Chapter_8 - Adapting Organizations to Today's Markets...

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Adapting Organizations to Today’s Markets Chapter 8
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Division of Labor Determining what work needs to be done and then dividing up the tasks. One person might have a special talent. Job Specialization Dividing tasks into smaller jobs. The success of a firm often depends on management’s ability to identify each worker’s strengths and assign the right tasks to the right person. Departmentalization Setting up individual departments to do specialized tasks. Assign authority and responsibility to people so that you could control the whole process. Managing Change Has become a critical managerial function. Sometimes includes changing the whole organization structure. Bureaucracy Companies design many rules and regulations to give managers control over employees. Designed more to facilitate management than to please the customer. Economies of Scale 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. Ex. Car industry and production lines.
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Henri Fayol 1919 General and Industrial Management –Principles of Organization Unity of Command Each worker is to report to one, and only one, boss. TPS Reports Two different bosses? Two different assignments? Hierarchy of Authority All workers should know to whom they should report. (Empowerment now) Managers should have the right to Division of Labor Divided into areas of specialization. Production, Marketing, Finance Subordination of Individual Interests to the General Interest Workers are to think of themselves as a coordinated team. The goals of the team are more important than the goals of individual workers. Authority (Empowerment now) Managers have the right to give orders and the power to enforce obedience. When authority is exercised, responsibility arises. Degree of Centralization The amount of decision making power vested in top management should vary by circumstances. Small organization = top manager Large organization = lower level managers and employees Clear Communication Channels 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.
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Max Weber The Theory of Social and Economic Organizations Published in the late 1940s Felt that firms would do well if employees simply did what they were told. The less decision making employees had to do, the better. Most employees did not have the kind of educational background and technical skills that today’s workers generally have. Similar to Fayol’s but emphasized:
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This note was uploaded on 07/06/2009 for the course BUS BAM303 taught by Professor Na during the Summer '09 term at 東京大学.

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Chapter_8 - Adapting Organizations to Today's Markets...

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