Chapter 9: Adapting Organizations to Today’s Market 2012-12-17 7:39 AM
• What do the terms division of labour and specialization mean?
• What are the principles of management outlined by Fay ol?
• What did Weber add to Fayol’s principles?
• What is bureaucracy? What challenges do bureaucratic organizations face in a time of
• Why are organizations becoming flatter?
• What are some reasons for having a narrow span of control in an organi zation?
• What are the advantages and disadvantages of departmentalization?
• What are the various ways a firm can departmentalize?
• What is the difference between line and staff personnel?
• What management principle does a matrix -style organization challenge?
• What may hinder the development of self -managed teams?
• What is an inverted organization?
• Why do organizations outsource functions?
• What is organizational culture?
Learning Objective #1: Explain the historical organizational theories of Henri Fay ol and Max Weber.
• Until the twentieth century, most businesses were rather small, the processes of producing
goods were rather simple, and organizing workers was fairly easy. Not until the 1900s and
the introduction of mass production did businesses become complex. During this era,
business theorists emerged.
• What concepts did Fayol and Weber contribute?
o Fayol introduced principles such as unity of command, hierarchy of authority,
division of labour, subordination of individual interests to the general inte rest,
authority, clear communication channels, order, and equity. Weber added
principles of bureaucracy such as job descriptions, written rules and decision
guidelines, consistent procedures, and staffing and promotions based on
Learning Objective #2: Discuss the various issues involved in structuring organizations.
• Issues involved in structuring and restructuring organizations include 1) centralization
versus decentralization, 2) span of control, 3) tall vs. flat organization structures, a nd 4)
• What are the basics of each issue?
o The problem with tall organizations is that they slow communications. The trend is
to eliminate managers and flatten organizations. The span of control becomes
larger as employees become self-directed. Departments are often getting replaced
or supplemented by matrix organizations and cross -functional teams. Use of cross-
functional teams results in decentralization of authority
• How do inverted organizations fit into these concepts?
o An inverted organization usually results from a major re -engineering effort
because the changes are dramatic in that employees are placed at the top of the
hierarchy and are given much training and support, while managers are at the
bottom and are there to train and a ssist employees.
Learning Objective #3: Describe and differentiate the various organizational models.
• Organizational design is the coordinating of workers so that they can b