Chapter Eight Organization, Teamwork, and Communication

Chapter EightOrganization,Teamwork, and CommunicationIssues in Developing an OrganizationThe Right StructureNecessary Areas of SpecializationDegree of DepartmentalizationSpecializationDividing labor into small, specific tasks and assigning employees to do a single task.Departmentalization Types:Functional DepartmentalizationProduct DepartmentalizationGeographical DepartmentalizationCustomer DepartmentalizationThe grouping of jobs into working unitsFunctional DepartmentalizationPresidentDistributionDepartmentFinanceDepartmentMarketingDepartmentResearch andDevelopmentDepartmentProductionDepartmentProduct DepartmentalizationPresident Consumer Tele- communications Equipment Division Computer Electronics Division Industrial Tele- communications Equipment Division Stereo Equipment DivisionGeographical Departmentalization Latin American Division European Division Middle East Division Pacific Rim DivisionPresidentInternationalOperationsCustomer DepartmentalizationIndustrialFoodsConsumerFoodsProductManagerThe Differences BetweenGroups and TeamsStrong, clearly focused leaderIndividual accountabilityThe same purpose as the broader organizational missionCreates individual work productsRuns efficient meetingsMeasures its effectiveness indirectly by its effects on others (e.g., financial performance of the businessDiscusses, decides, and delegatesShared leadership rolesIndividual and group accountabilityA specific purpose that the team itself deliversCreates collective work productsEncourages open-ended discussion and active problem-solving meetingsMeasures performance directly by assessing collective work productsDiscusses, decides, and does real work togetherSource: Robert Gatewood, Robert Taylor, O.C. Ferrell, Management: Comprehension, Analysis, and Application (Homewood, IL: Austen Press, 1995), 427.Working GroupTeamTypes of GroupsCommitteeTask ForceProject TeamProduct-development teamQuality Assurance TeamSelf-directed Work Team (SDWT)Virtual TeamsEmployees’ Reactions To Virtual Work91% enjoyed the experience73% would like to engage in virtual work more frequently35% felt it enhanced their relationships with other employeesSource: Darryl Haralson and Adrienne Lewis, “USA Today Snapshots,” USA Today, April 26, 2001, p. B1.Assigning Responsibility and Delegating AuthorityDelegation of AuthorityAssigning ResponsibilityEmployee AccountabilityDegree of CentralizationCentralized OrganizationsAuthority is concentrated at the top and very little decision-making authority is delegated to lower levelsDecentralized OrganizationsDecision-making authority is delegated as far down the chain of command as possibleSpan of Management:Wide Span and Narrow SpanWide Span: Flat OrganizationNarrow Span: Tall OrganizationSpan of Management:Organizational layersForms of Organizational StructureLineLine-and-staffMultidivisionalMatrixLine StructureOwnerManagerAssistantManagerHourlyEmployeeConvenience StoreLine-and-Staff StructurePlantManagerEngineeringHumanResourcesProductionManagerSupervisorSupervisorSupervisorSupervisorEmployeesEmployeesEmployeesEmployeesLine relationshipStaff relationshipAn Example of Multidivisional Structure: The Walt Disney CompanySource: The Walt Disney Company Annual ReportCEOWalt DisneyAttractionsWalt DisneyStudiosConsumerProductsMotionPicturesTVAnimationDisneyChannelMagicKingdomCATokyoDisneylandEuro-DisneyWaltDisneyWorldDisneyStoresLicensingPublishingDisneyMusicSoftwareandEducationCatalogMarketingMagicKingdomFLEpcotCenterDisney-MGMStudiosThe Matrix StructureGeneralManagerFunctional ManagerFunctionalManagerFunctional ManagerFunctional ManagerGeneralProjectManagerManagerProject AManagerProject BManagerProject CThe Flow of Communication in an Organizational HierarchyCEOVicePresidentVicePresidentVicePresidentManagerManagerManagerManagerManagerManagerUpwardDownwardHorizontalHorizontalDiagonalDiagonalUpwardDownwardHorizontalDiagonalFormal CommunicationUpward communication flowDownward communication flowHorizontal communication flowDiagonal communication flowInformal CommunicationThe informal organizationThe grapevineOrganizational CultureThe 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.Solve the DilemmaWhat 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.Explore Your Career OptionsWhat 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.Additional Discussion Questions and ExercisesWhich 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.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.Chapter 8 Quiz1. 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 committee2. Which of the following is commonly considered an example of informal organizational structure? a. grapevine b. organizational culture c. organizational chart d. employee handbookChapter 8 Quiz3. 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.Multiple Choice Questions about the Video1. Which of the following best describes Big Apple Bagel? a. decentralized b. centralized c. concentrical d. recentralized2. 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