8-1. business in a changing world mcgraw-hill/irwin copyright © 2009 by the mcgraw-hill companies,...
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8-1
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
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