Henri Fayol’s principles
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Max Weber’s emphasized:
Structuring an organization consists of devising a division
of labor; setting up teams or departments to do specific
tasks and assigning responsibility and authority to
people.
Unity of command
• Job descriptions. • Written rules, decision guidelines,
Hierarchy of authority.
• Consistent procedures, regulations, and policies.
Authority
Division of labor.
• Staffing and promotion based on qualifications.
Degree of centralization
Clear communication channels
Order
Equity.
Companies can reduce their production costs by
purchasing raw materials in bulk. Thus, the average
cost of goods decreases as production levels rise.
Develop an organization chart that shows relationships
among people
It includes allocating resources, assigning specific tasks,
and establishing procedures for accomplishing the
organizational objectives
SECTION 6
SECTION 2
Organizational culture is the widely shared values within an
organization that foster unity and cooperation to achieve
common goals.
SECTION 5
Some of the best organizations have cultures that
emphasize service to others, especially customers. The
atmosphere reflects friendly, caring people who enjoy
working together to provide a good product at a reasonable
price.
Networking uses communications technology and other
means to link organizations and allow them to work
together on common objectives. Networked
organization structures tend to be flexible.
Benchmarking compares an organization’s practices,
processes, and products against the world’s best.
Benchmarking also has a more directly competitive
purpose
All organizations have two organizational systems. The
formal organization details lines of responsibility, authority,
and position. The informal organization the system that
develops spontaneously as employees meet and form
cliques, relationships, and lines of authority outside the
formal organization.
A few service-oriented organizations have turned the
traditional organization structure upside down. An
inverted organization has contact people at the top and
the chief executive officer at the bottom
SECTION 4
-Centralized authority occurs when decision making is concentrated at the
top level of management
-Decentralized authority occurs when decision making is delegated to
lower-level managers and employees more familiar with local conditions
than headquarters management could be
-More recently, organizations have adopted flat organization structures
with fewer layers of management
-Flat structures can respond readily to customer demands because lowerlevel employees have authority and responsibility for making decisions, and
managers can be spared some day-to-day tasks
SECTION 3
A line organization has direct two-way lines of responsibility, authority, and communication
running from the top to the bottom of the organization, with everyone reporting to only one
supervisor
Line-and-Staff Organizations have both line and staff personnel. Line personnel are
responsible for directly achieving organizational goals and Staff personnel advise and assist
line personnel in meeting their goals.
Matrix organization in which specialists from different parts of the organization work
together temporarily on specific projects, but remain part of a line-and-staff structure
Cross-functional self-managed teams are groups of employees from different departments
who work together on a long-term basis