Fayol’s PrinciplesUnity of command— people at different levels with different rankings should have decision-making powerEveryone should report to one boss.Hierarchy of authorityDivision of laborSubordination of individual interest to the general interestAuthorityManagers do have authority to give orders and employees should follow themDegree of centralizationCorporate headquarters make all the decisions.Clear communication channelsOrderEquity — employees must be treated with respect and fairness.Esprit de corps— everyone should feel loyal to their employer.Webber’s Principles:Job DescriptionsWritten Rules, guidelines and detailed recordsConsistent procedures, regulations and policies.Staffing and promotion based on qualifications.Chain of Command— order will follow from the top to the lowest level of employees.Bureaucracy— There are many layers of managers who make decisions and it slows down the process.Span of Control— measures the optimal number of employees that one should supervise.Tall Organization— narrowFlat Organization— broad.Four ways to structure an organizationLine organizations— there are two ways of line of responsibility, communication and accountability from the top to the bottom. Order (chain of command) flows from the top and communication travels both ways.Line and Staff Organizations— Line personnel are directly involved in carrying out the goals of the organization and staff personnel assist line people to be more efficientMatrix Style Organizations— employees with specialized skills are brought from different departments to work on any specific project on a temporary basis.Advantages:Efficient way of using resourcesCombat groupthinkAllows employees from different departments to work together and develop better communication skillsDisadvantages:It can be costly and complexIt takes time for employees to warm up and develop better coordinationsometimes employees are confused about showing their loyalty to different departmentsCross Functional Self Managed Teams— they are made on a long-term basisThe team members must be prepared to make all the decisions and resolve any problemsTransparency — everything should be clear and there should not be any barriers for employees. Better communicationBenchmarking— comparison of a business with the best in the industry on its business practices, products, or environmental practices.Core competencies— areas where a business may have a strength in and that gives it a competitive edgeOrganizational or Corporate Culture — shared beliefs and values that everyone in an organization followsShort Answer Questions for Chapter 8:Centralized AuthorityAdvantages:Brings stabilityYou see more standardization, which leads to stronger brand image.Cost efficiency.Disadvantages:Slow in adapting to the changing market conditions.Employees morale is weakenedDecentralized Authority— when decision making has been delegated to people at different level.Advantages:Adapting to the changing marketMorale is better.Disadvantages:Don’t have stabilityLess standardization which weakens brand image.Building successful teamsSelect the team members with right kind of skillsGoals should be clearly statedResources should be provided on timeThe team should be given autonomy and flexibilityShared leadershipTeam members should rotate jobsAll team members should take responsibility and hold accountabilityProduction — Convert basic raw materials into finished goods or servicesProduction Management— Managing all of the activities that include getting raw materials into goods and servicesProcess and assembly in ProductionProcess ManufacturingSome of the raw materials have gone through physical or chemical change when the final product is readyAssembly ProcessAssemble and put together a productCarContinuous ProcessThe whole production cycle goes through multiple stages and takes a long time to get the finished product.Manufacturing plant has round the clock production that continuously produces goods.Intermittent ProcessWhen the production cycle runs for a certain time period and then it stops either to change parts or to make different products.CAD— when they use software and hardware in the designing phase.CAM— when the computers are installed in making the goods, in the form of robots, or all of the other automation that you see.Operations management planning helps solve problems like:Facility locationFacility LayoutMaterials requirement planningPurchasingInventory controlQuality controlComputer integrated Manufacturing— When they are combining everything (CAD and CAM) to do the jobFlexible manufacturing — When machines are designed to be flexible that with change of parts, it will make different parts or products.Lean manufacturing —Cutting labor hours, eliminating wastes, cut down in holding inventory, having smart facilities to cut down on utilities, and eliminating defects.Materials Requirement Planning (MRP)— a computerized program that looks at the sales forecast and existing inventory level and then comes up with the exact level of inventory that is needed.Enterprise Resource Planning (ERP)— a specialized program that integrates all the departments and dealers into one systemPurchasing— find the suppliers that can provide the best quality of parts and materials. Negotiate the deal, make relationship with them and ensure that they do get delivered on time.Six Sigma Quality— designing the whole production cycle on machines to remove the defects or variances. Then they redesigned the whole process to limit the variations. They set up key indicators that help them in detecting errors.Short Answer Questions for Chapter 9:CAD— when they use software and hardware in the designing phase.CAM— when the computers are installed in making the goods, in the form of robots, or all of the other automation that you see.Facility LocationFacility LocationInternetTelecommuting— when workers are allowed to work at home.Facility Layout‑ everything should work efficiently without any wastage of time.Modular LayoutPerform complex job in a group moduleProcess LayoutCould be arranged in a way at different level they are right next to each otherFixed LayoutEveryone comes there to do their work (House)Reinforcement Theory— managers can have positive or negative influence on their employees by taking correct action to reinforce the right behavior.Positive reinforcementNegative reinforcementExtinctionEquity