Management Lecture Ch 10_5th Ed

Management Lecture Ch 10_5th Ed - CHAPTER TEN MANAGING...

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CHAPTER TEN MANAGING ORGANIZATIONAL STRUCTUREAND CULTURE OVERVIEW OF THE CHAPTER To create high performing organizations, managers must design an organizational architecture that maximizes the efficient use of resources in order to efficiently produce the goods and services customers want. This chapter opens by examining the four critical factors that help managers to determine the most appropriate structure for their organization. Next, it discusses three components of organizational design: job design, grouping jobs into functions and divisions, and the coordination of functions and divisions. The chapter closes with a discussion of organizational culture, where it comes from, and difference between strong, adaptive cultures and weak, inert ones. LEARNING OBJECTIVES 1. Identify the factors that influence managerment’s choice of an organizational structure. 2. Explain how managers group tasks into jobs that are motivating and satisfying for employees. 3. Describe the types of organizational structures managers can design, and explain why they choose one structure over another. 4. Explain why managers must coordinate jobs, functions, and divisions using the hierarchy of authority and integrating mechanisms. 5. List the four sources of organizational culture and differentiate between a strong, adaptive culture and a weak, inert culture. LECTURE OUTLINE A MANAGER’S CHALLENGE: A CENTRALIZED, MILITARY-STYLE STRUCTURE AND CULTURE TRANSFORMS HOME DEPOT Home Depot made major changes in its organizational structure and culture when it recently hired Bob Nardelli as CEO. When the company was founded, its owners wanted their managers to act in an entrepreneurial way so they established norms and values that encouraged freedom in decision making. Their decentralized approach worked well until faced with new competitors, especially Lowes. Because Lowes believed Home Depot’s weakness was poor customer service and poor store layout, they developed an organizational design that allowed their stores to capitalize upon their competitor’s weaknesses. That’s when Home Depot hired Nardelli, who recentralized authority and created a military-like culture. Within eighteen months, Nardelli turned Home Depot around. Its costs fell, sales increased, and customer responsiveness improved. I. DESIGNING ORGANIZATIONAL STRUCTURE Jones, Contemporary Management, Fifth Edition 219
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CHAPTER TEN MANAGING ORGANIZATIONAL STRUCTUREAND CULTURE Organizing is the process by which managers establish the structure of working relationships among employees to allow them to achieve organizational goals efficiently and effectively. Organizational structure is the formal system of task and reporting relationships that determines how employees use resources to achieve goals.
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