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Nickels/McHugh/McHugh
Instructor’s Manual - Chapter 8 Understanding Business 12e
INTRODUCTION
This Instructor’s Manual has been revised to include all teaching resources offered for your course. It is organized for ease of use, so you can
follow along in the classroom and use relevant materials as they are needed.
CONTENTS
Icebreaker Activity
Brief Chapter Outline, Learning Objectives, and Classroom Activities
Lecture Enhancers
Critical Thinking Exercises
Bonus Cases
Connect Instructor’s Manual
ADDITIONAL RESOURCE
For more lecture-enhancing examples and videos, visit our blog at www.introbiz.tv.
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Revisions:
Statistical data and examples throughout the chapter were updated to reflect current information. In addition:
• Section “Everyone’s Reorganizing” was retitled “Organizing for Success” and the introduction was shortened.
• Figure 8.4 was corrected (in the process of redesign the cells in the figure had been mislabeled).
Deletions:
• 11e Name That Company
• Boxes Spotlight on Small Business and Adapting to Change
• Taking it to the Net
• Video Case
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ICEBREAKER ACTIVITY
Set-up:
• Lock the classroom door. Project the “college communication” slide on the white board.
• Invite all but 10 students into the classroom. Tell the 10 students that you will get back to them.
• Hand out the student instruction sheet to the students in the classroom.
• Invite 1 student into the room and tell the rest that they will be coming in one at a time.
• Tell the student he has 90 seconds to memorize the scenario on the screen because it will be turned off. He is to invite a student into the
class room and repeat the information on the screen. Before he tells the scenario, he needs to let the student know that there will be no
opportunity to ask questions and he/she will invite the next student in and repeat all the information. When finished, take a seat.
• The process continues until the 10th student has retold the scenario.
• Put the original scenario back up on the white board.
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Student Instructions:
1. Your role is that of an “observer”. A student is going to repeat this paragraph to the next student. The students are not permitted to
ask questions and are to invite the next student into the classroom and repeat what they are told. Pay special attention to what each
student repeats and how the story diverges from the original. Make notes on this sheet so you can participate in the discussion.
"A man was walking through campus wearing a striped T -shirt and carrying a backpack. He stopped a passerby, presumably to ask for
directions to the Student Affairs Office. The female pointed in the direction of a 6 story building and continued on. The man, seemingly
oblivious to 2 students standing in front of another building, continued walking down the side walk."
Online: Instructor’s comments posted on the discussion page or a short “wrap-up” video (mini-lecture) of less than 20 minutes posted to the
course platform.
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Name That Company When this company eliminated all managers, PPt 7
it offered severance packages to all
employees who didn’t think self-
management was a good fit for them. Name
that company.
(Students should read the chapter before
guessing the company’s name: Disney)
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2. The key to success is to REMAIN FLEXIBLE and to see p. 52 of this manual for summary and
adapt to the changing times. follow-up activity.
B. BUILDING AN ORGANIZATION FROM THE BOTTOM UP
1. ORGANIZING THE BUSINESS lecture enhancer 8-1
a. The text uses the example of starting a Smith’s Folly
mowing business.
A lesson in accountability from Kenneth
b. A first step is ORGANIZING (or Olsen, founder of Digital Equipment
STRUCTURING), deciding what work needs to Corporation (now part of Hewlett-Packard).
be done and then dividing up tasks (called (See the complete lecture enhancer on page
DIVISION OF LABOR). 31 of this manual.)
c. Dividing tasks into smaller jobs is called JOB
SPECIALIZATION.
bonus case 8-1
2. As the business grows, the entrepreneur will hire
Structural Collapse: Responsibility and
more workers and will need to organize them into
Accountability
teams or departments.
Because of engineering errors and poor
a. The process of setting up departments to do planning, the skywalks of a newly constructed
specialized tasks is called hotel collapsed, killing over 100 people. (See
DEPARTMENTALIZATION. the complete case, discussion questions, and
b. Finally, you need to ASSIGN AUTHORITY AND suggested answers beginning on page 46 of
RESPONSIBILITY to people so you can control this manual.)
the process.
3. STRUCTURING AN ORGANIZATION consists of: lecture enhancer 8-2 PPt 9
a. Devising a division of labor Zappos Goes Bossless
b. Setting up teams or departments to do In 2015, Zappos changed the corporate
specific tasks structure and eliminated the traditional
c. Assigning responsibility and authority to hierarchy. (See the complete lecture
people enhancer on page 32 of this manual.)
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b. The appropriate span narrows at higher levels complete lecture enhancer on page 33 of this
of the organization. manual.)
2. The span of control VARIES WIDELY.
a. The trend now is to expand the span of
control as organizations get rid of middle
managers.
b. The span of control can be increased through
empowerment and the use of technology.
PPt 26
C. CHOOSING BETWEEN TALL AND FLAT ORGANIZATIONAL
STRUCTURES
1. A TALL ORGANIZATIONAL STRUCTURE is one in
which the pyramidal organization chart would be
quite tall because of the various levels of
management.
a. Tall organizations have MANY LAYERS OF
MANAGEMENT.
b. Communication is distorted as it flows
through these layers.
c. The cost of all these managers and support
people is high.
2. Because of these problems, organizations have
moved toward flatter organizations.
3. A FLAT ORGANIZATIONAL STRUCTURE is an
organization structure that has few layers of
management and a broad span of control.
a. These structures are much MORE
RESPONSIVE TO CUSTOMER DEMANDS
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Figures:
FIGURE 8.2
ADVANTAGES AND DISADVANTAGES OF PPt 23
CENTRALIZED VERSUS DECENTRALIZED
AUTHORITY
PPt 27
FIGURE 8.3
A FLAT ORGANIZATIONAL STRUCTURE
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FIGURE 8.5
WAYS TO DEPARTMENTALIZE PPt 32-36
A computer company may want to
departmentalize by geographic location
(countries), a manufacturer by function, a
pharmaceutical company by customer group,
a leather manufacturer by process, and a
publisher by product. In each case the
structure must fit the firm’s goals.
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Figures:
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inverted organization
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Figures:
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VIII. SUMMARY
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