08 Chapter 8 Org - MGTA03 – Intro to Management MGTA03 Chapter 8 “Organising the Business“ Principal Points Structure of the Business =

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Unformatted text preview: MGTA03 – Intro to Management MGTA03 Chapter 8 - “Organising the Business“ Principal Points Structure of the Business = f(Purpose) Traditional Organisations: Chain of Command Authority, Responsibility and Accountability Delegation and Fear of Delegation Downsizing and Flat Organisations Virtual Organisations Structure Follows Purpose Structure Centralised Organisations e.g. Military Discipline and obedience are critical Decentralised Organisations e.g. Universities Creativity and independent thinking critical Traditional Hierarchical Organisations Organisations Traditionally: Traditionally: Organisations shaped Organisations like pyramids Few “bosses” Lots of “worker bees” Traditional Organisation: Chain of Command Chain “Bosses” had authority Bosses delegated responsibility Successful completion of task = promotionn Authority, Responsibilty & Accountability Authority, Authority: The power to make the decisions Authority: necessary to complete a task. (“Go wash your hands”) your Responsibility: The duty to perform an Responsibility: assigned task. (Chris washes hands) assigned Accountability: Liability of subordinates to Accountability: accomplish the assigned task. (“Show me your hands”) your Delegation Delegation Assignment of a task, a responsibility, or Assignment authority by a manager, to a subordinate. authority Fear of Delegation – Because: “Employees can’t do it as well as me” “I haven’t got time to show them how” “They’ll make me look bad if they do it well” “Tall” Organisations Many layers Small span of control Needs lots of delegation Recent Developments Recent Since 1990s big businesses shedding jobs Called “downsizing” Major Downsizings 1990-1997 Major Lockheed 17,000 Boeing (Feb. 1993) 31,000 Boeing (Feb. Boeing (Dec. 1993) 3,000 Boeing (Dec. Bank of (1992) 12,000 (1992) Bank America (1993) 3,750 (1993) (1996) 3,700 (1996) Procter & Gamble 13,000 General Dynamics 27,000 Xerox GM IBM Sears AT&T Delta Kodak 10,000 74,000 60,000 50,000 40,000 40,000 18,00 16,800 Chemical Bank12,000 Major Downsizings 2008 Major Firm Layoffs Layoffs Firm Firm Citigroup Citigroup Circuit City Circuit Merrill Lynch Caterpillar Pfizer Lehmann Bros. KB Toys DHL Express 75,000 41,300 41,300 35,000 22,200 19.000 16.000 15,000 14,900 Alcoa AT&T Layoffs Layoffs 13,500 12,000 12,000 Dow Chemical 11,000 General Electric 11,000 General 11,000 Dupont 10,500 Dupont 10,500 Boeing 10,000 10,000 “Flat” & “Virtual” Organisations New technology: fewer people can do more New International competition: must cut costs Lean and flexible organisations Canada is “knowledge based” economy “Flat” Organisations Few layers of managers Larger span of control For organisations where people work autonomously Virtual Organisations Virtual Businesses learning to use fewer people Increasingly hire on short term, part-time, or contracted basis Organisations “rent” expertise from project to project No longer “buy” (hire) permanent staff ...
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This note was uploaded on 06/18/2011 for the course MGT a03 taught by Professor Bovaird during the Spring '11 term at University of Toronto- Toronto.

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