Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: CHAPTER 8: ADAPTING ORGANIZATIONS TO TODAY’S MARKETS EV E R Y O N E IS DO I N G I T BU I L D I N G AN ORGAN IZAT I O N FROM THE BOTTOM UP Division of labor- organizing, or structuring, begins with determining what work needs to be done and then dividing up the tasks among everyone Job specialization- dividing tasks into smaller jobs Departmentalization- the process of setting up individual departments to do specialized tasks *Structuring an organization consists of devising a division of labor, setting up teams or departments to do specific tasks and assigning responsibility and authority to people T H E C HA N G I N G ORGA N I Z A T I O N THE DEVE LOPM E N T OF ORGAN IZA T I O N DESIGN Mass production- efficiently producing large quantities of goods Economies of scale- the situation in which companies can reduce their production costs if they can purchase raw materials in bulk; the average cost of goods goes down as production levels increase FAYOL’S PRINC IP L ES OF ORGANIZAT I O N Unity of Command- each worker is to report to one boss Hierarchy of authority- all workers should know to whom they should report Division of labor- functions are to be divided into areas of specialization such as production, marketing, and finance Subordination of individual interests to the general interest- workers to think of themselves as a coordinated team Authority- managers have the right to give orders and the power to enforce obedience Degree of centralization- the amount of decision making power vested in top management should vary by circumstances Clear communication channels- all workers should be able to reach others in the firm quickly and easily Order- materials and people should be placed and maintained in the proper location Equity- a manager should treat employees and peers with respect and justice Esprit de corps- a spirit of pride and loyalty should be created among people in the firm MAX WEBER AND ORGAN IZA T I O N A L THEORY Weber Emphasized:- Job descriptions- Written rules, decision guidelines, and detailed records- Consistent procedures, regulations, and policies- Staffing and promotion based on qualifications TURN I NG PRINC IP L ES I N TO ORGAN IZA T IO N DESIGN Hierarchy- a system in which one person is at the top of the organization and there is a ranked or...
View Full Document

This note was uploaded on 03/20/2008 for the course BINT 101 taught by Professor Lifton during the Fall '07 term at Ithaca College.

Page1 / 7


This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online