Chapter 8 - Structuring organizations for today’s challenges. In this chapter students will be able to: Outline the basic principles of organization management, compare the organizational theories of Fayol and Weber, evaluate the choices managers make in structuring organizations, contrast the various organizational models, identify the benefits of inter-firm cooperation and coordination, explain how organizational culture can help businesses adapt to change. | Structuring Organizations for Today’s Challenges Chapter 08 McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. Outline the basic principles of organization management. Compare the organizational theories of Fayol and Weber. Evaluate the choices managers make in structuring organizations. Contrast the various organizational models. Identify the benefits of inter-firm cooperation and coordination. Explain how organizational culture can help businesses adapt to change. LEARNING GOALS Chapter Eight 8- Building an Organization from the Bottom Up Create a division of labor Set up teams or departments Allocate resources Assign tasks Establish procedures Adjust to new realities STRUCTURING an ORGANIZATION LG1 8- The Changing Organization 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 . | Structuring Organizations for Today’s Challenges Chapter 08 McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. Outline the basic principles of organization management. Compare the organizational theories of Fayol and Weber. Evaluate the choices managers make in structuring organizations. Contrast the various organizational models. Identify the benefits of inter-firm cooperation and coordination. Explain how organizational culture can help businesses adapt to change. LEARNING GOALS Chapter Eight 8- Building an Organization from the Bottom Up Create a division of labor Set up teams or departments Allocate resources Assign tasks Establish procedures Adjust to new realities STRUCTURING an ORGANIZATION LG1 8- The Changing Organization 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. THE CHANGING ORGANIZATION LG2 8- The Development of Organization Design Mass production of goods led to complexities in organizing businesses. PRODUCTION CHANGED ORGANZIATION DESIGN 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. LG2 8- Organizations in which employees have no more than one boss; lines of authority are clear. ORGANIZATIONS BASED on FAYOL’S PRINCIPLES Rigid organizations that often don’t respond to customers quickly. LG2 Fayol’s Principles of Organization 8- Max Weber and Organizational Theory 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 .
