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Chapter 9 Adapting Organizations to Today.doc

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University of British Columbia
COMM 100
David Crawford

Chapter 9 Adapting Organizations to Today’s Markets Fayol’s Principles of Organization  Unity of command: Each worker is to report to one, and only one, boss.  Hierarchy of authority: All workers should know to whom they should report.  Division of labor: Functions are to be divided into areas of specialization.  Subordination of individual interest: Workers are to think of themselves as a coordinated team.  Authority: Managers have the right to give orders and the power to enforce obedience.  Degree of centralization: The amount of decision-making power vested in top management should vary by circumstances.  Communication channels: All workers should be able to reach others in the firm quickly and easily.  Order: Materials and people should be placed and maintained in the proper location.  Equity: A manager should treat employees and peers with respect and justice.  Esprit de corps: A spirit of pride and loyalty should be created among people in the firm. Weber’s Organizational Principles  Job descriptions  Written rules, decision guidelines, and detailed records  Consistent procedures, regulations, and policies  Staffing and promotions based on qualifications Centralization vs. Decentralization of Authority Centralized authority: An organization structure in which decision-making authority is maintained at the top level of management at the company’s headquarters. Decentralized authority: An organization structure in which decision-making authority is delegated to lower-level managers more familiar with local conditions than headquarters management could be Variables To Consider in Span of Control  Capabilities of the manager  Capabilities of the subordinates  Geographical proximity  Functional similarity  Need for coordination  Planning demands  Functional complexity Organizational Structures Tall Organizations o Many layers of management o Span of control limited o Costly to maintain o Lots of paperwork Inefficient communication and decision making o Flat Organizations o Few layers of management o Broad span of control o Highly responsive to customer demands due to increased employee empowerment Departmentalization by Function Departmentalization: Dividing an organization into separate units. Advantages Skill de
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