BMFP 4512 Chapter-9 Industrial Management & Cost

8/14/2019 BMFP 4512 Chapter-9 Industrial Management & Cost

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ORGANIZATIONORGANIZATIONpared By : Ir. Haerypared By : Ir. Haery SihombingSihombing/IP &/IP &RohannaRohannaAbdullahAbdullah

syarahsyarahultilti KejuruteraanKejuruteraan PembuatanPembuatanersitiersiti TeknologiTeknologi MalaysiaMalaysia MelakaMelaka


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ORGANIZINGORGANIZING

Organization is the deployment ofOrganization is the deployment of

resources to achieve strategic goals.resources to achieve strategic goals. It is reflected inIt is reflected in

Division of labor into specific departments &Division of labor into specific departments &jobsjobs

Formal lines of authorityFormal lines of authority Mechanisms for coordinating diverseMechanisms for coordinating diverse

organizational tasksorganizational tasks


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Designing Adaptive OrganizationsDesigning Adaptive Organizations

Organizing Principles and ConceptsOrganizing Principles and Concepts

Organizing the Vertical StructureOrganizing the Vertical Structure

Using Mechanisms for HorizontalUsing Mechanisms for Horizontal

CoordinationCoordination

Tailoring Various Elements of StructuralTailoring Various Elements of Structural

Design to Organizational SituationsDesign to Organizational Situations


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ORGANIZATION STRUCTUREORGANIZATION STRUCTURE

Defines how tasks are divided, resources areDefines how tasks are divided, resources are

deployed, and departments are coordinateddeployed, and departments are coordinated

Set of formal tasks assignedSet of formal tasks assigned

Formal reporting relationshipsFormal reporting relationships

The design of systems to ensure effectiveThe design of systems to ensure effectivecoordination of employees across departmentcoordination of employees across department


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THE ORGANIZATION CHARTTHE ORGANIZATION CHART

Visual representation

Set of formal tasks

Formal reporting relationships

Framework for vertical control

The Home Depot is the world's largest home

improvement retailer currently operating

1,363 stores.


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ORGANIZATIONAL STRATEGYORGANIZATIONAL STRATEGY

Resources are critical toResources are critical toorganizational strategy because theyorganizational strategy because they

can help companies create and sustaincan help companies create and sustainan advantage over competitoran advantage over competitor

ResourcesResources

The assets, capabilities, processes, information, andThe assets, capabilities, processes, information, andknowledge that an organization uses to improve itsknowledge that an organization uses to improve its

effectiveness and efficiency and to create and sustain aneffectiveness and efficiency and to create and sustain an

advantage over competitors and to fulfill a need or solveadvantage over competitors and to fulfill a need or solve

a problema problem


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Competitive AdvantageCompetitive AdvantageProviding greater value for customers than competitorProviding greater value for customers than competitorcancan

Sustainable Competitive AdvantageSustainable Competitive Advantage

A competitive advantage that other companies haveA competitive advantage that other companies havetried unsuccessfully to duplicate and have, for thetried unsuccessfully to duplicate and have, for the

moment, stopped trying to duplicatemoment, stopped trying to duplicate

ORGANIZATIONAL STRATEGYORGANIZATIONAL STRATEGY


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CERTAIN CONDITIONCERTAIN CONDITION

FirmFirms resources are to be used to achieveds resources are to be used to achieved

a sustainable competitive advantage :a sustainable competitive advantage :

valuable resourcesvaluable resources

allows companies to improve efficiency and effectivenesallows companies to improve efficiency and effectivenes

rare resourcesrare resourcesnot controlled or possessed by many competing firmsnot controlled or possessed by many competing firms

imperfectly imitable resourceimperfectly imitable resourceimpossible or extremely costly or difficult for otherimpossible or extremely costly or difficult for otherfirms to duplicatefirms to duplicate

nonsustitutablenonsustitutable resourcesresourceswithout equivalent substitutes or replacements thatwithout equivalent substitutes or replacements that


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WORK SPECIALIZATIONWORK SPECIALIZATION

Tasks are subdivided into individualTasks are subdivided into individual

jobsjobs Employees perform only the tasksEmployees perform only the tasks

relevant to their specialized functionrelevant to their specialized function Jobs tend to be small, but they can beJobs tend to be small, but they can be

performed efficientlyperformed efficiently

Division of labor concept


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CHAIN of COMMANDCHAIN of COMMAND

Unbroken line of authority that links allUnbroken line of authority that links all

persons in an organizationpersons in an organization Shows who reports to whomShows who reports to whom

Associated with two underlying principleAssociated with two underlying principle Unity of CommandUnity of Command

Scalar PrincipleScalar Principle


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AUTHORITYAUTHORITY

Formal and legitimate right of a managerFormal and legitimate right of a managerto make decisions and issue ordersto make decisions and issue orders

Allocate resources to achieveAllocate resources to achieveorganizationally desired outcomesorganizationally desired outcomes

Authority is distinguished by threeAuthority is distinguished by threecharacteristicscharacteristics

Authority is vested in organizational positions,Authority is vested in organizational positions,not peoplenot people

Authority is accepted by subordinatesAuthority is accepted by subordinates

Authority flows down the vertical hierarchyAuthority flows down the vertical hierarchy


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RESPONSIBILITYRESPONSIBILITY

The duty to perform the task or activityThe duty to perform the task or activity

an employee has been assignedan employee has been assigned

Managers are assigned authorityManagers are assigned authority

commensurate with responsibilitycommensurate with responsibility


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ACCOUNTABILITYACCOUNTABILITY

Mechanism through which authority andMechanism through which authority and

responsibility are brought into alignmentresponsibility are brought into alignment

People are subject to reporting andPeople are subject to reporting and

justifying task outcomes to those abovejustifying task outcomes to those abovethem in the chain of commandthem in the chain of command

Can be built into the organizationCan be built into the organization

structurestructure


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DELEGATIONDELEGATION

Process managers use to transferProcess managers use to transfer

authority and responsibilityauthority and responsibility

Organizations encourage managers toOrganizations encourage managers todelegate authority to lowest possible leveldelegate authority to lowest possible level


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Techniques for Delegation

Give

thorough

instructions

Maintain

feedback

Evaluate and reward

performance

Delegate thewhole task

Select the rightperson

DELEGATION

Ensure that

authority equalsresponsibility


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Line and Staff AuthorityLine and Staff Authority

Line AuthorityLine Authority ==

individuals in management positions haveindividuals in management positions havethe formal power to direct and controlthe formal power to direct and control

immediate subordinatesimmediate subordinates

Staff AuthorityStaff Authority

==

granted to staff specialists in their area ofgranted to staff specialists in their area of

expertiseexpertise


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ControlControl

Number of employees who report to aNumber of employees who report to a

supervisorsupervisor

Traditional viewTraditional view= seven subordinates per= seven subordinates permanagermanager

Lean organizations todayLean organizations today= 30+ subordinates= 30+ subordinates

Supervisor InvolvementSupervisor Involvement

must be closely involved with subordinates, themust be closely involved with subordinates, thespan should be smallspan should be small

need little involvement with subordinates, it canneed little involvement with subordinates, it canbe largebe large


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rSupervisor InvolvementSupervisor Involvement

Work is stable and routineWork is stable and routine

Subordinates perform similar work tasksSubordinates perform similar work tasksSubordinates are concentrated in a single locationSubordinates are concentrated in a single location

Subordinates are highly trainedSubordinates are highly trainedRules and procedure defining task activities areRules and procedure defining task activities are

availableavailable

Support systems and personnel are available for thSupport systems and personnel are available for th

managermanager

Little time is required in nonLittle time is required in non--supervisory activitiessupervisory activities

Mana ersMana ers references and st les favor a lar e s areferences and st les favor a lar e s a


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Tall versus Flat StructureTall versus Flat Structure

Span of Control used in an organizationSpan of Control used in an organization

determines whether the structure is tall or fladetermines whether the structure is tall or fla

Tall structure has a narrow span and moreTall structure has a narrow span and more

hierarchical levelshierarchical levels

Flat structure has a wide span, is horizontallyFlat structure has a wide span, is horizontally

dispersed and fewer hierarchical levelsdispersed and fewer hierarchical levels

The trend has been toward wider spans ofThe trend has been toward wider spans ofcontrolcontrol


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Centralization vs. Decentralizatioentralization vs. Decentralization

Greater change and uncertainty in theGreater change and uncertainty in the

environment are usually associated withenvironment are usually associated withdecentralizationdecentralization

The amount of centralization orThe amount of centralization ordecentralization should fit the firmdecentralization should fit the firms strategys strategy

In times of crisis or risk of company failure,In times of crisis or risk of company failure,authority may be centralized at the topauthority may be centralized at the top

DEPARTMENTALIZATIONDEPARTMENTALIZATION


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DEPARTMENTALIZATIONDEPARTMENTALIZATIONThe basis on which individuals are grouped into departmentThe basis on which individuals are grouped into department

Vertical functional approach.Vertical functional approach. PeoplePeopleare grouped together in departments byare grouped together in departments by

common skills.common skills.

Divisional approachDivisional approach. Grouped together. Grouped together

based on a common product, program, orbased on a common product, program, orgeographical region.geographical region.

Horizontal matrix approachHorizontal matrix approach. Functional. Functionaland divisional chains of command. Someand divisional chains of command. Someemployees report to two bossesemployees report to two bosses

TeamTeam--based approach.based approach. Created toCreated to

DEPARTMENTALIZATIONDEPARTMENTALIZATION


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Network approach.Network approach. Small, central hubSmall, central hub

electronically connected to their otherelectronically connected to their otherorganizations that perform vital functions.organizations that perform vital functions.Departments are independent, and can beDepartments are independent, and can be

located anywhere.located anywhere.

Virtual approachVirtual approach.. Brings people togetherBrings people together

temporarily to exploit specific opportunitiestemporarily to exploit specific opportunitiesthen disbandsthen disbands

DEPARTMENTALIZATIONDEPARTMENTALIZATIONThe basis on which individuals are grouped into departmentThe basis on which individuals are grouped into department


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DesignDesign


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DesignDesign


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VERTICAL FUNCTIONAL APPROACHVERTICAL FUNCTIONAL APPROACH

Grouping of positions into departmentsGrouping of positions into departments

based on similar skills, expertise, andbased on similar skills, expertise, and

resource useresource use Information flows up and downInformation flows up and down

Chain of command converges at the topChain of command converges at the top Managers and employees are compatibleManagers and employees are compatible

because of similar training and expertisebecause of similar training and expertise

Rules and procedures governing duties andRules and procedures governing duties andresponsibilitiesresponsibilities


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DIVISIONAL STRUCTURE ADVANTAGESDIVISIONAL STRUCTURE ADVANTAGES

Efficient use of resourcesEfficient use of resources

Skill specialization developmentSkill specialization development

Top management controlTop management control

Excellent coordinationExcellent coordination

Quality technical problem solvingQuality technical problem solving


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Poor communicationsPoor communications

Slow response to external changesSlow response to external changes

Decisions concentrated at topDecisions concentrated at top Pin pointing responsibility is difficultPin pointing responsibility is difficult

Limited view of organizational goals byLimited view of organizational goals by

employeesemployees

IVISIONAL STRUCTURE DISADVANTAGEIVISIONAL STRUCTURE DISADVANTAGE


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Horizontal Matrix AdvantagesHorizontal Matrix Advantages

More efficient use of resources than singleMore efficient use of resources than single

hierarchyhierarchyAdaptable to changing environmentAdaptable to changing environment

Development of both general and specialistDevelopment of both general and specialistmanagement skillsmanagement skills

Expertise available to all divisionsExpertise available to all divisions Enlarged tasks for employeesEnlarged tasks for employees

Dua Aut or ty tructure n a Matr xua u or y ruc ure n a a r x


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Dua Aut or ty tructure n a Matr xua u or y ruc ure n a a r xOrganizationOrganization


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Horizontal Matrix DisadvantagesHorizontal Matrix Disadvantages

Dual chain of commandDual chain of command

High conflict between two sides of matrixHigh conflict between two sides of matrix Many meetings to coordinate activitiesMany meetings to coordinate activities

Need for human relations trainingNeed for human relations training

Power domination by one side of matrixPower domination by one side of matrix


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TEAM ADVANTAGESTEAM ADVANTAGES

Same advantages as functional structureSame advantages as functional structure

Reduced barriers among departmentsReduced barriers among departments

Quicker response timeQuicker response time Better moraleBetter morale

Reduced administrative overheadReduced administrative overhead


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Dual loyalties and conflictDual loyalties and conflict

Time and resources spent onTime and resources spent onmeetingsmeetings

Unplanned decentralizationUnplanned decentralization

TEAM DISADVANTAGESTEAM DISADVANTAGES


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NETWORK APPROACH ADVANTAGESNETWORK APPROACH ADVANTAGES

Global competitivenessGlobal competitiveness

Work force flexibilityWork force flexibility

Reduced administrative overheadReduced administrative overhead


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ETWORK APPROACH DISADVANTAGEETWORK APPROACH DISADVANTAGE

No handsNo hands--on controlon control

Loss of part of the organizationLoss of part of the organization

severely impacts remainder ofseverely impacts remainder of

organizationorganization

Employee loyalty weakenedEmployee loyalty weakened

k jk F T P j t M


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ask Forces, Teams, Project Managemenask Forces, Teams, Project Managemen

Task ForceTask Force

= temporary team/committee designed to= temporary team/committee designed tosolve a shortsolve a short--term problem involvingterm problem involving

several departmentsseveral departments

Project ManagerProject Manager

= responsible for coordinating activities of= responsible for coordinating activities ofseveral departments on a fullseveral departments on a full--time basistime basis

for the completion of a specific projectfor the completion of a specific project

REENGINEERINGREENGINEERING


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REENGINEERINGREENGINEERING

Process = organized group of relatedProcess = organized group of related

tasks and activities that work together totasks and activities that work together to

transform inputs into outputs and createtransform inputs into outputs and create

valuevalue

Radical redesign of business processes tRadical redesign of business processes t

achieve dramatic improvements in cost,achieve dramatic improvements in cost,quality, service, and speedquality, service, and speed

FACTORS SHAPING STRUCTUREFACTORS SHAPING STRUCTURE


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FACTORS SHAPING STRUCTUREFACTORS SHAPING STRUCTURE

STRUCTURESTRUCTURE

Follows StrategyFollows StrategyReflects the EnvironmentReflects the Environment

Fits the TechnologyFits the TechnologyService TechnologyService Technology

Digital TechnologyDigital Technology


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THE

ORGANIZATIONALENVIRONMENT

THE

ORGANIZATIONALENVIRONMENT

ORGANIZATIONAL ENVIRONMENRGANIZATIONAL ENVIRONMEN


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Organizational Environment:Organizational Environment:those forcesthose forces

outside its boundaries that can impact it.outside its boundaries that can impact it.

Forces can change over time and are made up ofForces can change over time and are made up ofOpportunities and Threats.Opportunities and Threats.

Opportunities:Opportunities:openings for managers toopenings for managers toenhance revenues or open markets.enhance revenues or open markets.

New technologies, new markets and ideas.New technologies, new markets and ideas.

Threats:Threats:issues that can harm an organization.issues that can harm an organization.

economic recessions, oil shortages.economic recessions, oil shortages.

Managers must seek opportunities and avoidManagers must seek opportunities and avoid

hr .threats.

ORGANIZATIONAL ENVIRONMENRGANIZATIONAL ENVIRONMEN

Forces in the Organizational EnvironmentForces in the Organizational Environmen

Forces in the Organizational Environment


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Forces in the Organizational EnvironmentForces in the Organizational EnvironmenForces in the Organizational Environment

Distributors

FirmFirm

TaskEnvironment

Suppliers

Competitors

Customers

General

Environment

Economic

ForcesGlobal

Forces

Sociocultural

Forces

Demographic

Forces

Technological

Forces

Political &

Legal Forces

TASK ENVIRONMENTTASK ENVIRONMENT


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Task EnvironmentTask Environment: forces from suppliers,: forces from suppliers,distributors, customers, and competitors.distributors, customers, and competitors.

SUPPLIERS:SUPPLIERS: provide organization with inpuprovide organization with input Managers need to secureManagers need to secure reliable input sourcesreliable input sources

Suppliers provide raw materials, components,Suppliers provide raw materials, components,and even labor.and even labor. Working with suppliers can be hard due to shortages, unions, anWorking with suppliers can be hard due to shortages, unions, an

lack of substitutes.lack of substitutes.

Suppliers with scarce items can raise the price and are in a gooSuppliers with scarce items can raise the price and are in a gooddbargaining position.bargaining position.

Managers often prefer to have many, similarManagers often prefer to have many, similarsuppliers of each item.suppliers of each item.




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DISTRIBUTORSDISTRIBUTORS:: organizations that helporganizations that helpothers to sell goods.others to sell goods.

Compaq Computer first used special computerCompaq Computer first used special computerstores to sell their computers but later soldstores to sell their computers but later soldthrough discount stores to reduce costs.through discount stores to reduce costs.

Some distributors like WalSome distributors like Wal--Mart have strongMart have strongbargaining power.bargaining power.

They can threaten not to carry your product.They can threaten not to carry your product.

CUSTOMERSCUSTOMERS:: people who buy the goods.people who buy the goods. Usually, there are several groups of customers.Usually, there are several groups of customers.

For Compaq, there are business, home, &For Compaq, there are business, home, &government buyers.government buyers.




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COMPETITORS:COMPETITORS: other organizations thatother organizations thatproduce similar goods.produce similar goods.

Rivalry between competitors is usually the mosRivalry between competitors is usually the mosserious force facing managers.serious force facing managers.

High levels of rivalry often means lower prices.High levels of rivalry often means lower prices.

Profits become hard to find.Profits become hard to find.

Barriers to entry keep new competitors out andBarriers to entry keep new competitors out and

result from:result from: Economies of scale: cost advantages due toEconomies of scale: cost advantages due to

large scale production.large scale production.

Brand loyalty: customers prefer a givenBrand loyalty: customers prefer a given


INDUSTRY LIFE CYCLEINDUSTRY LIFE CYCLE


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Birth stageBirth stage:: firms seek to develop a winningfirms seek to develop a winningtechnology.technology.

VHS vs.VHS vs. BetamaxBetamax in video, or 8in video, or 8--track vs.track vs.cassette in audio.cassette in audio.

Growth stageGrowth stage:: Product gains customerProduct gains customeracceptance and grows rapidly.acceptance and grows rapidly.

New firms enter industry, production improves,New firms enter industry, production improves,

distributors emerge.distributors emerge.


Reflects the changes that take place inReflects the changes that take place in

an industry over time.an industry over time.



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Shakeout stage:Shakeout stage: at end of growth, there is aat end of growth, there is aslowing customer demand.slowing customer demand.

Competitor rivalry increases, prices fall.Competitor rivalry increases, prices fall. Least efficient firms fail and leave industry.Least efficient firms fail and leave industry.

Maturity stage:Maturity stage: most customers have boughtmost customers have bought

the product, growth is slow.the product, growth is slow. Relationships between suppliers, distributorsRelationships between suppliers, distributors

more stable.more stable.

Usually, industry dominated by a few, largeUsually, industry dominated by a few, largefirms.firms.

Decline stage:Decline stage: falling demand for the product.falling demand for the product. Prices fall, weaker firms leave the industr .Prices fall, weaker firms leave the industry.


THE GENERAL ENVIRONMENTTHE GENERAL ENVIRONMENT


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Consists of the wide economic,Consists of the wide economic,technological, demographic and similatechnological, demographic and similar

issues.issues. Managers usually cannot impact or control theseManagers usually cannot impact or control these

Forces have profound impact on the firm.Forces have profound impact on the firm.

Economic forces:Economic forces: affect the national economyaffect the national economy

and the organization.and the organization. Includes interest rate changes, unemployment rates,Includes interest rate changes, unemployment rates,

economic growth.economic growth.

When there is a strong economy, people have moreWhen there is a strong economy, people have moremoney to spend on goods and services.money to spend on goods and services.

THE GENERAL ENVIRONMENTTHE GENERAL ENVIRONMENT


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THE INDUSTRY LIFE CYCLETHE INDUSTRY LIFE CYCLE


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BirthBirth GrowthGrowth ShakeoutShakeout MaturityMaturity DeclineDecline




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Demographic forces:Demographic forces: result fromresult fromchanges in the nature, composition andchanges in the nature, composition and

diversity of a population.diversity of a population.

These include gender, age, ethnic origin, etc.These include gender, age, ethnic origin, etc.

For example, during the past 20 years, women haveFor example, during the past 20 years, women have

entered the workforce in increasing numbers.entered the workforce in increasing numbers.

Currently, most industrial countries are aging.Currently, most industrial countries are aging. This will change the opportunities for firmsThis will change the opportunities for firms

competing in these areas.competing in these areas. New demand for health care, assisting living can beNew demand for health care, assisting living can be




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PoliticalPolitical--legal forces:legal forces: result from changesresult from changes ithe political arena.the political arena.

These are often seen in the laws of a society.These are often seen in the laws of a society. Today, there is increasing deregulation of manyToday, there is increasing deregulation of many

statestate--run firms.run firms.

Global forces:Global forces: result from changes inresult from changes ininternational relationships between countries.international relationships between countries. Perhaps the most important is the increase inPerhaps the most important is the increase in

economic integration of countries.economic integration of countries.

FreeFree--trade agreements (GATT, NAFTA, EU)trade agreements (GATT, NAFTA, EU)decreases former barriers to trade.decreases former barriers to trade.



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Managers must measure the complexity of theManagers must measure the complexity of theenvironment and rate of environmentalenvironment and rate of environmental

change.change.Environmental complexity: deals with theEnvironmental complexity: deals with thenumber and possible impact of different forcenumber and possible impact of different forcein the environment.in the environment. Managers must pay more attention to forces witManagers must pay more attention to forces wit

larger impact.larger impact. Usually, the larger the organization, the greaterUsually, the larger the organization, the greater

the number of forces managers must oversee.the number of forces managers must oversee.

The more forces, the more complex theThe more forces, the more complex themana ermana ers ob becomes.s ob becomes.

ENVIRONMENTENVIRONMENT


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Environmental change:Environmental change: refers to the degree trefers to the degree t

which forms in the task and generalwhich forms in the task and general

environments change over time.environments change over time.

Change rates are hard to predict.Change rates are hard to predict.

The outcomes of changes are even harder toThe outcomes of changes are even harder toidentify.identify.

Managers thus cannot be sure that actionsManagers thus cannot be sure that actionstaken today will be appropriate in the futuretaken today will be appropriate in the future

given new changes.given new changes.

ENVIRONMENTENVIRONMENT


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Managers can counter environmentalManagers can counter environmentalthreats by reducing the number ofthreats by reducing the number of

forces.forces. Many firms have sought to reduce the number ofMany firms have sought to reduce the number ofsuppliers it deals with which reduces uncertainty.suppliers it deals with which reduces uncertainty.

All levels of managers should work toAll levels of managers should work tominimize the potential impact ofminimize the potential impact of

environmental forces.environmental forces. Examples include reduction of waste by first lineExamples include reduction of waste by first line

managers, determining competitormanagers, determining competitors moves by middles moves by middle

managers, or the creation of a new strategy by topmanagers, or the creation of a new strategy by topmanagers.managers.

IMPACTIMPACT

ORGANIZATIONAL STRUCTUREORGANIZATIONAL STRUCTURE


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Managers can create new organizationalManagers can create new organizationalstructures to deal with change.structures to deal with change.

Many firms use specific departments to respond to eaMany firms use specific departments to respond to eaforce.force.

Managers also create mechanistic or organicManagers also create mechanistic or organic

structures.structures. Mechanistic structures have centralized authority.Mechanistic structures have centralized authority.

Roles are clearly specified.Roles are clearly specified. Good for slowly changing environments.Good for slowly changing environments.

Organic structures authority is decentralized.Organic structures authority is decentralized.

Roles overlap, providing quick response to change.Roles overlap, providing quick response to change.

ORGANIZATIONAL STRUCTUREORGANIZATIONAL STRUCTURE

BOUNDARY SPANNINGBOUNDARY SPANNING


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Managers must gain access to informationManagers must gain access to informationneeded to forecast future issues.needed to forecast future issues.

RodRod CanionCanionss forecast of Compaqforecast of Compaqs future was wrons future was wrongdue to his incorrect view of the environment.due to his incorrect view of the environment.

Boundary spanning is the practice of relatingBoundary spanning is the practice of relating

to people outside the organization.to people outside the organization. Seek ways to respond and influence stakeholderSeek ways to respond and influence stakeholder

perception.perception.

By gaining information outside, managers can makeBy gaining information outside, managers can makebetter decisions about change.better decisions about change.

More management levels involved in spanninMore management levels involved in spanninyields better overall decision making.yields better overall decision making.

BOUNDARY SPANNINGBOUNDARY SPANNING

BOUNDARY SPANNING ROLESBOUNDARY SPANNING ROLES


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Managers in boundary

spanning roles feedback

information to other managers

BOUNDARY SPANNING ROLESBOUNDARY SPANNING ROLES

SCANNING & MONITORINGSCANNING & MONITORING


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oo Environmental scanning is an importantEnvironmental scanning is an importantboundary spanning activity.boundary spanning activity.

Includes reading trade journals, attending trade shows,Includes reading trade journals, attending trade shows,and the like.and the like.

oo GatekeepingGatekeeping: the boundary spanner decides: the boundary spanner decides

what information to allow into organizationwhat information to allow into organizationand what to keep out.and what to keep out. Must be careful not to let bias decide what comes in.Must be careful not to let bias decide what comes in.

oo InterorganizationalInterorganizational Relations: firms needRelations: firms needalliances globally to best utilize resources.alliances globally to best utilize resources.

Managers can become agents of change and impact thManagers can become agents of change and impact theenvironment.environment.

SCANNING & MONITORINGSCANNING & MONITORING

CHANGE AS 2CHANGE AS 2--Way PROCESSWay PROCESS


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EnvironmentEnvironment OrganizationOrganization

Change in Environment affectsChange in Environment affects

Managerial actions impactManagerial actions impact

CHANGE AS 2CHANGE AS 2 Way PROCESSWay PROCESS


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THANK YOUTHANK YOU

Documents

BMFP 4512 Chapter-9 Industrial Management & Cost