test 2 notes - September 21, 2006 Chapter 8 Lecture...

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September 21, 2006 – Chapter 8 Lecture Organizational Design: The structuring of workers so that they can best accomplish all the goals of the firm Hierarchy: A system which one person is at the top of the organization and there is a ranked or sequential ordering from the top down of managers who are responsible to that person Bureaucracy: An organization with many layers of management who set rules and regulations and oversee all directions Tall Organizations: Tall and thin with a lot of different layers - Have many layers of management - Often have internal communication problems - Have trouble being responsive to customers - Many managers cost the organization money Flat Organizations: Short and fat. - Few layers of management - “Decision-making” is closer to the customer (the bottom) - Tend to be more responsive to customers Span of Control: - Refers to the optimum number of subordinates a manager can or should supervise - Effective span of control is affected by o Level in organization – smaller numbers higher up o Capabilities of managers and subordinates o Complexity of job being done- Functional similarity and complexity Department-aliztion: …is dividing organizational functions into separate units. - Ways to departmentalize an organization… o Product o Customer group o Geographic locations o Function (relates to people) o Process (relates to job) Function relates to the people involved: - process dept. involves process of being done (welding) Centralization// Decentralization - Centralization maintains decision-making authority at high levels in the Delegation// Accountability:organization - Decentralization allows decision-making at much lower levels Delegation// Accountability: - One delegates duties// delegation goes DOWN the chain of command
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- One in accountable for responsibilities// accountablility goes UP the chain of command Line and Staff organization: Some departments are not part of the chain of command. - A parallel relationship as resources and staff people, not chain of command - Line organization = People are responsible for the people directly above them. Matrix Organization: Organization gets big enough so that the certain departments need experts from another form (accounting) Some people are there as resources who report to someone. Virtual Corporation: Most small businesses and some med sizes. September 26, 2006 Chapter 9 – Producing World-Class Goods and services Production has to do with the idea of using the factors of production to produce goods and services Production Management: The term used to describe the creation of goods Operations Management: Term used to reflect creation of goods and services. A. Where do I locate my business, where should I put it? a.
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This note was uploaded on 04/22/2008 for the course OLS 274 taught by Professor Goodrich during the Spring '07 term at Purdue University-West Lafayette.

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test 2 notes - September 21, 2006 Chapter 8 Lecture...

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