Chapter 08_1

Chapter 08_1 - * * * Structuring an Organization...

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Unformatted text preview: * * * Structuring an Organization Structuring Comprises: Comprises: • Division of Labor • Team Tasks • Assigning Responsibility/ Authority • Accountability Allocating • Allocating Resources Resources Establishing • Establishing Procedures Procedures 8-1 * * * Fayol’s Principles Fayol’s of Organization of • Unity of Command • Degree of Degree Centralization Centralization Hierarchy • Hierarchy of Authority Authority Clear • Clear Communication • Division of Labor Channels Channels Subordination • Subordination of • Order Individual Interest to the General • Equity Interest Interest • Esprit de Corps • Authority 8-2 * * * Weber’s Weber’s Organizational Principles Organizational • Job Descriptions • Written Rules Procedures, • Procedures, Regulations, Policies Policies Staffing/Promotions • Staffing/Promotions Based on Qualifications on 8-3 * * * Centralization (No Delegation) (No Advantages Disadvantages Less • Less Responsiveness to Customers Customers Less Less Empowerment Empowerment Interorganizational Interorganizational Conflict Conflict Lower Morale Away Lower from Headquarters from 8-4 • • • • Greater TopManagement Control More Efficiency Simpler Distribution Simpler System System Stronger Stronger Brand/Corporate Image Image • • • * * * Decentralization Decentralization (Delegate Authority) (Delegate Advantages Better • Better Adaptation to • Customer Wants Customer • More • More Empowerment of Workers of • Faster • Faster Decision Making Making • • Higher Morale Disadvantages Less Efficiency Complex Distribution Complex System System Less Top-Management Less Control Control Weakened Corporate Weakened Image Image 8-5 * * * Organizational Structures Tall Organizations Many • Many Layers of Management Management High • High Cost of Management Management Narrow • Narrow Span of Control Control Flat Organizations • Current Trend • Creation of Teams Broad • Broad Span of Control Control 8-6 * * * Span of Control - Narrow Advantages Advantages • • • • More Control by More Top Management Top More Chances for More Advancement Advancement Greater Greater Specialization Specialization Closer Supervision Disadvantages • • • • Less Empowerment Higher Costs Delayed Decision Delayed Making Making Less Less Responsiveness to Customers Customers 8-7 * * * Span of Control - Broad Advantages Advantages • • • • Reduced Costs More More Responsiveness to Customers Customers Faster Decision Faster Making Making More More Empowerment Empowerment Disadvantages • • • • Fewer Chances for Fewer Advancement Advancement Overworked Overworked Managers Managers Loss of Control Less Management Less Expertise Expertise 8-8 * * * Departmentalization Departmentalization by Function by • • • Advantages Skill Development Economies of Economies Scale Scale Good Coordination Disadvantages • Lack of Communication • Employees Identify with Department • Slow Response to External Demands • Narrow Specialists • Groupthink 8-9 * * * Departmentalization • By Product • By Function By • By Customer Group Group By • By Geographic Location Location • By Process 8-10 * * * Line Organizations Advantages Clear • Clear Authority & Responsibility Responsibility Easy • Easy to Understand Understand One • One Supervisor Per Employee Per Disadvantages • Inflexible Few • Few Specialists for Advice for Long • Long Line of Communication Communication • Difficult to Handle Complex Decisions Decisions 8-11 * * * Line/Staff Organizations Line Personnel Staff Personnel Advise • Advise Line Personnel Personnel Personnel Personnel Assist • Assist Line • Formal Authority Make • Make Policy Decisions Decisions 8-12 * * * Matrix Organizations Advantages Disadvantages • Flexibility Cooperation • Cooperation & Teamwork Teamwork • Costly/Complex Confusion • Confusion in Loyalty Loyalty Requires • Requires Good Interpersonal Skills & Cooperation Cooperation • Creativity More • More Efficient Use of Resources of • Not Permanent 8-13 * * * Important Conditions Small Teams Small for 1. Clear Purpose 2. Clear Goals 3. Correct Skills 4. Mutual Accountability 5. Shift Roles When Appropriate Source: CIO Dec 2003 8-14 * * * Networking • Real Time • Transparency Virtual • Virtual Corporations Corporations 8-15 * Benefits and Concerns of Healthcare * Outsourcing Outsourcing * Benefits • • Provides Enough Provides Staff to Operate the Facility Facility Cost Savings • • • • Concerns Lower Employee Lower Morale Morale Liability Should Patients be Should Informed Informed Confidentiality & Confidentiality Security Security Source: Healthcare Financial Management, 2005 8-16 * * * Which Jobs Will Which Be Outsourced Next? Be Manufacturing Information Technology Customer Support/Sales 0% 2% 4% 6% 8% 10% 12% Source: USA Today 8-17 * * * Adapting to Change • Restructuring for Empowerment • Focusing on the Customer Creating • Creating a Change-Oriented Organizational Culture Organizational • The Informal Organization 8-18 * * * Layers of Authority-Traditional Top • Top Managers- Decision Makers Makers • Middle Managers- Develops Rules & Procedures Procedures • Workers and Supervisors Workers 8-19 * * * Inverted Inverted Organization Structure Organization Empowered front­ line workers Support Personnel Top Mgmt. 8-20 * * * Examples of Informal Group Norms Do • Do your job but don’t produce more than the rest of the group. more Don’t tell off-color jokes or use Don’t profane language among group members. members. Listen to the boss and use his/her Listen expertise but don’t trust him/her. expertise Everyone is to be clean/organized at Everyone the workstation. the 8-21 • • • * * * More Examples of Informal Group Norms • • • • Never side with managers in a Never dispute involving group members. dispute Respect/help your fellow group Respect/help members on the job. members Criticize the organization only Criticize among group members-- never among strangers. among Drinking is done off-the-job-Drinking Never at work! Never 8-22 ...
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