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Organization and Teamwork

Chapter 8

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Chapter 8 Objectives

After studying this chapter, you will be able to:

• Explain the major decisions needed to design an organization structure.

• Define the four major types of organization structure.

• Explain how a team differs from a group and describe the six most common forms of teams.

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Chapter 8 Objectives Cont.

• Highlight the advantages and disadvantages of working in teams and list the characteristics of effective teams.

• Review the five stages of team development and explain why conflict can arise in team settings.

• Explain the concept of an unstructured organization and identify the major benefits and challenges of taking this approach

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Effective Organizational Structure

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CoordinateCoordinateand Control Workand Control Work

CoordinateCoordinateand Control Workand Control Work

DivideDivideResponsibilitiesResponsibilities

DivideDivideResponsibilitiesResponsibilities

PromotePromoteAccountabilityAccountability

PromotePromoteAccountabilityAccountability

DistributeDistributeAuthorityAuthority

DistributeDistributeAuthorityAuthority

Organization Structure: A framework that enables managers to divide responsibilities, ensure employee accountability, and distribute the decision-making authority

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Organizational Chart

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Organization Chart:A diagram that shows how employees and tasks are grouped and where the lines of communication and authority flow.

Agile Organization: A company whose structure, policies, and capabilities allow employees to respond quickly to customer needs and changes in the business environment.

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Work Specialization

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AdvantagesAdvantagesAdvantagesAdvantages DisadvantagesDisadvantagesDisadvantagesDisadvantages

EfficiencyEfficiencyEfficiencyEfficiency BoredomBoredomBoredomBoredom

ProductivityProductivityProductivityProductivity AlienationAlienationAlienationAlienation

Work Specialization: Specialization in or responsibility for some portion of an organization’s overall work tasks. Also called division of labor.

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Chain of Command

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ResponsibilityResponsibility

AccountabilityAccountability

AuthorityAuthority

DelegationDelegation

Chain of Command: A pathway for the flow of authority from one management level to the next.

Line and Staff

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PresidentPresident

VPProduction

VPProduction

VP Marketing

VP Marketing

VPFinance

VPFinance

Legal Department

Legal Department

Human Resources Department

Human Resources Department

Head of Accounting Department

Head of Accounting Department

National Sales

Manager

National Sales

Manager

LineLine

StaffStaff

Line Organization: A chain of command system that establishes a clear line of authority flowing from the top down.

Line-and-Staff Organization: An organization system that has a clear chain of command but that also includes functional groups of people who provide advice and specialized services.

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Span of Management

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Flat Structure

Tall Structure

Span of Management: The number of people under one manager’s control. Also known as span of control.

Tall Organization

Flat Organization

Decision-Making Authority

Decentralized Decentralized CentralizedCentralized

Top-LevelTop-LevelManagementManagement

Rich Rich ExperienceExperience

BroadBroadVisionVision

Lower-LevelLower-LevelManagementManagement

MoreMoreResponsiveResponsive

FasterFasterDecisionsDecisions

Centralization: Concentration of decision-making authority at the top of an organization

Decentralization: Delegation of decision-making authority to employees in lower-level positions

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Organizing the Workforce

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DepartmentalizationDepartmentalizationDepartmentalizationDepartmentalization

DivisionDivisionDivisionDivisionFunctionFunctionFunctionFunction

NetworkNetworkNetworkNetwork MatrixMatrixMatrixMatrix

HybridHybridHybridHybrid

Departmentalization: Grouping people within an organization according to function, division, matrix, or network.

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Functional Structures

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Job SkillsJob Skills

Resource UseResource Use

Job Requirements

Job Requirements

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Functional Structure

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Functional Structure

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AdvantagesAdvantages DisadvantagesDisadvantages

•Resource Allocation

•Unified Direction

•Improved Coordination

•Better Communication

•Departmental Barriers

•Slow Response Time

•Ineffective Planning

•Over Specialization

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Divisional Structure

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Product Division Structure

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Customer Division Structure

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Geographic Division Structure

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Matrix Structure

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Network Structure

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AdvantagesAdvantages DisadvantagesDisadvantages

Lower costsLower costs

Increased flexibility

Increased flexibility

Increased competitiveness

Increased competitiveness

Lacks hands-on controlLacks hands-on control

Vulnerable to suppliersVulnerable to suppliers

Lack of competitive distinction

Lack of competitive distinction

Network Structure: A structure in which individual companies are connected electronically to perform selected tasks for a small headquarters organization. Also called virtual organization.

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Hybrid Structure

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Shared Information

Neutral

Individual

Random or Varied

Goal

Synergy

Responsibility

Skills

Shared Mission

Positive

Individual and Mutual

Complementary

Work GroupsWork Groups Work TeamsWork Teams

Comparing Work Groups and Work Teams

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Problem Solving

Problem Solving

Self-ManagedSelf-Managed

FunctionalFunctional

CrossFunctional

CrossFunctional

Organizing in Teams

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VirtualVirtual

Social NetworksSocial Networks

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Organizing in Teams

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A problem-solving team is assembled to find ways of improving quality, efficiency, or other performance issues.

Self-managed teams manage their own activities. Team members are responsible for an entire process or operation and require minimum supervision.

Functional teams, or command teams, are organized along the lines of the organization’s vertical structure and thus may be referred to as vertical teams. They are composed of managers and employees within a single functional department.

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Organizing in Teams

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A cross-functional team, or horizontal team, draws together employees from various functional areas and expertise.

Virtual teams are groups of physically dispersed members who communicate electronically.

Social networking technologies are redefining teamwork and team communication by helping erase the constraints of geographic and organization boundaries.

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Working in Teams

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AdvantagesAdvantages

Higher-quality decisionsHigher-quality decisions

Increased commitmentIncreased commitment

Lower levels of stressLower levels of stress

Improved flexibilityImproved flexibility

DisadvantagesDisadvantages

InefficiencyInefficiency

GroupthinkGroupthink

Diminished motivationDiminished motivation

Structural disruptionStructural disruption

Excessive workloadsExcessive workloads

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Characteristics of Effective Teams

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• Clear sense of purpose

• Open and honest communication

• Creative thinking

• Accountability

• Focus

• Decision by consensus

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Team Development

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Team Development

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• Cohesiveness A measure of how

committed team members are to their team’s goals

• Norms Informal standards

of conduct that guide team behavior

Team Conflict

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Constructive Conflict: Brings important issues into the open, increases the involvement of team members, and generates creative ideas for solving a problem

Destructive Conflict:Diverts energy from more important issues, destroys the morale of teams or individual team members, or polarizes or divides the team

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Causes of Team Conflict

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ScarceScarceResourcesResources

ResponsibilityResponsibilityIssuesIssues

PoorPoorCommunicationCommunication

PersonalityPersonalityDifferencesDifferences

PowerPowerStrugglesStruggles

IncompatibleIncompatibleGoalsGoals

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Solutions to Team Conflict

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Managing an Unstructured Organization

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Unstructured Organization: An organization that doesn’t have a conventional structure but instead assembles talent as needed from the open market; the virtual and networked organizational concepts taken to the extreme

Benefits and Challenges of Unstructured Organizations

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Benefits and Challenges of Unstructured Organizations

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Applying What You’ve Learned

1. Explain the major decisions needed to design an organization structure

2. Define four major types of organization structure

3. Explain how a team differs from a group and describe the six most common forms of teams

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Applying What You’ve Learned

4. Highlight the advantages and disadvantages of working in teams and list the characteristics of effective teams

5. Review the five stages of team development and explain why conflict can arise in team settings

6. Explain the concept of an unstructured organization and identify the major benefits and challenges of taking this approach

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