COMM 100 (9)

changing organization
change: dynamic business environment, global competition, tech change,
Fayol’s principles of organization
UNITY OF COMMAND– each worker is to report to one boss
HIERARCHY OF AUTHORITY — workers know who to report, managers have the right to give orders
DIVISION OF LABOUR — functions divided into areas of specializations
LARGER INTERESTS — workers: think as a coordinated team
AUTHORITY — managers: right to give orders, enforce obedience
DEGREE OF CENTRALIZATION — amount of decision making power vested in top management should vary by circumstance
CLEAR COMMUNICATION CHANNELS — all workers should be able to reach each other easily
ORDER: Materials and people should be placed and maintained in the proper location
EQUITY — manager should treat employees and peers with respect
ESPRIT DE CORPS — pride and loyalty
Max Weber and Organizational Theory
promoted pyramid shaped organization
similar to fayol

job descriptions
written rules guidelines reocrds
consistent procedures regulations policies
staffing and promotion based on qualifications

Chain of Command
line of authority from top to bottom levels of hierarchy
organization with many layers of managers
Centralized Authority
decision making authority is maintained at the top levels
Decentralized authority
decision making is delegated to managers/employees more familiar with local conditions
Span of Control
optimum number of employees manager supervises
Span of control determinants
capabilities of manager/subordinate
geographical closeness — more concentrated work area, broader
functional similarity
need for coordination
planing demands
functional complexity
tall organizational structure
layers of management
flat organizational structure
broad span of control few layers of management
divides organization into seperate units such as functional
Advantages of departmentalization
employees develop skills in depth
economies of scale
coordinate work within function
Disadvantages of departmentalization
departs might not communicate well
response to change: slow
not trained to fulfill multiple managerial responsibilities
group think — less creative
Ways to departmentalize
product, function, customer group, location, process
Line organizations
two way lines of responsibility. running from top to bottom, everyone reporting to only one supervisor

no specialized managers

follow all fayol’s traditional management rules

too inflexible

line and staff organizations
line personnel: responsible for directly achieving goals — make decisions
staff personnel: advise/assist line personnel in achieving goals
Matrix Style organizations
very flexible.
specialists from different parts of gov work together briefly to complete projects but maintain in line and staff
project manager borrows from many
Pros of matrix
managers flexibility in assigning people
encourages inter organization cooperation and teamwork
produce creative solutions
efficent use of organizational resources
cons of matrix
confused loyalties
requires more skills
Self managed teams
teams from different departments that long term work together

empowered to make own decisiosn
work best when voice of customer is brought in– product development tasks

networking between firms
tech and communications across different firms/ allowed to work together

most firms: no longer self sufficient

virtual corporation
temporary network of replaceable firms that join and leave as needed — virtual corporation
compares company’s practices, processes, products against world’s best


ex. if can’t ship as well as UPS, use PUS

core competencies
functions organization can do as well/better than any other organization around the world
redesigning an organization o it more effectively serves it’s customers
Top Quality management
striving for max customer satisfaction by enuring quality from all departments