Chapter 08 – Structuring Organizations for Today’s Challenges
8-1
Structuring
Organizations for
Today’s Challenges
chapter
=
what’s new in this edition 8.3
brief chapter outline and learning goals 8.3
lecture outline and lecture notes 8.5
PowerPoint slide notes 8.46
lecture links 8.68
lecture link 8-1: SMITH’S FOLLY 8.69
lecture link 8-2: STREAMLINING STARBUCKS 8.69
lecture link 8-3: IMPLEMENTING THE TRADITIONAL MANAGERIAL RULES 8.69
lecture link 8-4: CHOOSING THE RIGHT SPAN OF CONTROL 8.70
lecture link 8-5: OTIS ELEVATORS COME TO THE RESCUE IN JAPAN 8.71
lecture link 8-6: THE MANHATTAN PROJECT 8.71
lecture link 8-7: GREATER EFFICIENCY, FEWER JOBS 8.72
lecture link 8-8: A NEW KIND OF OUTSOURCING 8.73
lecture link 8-9: SETTING UP SHOP ON FACEBOOK 8.73
lecture link 8-10: EMPLOYER ICEBREAKING RITUALS 8.74
8
Chapter 08 – Structuring Organizations for Today’s Challenges
8-2
lecture link 8-11: MAPPING THE INFORMAL ORGANIZATION 8.74
critical thinking exercises 8.75
critical thinking exercise 8-1: BUILDING AN ORGANIZATION CHART 8.75
critical thinking exercise 8-2: HOW DO ORGANIZATIONS GROUP 8.3
ACTIVITIES?
bonus cases 8.79
bonus case 8-1: DARK DAYS AT USPS 8.79
bonus case 8-2: STRUCTURAL COLLAPSE: RESPONSIBILITY AND 8.81
ACCOUNTABILITY
bonus case 8-3: CREATING CROSS-FUNCTIONAL TEAMS 8.83
bonus case 8-4: OFFICE ALUMNI 8.85
what’s new in
this edition
additions to the 10th edition:
• Getting to Know Ursula Burns of Xerox
• Name That Company: K2 Skis
• Social Media in Business: When Twitter and Facebook Are Old School
• Spotlight on Small Business: When Your Workers Work for Someone Else
revisions to the 10th edition:
• Text was revised to eliminate redundancy and tighten discussions.
• Statistical data and examples throughout the chapter were updated to reflect current information.
deletions from the 9th edition:
• Getting to Know Anne Mulcahy, CEO of Xerox
• Name That Company: UPS
• Reaching Beyond Our Borders
Chapter 08 – Structuring Organizations for Today’s Challenges
8-3
brief chapter outline
and learning goals
c h a p t e r 8
Structuring Organizations for
Today’s Challenges
Getting To Know URSULA BURNS of XEROX
learning goal 1
I. EVERYONE’S REORGANIZING
A. Building an Organization from the Bottom Up
learning goal 2
II. THE CHANGING ORGANIZATION
A. The Development of Organization Design
B. Turning Principles into Organization Design
learning goal 3
III. DECISIONS TO MAKE IN STRUCTURING ORGANIZATIONS
A. Choosing Centralized or Decentralized Authority
learning goal 4
IV. ORGANIZATIONAL MODELS
A. Line Organizations
B. Line-and-Staff Organizations
C. Matrix-Style Organizations
Chapter 08 – Structuring Organizations for Today’s Challenges
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D. Cross-Functional Self-Managed Teams
E. Going Beyond Organizational Boundaries
learning goal 5
V. MANAGING THE INTERACTIONS AMONG FIRMS
VI. ADAPTING TO CHANGE
A. Restructuring for Empowerment
learning goal 6
VII. CREATING A CHANGE-ORIENTED ORGANIZATIONAL CULTURE
A. Managing the Informal Organization
VIII. SUMMARY
Chapter 08 – Structuring Organizations for Today’s Challenges
Getting to Know URSULA BURNS, CEO of XEROX
Ursula Burns replaced Anne Mulcahy as CEO of Xerox in 2009. She joined Xerox as a
summer intern and has risen through the ranks. She had to cut down the size of her ranks to
50,000 shortly after starting as CEO. Then Xerox acquired ACS and created a new challenge
for Burns. She hopes to lure more customers to Xerox through this acquisition.
I. EVERYONE’S REORGANIZING
A. MANY COMPANIES ARE REORGANIZING.
1. The text discusses how Procter & Gamble has
reorganized to become an innovation leader.
2. Other firms are declining—banks, automobile
8-6
(See complete PowerPoint slide notes on page 8.46.)
(See complete PowerPoint slide notes on page 8.46.)
(See complete PowerPoint slide notes on page 8.47.)
(See complete PowerPoint slide notes on page 8.47.)
A lesson in accountability from Kenneth Olsen, founder of
Digital Equipment Corporation (now part of Hewlett-
Packard). (See the complete lecture link on page 8.68 of this
manual.)
As the recent recession hit and customers weren’t keen on
spending big bucks for coffee, Starbucks had to respond. (See
the complete lecture link on page 8.69 of this manual.)
With the fall of snail mail, USPS has had to roll with the
punches and compete with shipping companies for packages.
(See the complete lecture link on page 8.79 of this manual.)
Chapter 08 – Structuring Organizations for Today’s Challenges
a. The text uses the example of starting a lawn-
tomers are demanding.
Chapter 08 – Structuring Organizations for Today’s Challenges
8-8
Because of engineering errors and poor planning, the sky-
walks of a newly constructed hotel collapsed, killing over 100
people. (See the complete case, discussion questions, and sug-
gested answers beginning on page 8.81 of this manual.)
(See complete PowerPoint slide notes on page 8.47.)
This exercise gives a list of employees and asks students to
create an organization chart showing a possible chain of com-
mand. (See the complete exercise on page 8.75 of this manu-
al.)
MAKING
ethical
decisions
(Text page 205)
PPT 8-7
Safety vs. Profit
See complete PowerPoint slide notes on page 8.48.)
Chapter 08 – Structuring Organizations for Today’s Challenges
learning goal 2
Compare the organizational theories of Fayol and Weber.
II. THE CHANGING ORGANIZATION
A. Never before has business changed so quickly, in-
cluding major changes in the business environment.
1. Managing change has become a critical manage-
and organized simply.
a. After the introduction of MASS PRODUC-
TION, business organizations grew complex
Chapter 08 – Structuring Organizations for Today’s Challenges
(See complete PowerPoint slide notes on page 8.48.)
(See complete PowerPoint slide notes on page 8.48.)
(See complete PowerPoint slide notes on page 8.49.)
2. The text discusses two major ORGANIZATION
THEORISTS and their publications.
report to only one boss.
ii. HIERARCHY OF AUTHORITY: One
should know to whom to report.
iii. DIVISION OF LABOR: Functions should
Chapter 08 – Structuring Organizations for Today’s Challenges
8-12
(See complete PowerPoint slide notes on page 8.49.)
Chapter 08 – Structuring Organizations for Today’s Challenges
Economic Organizations appeared in the
U.S. in the 1940s.
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(See complete PowerPoint slide notes on page 8.49.)
(See complete PowerPoint slide notes on page 8.50.)
Chapter 08 – Structuring Organizations for Today’s Challenges
iii. Consistent procedures, regulations, and
policies
iv. Staffing and promotions based on qualifi-
cations
CONTROL WORKERS.
a. A HIERARCHY is a system in which one per-
son is at the top of the organization and there
Chapter 08 – Structuring Organizations for Today’s Challenges
8-16
Even if organizations don’t always follow the traditional
rules, they are aware of the rules and try to adjust accordingly.
(See the complete lecture link on page 8.69 of this manual.)
(See complete PowerPoint slide notes on page 8.50.)
(See complete PowerPoint slide notes on page 8.50.)
Chapter 08 – Structuring Organizations for Today’s Challenges
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2. BUREAUCRACY is an organization with many
layers of managers who set rules and regulations
GANIZATIONS
A. CHOOSING CENTRALIZED OR DECENTRALIZED
AUTHORITY
1. CENTRALIZED AUTHORITY is an organizing
structure in which decision-making authority is
maintained at the top level of management at the
Chapter 08 – Structuring Organizations for Today’s Challenges
8-18
(See complete PowerPoint slide notes on page 8.51.)
(See complete PowerPoint slide notes on page 8.51.)
(See complete PowerPoint slide notes on page 8.52.)
This text figure lists some advantages and disadvantages of
centralized versus decentralized authority.
Chapter 08 – Structuring Organizations for Today’s Challenges
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number of subordinates a manager supervises or
should supervise.
a. At lower levels, a WIDE SPAN OF CONTROL
quite tall because of the various levels of man-
agement and a broad span of control.
Chapter 08 – Structuring Organizations for Today’s Challenges
PPT 8-19
Span of Control
(See complete PowerPoint slide notes on page 8.52.)
lecture link 8-4
CHOOSING THE RIGHT SPAN OF
CONTROL
Several factors affect the number of people a manager can ef-
fectively supervise. (See the complete lecture link on page 8.70
of this manual.)
PPT 8-20
Organizational Structures
(See complete PowerPoint slide notes on page 8.53.)
.
PPT 8-21
Flat Organizational Structure
TEXT FIGURE 8.3
A Flat Organization Structure
(Text page 211)
(See complete PowerPoint slide notes on page 8.53.)