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GLENCOE BUSINESS MANAGEMENT Real-World Applications & Connections Section 12.1 Designing Organizations Unit 5 – Organizing Skills Organizing & Work, Organizational Structure, Understanding Work Groups, and Working with Employees… • What is the difference between power and authority? • Why do you think most organizations divide their employees into departments? • What kind of group norms does your group of friends set for each other? • Find Spring’09 SMG Company’s Organizational Chart Copyright © Glencoe/McGraw-Hill Slide 1 of 10 GLENCOE BUSINESS MANAGEMENT Real-World Applications & Connections Section 12.1 Designing Organizations In this section: Businesses must organize their workers to get the highest level of productivity possible. This section discusses: • What Is an Organization? • Why do Businesses Organize Their Workforce? • What Makes an Organization Effective? Copyright © Glencoe/McGraw-Hill Slide 2 of 10 GLENCOE BUSINESS MANAGEMENT Real-World Applications & Connections Section 12.1 Designing Organizations What You’ll Learn • How organizing helps groups of people achieve results they could not achieve individually. • Three reasons why businesses organize workforces. • Nine characteristics of successful organizations. • How businesses prevent workers from losing interest in highly specialized jobs. • Why businesses decentralize their operations.. Copyright © Glencoe/McGraw-Hill Slide 3 of 10 GLENCOE BUSINESS MANAGEMENT Real-World Applications & Connections Section 12.1 Designing Organizations Why It’s Important Without a well-defined organization, no business can be successful. Copyright © Glencoe/McGraw-Hill Slide 4 of 10 GLENCOE BUSINESS MANAGEMENT Real-World Applications & Connections Section 12.1 Designing Organizations Key Terms • organization • job rotation • authority • job scope • chain of command • job depth • division of labor Copyright © Glencoe/McGraw-Hill Slide 5 of 10 GLENCOE BUSINESS MANAGEMENT Real-World Applications & Connections Section 12.1 Designing Organizations What Is an Organization? An organization is a group of people working together in a coordinated effort to reach certain goals. Copyright © Glencoe/McGraw-Hill Slide 6 of 10 GLENCOE BUSINESS MANAGEMENT Real-World Applications & Connections Section 12.1 Designing Organizations Mapping Out Organization – (Top Down Analysis) ++ Annual Report, Company Website, E-mail Them ++ Slide#1 – Introduce Company Overview (Notespages) Slide#2 – Agenda Slide#3 – Board of Directors Chairman of the Board with each member…bios., role, tenure, how will each board member help your company succeed, special skills or knowledge each board member bring to your organization. Copyright © Glencoe/McGraw-Hill Slide 7 of 10 GLENCOE BUSINESS MANAGEMENT Real-World Applications & Connections Section 12.1 Designing Organizations Why Do Businesses Organize Their Workforces? • To establish lines of authority • To improve productivity • To improve communication Copyright © Glencoe/McGraw-Hill Slide 8 of 10 GLENCOE BUSINESS MANAGEMENT Real-World Applications & Connections Section 12.1 Designing Organizations Improving Productivity Companies improve workers’ productivity through: • specialization of tasks • job rotation • job scope • job depth Copyright © Glencoe/McGraw-Hill Slide 9 of 10 GLENCOE BUSINESS MANAGEMENT Real-World Applications & Connections Section 12.1 Designing Organizations What Makes an Organization Effective? • Knowing your customers and responding to their needs. • Decentralization—managers at all levels make decisions. Copyright © Glencoe/McGraw-Hill Slide 10 of 10 GLENCOE BUSINESS MANAGEMENT Real-World Applications & Connections Section 12.1 Designing Organizations Copyright © Glencoe/McGraw-Hill Slide 11 of 10 GLENCOE BUSINESS MANAGEMENT Real-World Applications & Connections Section 12.1 Designing Organizations Fact and Idea Review 1. List and explain the three benefits of organizing. 2. Why do businesses organize their workforces? 3. Describe four characteristics of well-organized companies. 4. What is job scope? Why is it important? 5. True or False—Businesses are more centralized today than they were 100 years ago. Copyright © Glencoe/McGraw-Hill Slide 12 of 10