1. Introduction to Business Dr. H. Ronald Moser Cumberland University
McGraw-Hill/Irwin
Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.

2. Structuring Organization s for Today’s Challenges
Chapter 08
Structuring Organization s for Today’s Challenges
McGraw-Hill/Irwin
Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.

3. Started as a summer intern and moved up through Xerox.
PROFILE
URSULA BURNS Xerox
Started as a summer intern and moved up through Xerox.
The only female African- American CEO among Fortune’s Top 150 Companies.
Serves on many boards and has been placed on councils by President Obama and Vice- President Biden.
8-3

4. EVERYONE’S REORGANIZING
Reorganization is for Everyone
Many companies are reorganizing, especially those in decline. Including:
Auto makers
Homebuilders
Banks
Adjusting to changing markets is normal in capitalist economies.
Companies must go back to basic organizational principles and firm up the foundation.
See Learning Goal 1: Outline the basic principles of organization management.
Changing economic times require businesses to alter their approach via reorganization. Using organizational principles is an important aspect to this reorganization.
8-4

5. Structuring and Organization
EVERYONE’S REORGANIZING
Building an Organization from the Bottom Up
Structuring and Organization
Create a division of labor.
Set up teams or departments.
Allocate resources.
Assign tasks.
Establish procedures.
Adjust to new realities.
See Learning Goal 1: Outline the basic principles of organization management.
8-5

6. Structuring and Organization
EVERYONE’S REORGANIZING
Building an Organization from the Bottom Up
Structuring and Organization
Basic principles of organization design are usually the same for large and small business.
The principles of organization design, such as division of labor, specialization, departmentalization, and other structural decisions are much the same for large firms and for small firms.
Ron’s Place
See Learning Goal 1: Outline the basic principles of organization management.
8-6

7. Safety vs. Profit (Making Ethical Decisions)
EVERYONE’S ROORGANIZING
Building an Organization from the Bottom Up
Safety vs. Profit (Making Ethical Decisions)
You own a lawn-mowing business and are aware of the hazards in the job. But, you’ve seen other companies save money by eliminating safety equipment. You’d also like to make more money.
What do you do?
Save money with fewer safety precautions?
What are the consequences?
See Learning Goal 1: Outline the basic principles of organization management.
8-7

8. THE CHANGING ORGANIZATION
Often change in organizations is due to evolving business environments:
More global competition.
Declining economy.
Faster technological change.
Pressure to protect the environment.
Customer expectations have also changed -- Consumers today want high-quality products with fast, friendly service and all at low cost.
See Learning Goal 2: Compare the organizational theories of Fayol and Weber.
8-8

9. Production Changed Organization Design
THE CHANGING ORGANIZATION
Production Changed Organization Design
The Development of Organization Design
Mass production of goods led to complexities in organizing businesses.
Economies of Scale -- Companies can reduce their production costs by purchasing raw materials in bulk, but what about businesses such as small retailers who cannot buy in bulk.
The average cost of goods decreases as production levels rise.
See Learning Goal 2: Compare the organizational theories of Fayol and Weber.
8-9

10. Fayol’s Principles of Organization
THE CHANGING ORGANIZATION
Fayol’s Principles of Organization
The Development of Organization Design
Unity of command – Only one boss “I am the man.”
Hierarchy of authority – All workers should know to whom they report.
Division of labor – Functions are divided into areas of specialization.
Subordination of individual interests to the general interest – Workers should work as a team.
Authority – Right to give orders.
Degree of centralization – Depends on the size or the organization.
Clear communication channels – Should be able to reach others quickly.
Order – Proper locations.
Equity – Treat employees and peers with respect.
Esprit de corps –A spirit of pride and loyalty should be created among people in the firm.
Ron’s Place
Finance
Production
See Learning Goal 2: Compare the organizational theories of Fayol and Weber.
This slide presents Fayol’s principles of organization. Fayol published General and Industrial Management in Unity of command and Hierarchy of authority suggest that each employee reports to one and only one boss. Management courses throughout the world teach these principles and organizations are designed accordingly. When these principles become rules, policies, and regulations, they create inflexibility which hampers organizations ability to respond quickly to situations. An example of this inflexibility or a slower response time can be seen in FEMA’s response to Hurricane Katrina.
Marketing
8-10

11. Organizations Based on Fayol’s Principles
THE CHANGING ORGANIZATION
The Development of Organization Design
Organizations Based on Fayol’s Principles
Organizations in which employees have no more than one boss; lines of authority are clear.
Rigid organizations often don’t respond to customers quickly.
See Learning Goal 2: Compare the organizational theories of Fayol and Weber.
8-11

12. Employees just need to do what they’re told.
THE CHANGING ORGANIZATION
The Development of Organization Design
Max Weber and Organizational Theory
Employees just need to do what they’re told.
In addition to Fayol’s principles, Weber emphasized:
Job descriptions.
Written rules, decision guidelines and detailed records.
Consistent procedures, regulations and policies.
Staffing and promotion based on qualifications.
See Learning Goal 2: Compare the organizational theories of Fayol and Weber.
Weber, a German sociologist and economist, wrote The Theory of Social and Economic Organizations. Weber’s principles were similar to Fayol’s. He emphasized job descriptions, written rules, consistent policies, regulations, and procedures, and staffing and promotions based on qualifications. Weber was in favor of bureaucracy and believed that these principles were necessary for large organizations’ effective functioning. However, in today’s corporate world, these rules and bureaucracy do not necessarily work. Organizations need to respond to customers and other environmental factors quickly which calls for a creative, flexible, and a quick decision making process contrary to a bureaucratic process.
8-12

13. THE CHANGING ORGANIZATION Max Weber and Organizational Theory
Turning Principles into Organization Design
Max Weber and Organizational Theory
Weber believed that large organizations demanded clearly established rules and guidelines to be followed precisely. In other words, he was in favor of a Bureaucratic Organization.
Bureaucratic organizations are known for many rules and regulations that employees are expected to follow. Max Weber, the advocate of bureaucracy believed that firms would run smoothly if employees followed orders and left the decision-making to management. Employees usually lack empowerment in bureaucratic organization.
See Learning Goal 2: Compare the organizational theories of Fayol and Weber.
Weber, a German sociologist and economist, wrote The Theory of Social and Economic Organizations. Weber’s principles were similar to Fayol’s. He emphasized job descriptions, written rules, consistent policies, regulations, and procedures, and staffing and promotions based on qualifications. Weber was in favor of bureaucracy and believed that these principles were necessary for large organizations’ effective functioning. However, in today’s corporate world, these rules and bureaucracy do not necessarily work. Organizations need to respond to customers and other environmental factors quickly which calls for a creative, flexible, and a quick decision making process contrary to a bureaucratic process.
8-13

14. Hierarchies and Command
THE CHANGING ORGANIZATION
Hierarchies and Command
Turning Principles into Organization Design
When following Fayol and Weber, managers control workers.
Hierarchy -- A system in which one person is at the top of an organization and there is a ranked or sequential ordering from the top down.
See Learning Goal 2: Compare the organizational theories of Fayol and Weber.
Chain of Command -- The line of authority that moves from the top of the hierarchy to the lowest level or rank in-file employees.
8-14

15. Typical Organization Chart
THE CHANGING ORGANIZATION
Typical Organization Chart
Turning Principles into Organization Design
See Learning Goal 2: Compare the organizational theories of Fayol and Weber.
This is a rather standard chart with managers for major functions and supervisors reporting to the managers. Each supervisor manages three employees.
8-15

16. Bureaucratic organizations
THE CHANGING ORGANIZATION
Bureaucratic organizations
Turning Principles into Organization Design
Bureaucracy -- An organization with many layers of managers who set rules and regulations and oversee all decisions.
It can take weeks or months to have information passed down to lower-level employees.
See Learning Goal 2: Compare the organizational theories of Fayol and Weber.
Bureaucracies can annoy customers.
8-16

17. DECISIONS TO MAKE IN STRUCTURING ORGANIZATIONS
Choosing Centralized or Decentralized Authority-
Centralized Authority -- When decision- making is concentrated at the top level of management. In most discount and large chain stores like Sears or Target stores, decisions are made at the companies’ headquarters or top level of management.
Decentralized Authority -- When decision-making is delegated to lower-level managers and employees more familiar with local conditions than headquarters. Stores selling fashion goods would be example such as department stores, or Home Depot and Lowe’s selling basic items.
See Learning Goal 3: Evaluate the choices managers make in structuring organizations.
Centralization can be defined as an organizational structure that focuses on retaining control of authority with higher level managers. One of the disadvantages of this type of management style is slower decisions because of layers of management. Ask the students: What specific problems you see with this type of management? (Slower decision-making means the company is less responsive to both internal an external customers needs.) Share with the students a simple rule to follow when dealing with centralized authority: Decisions regarding overall company policy and establishment of goals and strategies should be made at the top.
Decentralization is an organizational structure that focuses on delegating authority throughout the organization to middle and lower-level managers. The most significant advantage of this form of management style is the empowerment of the employees. Statistics indicate when delegation is practiced in a company, absenteeism, injuries, loyalty and production improve. Share with the students a simple rule to follow when dealing with decentralized authority: The closer an employee interacts with the customer, the more decentralized the decision-making should be. For example, a customer service manager must have the authority to make a decision that will satisfy a customer immediately, not wait until the home office makes a decision.
8-17

18. When work is standardized, broad spans of control are possible.
DECISIONS TO MAKE IN STRUCTURING ORGANIZATIONS
Span of Control
Choosing the Appropriate Span of Control
Span of Control -- The optimal number of subordinates a manager supervises or should supervise.
When work is standardized, broad spans of control are possible.
Appropriate span narrows at higher levels of the organization.
The trend today is to reduce middle managers and hire better low-level employees.
See Learning Goal 3: Evaluate the choices managers make in structuring organizations.
8-18

19. Organizational Structures
DECISIONS TO MAKE IN STRUCTURING ORGANIZATIONS
Organizational Structures
Choosing Tall versus Flat Organization Structures
Tall Organization Structures -- An organizational structure in which the organization chart would be tall because of the various levels of management. Some have as many as 14 levels, and the span of control is small (few people reporting to each manager)
Structures determine the way the company responds to employee and customer needs.
See Learning Goal 3: Evaluate the choices managers make in structuring organizations.
Many organizations have moved from tall organizations to flat organizations in an effort to increase nimbleness in the marketplace.
Flat Organization Structures -- An organizational structure that has few layers of management and a broad span of control.
8-19

20. Flat Organizational Structure
DECISIONS TO MAKE IN STRUCTURING ORGANIZATIONS
Flat Organizational Structure
Choosing Tall versus Flat Organization Structures
Flat Organization Structures -- An organizational structure that has few layers of management and a broad span of control (many people reporting to each manager).
See Learning Goal 3: Evaluate the choices managers make in structuring organizations.
8-20

21. Departmentalization -- Divides organizations into separate units.
DECISIONS TO MAKE IN STRUCTURING ORGANIZATIONS
Weighing the Advantages and Disadvantages of Departmentalization
Departmentalization
Departmentalization -- Divides organizations into separate units.
Workers are grouped by skills and expertise to specialize their skills.
The design department.
The marketing department.
See Learning Goal 3: Evaluate the choices managers make in structuring organizations.
The production department.
The accounting department.
8-21

22. Advantages of Departmentalization
DECISIONS TO MAKE IN STRUCTURING ORGANIZATIONS
Weighing the Advantages and Disadvantages of Departmentalization
Advantages of Departmentalization
Employees develop skills and progress within a department as they master skills.
The company can achieve economies of scale by centralizing all the resources it needs and locate various experts in that area.
Employees can coordinate work within the function and top management can easily direct activities.
See Learning Goal 3: Evaluate the choices managers make in structuring organizations.
8-22

23. Disadvantages of Departmentalization
DECISIONS TO MAKE IN STRUCTURING ORGANIZATIONS
Weighing the Advantages and Disadvantages of Departmentalization
Disadvantages of Departmentalization
Departments may not communicate well between departments.
Employees may identify with their department’s goals rather than the organization’s.
The company’s response to external changes may be slow.
People may not be trained to take different managerial responsibilities, instead they become specialists.
Department members may engage in group thinking and may need outside input.
Which external changes?
See Learning Goal 3: Evaluate the choices managers make in structuring organizations.
8-23

24. Ways to Departmentalize
DECISIONS TO MAKE IN STRUCTURING ORGANIZATIONS
Looking at Alternate Ways to Departmentalize
Ways to Departmentalize
See Learning Goal 3: Evaluate the choices managers make in structuring organizations.
8-24

25. Ways to Departmentalize
DECISIONS TO MAKE IN STRUCTURING ORGANIZATIONS
Looking at Alternate Ways to Departmentalize
Ways to Departmentalize
See Learning Goal 3: Evaluate the choices managers make in structuring organizations.
8-25

26. Four Ways to Structure and Organization
ORGANIZATION MODELS
Four Ways to Structure and Organization
Line Organizations.
Line-and-Staff Organizations.
Matrix-Style Organizations.
Cross-Functional Self-Managed Teams.
See Learning Goal 4: Contrast the various organizational models.
Traditional business models such as line organizations and line-and-staff organizations are giving way to new structures.
8-26

27. “Its my way or the highway.”
ORGANIZATION MODELS
Line Organizations
Line Organization -- Has direct two-way lines of responsibility, authority and communication running from the top to the bottom. Everyone reports to one supervisor.
There are no specialists, legal, accounting, human resources or information technology departments.
Line managers issue orders, enforce discipline and adjust the organization to changes.
See Learning Goal 4: Contrast the various organizational models.
“Its my way or the highway.”
8-27

28. Line personnel have authority to make policy decisions.
ORGANIZATION MODELS
Line Personnel
Line-and-Staff Organizations
Line Personnel -- Workers responsible for directly achieving organizational goals, and include production, distribution and marketing employees. The military and many small businesses are organized this way.
Line personnel have authority to make policy decisions.
See Learning Goal 4: Contrast the various organizational models.
8-28

29. ORGANIZATION MODELS
Staff Personnel
Line-and-Staff Organizations
Staff Personnel -- Employees who advise and assist line personnel in meeting their goals and include marketing research, legal advising, IT and human resource employees.
I am doing marketing research for my company.
I am writing a legal brief for my company.
See Learning Goal 4: Contrast the various organizational models.
8-29

30. Sample Line-and Staff Organization
ORGANIZATION MODELS
Sample Line-and Staff Organization
Line-and-Staff Organizations
Members of a legal department are considered staff personnel in a line-and-staff organization. Staff personnel serve in an advisory role and can work with colleagues and department at every level on the firm’s hierarchy.
A lawyer employed in the legal department of a manufacturing corporation.
See Learning Goal 4: Contrast the various organizational models.
Would be classified as a staff position.
8-30

31. ORGANIZATION MODELS
Matrix Organizations
Matrix-Style Organizations
Matrix Organization -- Specialists from different parts of the organization work together temporarily on specific projects, but still remain part of a line- and-staff structure.
Emphasis is on product development, creativity, special projects, communication and teamwork.
See Learning Goal 4: Contrast the various organizational models.
The creation of matrix organizations was in response to the inflexibility of other more traditional organizational structures. This structure brings specialists from different parts of the organization to work together temporarily on specific projects.
8-31

32. Sample Matrix Organization
ORGANIZATION MODELS
Sample Matrix Organization
Matrix-Style Organizations
In a matrix organizations, project managers are in charge of teams made up of members of several departments. In this case project manager 2 supervises employees A,B,C, and D. These employees are accountable not only to project manager 2 but also to the head of their individual department.
A group of teams.
Within the organization.
See Learning Goal 4: Contrast the various organizational models.
Working on specific projects.
8-32

33. Advantages of Matrix Style
ORGANIZATION MODELS
Advantages of Matrix Style
Matrix-Style Organizations
Managers have flexibility in assigning people to projects.
Interorganizational cooperation and teamwork is encouraged.
Creative solutions to product development problems are produced.
It makes for better efficient use of organizational resources.
See Learning Goal 4: Contrast the various organizational models.
8-33

34. Disadvantages of the Matrix Style
ORGANIZATION MODELS
Disadvantages of the Matrix Style
Matrix-Style Organizations
It’s costly and complex.
Employees may be confused about where their loyalty belongs.
Good interpersonal skills and cooperative employees are a must.
It’s a temporary solution to a possible long- term problem.
Teams are not permanent.
See Learning Goal 4: Contrast the various organizational models.
8-34

35. Cross-Functional Self-Managed Teams
ORGANIZATION MODELS
Cross-Functional Self-Managed Teams
A way to fix the problem of matrix-style teams is to establish long-term teams.
Empower teams to work closely with suppliers, customers and others to figure out how to create better products.
Cross-Functional Self-Managed Teams -- Groups of employees from different departments who work together on a long- term basis.
See Learning Goal 4: Contrast the various organizational models.
8-35

36. Cross-Functional Self-Managed Teams
ORGANIZATION MODELS
Cross-Functional Self-Managed Teams
Cross-functional teams and self-managed teams are groups of employees from different departments who work together on a long-term basis (as opposed to temporary teams established in a matrix structure.)
See Learning Goal 4: Contrast the various organizational models.
8-36

37. Cross-Functional Self-Managed Teams
ORGANIZATION MODELS
Cross-Functional Self-Managed Teams
Many firms practice Cross-Functional Planning, which means that instead of working alone -- middle managers work together as a team to develop tactical plans that consider the objectives of all the functional areas.
In developing his tactical plans, Scott, the marketing manager, has discussed and reviewed his plans with the manufacturing manager, the advertising manager, and the field service manager.
See Learning Goal 4: Contrast the various organizational models.
8-37

38. Going Beyond Organizational Boundaries
ORGANIZATION MODELS
Going Beyond Organizational Boundaries
Cross-functional teams work best when the voice of the customer is heard.
Teams that include customers, suppliers and distributors go beyond organizational boundaries.
Government coordinators may assist in sharing market information beyond national boundaries.
“Why is it that your product never works very long?”
What does that mean?
See Learning Goal 4: Contrast the various organizational models.
8-38

39. Building Successful Teams Important Conditions for Small Teams
ORGANIZATION MODELS
Building Successful Teams Important Conditions for Small Teams
Going Beyond Organizational Boundaries
Clear purpose.
Clear goals.
Correct skills.
Mutual accountability.
Shift roles when appropriate.
See Learning Goal 4: Contrast the various organizational models.
Important For Small Teams
This slide presents five important conditions for garnering the maximum benefits of small teams, according to Jon Katzenbach, co-author of The Wisdom of Teams.
Ask the students: Which of these five conditions do you believe would be most important in your team experience? Why? (The most critical factor of these five conditions, according to Katzenbach, is a clear performance purpose for the team.)
8-39

40. MANAGING THE INTERACTIONS AMONG FIRMS
Transparency and Virtual Organizations
Networking -- Using communications technology to link organizations and allow them to work together.
Real Time -- The present moment or actual time in which something takes place.
Most companies are no longer self-sufficient; they’re part of a global business network.
See Learning Goal 5: Identify the benefits of inter-firm cooperation and coordination.
The Internet has allowed companies to send real-time data to organizational partners as they are developed or collected. The result is transparency.
8-40

41. MANAGING THE INTERACTIONS AMONG FIRMS
Transparency and Virtual Organizations
Transparency -- When a company is so open to other companies that electronic information is shared as if the companies were one. With this integration, two companies can work as closely as two departments in traditional firms.
Virtual Corporation -- A temporary networked organization made up of replaceable firms that join and leave as needed.
See Learning Goal 5: Identify the benefits of inter-firm cooperation and coordination.
Germany
China
8-41

42. MANAGING THE INTERACTIONS AMONG FIRMS
A Virtual Corporation
Transparency and Virtual Organizations
A virtual corporation has no permanent ties to the firms that do its production, distribution, legal and other work. Such firms are flexible enough to adapt to changes in the market quickly.
See Learning Goal 5: Identify the benefits of inter-firm cooperation and coordination.
A Virtual Corporation
This slide illustrates the concept of a virtual corporation as an organizational model that could propel American businesses into the next century.
The theory behind the virtual corporation can be understood by picturing a company stripped to its core competencies. All other business functions will be accomplished by:
Forming joint ventures
Forming temporary alliances with other virtual companies with different areas of expertise
Hiring consulting services
Outsourcing or subcontracting of services
Share with the students some other interesting concepts of a virtual corporation:
On-demand knowledge workers who operate independently
Skill-selling professionals such as engineers, accountants, human resource experts who manage your projects from their homes through worldwide telecommunications
Team-building will change as companies hire individuals with expertise in various areas to solve business problems. As a solution is identified, the team will cease to exist.
8-42

43. MANAGING THE INTERACTIONS AMONG FIRMS
Transparency and Virtual Organizations
When You Workers Work for Someone Else (Spotlight on Small Business)
Douglas Pick launched DAP World from his apartment, but couldn’t produce all that was needed.
Started working with New Horizons to help produce and ship his earplugs.
Now he sells millions of earplugs to major outlets like Walgreens and Rite Aid.
See Learning Goal 6: Explain how organizational culture can help businesses adapt to change.
8-43

44. BENCHMARKING and CORE COMPETENCIES
Benchmarking – The process of rating an organization’s practices, processes, and products against the best of the world. Benchmarking compares and organization’s practices, processes, and products against the world’s best. Target may compare itself to Wal- Mart to see what Wal-Mart is doing better.
Core Competencies -- The functions an organization can do as well as or better than any other organization in the world.
See Learning Goal 5: Identify the benefits of inter-firm cooperation and coordination.
If a company can’t match a competitor, they may try to outsource.
8-44

45. Get rid of old, inefficient facilities and equipment.
ADAPTING to CHANGES
Adapting to Market Changes
Change isn’t easy. Employees like to do things the way they always have.
Get rid of old, inefficient facilities and equipment.
Use the Internet to get to know your customers and sell directly to them, but what about those old people who did not grow up with the computer.
See Learning Goal 5: Identify the benefits of inter-firm cooperation and coordination.
8-45

46. Amazon and its Customer Database
ADAPTING to CHANGES
Keep in Touch
Amazon and its Customer Database
Amazon.com uses information stored in databases to reach out to customers. The company s customers letting them know about CDs, DVDs or books they might like based on past purchases.
Have you ever received an like this from Amazon or another company?
What benefits would a database of personal information, like past purchases, provide Amazon?
Do you think these databases are helpful for both companies and consumers or are they an invasion of privacy?
See Learning Goal 5: Identify the benefits of inter-firm cooperation and coordination.
Keep in Touch
Information technology has allowed companies like Amazon to better understand customer needs.
Use the three questions on this slide to start a discussion with students in class.
8-46

47. Restructuring for Empowerment
ADAPTING to CHANGES
Restructuring
Restructuring for Empowerment
Restructuring -- Redesigning an organization so it can more effectively and efficiently serve its customers.
Inverted Organization -- An organization that has contact people at the top and the CEO at the bottom of the organizational chart. Maybe nurses at the top.
See Learning Goal 5: Identify the benefits of inter-firm cooperation and coordination.
The manager’s job is to assist and support frontline workers, not boss them.
8-47

48. Traditional and Inverted Organization
ADAPTING to CHANGES
Traditional and Inverted Organization
Restructuring for Empowerment
An organization that has contract people at the top and the chief executive officer at the bottom of the organization chart.
See Learning Goal 5: Identify the benefits of inter-firm cooperation and coordination.
The inverted organization structure is an alternate to the traditional management layers. The critical idea behind the inverted organization structure is that the managers’ job is to support and facilitate the job of the frontline people, not boss them around. Ask the students – What type of organization structure would they prefer to work under: traditional or inverted? Why?
8-48

49. Some of the best organizational cultures emphasize service.
ADAPTING to CHANGES
Creating a Change-Oriented Organizational Culture
Organizational or Corporate Culture -- The widely shared values within an organization that foster unity and cooperation to achieve common goals. Cultural values are those values of greatest importance to the organization. They are usually written by the CEO of the organization.
Some of the best organizational cultures emphasize service.
See Learning Goal 6: Explain how organizational culture can help businesses adapt to change.
When you search for a job, make sure the organizational culture is one you can thrive in.
We are caring people.
Culture is shown in stories, traditions and myths.
8-49

50. ADAPTING to CHANGES
Formal Organization
Managing the Informal Organization
Formal Organization -- Details lines of responsibility, authority and position.
The formal system is often slow and bureaucratic but it helps guide the lines of authority.
See Learning Goal 6: Explain how organizational culture can help businesses adapt to change.
No organization can be effective without formal and informal organization.
8-50

51. Informal Organization
ADAPTING to CHANGES
Informal Organization
Managing the Informal Organization
Informal Organization -- The system of relationships that develop spontaneously as employees meet and form relationships.
Informal organization helps foster camaraderie and teamwork among employees.
See Learning Goal 6: Explain how organizational culture can help businesses adapt to change.
8-51

52. Limitation of Informal Organizations
ADAPTING to CHANGES
Managing the Informal Organization
Limitation of Informal Organizations
The informal system is too unstructured and emotional on its own.
Informal organization may also be powerful in resisting management directives.
See Learning Goal 6: Explain how organizational culture can help businesses adapt to change.
8-52

53. The End!
See Learning Goal 6: Discuss the changing landscape of the global market and the issue of offshore outsourcing.
3-53 53