1. Introduction to Business 3e 8 Part III: Management Copyright © 2004 South-Western. All rights reserved.

2. 8–2 Quiz 1. Name 2. An Organization Chart shows the interaction among employee responsibilities True/false 3. In recent years most firms have attempted to centralize authority in the hands of a few executives true/false 4.The responsibilities of a firm’s managers should be organized to achieve the: a. Grapevine b. formal contingency c. strategic plan d. chain of command e. bureaucratic organization 5. Members of the Board of Directors are selected by the firms; a. top management b. management council c. shareholders d. creditors e. employees

3. Copyright © 2004 South-Western. All rights reserved.8–3 Group Process Forming Storming Norming Performing “Those that agree with you, affirm you. Those that don’t, help you grow” “If both of us agree on absolutely everything, than one of us is totally unnecessary.”

4. Copyright © 2004 South-Western. All rights reserved.8–4 Learning Goals Explain how an organizational structure may be used by a firm to achieve its strategic plan Identify methods that can be used to departmentalize tasks

5. Copyright © 2004 South-Western. All rights reserved.8–5 Example of an Organization Chart Exhibit 8.1

6. Copyright © 2004 South-Western. All rights reserved.8–6 Structure and the Strategic Plan Organizational structure: responsibilities and relationships. –Organization chart –Chain of command

7. Copyright © 2004 South-Western. All rights reserved.8–7 Board of Directors “A set of executives responsible for monitoring the activities of the firm’s president and other high-level managers” Shareholders elect Inside/Outside Auditor

8. Copyright © 2004 South-Western. All rights reserved.8–8 Small Business Survey Who Are Board Members of Small Firms?

9. Copyright © 2004 South-Western. All rights reserved.8–9 Elements of Structure Span of control Organizational height

10. Copyright © 2004 South-Western. All rights reserved.8–10 Distinguishing between a Narrow and Wide Span of Control Exhibit 8.3

11. Copyright © 2004 South-Western. All rights reserved.8–11 Other Elements of Structure Centralization. Decentralization

12. Copyright © 2004 South-Western. All rights reserved.8–12 Effect of Downsizing on Span of Control Exhibit 8.4

13. Copyright © 2004 South-Western. All rights reserved.8–13 Types of Organizational Structure Line organization. Line-and-staff organization Matrix (Hi – tech : Intel)

14. Copyright © 2004 South-Western. All rights reserved.8–14 A Matrix Organization for a Special Project to Design a New Computer System Exhibit 8.6

15. Copyright © 2004 South-Western. All rights reserved.8–15 Structure and Employee Input Intrapreneurship Informal Structure ACTIVITY

16. Copyright © 2004 South-Western. All rights reserved.8–16 The “grapevine” The informal communication network among employees –Advantages  Friendships  Allows information to flow –Disadvantages  Incorrect or unfavorable information.  Employee morale can be affected.

17. Copyright © 2004 South-Western. All rights reserved.8–17 Departmentalizing Tasks Assign tasks and responsibilities to different departments –By employee functions –By type of product produced –By geographic location –By type of customer –Activity: Rough Draft your Organizational Chart for YOUR company

18. Copyright © 2004 South-Western. All rights reserved.8–18 Chapter Summary Structure identifies responsibilities for each job position and relationships among positions (USE THIS VOCABULARY IN DESCRIBING YOUR ORG. STRUCTURE IN Rough Draft Narrative) –Line-and-staff, Matrix, or Intrapreneurship –Span of control, centralization, org. height, formal and informal etc. Main methods of departmentalization

19. Copyright © 2004 South-Western. All rights reserved.8–19 Next Time Read chapter 11 In text study guide Meet with group! Should have PERT, Layout, Org. Chart, and narrative outline started). Next class we do HR forecast Exam Monday 10/24 (and RD #1 due 10/17) – Chapters 1,2,7,8,11,9,4,5 (Scan-Tron form 882-E – Bookstore or Student Store AND 2 #2 pencils) Have a GREAT Weekend!!!!