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****** 1 1-1 MUSOLINO Adapting Organizations to Today’s Markets 8 CHAPTER.

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Presentation on theme: "****** 1 1-1 MUSOLINO Adapting Organizations to Today’s Markets 8 CHAPTER."— Presentation transcript:

1 ****** MUSOLINO Adapting Organizations to Today’s Markets 8 CHAPTER

2 ****** 2 Structuring an Organization Comprises:  Accountability  Allocating Resources  Establishing Procedures  Division of Labor  Team Tasks  Assigning Responsibility/ Authority

3 ****** 3 Fayol’s Principles of Organization  Unity of Command  Hierarchy of Authority  Division of Labor  Subordination of Individual Interest to the General Interest  Authority  Degree of Centralization  Clear Communication Channels  Order  Equity  Esprit de Corps

4 ****** 4 Weber’s Organizational Principles  Job Descriptions  Written Rules  Procedures, Regulations, Policies  Staffing/Promotions Based on Qualifications

5 ****** 5 Centralization (No Delegation) Advantages  Greater Top- Management Control  More Efficiency  Simpler Distribution System  Stronger Brand/Corporate Image Disadvantages Less Responsiveness to Customers Less Empowerment Interorganization al Conflict Lower Morale Away from Headquarters

6 ****** 6 Decentralization (Delegate Authority) Advantages Better Adaptation to Customer Wants More Empowerment of Workers Faster Decision Making Higher Morale Disadvantages  Less Efficiency  Complex Distribution System  Less Top- Management Control  Weakened Corporate Image

7 ****** 7 Organizational Structures Tall Organizations Many Layers of Management High Cost of Management Narrow Span of Control Flat Organizations Current Trend Creation of Teams Broad Span of Control

8 ****** 8 How to Make Jobs Fit Your Company (Part 1 of 2) Each manager must ask:  What resources do I control to accomplish my tasks?  What measures will be used to evaluate my performance?  Who do I need to interact with and influence to achieve my goals?  How much support can I expect when I reach out to others for help? Source: HBS Working Knowledge, October 31,2005

9 ****** 9 How to Make Jobs Fit Your Company (Part 2 of 2) Four Basic Spans of a Job:  The Span of Control  The Span of Accountability  The Span of Influence  The Span of Support Source: HBS Working Knowledge, October 31,2005

10 ****** 10 Span of Control - Narrow Advantages  More Control by Top Management  More Chances for Advancement  Greater Specialization  Closer Supervision Disadvantages  Less Empowerment  Higher Costs  Delayed Decision Making  Less Responsiveness to Customers

11 ****** 11 Span of Control - Broad Advantages  Reduced Costs  More Responsiveness to Customers  Faster Decision Making  More Empowerment Disadvantages  Fewer Chances for Advancement  Overworked Managers  Loss of Control  Less Management Expertise

12 ****** 12 Advantages  Skill Development  Economies of Scale  Good Coordination Departmentalization by Function Disadvantages Lack of Communication Employees Identify with Department Slow Response to External Demands Narrow Specialists Groupthink

13 ****** 13 Departmentalization  By Product  By Function  By Customer Group  By Geographic Location  By Process

14 ****** 14 Line Organizations Advantages Clear Authority & Responsibility Easy to Understand One Supervisor Per Employee Disadvantages Inflexible Few Specialists for Advice Long Line of Communication Difficult to Handle Complex Decisions

15 ****** 15 Line/Staff Organizations Line Personnel Formal Authority Make Policy Decisions Staff Personnel Advise Line Personnel Assist Line Personnel

16 ****** 16 Matrix Organizations Advantages Flexibility Cooperation & Teamwork Creativity More Efficient Use of Resources Disadvantages Costly/Complex Confusion in Loyalty Requires Good Interpersonal Skills & Cooperation Not Permanent

17 ****** 17 Important Conditions for Small Teams 1.Clear Purpose 2.Clear Goals 3.Correct Skills 4.Mutual Accountability 5.Shift Roles When Appropriate Source: CIO Dec 2003

18 ****** 18 Networking Real Time Transparency Virtual Corporations

19 ****** 19 A Virtual Corporation CoreFirm Accounting Firm Production Firm Distribution Firm Advertising Agency Design Firm Legal Firm

20 ****** 20 Benefits and Concerns of Healthcare Outsourcing Benefits  Provides Enough Staff to Operate the Facility  Cost Savings Concerns  Lower Employee Morale  Liability  Should Patients be Informed  Confidentiality & Security Source: Healthcare Financial Management, 2005

21 ****** 21 Which Jobs Will Be Outsourced Next? Source: USA Today

22 ****** 22 Adapting to Change  Restructuring for Empowerment  Focusing on the Customer  Creating a Change-Oriented Organizational Culture  The Informal Organization

23 ****** 23 Layers of Authority-Traditional  Top Managers- Decision Makers Middle Managers- Develops Rules & Procedures Middle Managers- Develops Rules & Procedures Workers and Supervisors Workers and Supervisors

24 ****** 24 Inverted Organization Structure Empowered front- line workers Support Personnel Top Mgmt.

25 ****** 25 Examples of Informal Group Norms Do your job but don’t produce more than the rest of the group. Don’t tell off-color jokes or use profane language among group members. Listen to the boss and use his/her expertise but don’t trust him/her. Everyone is to be clean/organized at the workstation.

26 ****** 26 Never side with managers in a dispute involving group members. Respect/help your fellow group members on the job. Criticize the organization only among group members-- never among strangers. Drinking is done off-the-job-- Never at work! More Examples of Informal Group Norms


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