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Lecture 42

MGMT 1 Lecture Notes - Lecture 42: Production And Operations Management, Merage Family, Operations Management


Department
Management
Course Code
MGMT 1
Professor
G Mclaughlin
Lecture
42

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Paul Merage School of Business
MGMT 1
Intro to Business Management
4 units
No Pre-reqs
Course code: 38001
tuesday/thursdays 9:30-10:50
Location:SB1 1200
Final: Thursday of finals week
Course Notes
MANAGING THE INFORMAL ORGANIZATION
Formal organization the structure that details lines of responsibility, authority and
position; structure shown on organizational charts.
Informal organization the system that develops spontaneously as employees meet and
form cliques, relationships, and lines of authority outside the formal organization
human side of the organization that doesn’t show on any organization chart.
No organization can operate effectively without both types of organization.
o Formal too slow and bureaucratic, but helps provide helpful guides and lines of
authority for routine situations.
o Informal organization too unstructured and emotional to allow careful decision
making, but generates creative solutions to short-term problems and creates
camaraderie and teamwork among employees.
Wise to learn quickly who is important following formal rules and
procedures can take days.
Nerve center is the grapevine system through which unofficial
information flows between and among managers and employees.
CHAPTER 9: PRODUCTIONS AND OPERATIONS MANAGEMENT
MANUFACTURING AND SERVICES IN PERSPECTIVE
Today’s workers are so productive that the United States needs fewer workers to produce
more goods we should retrain the workforce to participate in this dynamic new
economy.
Some areas of the country are enjoying economic growth from manufacturing while
others are experiencing declines, which could be aided by adapting to the new realities
and attract new manufacturers.
American industry is doing what it can to rebuild construction industry is ready to build
homes that are easier to heat and cool; U.S automakers are scrambling to stage a
comeback with more competitive vehicles; U.S. is using the concept of sustainability.
U.S. economy is no longer manufacturing-based over 85 percent of the U.S. jobs and
70% of GDP comes from the service sector.
o Majority of college graduates are likely to be employed in the service sector.
o Top-paying jobs already exist in legal services, medical services, entertainment,
etc.
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