6 8-

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Chap008

  • 1. * * Chapter Eight Adapting Organizations to Today’s Markets Copyright © 2010 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin
  • 2.
  • 3.
  • 4.
  • 5.
  • 6.
  • 7.
  • 8.
  • 9.
  • 10. TYPICAL ORGANIZATION CHART * * Turning Principles into Organization Design LG2 8-
  • 11.
  • 12.
  • 13.
  • 14.
  • 15.
  • 16. FLAT ORGANIZATIONAL STRUCTURE * * Choosing Tall versus Flat Organization Structures LG3 8-
  • 17.
  • 18.
  • 19.
  • 20.
  • 21.
  • 22.
  • 23.
  • 24.
  • 25. SAMPLE LINE-and-STAFF ORGANIZATION * * Line-and-Staff Organizations LG4 8-
  • 26.
  • 27. SAMPLE MATRIX ORGANIZATION * * Matrix-Style Organizations LG4 8-
  • 28.
  • 29.
  • 30.
  • 31.
  • 32.
  • 33.
  • 34. A VIRTUAL CORPORATION * * Transparency and Virtual Organizations LG5 8-
  • 35.
  • 36.
  • 37.
  • 38.
  • 39. TRADITIONAL and INVERTED ORGANIZATIONS * * Restructuring for Empowerment LG5 8-
  • 40.
  • 41.
  • 42.
  • 43.

Notas del editor

  1. See Learning Goal 1: Outline the basic principles of organization management. Changing economic times require businesses to alter their approach via reorganization. Using organizational principles is an important aspect to this reorganization.
  2. See Learning Goal 1: Outline the basic principles of organization management.
  3. See Learning Goal 2: Compare the organizational theories of Fayol and Weber.
  4. See Learning Goal 2: Compare the organizational theories of Fayol and Weber.
  5. See Learning Goal 2: Compare the organizational theories of Fayol and Weber. This slide presents Fayol’s principles of organization. Fayol published General and Industrial Management in 1919. Unity of command and Hierarchy of authority suggest that each employee reports to one and only one boss. Management courses throughout the world teach these principles and organizations are designed accordingly. When these principles become rules, policies, and regulations, they create inflexibility which hampers organizations ability to respond quickly to situations. An example of this inflexibility or a slower response time can be seen in FEMA’s response to Hurricane Katrina.
  6. See Learning Goal 2: Compare the organizational theories of Fayol and Weber.
  7. See Learning Goal 2: Compare the organizational theories of Fayol and Weber. Weber, a German sociologist and economist, wrote The Theory of Social and Economic Organizations . Weber’s principles were similar to Fayol’s. He emphasized job descriptions, written rules, consistent policies, regulations, and procedures, and staffing and promotions based on qualifications. Weber was in favor of bureaucracy and believed that these principles were necessary for large organizations’ effective functioning. However, in today’s corporate world, these rules and bureaucracy do not necessarily work. Organizations need to respond to customers and other environmental factors quickly which calls for a creative, flexible, and a quick decision making process contrary to a bureaucratic process.
  8. See Learning Goal 2: Compare the organizational theories of Fayol and Weber.
  9. See Learning Goal 2: Compare the organizational theories of Fayol and Weber.
  10. See Learning Goal 2: Compare the organizational theories of Fayol and Weber.
  11. See Learning Goal 3: Evaluate the choices managers make in structuring organizations. Centralization can be defined as an organizational structure that focuses on retaining control of authority with higher level managers. One of the disadvantages of this type of management style is slower decisions because of layers of management. Ask the students: What specific problems you see with this type of management? ( Slower decision-making means the company is less responsive to both internal an external customers needs.) Share with the students a simple rule to follow when dealing with centralized authority: Decisions regarding overall company policy and establishment of goals and strategies should be made at the top. Decentralization is an organizational structure that focuses on delegating authority throughout the organization to middle and lower-level managers. The most significant advantage of this form of management style is the empowerment of the employees. Statistics indicate when delegation is practiced in a company, absenteeism, injuries, loyalty and production improve. Share with the students a simple rule to follow when dealing with decentralized authority: The closer an employee interacts with the customer, the more decentralized the decision-making should be. For example, a customer service manager must have the authority to make a decision that will satisfy a customer immediately, not wait until the home office makes a decision.
  12. See Learning Goal 3: Evaluate the choices managers make in structuring organizations.
  13. See Learning Goal 3: Evaluate the choices managers make in structuring organizations. Many organizations have moved from tall organizations to flat organizations in an effort to increase nimbleness in the marketplace.
  14. See Learning Goal 3: Evaluate the choices managers make in structuring organizations.
  15. See Learning Goal 3: Evaluate the choices managers make in structuring organizations.
  16. See Learning Goal 3: Evaluate the choices managers make in structuring organizations.
  17. See Learning Goal 3: Evaluate the choices managers make in structuring organizations.
  18. See Learning Goal 4: Contrast the various organizational models. Traditional business models such as line organizations and line-and-staff organizations are giving way to new structures.
  19. See Learning Goal 4: Contrast the various organizational models.
  20. See Learning Goal 4: Contrast the various organizational models.
  21. See Learning Goal 4: Contrast the various organizational models.
  22. See Learning Goal 4: Contrast the various organizational models.
  23. See Learning Goal 4: Contrast the various organizational models. The creation of matrix organizations was in response to the inflexibility of other more traditional organizational structures. This structure brings specialists from different parts of the organization to work together temporarily on specific projects.
  24. See Learning Goal 4: Contrast the various organizational models.
  25. See Learning Goal 4: Contrast the various organizational models.
  26. See Learning Goal 4: Contrast the various organizational models.
  27. See Learning Goal 4: Contrast the various organizational models.
  28. See Learning Goal 4: Contrast the various organizational models.
  29. See Learning Goal 5: Identify the benefits of inter-firm cooperation and coordination.
  30. See Learning Goal 5: Identify the benefits of inter-firm cooperation and coordination.
  31. See Learning Goal 5: Identify the benefits of inter-firm cooperation and coordination. A Virtual Corporation This slide illustrates the concept of a virtual corporation as an organizational model that could propel American businesses into the next century. The theory behind the virtual corporation can be understood by picturing a company stripped to its core competencies. All other business functions will be accomplished by: Forming joint ventures Forming temporary alliances with other virtual companies with different areas of expertise Hiring consulting services Outsourcing or subcontracting of services Share with the students some other interesting concepts of a virtual corporation: On-demand knowledge workers who operate independently Skill-selling professionals such as engineers, accountants, human resource experts who manage your projects from their homes through worldwide telecommunications Team-building will change as companies hire individuals with expertise in various areas to solve business problems. As a solution is identified, the team will cease to exist.
  32. See Learning Goal 5: Identify the benefits of inter-firm cooperation and coordination.
  33. See Learning Goal 5: Identify the benefits of inter-firm cooperation and coordination.
  34. See Learning Goal 5: Identify the benefits of inter-firm cooperation and coordination.
  35. See Learning Goal 5: Identify the benefits of inter-firm cooperation and coordination. The inverted organization structure is an alternate to the traditional management layers. The critical idea behind the inverted organization structure is that the managers’ job is to support and facilitate the job of the frontline people, not boss them around. Ask the students – What type of organization structure would they prefer to work under: traditional or inverted? Why?
  36. See Learning Goal 6: Explain how organizational culture can help businesses adapt to change. When you search for a job, make sure the organizational culture is one you can thrive in.
  37. See Learning Goal 6: Explain how organizational culture can help businesses adapt to change.
  38. See Learning Goal 6: Explain how organizational culture can help businesses adapt to change.
  39. See Learning Goal 6: Explain how organizational culture can help businesses adapt to change.