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Ebook Management: Part 2 - David B. Balkin, Luis R. Gomez-Mejia

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Ebook Management: Part 2 - David B. Balkin, Luis R. Gomez-Mejia

PART FOUR ORGANIZATION MANAGEMENTLearning Objectives1Identify the vertical and horizontal dimensions of organization structure.2Apply the three basic

Ebook Management: Part 2 - David B. Balkin, Luis R. Gomez-Mejia approaches— functional, divisional, and matrix to departmentalization.3Develop coordination across departments and hierarchical levels.4Use organizat

ion structure and the three basic organization designs—mechanistic, organic, and boundaryless—to achieve strategic goals.5Develop an awareness of stra Ebook Management: Part 2 - David B. Balkin, Luis R. Gomez-Mejia

tegic events that are likely to trigger a change in the structure and design of an organization.United and Continental Airlines Announce a MergerIn 20

Ebook Management: Part 2 - David B. Balkin, Luis R. Gomez-Mejia

10 United Airlines and Continental Airlines announced their ntention to merge their operations in a $3 billion deal to form the worlds largest airline

PART FOUR ORGANIZATION MANAGEMENTLearning Objectives1Identify the vertical and horizontal dimensions of organization structure.2Apply the three basic

Ebook Management: Part 2 - David B. Balkin, Luis R. Gomez-Mejiaic on Pacific routes. In the U.S. the two airlines have overlapping nonstop flights in 13 markets. United s buying Continental, and the combined compa

ny will keep the United name and be based in chicago. leffrey A. Sm sek, Continental's chief executive, would run the merged company.The U.S airline i Ebook Management: Part 2 - David B. Balkin, Luis R. Gomez-Mejia

ndustry in tne first decade of the 21st century has accumulated S60 billion in losses and shed 160.000 jobs, according to the Air Transport Associatio

Ebook Management: Part 2 - David B. Balkin, Luis R. Gomez-Mejia

n, a Washington trade group. United and Continental each suffered losses for the past two years, and as borrowers they have both received poor credit

PART FOUR ORGANIZATION MANAGEMENTLearning Objectives1Identify the vertical and horizontal dimensions of organization structure.2Apply the three basic

Ebook Management: Part 2 - David B. Balkin, Luis R. Gomez-Mejias planes watt to take off and for landing slots to open up. Mergers are one way that airline executives can improve efficiency. The synergy of an airl

ine combining United and Continental could lead to improvements in254Managing the Structure and Design of Organizationsrevenue and COSTS, and give The Ebook Management: Part 2 - David B. Balkin, Luis R. Gomez-Mejia

airline better access TO credit and equity markers.I Ik? logistics 0Í running the merged airline can be expected to be enormously challenging. I he m

Ebook Management: Part 2 - David B. Balkin, Luis R. Gomez-Mejia

am fleets of the two earners consist of /00 aircraft. Continental flies only Boeing planes, while United flies both Boeing and Airbus planes. Hying pl

PART FOUR ORGANIZATION MANAGEMENTLearning Objectives1Identify the vertical and horizontal dimensions of organization structure.2Apply the three basic

Ebook Management: Part 2 - David B. Balkin, Luis R. Gomez-Mejiars amount to more than 88,000 employees. Other than the consolidation of administrative personnel, management does not plan to have large cuts in staf

f. Yet it still could face difficult negotiations with the unions that represent pilots, flight attendants, and maintenance workers which can create m Ebook Management: Part 2 - David B. Balkin, Luis R. Gomez-Mejia

ajor stumbling blocks to a successful merger.A key task in implementing a merger between airlines has been to synchronize work rules and consolidate u

Ebook Management: Part 2 - David B. Balkin, Luis R. Gomez-Mejia

nion seniority lists into a single worker roster. Since senioritydetermines which pilots gel to operate higher-paying aircraft assignments and better

PART FOUR ORGANIZATION MANAGEMENTLearning Objectives1Identify the vertical and horizontal dimensions of organization structure.2Apply the three basic

Ebook Management: Part 2 - David B. Balkin, Luis R. Gomez-Mejia for instance, continues to fail TO get workers to agree to unit ed contracts, five years after its merger with America West. Maintaining two sets of

work Hiles has kept US Airways from profiling from some of the planned economies of tills merger.I fie two chief executives of United and Continental Ebook Management: Part 2 - David B. Balkin, Luis R. Gomez-Mejia

Airlines claim that the combined carrier should benefit from savings of al least S1 billion a year and from substantial extra revenues once operationa

Ebook Management: Part 2 - David B. Balkin, Luis R. Gomez-Mejia

l integration is completed in 2013.Source.: *Love is in die Air: UAL and Continental Agree to Merge.' IholconomKr, May 8,2010, p 64; M Schlanqí-ntteln

PART FOUR ORGANIZATION MANAGEMENTLearning Objectives1Identify the vertical and horizontal dimensions of organization structure.2Apply the three basic

Ebook Management: Part 2 - David B. Balkin, Luis R. Gomez-Mejiaer ol United and Continental Makes Sense, but Can II Bring Back the Business of Flying? Ễíoomòe/g Bus/jessWee*. May 10-16. 2010. pp. 7-8: J. Mouawad a

nd M. de la Merced, "United and c nntinmtal said to Merge." Ihf Nfw York rrrwi. May 2, 2010 WWW nytlmes com/2010/05/ ẠlỉmcrqerhtmlCRITICAL THINKING QU Ebook Management: Part 2 - David B. Balkin, Luis R. Gomez-Mejia

ESTIONS1What changes in the structure of the organization formed by the two combined airlines are related to the reasons for the merger?2Which coordin

Ebook Management: Part 2 - David B. Balkin, Luis R. Gomez-Mejia

ation mechanisms will be useful to align the units of the merged companies into a more coherent and unified organization?255256 PART 4 • ORGANIZATION

PART FOUR ORGANIZATION MANAGEMENTLearning Objectives1Identify the vertical and horizontal dimensions of organization structure.2Apply the three basic

Ebook Management: Part 2 - David B. Balkin, Luis R. Gomez-Mejiaical fashion In these organizations, employees are exported to respect and follow tl»e chain of command, dial 6, the directives of top managers. Other

organizations are less hierarchical and permit individuals in the lower ranks to initiate and implement ideas witlwut the approval of then bosses.•Ur Ebook Management: Part 2 - David B. Balkin, Luis R. Gomez-Mejia

rdaslưndưtg die dưtteiisrans of organisation structure. Some of the factors that affect the design of an organization include Size (large or small), e

Ebook Management: Part 2 - David B. Balkin, Luis R. Gomez-Mejia

mphasis on teams or individuals, degree of change in the work environment, and broad versus narrow spans of supervisory control By understanding the k

PART FOUR ORGANIZATION MANAGEMENTLearning Objectives1Identify the vertical and horizontal dimensions of organization structure.2Apply the three basic

Ebook Management: Part 2 - David B. Balkin, Luis R. Gomez-Mejiament in which you can make your most valuable contributions.organizingI he managomrnt function that determines flow die lirrnS resources are arranged

and coordinated; Hie deployment of resources to achieve strategic guab.Al the end of the chapter in uur Concluding Thoughts. we will revisit the criti Ebook Management: Part 2 - David B. Balkin, Luis R. Gomez-Mejia

cal thinking ques lions regarding the decision to merge United and Continental Airlines.Many strategies and key business decisions have profound effec

Ebook Management: Part 2 - David B. Balkin, Luis R. Gomez-Mejia

ts on the structures and designs of various organizations. A change in strategic direction due to a merger or acquisition or a change in competitive s

PART FOUR ORGANIZATION MANAGEMENTLearning Objectives1Identify the vertical and horizontal dimensions of organization structure.2Apply the three basic

Ebook Management: Part 2 - David B. Balkin, Luis R. Gomez-Mejia and is reflected in: (I) the organization's division of labor that forms jobs and departments. (2) formal lines of authority, and (3) the mechanisms

used for coordinating diverse jobs and roles in the organization.Organizing follows the formulation of strategy. While strategy indicates what needs t Ebook Management: Part 2 - David B. Balkin, Luis R. Gomez-Mejia

o be done, organizing shows haw to do it. This chapter begins by examining the vertical and horizontal dimensions of organization structure. Il then e

Ebook Management: Part 2 - David B. Balkin, Luis R. Gomez-Mejia

xamines ways to coordinate organizational units so that they move in the same direction toward meeting organization goals. Finally, it identifies diff

PART FOUR ORGANIZATION MANAGEMENTLearning Objectives1Identify the vertical and horizontal dimensions of organization structure.2Apply the three basic

PART FOUR ORGANIZATION MANAGEMENTLearning Objectives1Identify the vertical and horizontal dimensions of organization structure.2Apply the three basic

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