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24/10/2005. 2. The Changing Structure of Organizations. Canadian business adapts to competition and becomes more responsive to customer needsChanging organizational design from a bureaucratic system to one of employee empowermentTop-down management worked well in the past - it is not flexible enou
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1. 24/10/2005 1 ORGANIZATION, TEAMWORK & COMMUNICATION
2. 24/10/2005 2 The Changing Structure of Organizations Canadian business adapts to competition and becomes more responsive to customer needs
Changing organizational design from a bureaucratic system to one of employee empowerment
Top-down management worked well in the past - it is not flexible enough for the new global economy
3. 24/10/2005 3 Organizational Structure has Evolved To understand the evolution of the organizational structure, we must study the history of organizational theory
4. 24/10/2005 4 Henri Fayols Ten Principles Unity of command
Hierarchy of authority
Authority
Degree of centralization
Equity
Clear communication channels
Division of labor
Subordination of individual to the group
Esprit de corps
Order
5. 24/10/2005 5 Max Weber and Organizational Theory Three Layers of Authority
Top Managers who are decision makers
Middle Managers who develop rules and procedures
Supervisors and Workers who do the work
6. 24/10/2005 6 Max Webers Principles Webers Principles were similar to Fayols with the addition of the following:
Job descriptions
Written rules
Consistent policies, procedures and regulations
Staffing and promotions based on qualifications
7. 24/10/2005 7 Joan Woodwards Research She studied Fayols and Webers principles at work in the real world and found
There is no best way to structure all companies
Labor-intensive organizations function better with a more democratic management style
Highly-automated companies are more successful when a more bureaucratic style of management is used
8. 24/10/2005 8 Designing More Responsive Organizations Use an Organization Chart to visually illustrate departmental relationships
Tall Organizations have many layers of Management
Flat Organizations have few layers of management; they expand sideways
Flat Organizations are the current trend
9. 24/10/2005 9 Purpose of an Organization Chart 1. Show the activities of the organization.
2. Highlight subdivisions of the organization.
3. Identify different types of work performed.
4. Provide information about different management levels.
5. Show the lines of authority in the organization and the flow of organizational communications.
10. 24/10/2005 10 Departmentalization - dividing organizational functions into separate units Advantages
Easier to lead and control
Resources can be centralized
Skills can be perfected
Disadvantages
Lack of communication
Response to change is slow
Employees identify with the department
Employees become narrow specialists
11. 24/10/2005 11 Departmentalization
12. 24/10/2005 12 Departmentalization
13. 24/10/2005 13 Departmentalization
14. 24/10/2005 14 Departmentalization
15. 24/10/2005 15 Span of Control Variables in Span of Control
Capabilities of the manager
Capabilities of the subordinates
Complexity of the job
Functional complexity
Need for coordination
Planning demands
Functional similarity
Geographical closeness
16. 24/10/2005 16 Span of Management:Wide Span and Narrow Span
17. 24/10/2005 17 Centralization vs. Decentralization Centralized means authority and decision-making remains at the top of the Organization
Decentralized authority means decision-making is delegated down to the lower levels of management
The trend is toward more decentralized organizations
18. 24/10/2005 18 ORGANIZATIONAL MODELS Line Organizations have direct lines of communication, authority and responsibility
Line / Staff Organizations have the line people do the job and the staff people to advise and assist the line personnel
Multidivisional Organization organize departments into large groups called divisions
Matrix Organizations bring experts from various parts of the organization together to work on projects
19. 24/10/2005 19 Line Structure
20. 24/10/2005 20 Line-and-Staff Structure
21. 24/10/2005 21 An Example of Multidivisional Structure: The Walt Disney Company
22. 24/10/2005 22 Matrix Structure
23. 24/10/2005 23 ADVANTAGES & DISADVANTAGES OF MATRIX ORGANIZATIONS ADVANTAGES:
Flexibility
Teamwork
Creative solutions
DISADVANTAGES:
Costly & complex
Conflict of 2 bosses
FOR MATRIX TO WORK: NEED GOOD HR SKILLS
24. 24/10/2005 24 A New Organization Model Cross-functional, Self-managed Teams
The Team manages itself
The Team is made of staff from different functional areas
The Team often networks internally and externally across across corporate or national boundaries
25. 24/10/2005 25 Differences between Groups and Teams Strong, clearly focused leader
Individual accountability
The same purpose as the broader organizational mission
Creates individual work products
Runs efficient meetings
Measures its effectiveness indirectly by its effects on others (e.g., financial performance of the business
Discusses, decides, and delegates Shared leadership roles
Individual and group accountability
A specific purpose that the team itself delivers
Creates collective work products
Encourages open-ended discussion and active problem-solving meetings
Measures performance directly by assessing collective work products
Discusses, decides, and does real work together
26. 24/10/2005 26 FILM: THE TROUBLE WITH TEAMS What are the driving forces that you see for the adoption of teams in the workplace?
When is it better to use teams rather than a strong leader?
Why would a manufacturing business like Ford not be successful with teams, but the five partners in the technical business were when they started out?
27. 24/10/2005 27 Organizational Culture Corporate culture is the widely-shared values within an organization
It is created by the organization's leaders
It should emphasize customer service
The best ones stress moral and ethical values
28. 24/10/2005 28 COMMUNICATION IN AN ORGANIZATION
29. 24/10/2005 29 The Flow of Communication in an Organizational Hierarchy
30. 24/10/2005 30 The Informal Organization The Formal Organization appears on the Organizational Chart
The Informal Organization is the system of relationships amongst the employees
The Informal Organization can
Adapt quickly
Help to foster group cohesiveness
Aid in communications - the Grapevine
31. 24/10/2005 31 Examples of Informal Group Norms Do your job, but dont produce more than the rest of the group.
Dont tell off-color jokes or use profane language among group members.
Listen to the boss and use his/her expertise, but dont trust him/her.
Everyone is to be clean and organized at their work stations.
Never side with managers in a dispute involving group members.
Respect and 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!
32. 24/10/2005 32 CLASS ON 31/10/2005 TOPIC: Production & Operations Management
Read: chapter 8 before class
Class Activity: Diamonds on Ice (video), read case & think about questions (p. 216)