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Business in aChanging World

McGraw-Hill/Irwin Copyright © 2009 by the McGraw-Hill Companies, Inc. All rights reserved.

Chapter 8Organization, Teamwork, and Communication

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PetConnection.com

An organization based on blogging providing a unique competitive advantage.

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Organization, Teamwork, & Communication

Structure Impacts:•Decision making•Costs & efficiencies•Overall success and sustainability

Importance of Organizational Structure

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A firm’s shared values, beliefs, traditions, philosophies, rules, and role models for behavior.

Organizational Culture

Organization, Teamwork, & Communication

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Organizational Culture – •Formal expression•Informal expression

Organization, Teamwork, & Communication

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Organizational Culture – •Formal expression•Mission statement•Code of ethics•Manuals•Ceremonies•memoranda

Organization, Teamwork, & Communication

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Organizational Culture – •Informal Expression•Dress code•Work habits•Extracurricular activities•Stories

Organization, Teamwork, & Communication

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Organization, Teamwork & Communication

Ensures that organizational members:•share values•observe common rules•share problem solving approaches

Organizational Culture – satisfying the needs & expectations of stakeholders

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Organization, Teamwork & Communication

The most important drivers of innovation in companies.

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Organization, Teamwork & Communication

Organizational Structure – The arrangement or relationship of positions within an organization.

Developing Organizational Structure

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Organization, Teamwork & Communication

Structure Develops –•Managers assign work tasks to individuals & groups•Coordination of diverse activities to attain objectives

Developing Organizational Structure

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Organization, Teamwork & Communication

What the Organizational Chart Shows –•Organizational structure•Chain of command (lines of authority)•Other relationships (staff, committees, etc.)•Lines of communication

Organizational Chart

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Organizational Structure

The Evolution of a Clothing StorePhases 1, 2, and 3

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Organization, Teamwork & Communication

What does organizational growth require?•Structuring of resources (human, physical, financial)•Hiring specialized talent & skills•Formalized structure (as workforce & specialization grows)•Assign work tasks to individuals & departments•Assign responsibility for organizational objectives

Organizational Growth

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Purchase herbs from suppliersDry the herbsPlace in tea bagsPackage and label tea bagsShip packages to retail outlets

Celestial Seasonings – Determining activities required to meet objectives

Assigning Tasks – Organizational Structure

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Assigning Tasks

Managers divide the labor into small, specific tasks and assign to employees to accomplish individual tasks.

Specialization

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Assigning Tasks

•Efficiency•Ease of training•Activities too numerous

Why Specialize?

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Assigning Tasks

•Employees become bored•Job dissatisfaction•Poor quality work•Increased injuries•Increased employee turnover

Overspecialization

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Organizational Structure –Assigning Tasks

Grouping of jobs into working units (departments, units, groups, divisions)

Departmentalization

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Assigning Tasks – Organizational Structure

Departmentalization is the grouping of jobs into working units usually called departments, units, groups, or divisions.•Functional departmentalization

•Product departmentalization

•Geographical departmentalization

•Customer departmentalization

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Retailing & Wholesaling

Selling directly to the consumer

• Music stores• Sporting-goods shops• Dry cleaners• Boutiques• Drugstores• Restaurants• Hardware stores

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Functional Departmentalization

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Product Departmentalization

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Geographical Departmentalization

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Customer Departmentalization

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Assigning Responsibility

•Delegation of authority•Assigning responsibility•Employee accountability

Delegation creates a responsibility

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Assigning Responsibility

Giving employees tasks and power to make commitments, use resources, and take action to carry out tasks.

Delegation of Authority

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Assigning Responsibility

Obligation placed on employees to perform assigned tasks and be held accountable for proper execution.

Responsibility

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Assigning Responsibility

Employees are answerable to a superior for work outcomes.

Accountability

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Centralization

Centralized organizations•Authority is concentrated at the top level.

Decentralized organizations•Decision-making authority is delegated as far down the chain of command as possible.

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Span of Management

Span of Management – the number of subordinates who report to a particular manager.

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Span of Management

•A wide span of management exists when a manager directly supervises a very large number of employees.

•A narrow span of management exists when a manager directly supervises only a few subordinates.

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Advantages of Small Business Ownership

•Costs•Flexibility•Focus•Reputation

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Span of Management – Organizational layers

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Span of Management – Organizational layers

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Forms of Organizational Structure

Line StructureLine-and-staff structureMultidivisional structureMatrix structure

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Forms of Organizational Structure

Line Structure – Convenience Store as an example

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Forms of Organizational Structure

Line-and-staff Structure

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Forms of Organizational Structure

Matrix Structure

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Groups & Teams in Organizations

Group – two or more individuals who communicate with one another, share a common identity, and have a common goal

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Groups & Teams in Organizations

Team – a small group whose members have complementary skills, have a common purposes, goals, and approach; hold themselves mutually accountable.

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Groups & Teams

Differences between Groups & Teams

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Groups & Teams

Committee – permanent, formal group performing a specific task.

Task force – temporary group responsible for a particular change activity

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Groups & Teams

Teams•Project teams•Product development teams•Quality assurance teams (quality circles)•Self-directed work teams (SDWT)

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Communications in Organizations

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Communications in Organizations

Formal Communication – flow of communication within the formal organizational structure as depicted on organizational charts.

•Upward communication•Downward communication•Horizontal communication•Diagonal communication

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Communications in Organizations

Informal Communication – separate from management’s formal, official communication channels.

•Grapevine