Understanding business 8th by mcchugh nickels chapter 08

• High Cost of Management• Narrow Span of Control Flat Organizations • Current Trend • Creation of Teams • Broad Span of Control... Each manager must ask:• What resources do I control to

• Establishing Procedures

• Authority

• Degree of Centralization

• Clear Communication Channels

• Order

• Equity

• Esprit de Corps

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Weber’s Organizational Principles

• Job Descriptions

• Written Rules

• Procedures, Regulations, Policies

• Staffing/Promotions Based

on Qualifications

Responsiveness to Customers

• Less Top-Management Control

• Weakened Corporate Image

• High Cost of Management

• Narrow Span of Control

Flat Organizations

• Current Trend

• Creation of Teams

• Broad Span of Control

Each manager must ask:

• What resources do I control to accomplish my tasks?

• Who do I need to interact with and influence to achieve my goals?

• How much support can I expect when I reach out to others for

help?

Four Basic Spans of a Job:

• The Span of Control

• The Span of Accountability

• The Span of Influence

• The Span of Support

Source: HBS Working Knowledge, October 31,2005

• Less Responsiveness to Customers

• Loss of Control

• Less Management Expertise

• Employees Identify with Department

• Slow Response to External Demands

• Narrow Specialists

• Groupthink

• Long Line of Communication

• Difficult to Handle Complex

Decisions

Staff Personnel

• Advise Line Personnel

• Assist Line Personnel

Cooperation

5 Shift Roles When Appropriate

Source: CIO Dec 2003

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Core Firm

Firm Legal

Firm

• Liability

• Should Patients be Informed

• Confidentiality &

Security

Source: Healthcare Financial Management, 2005

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• Creating a Change-Oriented Organizational Culture

• The Informal Organization

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Inverted Organization Structure

Empowered front-line workers Support Personnel

Top Mgmt.

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Examples of Informal Group Norms

• Do your job but don’t produce more than the rest of

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• Never side with managers in a

dispute involving group members.

• Respect/help your fellow group

members on the job.

• Criticize the organization only

among group members never among strangers.

• Drinking is done off-the-job

Never at work!

More Examples of Informal Group Norms