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Chapter Eight

Chapter Eight. Organization, Teamwork, and Communication. Issues in Developing an Organization. The Right Structure Necessary Areas of Specialization Degree of Departmentalization. Specialization. Dividing labor into small, specific tasks and assigning employees to do a single task.

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Chapter Eight

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  1. Chapter Eight Organization,Teamwork, and Communication

  2. Issues in Developing an Organization • The Right Structure • Necessary Areas of Specialization • Degree of Departmentalization

  3. Specialization • Dividing labor into small, specific tasks and assigning employees to do a single task.

  4. Departmentalization The grouping of jobs into working units Types: • Functional Departmentalization • Product Departmentalization • Geographical Departmentalization • Customer Departmentalization

  5. President ProductionDepartment MarketingDepartment FinanceDepartment DistributionDepartment Research andDevelopmentDepartment Functional Departmentalization

  6. President Computer Electronics Division Consumer Tele- communications Equipment Division Industrial Tele- communications Equipment Division Stereo Equipment Division Product Departmentalization

  7. PresidentInternationalOperations European Division Latin American Division Middle East Division Pacific Rim Division Geographical Departmentalization

  8. ProductManager ConsumerFoods IndustrialFoods Customer Departmentalization

  9. Strong, clearly focused leader Individual accountability The same purpose as the broader organizational mission Creates individual work products Runs efficient meetings Measures its effectiveness indirectly by its effects on others (e.g., financial performance of the business Discusses, decides, and delegates Shared leadership roles Individual and group accountability A specific purpose that the team itself delivers Creates collective work products Encourages open-ended discussion and active problem-solving meetings Measures performance directly by assessing collective work products Discusses, decides, and does real work together The Differences BetweenGroups and Teams Working Group Team Source: Robert Gatewood, Robert Taylor, O.C. Ferrell, Management: Comprehension, Analysis, and Application (Homewood, IL: Austen Press, 1995), 427.

  10. Types of Groups • Committee • Task Force • Project Team • Product-development team • Quality Assurance Team • Self-directed Work Team (SDWT)

  11. Virtual Teams • Employees’ Reactions To Virtual Work • 91% enjoyed the experience • 73% would like to engage in virtual work more frequently • 35% felt it enhanced their relationships with other employees Source: Darryl Haralson and Adrienne Lewis, “USA Today Snapshots,” USA Today, April 26, 2001, p. B1.

  12. Assigning Responsibility and Delegating Authority • Delegation of Authority • Assigning Responsibility • Employee Accountability

  13. Centralized Organizations Authority is concentrated at the top and very little decision-making authority is delegated to lower levels Decentralized Organizations Decision-making authority is delegated as far down the chain of command as possible Degree of Centralization

  14. Span of Management:Wide Span and Narrow Span Narrow Span: Tall Organization Wide Span: Flat Organization

  15. Span of Management:Organizational layers

  16. Forms of Organizational Structure • Line • Line-and-staff • Multidivisional • Matrix

  17. Owner Manager AssistantManager HourlyEmployee Line Structure Convenience Store

  18. Line relationship PlantManager Staff relationship Engineering HumanResources ProductionManager Supervisor Supervisor Supervisor Supervisor Employees Employees Employees Employees Line-and-Staff Structure

  19. CEO Walt DisneyAttractions Walt DisneyStudios ConsumerProducts MotionPictures TV Animation DisneyChannel WaltDisneyWorld MagicKingdomCA TokyoDisneyland Euro-Disney DisneyMusic SoftwareandEducation CatalogMarketing DisneyStores Licensing Publishing MagicKingdomFL EpcotCenter Disney-MGMStudios An Example of Multidivisional Structure: The Walt Disney Company Source: The Walt Disney Company Annual Report

  20. GeneralManager GeneralProjectManager FunctionalManager Functional Manager Functional Manager Functional Manager ManagerProject A ManagerProject B ManagerProject C The Matrix Structure

  21. CEO Upward Downward VicePresident VicePresident VicePresident Diagonal Diagonal Manager Manager Manager Manager Manager Manager Horizontal Horizontal The Flow of Communication in an Organizational Hierarchy Upward Downward Horizontal Diagonal

  22. Formal Communication • Upward communication flow • Downward communication flow • Horizontal communication flow • Diagonal communication flow

  23. Informal Communication • The informal organization • The grapevine

  24. Organizational Culture • The firm’s shared values, beliefs, traditions, philosophies, rules, and heroes. FAST FACT: Southwest Airlines employees are continually encouraged to have fun and make flying exciting for their passengers. New employees watch videotapes and attend training sessions on the company’s philosophies, policies, and culture.

  25. Solve the Dilemma • What techniques or skills should an employee have to assume a leadership role within a work group? • If each work group has a team representative, what problems will be faced in supervising these representatives? • Evaluate the pros and cons of the system developed by QS.

  26. Explore Your Career Options What is the main quality of employees who will be successful in their job? Explain how this quality is helpful in a small business and in a large company.

  27. Additional Discussion Questions and Exercises • Which organizational structure would be best in the following situations? Draw an organizational chart that would be appropriate for each of the situations. a. The owner of a real estate agency has opened an office with three real estate agents. The owner directs the agency. b. The real estate agency above has grown in the last five years. The business has grown in two different directions: residential and commercial. The owner still directs the real estate agency. He now has five agents handling commercial real estate details and 15 agents handling residential real estate details. He would like to appoint one of the agents to be manager of a commercial division and another agent to be manager of the residential division.

  28. Additional Discussion Questions and Exercises c. Another five years has elapsed. The same real estate agency has grown. Most of the business is still centered in two divisions: residential and commercial. The owner has now added a vice president to oversee the residential and commercial divisions. Also, the agency has added advertising and office management departments; the purpose of these staff departments is to provide advice and support to the residential and commercial divisions.

  29. Chapter 8 Quiz 1. Which of the following is most similar to the matrix structure? a. line structure b. functional structure c. line-and-staff structure d. ad hoc committee 2. Which of the following is commonly considered an example of informal organizational structure? a. grapevine b. organizational culture c. organizational chart d. employee handbook

  30. Chapter 8 Quiz 3. Compared with flat organizations, which of the following is most typical of tall organizations? a. The span of management is wide. b. The communication is faster. c. Administrative costs are usually higher. d. Fewer layers of management are needed to carry out operations. 4. The division of labor into small, specialized tasks and the assignment of single tasks to employees is called a. centralization. b. specialization. c. departmentalization. d. accountability.

  31. Multiple Choice Questions about the Video 1. Which of the following best describes Big Apple Bagel? a. decentralized b. centralized c. concentrical d. recentralized 2. St. Louis Bread Company introduced ________ in order to address the authority and task boundaries that occur with growth. a. dysfunctional and team-managed work groups b. functional and self-managed work teams c. cross-functional and self-managed work teams d. functional and team-managed work groups

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