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Chapter 08 - Structuring Organizations for Today's Challenges
a. These structures are much MORE RESPON-
SIVE TO CUSTOMER DEMANDS because
tional functions into separate units.
a. The traditional way to departmentalize is by
function.
skills, expertise, or resource use.
Chapter 08 - Structuring Organizations for Today's Challenges
8-22
TEXT FIGURE 8.4
Advantages and Disadvantages of
a Narrow versus a Broad Span of
Control
(Text page 212)
This text figure gives some advantages of a narrow versus a
wide span of control.
PPT 8-22
Departmentalization
(See complete PowerPoint slide notes on page 8.53.)
PPT 8-23
Advantages of Departmentalization
(See complete PowerPoint slide notes on page 8.54.)
Chapter 08 - Structuring Organizations for Today's Challenges
8-23
PPT 8-24
Disadvantages of
Departmentalization
(See complete PowerPoint slide notes on page 8.54.)
PPT 8-25
Ways to Departmentalize
TEXT FIGURE 8.5
Ways to Departmentalize
(Text page 214)
(See complete PowerPoint slide notes on page 8.54.)
Chapter 08 - Structuring Organizations for Today's Challenges
departments for trade books, textbooks, and
technical books.)
b. By CUSTOMER GROUP (A pharmaceutical
IV. ORGANIZATIONAL MODELS
A. There are several ways to structure an organization to
accomplish goals.
B. LINE ORGANIZATIONS
1. A LINE ORGANIZATION is an organization that
has direct two-way lines of responsibility, authority,
and communication running from the top to the
bottom of the organization, with all people report-
C. LINE-AND-STAFF ORGANIZATIONS
1. Line-and-staff organizations have both line and
staff personnel.
2. LINE PERSONNEL are employees who are part of
Chapter 08 - Structuring Organizations for Today's Challenges
PPT 8-29
Line Organizations
(See complete PowerPoint slide notes on page 8.56.)
lecture link 8-6
THE MANHATTAN PROJECT
To build the world’s first atomic bomb, the military turned to
General Leslie Groves, known for his administrative ability, or-
ganizational skill, and decisiveness. (See the complete lecture
link on page 8.71 of this manual.)
PPT 8-30
Line Personnel
(See complete PowerPoint slide notes on page 8.56.)
lecture link 8-7
GREATER EFFICIENCY, FEWER
JOBS
Line jobs are not always safe. As Campbell’s employees saw,
with greater efficiency there was less need for large staffs. (See
the complete lecture link on page 8.72 of this manual.)
3. STAFF PERSONNEL are employees who advise
and assist line personnel in meeting their goals.
4. Line personnel have FORMAL AUTHORITY to
a. Both structures work well in organizations with
relatively unchanging environments and slow
8-29
PPT 8-31
Staff Personnel
(See complete PowerPoint slide notes on page 8.57.)
PPT 8-32
Sample Line-and-Staff
Organization
TEXT FIGURE 8.6
A Sample Line-and-Staff
Organization
(Text page 216)
(See complete PowerPoint slide notes on page 8.57.)
PPT 8-33
Matrix Organizations
(See complete PowerPoint slide notes on page 8.57.)
PPT 8-34
Sample Matrix Organization
TEXT FIGURE 8.7
A Matrix Organization
(Text page 217)
(See complete PowerPoint slide notes on page 8.58.)
Chapter 08 - Structuring Organizations for Today's Challenges
3. ADVANTAGES OF MATRIX ORGANIZATIONS
a. Flexibility in assigning people to projects
2. BusinessWeek magazine survey found that work-
ers prefer working in teams
Chapter 08 - Structuring Organizations for Today's Challenges
PPT 8-35
Advantages of Matrix Style
(See complete PowerPoint slide notes on page 8.58.)
PPT 8-36
Disadvantages of the Matrix Style
(See complete PowerPoint slide notes on page 8.58.)
PPT 8-37
Cross-Functional Self-Managed
Teams
(See complete PowerPoint slide notes on page 8.59.)
3. CROSS-FUNCTIONAL SELF-MANAGED
TEAMS are groups of employees from different
departments who work together on a long-term
ers’ input is included.
FIRMS
Chapter 08 - Structuring Organizations for Today's Challenges
8-33
bonus case 8-3
CREATING CROSS-
FUNCTIONAL TEAMS
The Direct Response Group instigated organizational
change to make its people more responsive to the customer.
(See the complete case, discussion questions, and suggested
answers beginning on page 88.83 of this manual.)
PPT 8-38
Going Beyond Organizational
Boundaries
(See complete PowerPoint slide notes on page 8.59.)
PPT 8-39
Building Successful Teams
(See complete PowerPoint slide notes on page 8.59.)
progress
assessment
(Text page 219)
PPT 8-40
Progress Assessment
(See complete PowerPoint slide notes on page 8.60.)
Chapter 08 - Structuring Organizations for Today's Challenges
B. TRANSPARENCY AND VIRTUAL ORGANIZA-
TIONS
1. The Internet links organizations so closely that
each can see what the others are doing in real
time.
a. REAL TIME is the present moment or the ac-
tual time in which something takes place.
3. A modern organization chart should show people
in different organizations and how they are net-
worked together.
Chapter 08 - Structuring Organizations for Today's Challenges
PPT 8-41
Real-Time Business
(See complete PowerPoint slide notes on page 8.60.)
PPT 8-42
Transparency and Virtual
Corporations
(See complete PowerPoint slide notes on page 8.60.)
PPT 8-43
A Virtual Corporation
TEXT FIGURE 8.8
A Virtual Corporation
(Text page 220)
(See complete PowerPoint slide notes on page 8.61.)
Chapter 08 - Structuring Organizations for Today's Challenges
C. BENCHMARKING AND CORE COMPETENCIES
1. In the past, each organization had a separate
department for each function.
a. Organizations are now benchmarking each
function against the best in the world.
a. OUTSOURCING is assigning functions—
Chapter 08 - Structuring Organizations for Today's Challenges
8-37
SPOTLIGHT ON
small
business
(Text page 221)
PPT 8-44
When Your
Workers Work for
Someone Else
(See complete PowerPoint slide notes on page 8.61.)
PPT 8-45
Benchmarking and Core
Competencies
(See complete PowerPoint slide notes on page 8.62.)
PPT 8-46
Benefits and Concerns of
Healthcare Outsourcing
(See complete PowerPoint slide notes on page 8.62.)
lecture link 8-8
A NEW KIND OF OUTSOURCING
Some communities are finding relief from the very compa-
nies that outsourced their old jobs. (See the complete lecture
link on page 8.73 of this manual.)
Chapter 08 - Structuring Organizations for Today's Challenges
8-38
CHANGES in the market.
1. Introducing change into an organization is one of
the toughest challenges for managers.
2. It is difficult for some companies to reinvent them-
selves in response to changes in the competitive
Chapter 08 - Structuring Organizations for Today's Challenges
PPT 8-47
Which Jobs Will Be Outsourced
Next?
(See complete PowerPoint slide notes on page 8.63.)
PPT 8-48
Adapting to Market Changes
(See complete PowerPoint slide notes on page 8.63.)
PPT 8-49
Keep in Touch
(See complete PowerPoint slide notes on page 8.64.)
lecture link 8-9
SETTING UP SHOP ON
FACEBOOK
Companies are catering to digital natives by opening up
shop on Facebook. (See the complete lecture link on page 8.73
of this manual.)
social
media in
business
(Text page 223)
PPT 8-50
When Twitter
and Facebook
Are Old School
(See complete PowerPoint slide notes on page 8.64.)
8-40
3. A few organizations have turned the traditional or-
zation that has contact people at the top and
the chief executive officer at the bottom of the
organization chart.
b. There are few layers of management, and their
TIONAL CULTURE
A. Organizational change always causes some RE-
SISTANCE.
1. Firms that adjust best have a change-oriented or-
ganizational culture.
