1. Organizing the business enterprise

2. Developing Organizational Structure
Structure is the arrangement or relationship of positions within an organization, and developed by:
Assigning work tasks and activities to specific individuals or work groups
Coordinating the diverse activities required to reach the firm’s objectives
Organizational structure is depicted through organizational charts
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3. The Evolution of a Clothing Store
Stages of Growth
The Evolution of a Clothing Store
Phases 1, 2, and 3
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4. Two Aspects of Assigning Tasks
Specialization
Departmentalization
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5. Specialization
The division of labor into small, specialized tasks and the assignment of single tasks to employees
Efficiency
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6. Departmentalization
Departmentalization is the grouping of jobs into working units usually called departments, units, groups, or divisions
Functional departmentalization
Product departmentalization
Geographical departmentalization
Customer departmentalization
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7. Functional Departmentalization
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8. Product Departmentalization
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9. Geographical Departmentalization
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10. Customer Departmentalization
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11. Assigning Responsibility and Delegating Authority
Delegation of authority
Assigning responsibility
Employee accountability
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12. Degree of Centralization
Centralized organizations
Authority is concentrated at the top level
Decentralized organizations
Decision-making authority is delegated as far down the chain of command as possible
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13. Span of Management
The number of subordinates who report to a particular manager
A wide span of management exists when a manager directly supervises a very large number of employees.
A narrow span of management exists when a manager directly supervises only a few subordinates
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14. Span of Management: Wide Span and Narrow Span
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15. Organizational layers
Organizational layers are the levels of management in an organization
Flat organizations have few layers and have wide spans of management
Tall organizations have many layers and have narrow spans of management
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16. Forms of Organizational Structure
Line
Line-and-staff
Multidivisional
Matrix
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17. Line Structure
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18. Line-and-Staff Structure
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19. An Example of Multidivisional Structure: The Walt Disney Company
Walt Disney Attractions
Motion Pictures TV
Animation
Disney Channel
Disney Stores
Software and Education
Catalog Marketing
Magic Kingdom FL
Disney- MGM Studios
Walt Disney Studios
Magic Kingdom CA
Tokyo Disneyland
Euro- Disney
Walt Disney World
Consumer Products
Licensing
Publishing
Disney Music
Epcot Center
CEO
Source: The Walt Disney Company Annual Report

20. The Matrix Structure
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21. The Role of Groups and Teams in Organizations
A group
Two or more individuals who
communicate with one another,
share a common identity, and
have a common goal
A team
A small group whose members have
complementary skills;
a common purpose, goals, and approach;
and who hold themselves mutually accountable
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22. Differences Between Groups and Teams

23. Types of Groups Committee Task force Project team
Product-development team
Quality assurance team
Self-directed work team (SDWT)
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24. Virtual Teams Employees’ Reactions To Virtual Work
91% enjoyed the experience
73% would like to engage in virtual work more frequently
35% felt it enhanced their relationships with other employees
Source: Darryl Haralson and Adrienne Lewis, “USA Today Snapshots,” USA Today, April 26, 2001, p. B1.

25. Formal Communication Communication flow Upward Downward Horizontal
Diagonal
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26. The Flow of Communication in an Organizational Hierarchy
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27. Informal Communication
The informal organization
Friendships and other nonwork social relationships
The most significant informal communication occurs through the grapevine
May relate to the job or organization
May be gossip and rumors unrelated to either
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28. Monitoring Communications
Monitoring the use of electronic communications in the workplace have become necessary for most companies
70 percent of attacks on corporate computer systems are conducted from inside the firm
Failing to monitor employee’s use of and the Internet can be costly
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29. Disciplinary Action for Misuse of Personal Use of Telecom Equipment

30. Defining Operations Service Operations: Goods Production:
Produce tangible and intangible services.
Goods Production:
Produces tangible products.

31. Growth in the Goods and Services Sectors
100 80 60 40 20
Millions of Workers
Services
Goods Production
1984
1986
1988
1990
1992
1994
1996
1998
2000
$4,000
$3,000
$2,000
$1,000
(Billions)
Services
Goods
Production
1984
1986
1988
1990
1992
1994
1996
1998
2000

32. Operations Processes Are Methods Used in Production
Goods-Manufacturing:
Analytic processes
Synthetic processes
Service Delivery
High contact processes
Low contact processes

33. Service Operations Differ Markedly From Manufacturing
Focus on:
Performance
Process and outcome
Service characteristics
Customer-service link
Service quality considerations

34. Operations Planning Capacity Location Quality Layout Methods Process
Product
Cellular
Methods

35. Operations Scheduling
Scheduling Goods Operations
Scheduling Service Operations

36. Operations Control Monitors Results, Which Ensures Performance
Materials managers plan, organize, and control the flow of materials from design through distribution.
Transportation
Warehousing
Purchasing
Supplier Selection
Inventory Control

37. Tools for Operations Process Control
Worker Training
Just-in-time Production Systems (JIT)
Material Requirements Planning
Quality Control

38. Integration of Global Operations
Technology has pushed operations to become cleaner, faster, and safer…on a global scale.
The internet has integrated production with global suppliers and customers.

39. Products and Services Create Utility To Satisfy Human Wants
Time Utility
Place Utility
Ownership utility
Form Utility
Operations managers create utility for customers through production, inventory, and quality control.

40. Operations Management: A Resource Transformation Process
Operations Managers
plan
organize
schedule
control
Inputs
Transformation Activities
Outputs (Goods and Services)
land
capital
human resources
material
customers
information

41. Total Quality Management
Always Delivering High Quality
Planning for quality
Organizing for quality
Directing for quality
Controlling for quality

42. Tools for Total Quality Management
Statistical Process Control
Quality/Cost Studies
ISO 9000
Getting Close to the Customer
Process Reengineering
Outsourcing

43. Adding Value Through Supply Chains
Grain
Grain
Flour
Bakery
Packaged Baked Goods
Wood
Pulp
Paper
Packager

44. The Supply Chain Strategy
Supply Chain Management
Working with the supply chain as a whole to improve overall flow.
Supply Chain Reengineering
Improving the process for better results.

45. Satu

46. Organizational Culture
Corporate culture
Shared values
Beliefs
Traditions
Philosophies
Rules
Role models for behavior
Did You Know?
Southwest Airlines employees are continually encouraged to have fun and make flying exciting for their passengers. New employees watch videotapes and attend training sessions on the company’s philosophies, policies, and culture.
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47. How is Corporate Culture Expressed?
Formally
Mission statement
Codes of ethics
Memos, manuals
Ceremonies
Informally
Dress codes (or the lack thereof)
Work habits
Extracurricular activities
Stories
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