© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter Nine Creating a Flexible Organization 9 | 1 PRIDE HUGHES KAPOOR INTRODUCTION TO BUSINESS ELEVENTH EDITION

© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Learning Objectives 1. Understand what an organization is and identify its characteristics 2. Explain why job specialization is important 3. Identify the various bases for departmentalization 4. Explain how decentralization follows from delegation 5. Understand how the span of management describes an organization 6. Describe the four basic forms of organizational structure. 7. Describe the effects of corporate culture 8. Understand how committees and task forces are used 9. Explain the functions of the informal organization and the grapevine in a business 9 | 2

© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. What Is an Organization?  Define Organization Organizational Chart Chain of Command Staff (Advisory) Positions 9 | 3

© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Considerations for Organizing a Business  Know the major considerations for organizing a business  Be able to define and discuss Job Design Departmentalization Delegation Span of Management Chain of Command 9 | 4

© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Job Design  Define Job Specialization  Why specialize? Know the rationale for specialization  Be able to define and discuss the alternatives to job specialization Job Rotation Job Enlargement Job Enrichment  What are the benefits and drawbacks of each alternative? 9 | 5

© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Departmentalization  Define Departmentalization  Know the Common Bases for Departmentalization By Function By Product By Location By Customer Combinations 9 | 6

© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Delegation, Decentralization, and Centralization  Define Delegation  Know the Steps in Delegation and the Delegation Process  Define -Responsibility -Authority -Accountability  What are the barriers to delegation? 9 | 7

© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Decentralization and Centralization of Organizations  Know the difference between a Decentralized Organization and a Centralized Organization  What are the factors favoring Decentralization? 9 | 8

© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The Span of Management  Define Span of Management  What is the difference between a Wide Span and a Narrow Span? What are common characteristics of the two organizational forms? 9 | 9

© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The Span of Management (cont’d)  Define Organizational Height  What are characteristics of Flat Organizations?  What are characteristics of Tall Organizations? 9 | 10

© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Forms of Organizational Structure  Know and be prepared to discuss the different forms of organizational structure Line Structure Line-and-Staff Structure -What are the differences in the roles of line managers and staff managers? -What are reasons for conflict between the two managers and how to minimize it? Matrix Structure Network Structure (Virtual Organization)  Know the advantages and disadvantages of each organizational structure 9 | 11

© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Corporate Culture  Define Corporate Culture  Know the Indicators of Corporate Culture  List the different types of corporate cultures Networked Culture Mercenary Culture Fragmented Culture Communal Culture  Be able to discuss the instances when cultural change is needed 9 | 12

© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Committees and Task Forces  Define Committee  Define the types of committees and know what distinguishes them -Ad hoc -Standing -Task Force  What are the advantages and disadvantages of reaching solutions via committees, rather than individual action? 9 | 13

© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The Informal Organization  What is the Informal Organization?  Define Informal Groups The Grapevine 9 | 14