Business 100 Introduction to Business Dr. Kathy Broneck

Review Management and its Functions Planning Leadership styles

Preview Fayol & Weber Organizational Models Restructuring Organizational Culture

Fayol’s Principles Unity of Command Hierarchy of Authority Division of Labor Subordination of Individual Interest Authority Degree of Centralization Communication Channels Order Equity Esprit de Corps

Weber’s Organizational Principles Job pyramid Lower employees, less decisions Downward communication Job Descriptions Written Rules Procedures, Regulations, Policies Staffing/Promotions based on Qualifications

Workers in Large* Companies in the Last 5 Years Have Undergone... *500+ Employees Source: Source: Gallup for Carlson Marketing Group

Organizational Charts Show the activities of the organization Highlight subdivisions of the organization Identify different types of work performed Provide information about different management levels Show the lines of authority and the flow of organizational communications

General Organizational Chart

Span of Control Capabilities of Subordinates & Manager Complexity of Job Geographically Close Functional Similarity Need for Coordination Planning Demands Functional Complexity

Departmentalization by Function Advantages Skill Development Economies of Scale Reduce costs through bulk buying Good Coordination Disadvantages Lack of Communication Employees Identify with Department Slow Response to External Demands Narrow Specialists

Organizational Structures Flat Organizations Current Trend Creation of Teams Tall Organizations Many Layers of Management High Cost of Management

Centralization (No Delegation) Advantages Increased Uniformity Less Duplication Maximum Control Disadvantages Lots of Policies & Procedures Many Layers/Slower

Decentralization (Delegate Authority) Advantages Informed Decisions Worker Responsibility Few Layers/Faster Disadvantages Loss of Control Possible Duplication

Organization Models Line organizations Line-and-staff organizations Matrix-style organizations Short term borrowing Cross-functional self-managed teams Long term borrowing

Line Organizations Advantages Clear Authority & Responsibility Easy to Understand One Supervisor per Employee Disadvantages Inflexible Few Specialists for Advice Long Line of Communication Difficult to Handle Complex Decisions

Line/Staff Organizations Line Personnel Perform Functions Contribute Directly to Organizational Goals Staff Personnel Advise Assist Line Personnel

Inverted Organization Structure Empowered front- line workers Support Personnel Top Mgmt.

PCC Downtown Campus Organizational Chart Which of the 4 organizational models do we have? Are we “tall” or “flat”? Do we have centralized or decentralized authority?

PCC Downtown Campus Where do these people go?? Janet Farler Dr. Bia Dr. Broneck Dr. Merren Ceci Lou Dr. Muir You (BUS 100 students in the section) Other Faculty in Business Other BUS classes (besides this section!)

Your Group’s Business… Start thinking about the roles each of the people in your group are going to have in your mock business. Later on, you will be developing an organizational chart…

Networking 6 degrees of separation

Outsourcing Benefits Time to focus on company’s primary function Increased level of expertise Cost effectiveness Decreased overhead Risk reduction Flexibility Technology Drawbacks Less personal approach Less control by owner in planning, implementing & carrying out company’s future Potential for competing for the outsourcing firm’s time

Outsourcing Possibilities CountryPossibilities China Hardware, Software, Call Centers Philippines Accounting, Graphic Artists, Architects, Telemarketers Mexico Car & Electronic Manufacturing Costa Rica Call Centers, IT Support, Bookkeeping South Africa French, English, German Speaking Call Centers Russia R & D Centers in Sciences, IT, Math India IT, Chip Design, Call Centers Source: BusinessWeek, February 3, 2003

Customer -Focused Design Information Build teamwork cross-functional integration Self-management & autonomy Bottom-up relationships Outsource Global orientation Internal vs. external customers

Examples of Informal Group Norms Do your job but don’t produce more than the rest of the group. Don’t tell off-color jokes or use profane language among group members. Listen to the boss and use his/her expertise but don’t trust him/her. Everyone is to be clean/organized at the workstation.

One last chance… In your group… Choose A business your group can start A company name Start writing the Company Background Section Objectives/Business Goals Mission Statement Ownership/Liabilities DUE TYPED NEXT CLASS PERIOD!!!