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6. Organizational Structure and Communication. Introduction . Organization structure determines who works together It is the way managers design their firms to achieve their organization’s mission and goals Organizational communication flows through its structure, which affects: behavior

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6

Organizational Structure andCommunication


Introduction
Introduction

  • Organization structure determines who works together

    • It is the way managers design their firms to achieve their organization’s mission and goals

  • Organizational communication flows through its structure, which affects:

    • behavior

    • human relations

    • performance


The transition from an economy based on materials to an economy based on flows of information has created considerable challenges for organizational structure, and communication.


Principles of organization 1 of 3
Principles of Organization economy based on flows of information has created considerable challenges for organizational structure, and communication.(1 of 3)

  • Division of Labor and Departmentalization

    • Division of labor, or work specialization – refers to the degree to which tasks are subdivided into separate jobs

    • Departmentalization – grouping of related activities into units

  • Chain of Command

    • line of authority from the top to the bottom of the organization, which is shown in an organization chart


Principles of organization 2 of 3
Principles of Organization economy based on flows of information has created considerable challenges for organizational structure, and communication.(2 of 3)

  • Span of Management

    • refers to number of employees reporting to a manager

  • Centralized and Decentralized Authority

    • With centralized authority, top managers make important decisions

    • With decentralized authority, middle and first-line managers make important decisions where the action is


Principles of organization 3 of 3
Principles of Organization economy based on flows of information has created considerable challenges for organizational structure, and communication.(3 of 3)

  • Coordination

    • With the division of labor and departmentalization comes the need to coordinate the work of all departments



Formal organization structure

President Structure:

Vice President

Production

Vice President

Finance

Vice President

Marketing

Manager

A

Manager

B

Manager

C

Manager

D

Manager

E

Manager

F

Manager

G

Manager

H

Manager

I

Formal Organization Structure

Vertical downward communication

Vertical upward communication

Exhibit 6.2


Informal organization structure
Informal Organization Structure Structure:

President

Horizontal communication networks

Vice President

Production

Vice President

Finance

Vice President

Marketing

Manager

A

Manager

B

Manager

C

Manager

D

Manager

E

Manager

F

Manager

G

Manager

H

Exhibit 6.2


Common types of departmentalization 1 of 4

Functional Structure:

Customer

Product

Matrix

Territory

Divisional

Common Types of Departmentalization (1 of 4)


Common types of departmentalization 2 of 4
Common Types of Departmentalization Structure:(2 of 4)

  • Functional Departmentalization

    • involves organizing departments around essential input activities, such as:

      • production and operations

      • finance and accounting

      • marketing and sales

      • human resources

  • Product (Service) Departmentalization

    • involves organizing departments around goods and services provided


Common types of departmentalization 3 of 4
Common Types of Departmentalization Structure:(3 of 4)

  • Customer Departmentalization

    • involves organizing departments around the needs of different types of customers with unique needs calling for different sales staffs and products

  • Divisional Departmentalization (M-Form)

    • the firm develops independent lines of business that operate as separate companies, all contributing to the corporation profitability

  • Territory (Geographic) Departmentalization

    • involves organizing departments in each area in which the enterprise does business


Common types of departmentalization 4 of 4
Common Types of Departmentalization Structure:(4 of 4)

  • Matrix Departmentalization

    • combines the functional and product departmental structures

  • Combination

    • many large companies have more than one form of departmentalization


Contemporary organization design

Team Organizations Structure:

and

Reengineering

Learning

Organizations

E-Organizations

Boundaryless

Organizations

Virtual

Organizations

Contemporary Organization Design


American and japanese organization structures
American and Japanese Organization Structures Structure:

  • Division of labor tends to be a bit less specialized in Japan

  • Both countries use the same types of departmentalization

  • American organizations tend to be quicker to hire, lay off, and to change jobs than the Japanese


Organizational communication
Organizational Communication Structure:

  • Organizational communication – the compounded interpersonal communication process across an organization

  • Communication flows in an organization are:

    • Vertical

    • Horizontal

  • Grapevine (multidirectional)


Vertical and horizontal communication
Vertical and Horizontal Communication Structure:

Vertical Communication

  • The flow of information both up and down the chain of command

  • Formal communication

  • Recognized as official

  • Status and power are not equal among participants in vertical communication

  • Horizontal Communication

  • The flow of information between colleagues and peers

  • Informal communication

  • Does not follow the chain of command

  • Not recognized as official


Grapevine communication
Grapevine Communication Structure:

  • Grapevine – the informal vehicle through which messages flow throughout the organization

  • “When the grapevine allows employees to know about a management decision almost before it is made, management must be doing something right.”


Communication networks
Communication Networks Structure:

  • Communication networks – sets of employees who have stable contact through which information is generated and transmitted

  • Two major types of communication networks:

  • 1. within organizations

  • 2. within departments and small groups


Message transmission channels
Message Transmission Channels Structure:

Oral Communication

Written Communication

Nonverbal Communication


Oral communication media

Telephone Structure:

Face-to-Face

Presentations

Meetings

Oral Communication Media


Written communication 1 of 2
Written Communication Structure:(1 of 2)

  • With increased use of e-mail, managers substitute face-to-face communication with e-mail

  • Communication Objective Guidelines

    • Memos

    • Letters

    • Reports

    • Bulletin board notices

    • Posters

    • Computers/e-mail

    • Fax


Written communication 2 of 2
Written Communication Structure:(2 of 2)

  • Writing skills

    • Grammar – rules for use of the eight parts of speech

    • To simplify grammar, we use subjects, predicates, modifiers, and connectives


Nonverbal communication

Vocal Structure:

Qualities

Facial

Expressions

Posture

Gestures

Nonverbal Communication


Emotions 1 of 2
Emotions Structure:(1 of 2)

  • Emotional labor – requires the expression of desired emotions during interpersonal relations

  • Universal emotions:

    • happiness

    • surprise

    • fear

    • sadness

    • anger

    • disgust


Emotions 2 of 2
Emotions Structure:(2 of 2)

  • Understanding Feelings

    • Feelings are subjective – they tell you people’s attitudes and needs

    • Feelings are usually disguised as factual statements

    • Feelings are neither right nor wrong but behavior is

  • Gender Differences

  • Global Differences


Dealing with emotional employees
Dealing with Emotional Employees Structure:

  • Calming the emotional person

  • Use reflecting responses


Criticism
Criticism Structure:

Getting Criticism

Giving Criticism


Guidelines for giving effective criticism
Guidelines for Giving Effective Criticism Structure:

  • Give more praise than criticism

  • Criticize immediately

  • Criticism should be performance oriented

  • Give specific and accurate criticism

  • Open on a positive note and close by repeating what action is needed


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