2. Chapter Eight
LEARNING GOALS
1. Outline the basic principles of organization
management.
2. Compare the organizational theories of Fayol and
Weber.
3. Evaluate the choices managers make in structuring
organizations.
4. Contrast the various organizational models.
5. Identify the benefits of inter-firm cooperation and
coordination.
6. Explain how organizational culture can help
businesses adapt to change.
8-2
3. Profile
URSULA BURNS
Xerox
• Started as a summer intern and
moved up through Xerox.
• The only female African-
American CEO among
Fortune’s Top 150 Companies.
• Serves on many boards and
has been placed on councils by
President Obama and Vice-
President Biden.
8-3
4. Chapter Eight
NAME that COMPANY
This sport’s equipment company studied the CD
industry and learned to use ultraviolet inks to
print graphics on skis. It went to the cable
television industry to learn how to braid layers
of fiberglass and carbon, and adapted that
knowledge to make its products.
Name that company!
8-4
5. Everyone’s
Reorganizing REORGANIZATION is for
LG1 EVERYONE
• Many companies are reorganizing, especially
those in decline. Including:
- Auto makers
- Homebuilders
- Banks
• Adjusting to changing markets is normal in
capitalist economies.
• Companies must go back to basic
organizational principles and firm up the
foundation.
8-5
6. Building an
Organization from
the Bottom Up STRUCTURING an ORGANIZATION
LG1
• Create a division of labor
• Set up teams or departments
• Allocate resources
• Assign tasks
• Establish procedures
• Adjust to new realities
8-6
7. SAFETY vs. PROFIT
(Making Ethical Decisions)
You own a lawn-mowing business and are aware of
the hazards in the job. But you’ve seen other
companies save money by eliminating safety
equipment. You’d also like to make more money.
• What do you do?
• Save money with less
safety precautions?
• What are the
consequences?
8-7
8. The Changing
Organization THE CHANGING ORGANIZATION
LG2
• Often change in organizations is due to evolving
business environments:
- More global competition
- Declining economy
- Faster technological change
- Pressure to protect the environment
• Customer expectations have also changed
--Consumers today want high-quality products
with fast, friendly service and all at low cost.
8-8
9. The Changing
Organization HOW MUCH CHANGES
LG2 in a DECADE?
Source: NewsWeek, July 26, 2010 and Fast Company, March 2010.
8-9
10. The Development
of Organization PRODUCTION CHANGED
Design
LG2
ORGANZIATION DESIGN
• Mass production of goods led to complexities in
organizing businesses.
• Economies of Scale
-- Companies can reduce
their production costs by
purchasing raw materials
in bulk.
• The average cost of
goods decreases as
production levels rise.
8-10
11. Fayol’s Principles
of Organization
FAYOL’S PRINCIPLES
LG2
• Unity of command • Degree of
centralization
• Hierarchy of authority
• Clear communication
• Division of labor
channels
• Subordination of individual
• Order
interests to the general
interest • Equity
• Authority • Esprit de corps
8-11
12. Fayol’s Principles
of Organization ORGANIZATIONS BASED on
LG2 FAYOL’S PRINCIPLES
• Organizations in which
employees have no
more than one boss;
lines of authority are
clear.
• Rigid organizations that
often don’t respond to
customers quickly.
8-12
13. Max Weber and
Organizational
Theory
WEBER’S PRINCIPLES
LG2
• Employees just need to do what
they’re told.
• In addition to Fayol’s principles,
Weber emphasized:
- Job descriptions
- Written rules, decision
guidelines and detailed records
- Consistent procedures,
regulations and policies
- Staffing and promotion based
on qualifications
8-13
14. Turning
Principles into
Organization HIERARCHIES and COMMAND
Design
LG2
• When following Fayol and Weber, managers
control workers.
• Hierarchy -- A system in which one person
is at the top of an organization and there is a
ranked or sequential ordering from the top
down.
• Chain of Command -- The line of
authority that moves from the top of the
hierarchy to the lowest level.
8-14
16. Turning
Principles into
Organization
Design
BUREAUCRATIC ORGANIZATIONS
LG2
• Bureaucracy -- An organization with many layers
of managers who set rules and regulations and
oversee all decisions.
• It can take weeks or months to have information
passed down to lower-level employees.
• Bureaucracies can annoy customers.
8-16
17. Progress
Assessment PROGRESS ASSESSMENT
• What do the terms division of labor and job
specialization mean?
• What are the principles of management outlined
by Fayol?
• What did Weber add to the principles of Fayol?
8-17
18. Choosing
Centralized
or
Decentralized CENTRALIZATION or
Authority
LG3 DECENTRALIZATION?
• Centralized Authority -- When decision-making
is concentrated at the top level of management.
• Decentralized
Authority -- When
decision-making is
delegated to lower-level
managers and employees
more familiar with local
conditions than
headquarters is.
8-18
19. Choosing the
Appropriate
Span of Control
SPAN of CONTROL
LG3
• Span of Control -- The optimal number of
subordinates a manager supervises or should
supervise.
• When work is standardized, broad spans of
control are possible.
• Appropriate span narrows at higher levels of the
organization.
• The trend today is to reduce middle managers
and hire better low-level employees.
8-19
20. Choosing Tall
versus Flat
Organization
Structures ORGANIZATIONAL STRUCTURES
LG3
• Structures determine the way the company
responds to employee and customer needs.
• Tall Organization Structures -- An
organizational structure in which the organization
chart would be tall because of the various levels of
management.
• Flat Organization Structures -- An
organizational structure that has few layers of
management and a broad span of control.
8-20
22. Weighing the
Advantages and
Disadvantages of
Departmentalization
DEPARTMENTALIZATION
LG3
• Departmentalization -- Divides organizations
into separate units.
• Workers are grouped by skills and expertise to
specialize their skills.
8-22
23. Weighing the
Advantages and
Disadvantages of
Departmentalization
ADVANTAGES of
LG3 DEPARTMENTALIZATION
1) Employees develop skills and progress within a
department as they master skills.
2) The company can achieve economies of scale.
3) Employees can coordinate work within the
function and top management can easily direct
activities.
8-23
24. Weighing the
Advantages and
Disadvantages of
Departmentalization
DISADVANTAGES of
LG3 DEPARTMENTALIZATION
1) Departments may not communicate well.
2) Employees may identify with their department’s
goals rather than the organization’s.
3) The company’s response to external changes may
be slow.
4) People may not be trained to take different
managerial responsibilities, instead they become
specialists.
5) Department members may engage in groupthink and
may need outside input.
8-24
26. Looking at
WAYS to DEPARTMENTALIZE
Alternate Ways to
Departmentalize
LG3
8-26
27. Progress
Assessment PROGRESS ASSESSMENT
• Why are organizations becoming flatter?
• What are some reasons for having a narrow span
of control in an organization?
• What are the advantages and disadvantages of
departmentalization?
• What are the various ways a firm can
departmentalize?
8-27
28. Organization
Models FOUR WAYS to STRUCTURE an
LG4 ORGANIZATION
1. Line Organizations
2. Line-and-Staff
Organizations
3. Matrix-Style
Organizations
4. Cross-Functional Self-
Managed Teams
8-28
29. Line
Organizations LINE ORGANIZATIONS
LG4
• Line Organization -- Has direct two-way lines of
responsibility, authority and communication running
from the top to the bottom. Everyone reports to one
supervisor.
• There are no specialists, legal, accounting,
human resources or information technology
departments.
• Line managers issue orders, enforce discipline
and adjust the organization to changes.
8-29
30. Line-and-Staff
Organizations LINE PERSONNEL
LG4
• Line Personnel -- Workers responsible for
directly achieving organizational goals, and include
production, distribution and marketing employees.
• Line personnel have authority to make policy
decisions.
8-30
31. Line-and-Staff
Organizations
STAFF PERSONNEL
LG4
• Staff Personnel -- Employees who advise and
assist line personnel in meeting their goals, and include
marketing research, legal advising, IT and human
resource employees.
8-31
33. Matrix-Style
Organizations
MATRIX ORGANIZATIONS
LG4
• Matrix Organization -- Specialists from different
parts of the organization work together temporarily on
specific projects, but still remain part of a line-and-staff
structure.
• Emphasis is on
product development,
creativity, special
projects,
communication and
teamwork.
8-33
35. Matrix-Style
Organizations ADVANTAGES of the
LG4 MATRIX STYLE
• Managers have flexibility in assigning people to
projects.
• Interorganizational cooperation and teamwork is
encouraged.
• Creative solutions to product development
problems are produced.
• Efficient use of organizational resources.
8-35
36. Matrix-Style
Organizations DISADVANTAGES of the
LG4 MATRIX STYLE
• It’s costly and complex.
• Employees may be confused about where their
loyalty belongs.
• Good interpersonal skills and cooperative
employees are a must.
• It’s a temporary
solution to a possible
long-term problem.
• Teams are not
permanent.
8-36
37. Cross-Functional
Self-Managed
Teams
CROSS-FUNCTIONAL
LG4 SELF-MANAGED TEAMS
• Cross-Functional Self-Managed Teams --
Groups of employees from different departments who
work together on a long-term basis.
• A way to fix the problem of matrix-style teams is
to establish long-term teams.
• Empower teams to work closely with suppliers,
customers and others to figure out how to create
better products.
8-37
38. Going Beyond
Organizational GOING BEYOND
Boundaries
LG4
ORGANIZATIONAL BOUNDARIES
• Cross-functional teams work best when the voice
of the customer is heard.
• Teams that include customers, suppliers and
distributors go beyond organizational boundaries.
• Government coordinators may assist in sharing
market information beyond national boundaries.
8-38
39. Going Beyond
Organizational
Boundaries BUILDING SUCCESSFUL TEAMS
LG4 Important Conditions for Small Teams
• Clear purpose
• Clear goals
• Correct skills
• Mutual accountability
• Shift roles when
appropriate
Source: CIO Magazine, www.cio.com.
8-39
40. Progress
Assessment PROGRESS ASSESSMENT
• What’s the difference between line and staff
personnel?
• What management principle does a matrix-style
organization challenge?
• What’s the main difference between a matrix-
style organization’s structure and the use of
cross-functional teams?
8-40
41. Transparency
and Virtual
Organizations
REAL-TIME BUSINESS
LG5
• Networking -- Using
communications technology
to link organizations and
allow them to work together.
• Most companies are no
longer self-sufficient;
they’re part of a global
Photo Courtesy of: Marc Wathieu
business network.
• Real Time -- The present moment or actual time in
which something takes place.
8-41
42. Transparency
and Virtual
Organizations
TRANSPARENCY and VIRTUAL
LG5 CORPORATIONS
• Transparency -- When a company is so open to
other companies that electronic information is shared
as if the companies were one.
• Virtual Corporation -- A temporary networked
organization made up of replaceable firms that join
and leave as needed.
8-42
44. WHEN YOUR WORKERS
WORK for SOMEONE ELSE
(Spotlight on Small Business)
• Douglas Pick launched DAP World from his
apartment, but couldn’t produce all that was
needed.
• Started working with New
Horizons to help produce
and ship his earplugs.
• Now he sells millions of
earplugs to major outlets
like Walgreens and Rite
Aid.
8-44
45. Benchmarking
and Core
Competencies
BENCHMARKING and
LG5 CORE COMPETENCIES
• Benchmarking -- Compares an organization’s
practices, processes and products against the world’s
best.
• Core Competencies -- The functions an
organization can do as well as or better than any
other organization in the world.
• K2 Skis researched other companies’ practices in
order to create the best possible skis and
snowboards.
8-45
46. Benchmarking
and Core
Competencies
BENEFITS and CONCERNS of
LG5 HEALTHCARE OUTSOURCING
Benefits Concerns
• Provides enough staff • Lower employee
to operate the facility morale
• Cost savings • Liability
• Should patients be
informed
• Confidentiality and
security
Source: Healthcare Financial Management.
8-46
48. Adapting to
Change ADAPTING to
LG5
MARKET CHANGES
• Change isn’t easy.
Employees like to do
things the way they
always have.
• Get rid of old, inefficient
facilities and equipment.
• Use the Internet to get
to know your customers
and sell directly to them.
8-48
49. Adapting to
Change KEEP in TOUCH
Amazon and its Customer Database
LG5
Amazon uses information stored in databases to
reach out to customers. The company emails
customers letting them know about music, DVDs
or books they might like based on past
purchases.
• Have you ever received an email like this from Amazon or another
company?
• What benefits would a database of personal information, like past
purchases, provide Amazon?
• Do you think these databases are helpful for both companies and
consumers or are they an invasion of privacy?
8-49
50. WHEN TWITTER and FACEBOOK
are OLD SCHOOL
(Social Media in Business)
• People will become so used to having social
media at their fingertips, it’ll no longer be news.
• There will be new gadgets; some will be
improvements, others will be revolutionary.
• This can lead to more people working from home
and more companies interacting directly with their
customer base.
8-50
51. Restructuring
for
Empowerment
RESTRUCTURING
LG5
• Restructuring -- Redesigning an organization so
it can more effectively and efficiently serve its
customers.
• Inverted Organization -- An organization that
has contact people at the top and the CEO at the
bottom of the organizational chart.
• The manager’s job is to assist and support
frontline workers, not boss them.
8-51
53. Creating a
Change-Oriented
Organizational ORGANIZATIONAL CULTURE
Culture
LG6
• Organizational or
Corporate Culture -- The
widely shared values within an
organization that foster unity and
cooperation to achieve common
goals.
• Some of the best organizational
cultures emphasize service.
• Culture is shown in stories,
traditions and myths. 8-53
54. Managing the
Informal
Organization
FORMAL ORGANIZATION
LG6
• Formal Organization -- Details lines of
responsibility, authority and position.
• The formal system is often slow and
bureaucratic, but it helps guide the lines of
authority.
• No organization can be effective without formal
and informal organization.
8-54
55. Managing the
Informal
Organization
INFORMAL ORGANIZATION
LG6
• Informal Organization -- The system of
relationships that develop spontaneously as
employees meet and form relationships.
• Informal organization
helps foster
camaraderie and
teamwork among
employees.
8-55
56. Managing the
Informal LIMITATIONS of INFORMAL
Organization
LG6
ORGANIZATIONS
• The informal system is
too unstructured and
emotional on its own.
• Informal organization
may also be powerful
in resisting
management
directives.
8-56
57. Managing the
Informal
Organization
GROUP NORMS
Examples of Informal Group Norms
LG6
• Do your job but don’t produce more than the rest
of your group.
• Don’t tell off-color jokes or use profanity.
• Everyone is to be clean and organized at the
workstation.
• Respect and help your fellow group members.
• Drinking is done off the job – NEVER at work.
Source: CIO Magazine.
8-57
See Learning Goal 1: Outline the basic principles of organization management. Changing economic times require businesses to alter their approach via reorganization. Using organizational principles is an important aspect to this reorganization.
See Learning Goal 1: Outline the basic principles of organization management.
See Learning Goal 1: Outline the basic principles of organization management.
See Learning Goal 2: Compare the organizational theories of Fayol and Weber.
See Learning Goal 2: Compare the organizational theories of Fayol and Weber. How Much Changes in a Decade? This slide shows just how much our country has changed since 2000. Clearly the digital revolution is shown here with the amount of blogs, cell usage, emails sent, etc. Ask students: Do you expect these numbers to continue to grow? What may this table look like in 2020? The number of daily newspapers and letters sent has dropped. Ask students: Do you think we will lose more daily newspapers? What about letters? How many still receive letters/cards from grandparents opposed to emails or Facebook posts?
See Learning Goal 2: Compare the organizational theories of Fayol and Weber.
See Learning Goal 2: Compare the organizational theories of Fayol and Weber. This slide presents Fayol ’s principles of organization. Fayol published General and Industrial Management in 1919. Unity of command and hierarchy of authority suggest that each employee reports to one and only one boss. Management courses throughout the world teach these principles, and organizations are designed accordingly. When these principles become rules, policies, and regulations, they create inflexibility which hampers organizations’ ability to respond quickly to situations. An example of this inflexibility or a slower response time can be seen in FEMA’s response to Hurricane Katrina.
See Learning Goal 2: Compare the organizational theories of Fayol and Weber.
See Learning Goal 2: Compare the organizational theories of Fayol and Weber. Weber, a German sociologist and economist, wrote The Theory of Social and Economic Organizations . Weber ’s principles were similar to Fayol’s. He emphasized job descriptions, written rules, consistent policies, regulations, and procedures, and staffing and promotions based on qualifications. Weber was in favor of bureaucracy and believed that these principles were necessary for large organizations’ effective functioning. However, in today’s corporate world, these rules and bureaucracy do not necessarily work. Organizations need to respond to customers and other environmental factors quickly which calls for a creative, flexible, and a quick decision making process contrary to a bureaucratic process.
See Learning Goal 2: Compare the organizational theories of Fayol and Weber.
See Learning Goal 2: Compare the organizational theories of Fayol and Weber.
See Learning Goal 2: Compare the organizational theories of Fayol and Weber.
Division of labor is dividing tasks among workers to complete a job. Job specialization is dividing tasks into smaller jobs. Fayol’s principles of management are: -Unity of command -Hierarchy of authority -Division of labor -Subordination of individual interests to the general interest -Authority -Degree of centralization -Clear communication channels -Order -Equity -Esprit de corps 3. Weber added: - Job descriptions -Written rules, decision guidelines and detailed records -Consistent procedures, regulations and policies -Staffing and promotion based on qualifications.
See Learning Goal 3: Evaluate the choices managers make in structuring organizations. Centralization can be defined as an organizational structure that focuses on retaining control of authority with higher level managers. One of the disadvantages of this type of management style is slower decisions because of layers of management. Ask the students: What specific problems do you see with this type of management? ( Slower decision-making means the company is less responsive to both internal an external customers needs.) Share with the students a simple rule to follow when dealing with centralized authority: Decisions regarding overall company policy and establishment of goals and strategies should be made at the top. Decentralization is an organizational structure that focuses on delegating authority throughout the organization to middle and lower-level managers. The most significant advantage of this form of management style is the empowerment of the employees. Statistics indicate when delegation is practiced in a company, absenteeism, injuries, loyalty and production improve. Share with the students a simple rule to follow when dealing with decentralized authority: The closer an employee interacts with the customer, the more decentralized the decision-making should be. For example, a customer service manager must have the authority to make a decision that will satisfy a customer immediately, not wait until the home office makes a decision.
See Learning Goal 3: Evaluate the choices managers make in structuring organizations.
See Learning Goal 3: Evaluate the choices managers make in structuring organizations. Many organizations have moved from tall organizations to flat organizations in an effort to increase nimbleness in the marketplace.
See Learning Goal 3: Evaluate the choices managers make in structuring organizations.
See Learning Goal 3: Evaluate the choices managers make in structuring organizations.
See Learning Goal 3: Evaluate the choices managers make in structuring organizations.
See Learning Goal 3: Evaluate the choices managers make in structuring organizations.
See Learning Goal 3: Evaluate the choices managers make in structuring organizations.
See Learning Goal 3: Evaluate the choices managers make in structuring organizations.
Over the last 25 years businesses have adopted flatter organizations with fewer layers of management and a broader span of control in order to quickly respond to customer demands. A flatter organization gives lower-level employees the authority and responsibility to make decisions directly affecting customers. Span of control refers to the number of subordinates a manager supervises. Generally, the span of control narrows at higher levels of the organization, because work becomes less standardized and managers need more face-to face communication. 3. The advantages of departmentalization include: Departmentalization may reduce costs, since employees should be more efficient; employees can develop skills in depth and progress within a department as they master more skills; the company can achieve economies of scale by centralizing all the resources it needs and locating various experts in that particular area; employees can coordinate work within the function; and top management can easily direct and control various departments ’ activities. The disadvantages of departmentalization include: Communication is inhibited; employee’s may identify with their department’s goals rather than the organization’s; t he company’s response may be slowed by departmentalization; employees tend to be narrow specialists; department members may engage in groupthink and may need input from the outside to become more competitive. 4. An organization can elect to departmentalize in the following ways: customer group, product, functional, geographic, process, and hybrid.
See Learning Goal 4: Contrast the various organizational models. Traditional business models, such as line organizations and line-and-staff organizations, are giving way to new structures.
See Learning Goal 4: Contrast the various organizational models.
See Learning Goal 4: Contrast the various organizational models.
See Learning Goal 4: Contrast the various organizational models.
See Learning Goal 4: Contrast the various organizational models.
See Learning Goal 4: Contrast the various organizational models. The creation of matrix organizations was in response to the inflexibility of other more traditional organizational structures. This structure brings specialists from different parts of the organization to work together temporarily on specific projects.
See Learning Goal 4: Contrast the various organizational models.
See Learning Goal 4: Contrast the various organizational models.
See Learning Goal 4: Contrast the various organizational models.
See Learning Goal 4: Contrast the various organizational models.
See Learning Goal 4: Contrast the various organizational models.
See Learning Goal 4: Contrast the various organizational models. Important For Small Teams This slide presents five important conditions for garnering the maximum benefits of small teams, according to Jon Katzenbach, co-author of The Wisdom of Teams . Ask the students: Which of these five conditions do you believe would be most important in your team experience? Why? (The most critical factor of these five conditions, according to Katzenbach, is a clear performance purpose for the team.)
Line personnel are responsible for directly achieving organizational goals. Line personnel include production workers, distribution people, and marketing personnel. Staff personnel advise and assist line personnel in meeting their goals. The flexibility inherent in the matrix-style organization directly challenge the rigid line and line-and-staff organization structures. The main difference between matrix-style organization and cross-functional teams is that cross-functional teams tend to be long-lived as compared to the temporary and fluid nature of teams in a matrix-style organization.
See Learning Goal 5: Identify the benefits of inter-firm cooperation and coordination.
See Learning Goal 5: Identify the benefits of inter-firm cooperation and coordination.
See Learning Goal 5: Identify the benefits of inter-firm cooperation and coordination. A Virtual Corporation This slide illustrates the concept of a virtual corporation as an organizational model that could propel American businesses into the next century. The theory behind the virtual corporation can be understood by picturing a company stripped to its core competencies. All other business functions will be accomplished by: Forming joint ventures Forming temporary alliances with other virtual companies with different areas of expertise Hiring consulting services Outsourcing or subcontracting of services Share with the students some other interesting concepts of a virtual corporation: On-demand knowledge workers who operate independently Skill-selling professionals such as engineers, accountants, human resource experts who manage your projects from their homes through worldwide telecommunications Team-building will change as companies hire individuals with expertise in various areas to solve business problems. As a solution is identified, the team will cease to exist.
See Learning Goal 6: Explain how organizational culture can help businesses adapt to change.
See Learning Goal 5: Identify the benefits of inter-firm cooperation and coordination.
See Learning Goal 5: Identify the benefits of inter-firm cooperation and coordination. Benefits and Concerns of Healthcare Outsourcing This slide identifies the benefits and concerns of healthcare outsourcing. Have the students identify the possible countries to which healthcare can be outsourced. (India is used by many hospitals and healthcare organizations due to availability of knowledge workers.) Ask students: Why do you think these countries represent a threat to U.S. jobs? ( Lower wages will result in lower costs.) Ask the students about another country: What could be outsourced to South Africa? Why? ( South Africa is considered a good choice for customer service centers for French, English, and German speaking customers. Work force is trained to speak several different languages while wages are low. As a global company dealing with consumer inquiries, the central location of a call center may reduce cost significantly.)
See Learning Goal 5: Identify the benefits of inter-firm cooperation and coordination. Which Jobs Will Be Outsourced Next? This slide supports the previous discussion of outsourcing by identifying the most common functional areas for which U.S. companies plan on hiring outside organizations. The results are from the TEC International ’s survey of 1,091 CEOs. As mentioned in previous discussion, the number-one reason companies outsource is to reduce cost. This slide shows Manufacturing, Information Technology and Customer Support as the largest planned outsourced business categories. Ask the students: Why do you think these categories are outsourced more often? (Manufacturing can be done a lot cheaper in a country with lower wages; IT and customer support represent functional areas that provide basic or routine types of job performance; unlike sales and marketing, where specific strategies are closely aligned to meet specific customer needs.)
See Learning Goal 5: Identify the benefits of inter-firm cooperation and coordination.
See Learning Goal 5: Identify the benefits of inter-firm cooperation and coordination. Keep in Touch Information technology has allowed companies like Amazon to better understand customer needs. Use the three questions on this slide to start a discussion with students in class.
See Learning Goal 1: Outline the basic principles of organization management.
See Learning Goal 5: Identify the benefits of inter-firm cooperation and coordination.
See Learning Goal 5: Identify the benefits of inter-firm cooperation and coordination. 1. The inverted organization structure is an alternative to the traditional management layers. The critical idea behind the inverted organization structure is that the managers ’ job is to support and facilitate the jobs of the frontline people, not boss them around. 2. Ask the students: What type of organization structure would they prefer to work under: traditional or inverted? Why?
See Learning Goal 6: Explain how organizational culture can help businesses adapt to change. When you search for a job, make sure the organizational culture is one you can thrive in.
See Learning Goal 6: Explain how organizational culture can help businesses adapt to change.
See Learning Goal 6: Explain how organizational culture can help businesses adapt to change.
See Learning Goal 6: Explain how organizational culture can help businesses adapt to change.
See Learning Goal 6: Explain how organizational culture can help businesses adapt to change. Examples of Informal Group Norms Group norms are an interesting topic to discuss in teaching organizational structure. This slide illustrates some informal group norms. Ask students: Have you ever felt pressure to conform to such informal norms? If you gave in to group pressure not to produce more than the rest of the group, did you feel good about yourself? (Focus on the self-gratification feeling of a job well-done and the corresponding compensation.) Discuss the importance of informal groups in an organization that become somewhat formal themselves (i.e. labor unions).
Some service-oriented organizations have elected to turn the traditional organizational structure upside down. An inverted organization has employees who come into contact with customers at the top of the organization and the chief executive officer at the bottom. A manager ’s job is to assist and support frontline people, not tell them what to do. In the past organizations have often tried to do all functions themselves, maintaining departments for each function including: accounting, finance, marketing, and production. If an organization is not able to efficiently perform the function themselves they will outsource the function. Outsourcing is the process of assigning various functions, such as accounting, production, security, maintenance, and legal work, to an outside firm. The goal is to retain the functions that the organization considers its core competencies. Organizational or corporate culture is the widely shared values within an organization that create unity and cooperation. Usually the culture of an organization is passed to employees via stories, traditions, and myths.
