Bus 115 Chapter 8 Summary Notes. Adapting To Today's Markets

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Explain the organizatinal theories of Fayol and Weber.

. Companies like Ford, GM, and Kodak are going through tha painful process of reorganization. They are closing plants, firing workers, and restructuring their operations to be more competitivw. They are basing such changes on basic organizational principles that apply to all organizations.

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* WHAT CONCEPTS DID FAYOL AND WEBER CONTRIBUTE?
Fayol introduced principles such as unity of command, hierarchy of authority, division of labor, subordination of individual interest, authority, clear communication channels,order and equity. Webber added principles of bureaucracy such as job descriptions, written rules and decision guidelines, consistent procedures, and staffing and promotions based on qualifications. Today, bureaucratic organizations are simply too slow moving to handle the rapidly changing conditions facing most corporations and government agencies.

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2. Explain the various issues involved in structuring organizations.
2. Issues invoved in structuring and restructuring organizations include (1) centralization verses decentralization, (2) span of control,(3) tall verses flat organization structures, and (4) departmentalization.

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* WHAT ARE THE BASICS FOR EACH?
Departments are often being replaced or supplemented by matrix organizations and cross-funtional teams. Use of cross-funtional teams results in decentralization of authority. The span of control becomes larger as employees become self-directed. The problem with tall organizations is that they have slow communications. The trend is to eliminatemanagers and flatten organizations.

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3. Describe and differentiate the various organizational models.
3. Organizational design is the coordinating of workers so that they can best accomplish the firm's goal's. New forms of organization are emerging that enable firms to be more responsive to customers.

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* WHAT ARE THE TRADITIONAL FORMS OF ORGANIZATION AND THEIR ADVANTAGES?
The two traditional forms of organization explored in the text are (1) line organizations and (2) line-and-staff
organizations. A line organization has the advantages of having clearly defined authority and responsibility, being easy to understand, and providing one supervisor for each person.Most organizations have benefited from the expert advice of staff assistants in aereas such as safety, quality control, computer technology,human resource management, and investing.

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*WHAT ARE THE ALTERNATIVE FORMS OF ORGANIZATION?
Matrix organizations and cross-functional self-managed teams.

X HOW DO THEY DIFFER?
Matrix organizations involve TEMPORARY assignments (projects) that give flexibility to managers in assigning people to projects and encourae interorganizational cooperation and teamwork. Cross-funtional self-manage teams are LONG-TERM and have al the benefits of the matrix style.

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