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Chapter 08 - Structuring Organizations for Today's Challenges
8-74
Although many companies use social media to create awareness, this new trend of direct outlets
on social platforms could be the future of retail, not just mobile shopping. JCPenney and Delta Airlines
have been in talks for months about obtaining a direct presence on Facebook. In three to five years, econ-
omists estimate that as much as 15% of total consumer spending may go through social networking sites.
Though it’s too soon to deem ASOS’ Facebook experiment a success, with more than 465,000 “likes” to
its name the company seems poised for a fortune if all those friends turn into customers.vii
lecture link 8-10
EMPLOYER ICEBREAKING RITUALS
For many fresh hires, a new office environment can seem alien and uninviting. Habits that were
commonplace at the employee’s previous job may be unacceptable in their new one. Initial interactions
with colleagues can be awkward or even hostile, sometimes leading to fissures in working relationships
that are difficult to mend. A clear understanding of a company’s culture is vital to every employee’s suc-
cess, and sometimes a simple orientation just isn’t enough. To help new hires effectively assimilate into
lecture link 8-11
MAPPING THE INFORMAL ORGANIZATION
The best way to manage informal organizations is to acknowledge their existence and then bring
them out into the open. That is best done through a process known as social network analysis. What you
do is chart the flows of information among members of the firm and show those flows using arrows on a
chart.
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How do you collect information from people to make a map of the interrelationships that occur in
a firm? One way is to track e-mail correspondence. Another is to simply observe the behavior of people
over time. Who visits whose office and how often? The best way may be to administer a simple 10- to 20-
minute questionnaire. Questions would vary by firm and the intent of the research, but they would look
something like this: “To whom do you talk regularly about work?” “From whom do you get your tech-
nical information?” “To whom do you turn for advice before making an important decision?” “With
whom are you most likely to discuss a new idea?” Questions can be tailored to the needs of individual
managers. The idea is to see who goes to whom for information and support.
critical
thinking exercises
Name: ___________________________
Date: ___________________________
critical thinking exercise 8-1
BUILDING AN ORGANIZATION CHART
Dr. Rea Searge is president of Peabody Researchers, Inc., a pharmaceutical company. Peabody
uses a line-and-staff structure to organize its employees. In addition to Dr. Searge, Peabody has the fol-
lowing employees:
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A vice president of finance
Marketing managers for three regions
notes on critical thinking exercise 8-1
The following people are staff:
Director of personnel
Chapter 08 - Structuring Organizations for Today's Challenges
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NOTES ON CRITICAL THINKING EXERCISE 8-2 (continued)
President
Administrative
Assistant
Vice President
Vice President
Vice President
Vice President
Personnel Of-
Possible Organization Chart
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critical thinking exercise 8-2
HOW DO ORGANIZATIONS GROUP ACTIVITIES?
1. COCA-COLA COMPANY
2. THE WALT DISNEY COMPANY
3. THE UNITED METHODIST CHURCH
Chapter 08 - Structuring Organizations for Today's Challenges
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critical thinking exercise 8-2
(continued)
4. KRAFT FOODS
5. BOEING
Primary Organizational Units:
bonus case 8-1
DARK DAYS AT USPS
Times have been tough for the U.S. Postal Service ever since the average American’s e-mail ad-
dress became just as important as his or her actual address. The government agency reported losses in 14
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A bailout may be the only viable option given all the factors standing in the way of real change at
discussion questions for bonus case 8-1
1. Should the federal government provide needed funds to USPS?
2. Can USPS become more efficient like UPS and FedEx?
notes on discussion questions for bonus case 8-1
1. Should the federal government provide needed funds to USPS?
2. Can USPS become more efficient like UPS and FedEx?
Chapter 08 - Structuring Organizations for Today's Challenges
bonus case 8-2
STRUCTURAL COLLAPSE: RESPONSIBILITY AND ACCOUNTABILITY
To publicize its newly opened nightspot, a major hotel instituted weekly “tea dances” in the lobby
of the hotel. A local band played 1940s-era music while dancers competed in friendly contests. On a Fri-
day night in July, the band was playing Duke Ellington’s “Satin Doll” when two skywalks spanning the
lobby of the year-old hotel collapsed. Sixty-five tons of concrete, metal, glass, and dance spectators
plunged four floors to the sidewalk below, killing 114 persons and injuring 216 others.
Design changes are common on fast-track projects, making clear communications more critical
than usual. The owners of the building had circulated a 27-page procedures manual explaining the proper
channels for design changes and approved drawings. But the procedures weren’t always followed, and
other mistakes slipped in. Because some connections were misplaced on the drawings, for instance, work-
ers installed a sweeping cantilevered stairway without fully attaching it to a wall.
1. Who was responsible for the collapse? Explain.
2. Identify several key time points at which the problem could have been corrected.
8-85
bonus case 8-4
OFFICE ALUMNI
While few people would describe getting laid off or fired as a “graduating” from their company,
many businesses have created social networking sites for their “alumni” as the poor economy continues to
take its toll on American jobs. Whether an employee leaves voluntarily or is shown the door with a pink
discussion questions for bonus case 8-4
1. Will the presence of such alumni sites help the image of participating companies?
2. How do the alumni sites serve as a research base for participating companies?
notes on discussion questions for bonus case 8-4
1. Will the presence of such alumni sites help the image of participating companies?
2. How do the alumni sites serve as a research base for participating companies?
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endnotes
i Source: Julie Jargon, “Latest Starbucks Buzzword: ‘Lean’ Japanese Techniques,” The Wall Street Journal, August
4, 2009.
ii Sources: Allison Overholt, “Health and the Profit Motive,” Fast Company, February 2003, p. 38; Marty Laubach,
“Consent, Informal Organization and Job Rewards: A Mixed Methods Analysis,” Social Forces, June 1, 2005.
iii Source: Rachel Layne, “How Otis Elevator Found the Right Floor,” Bloomberg Businessweek, March 24, 2011.
vii Source: Sarah Shannon, “Fashion Retailer ASOS Sets Up Shop on Facebook,” Bloomberg Businessweek, Febru-
ary 17, 2011.
viii Source: Leigh Buchanan, “Bizarre Hiring Rituals,” Inc., March 1, 2010.
ix Sources: Rob Cross and Laurence Prusak, “The People Who Make Organizations Go—or Stop,” Harvard Busi-
ness Review, June 2002, pp. 105–112; Rob Cross, Nitin Nohria and Andrew Parker, “Six Myths About Informal
Networks,” Sloan Management Review, Spring 2002, pp. 67–75.
