Organizationand

Communication

Class 17

Tuesday 10/25/11

Organizational CultureOrganizational Culture

• Corporate culture– Shared values– Beliefs– Traditions– Philosophies– Rules– Role models for behavior

How is Corporate Culture Expressed?

Formally

Informally

How is Corporate Culture Expressed?How is Corporate Culture Expressed?

• Formally – Mission statement– Codes of ethics– Memos, manuals– Ceremonies

• Informally– Dress codes (or the

lack thereof)– Work habits– Extracurricular

activities– Water cooler

Developing Organizational Structure Developing Organizational Structure

• Structure is the arrangement or relationship of positions within an organization, and developed by:

– Assigning work tasks and activities to specific individuals or work groups

– Coordinating the diverse activities required to reach the firm’s objectives

• Organizational structure is depicted through organizational charts

WhatWhat’’s Assigned & Distributed?s Assigned & Distributed?

• Authority

• Responsibility

• Accountability

Assigning TasksAssigning Tasks

• Specialization– The division of labor into small, specialized

tasks and the assignment of single tasks to employees

• Departmentalization– Departmentalization is the grouping of jobs into

working units usually called departments, units, groups, or divisions

• Functional departmentalization

• Product departmentalization

• Geographical departmentalization

• Customer departmentalization

Span of ManagementSpan of Management

• The number of subordinates who report to a particular manager

– 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

Organizational LayersOrganizational Layers

• Organizational layers are the levels of management in an organization

– Flat organizations have few layers and have wide spans of management

– Tall organizations have many layers and have narrow spans of management

Span of Management: Wide SpanSpan of Management: Wide Spanand Narrow Spanand Narrow Span

Forms of Organizational StructureForms of Organizational Structure

• Line• Line-and-staff• Multidivisional• Matrix

An Example of Multidivisional Structure: An Example of Multidivisional Structure: The Walt Disney CompanyThe Walt Disney Company

Source: The Walt Disney Company Annual Report

Walt DisneyWalt DisneyAttractionsAttractionsWalt DisneyWalt DisneyAttractionsAttractions

MotionMotionPicturesPicturesMotionMotion

PicturesPictures TVTVTVTV AnimationAnimationAnimationAnimation DisneyDisneyChannelChannelDisneyDisney

ChannelChannel

DisneyDisneyStoresStoresDisneyDisneyStoresStores

SoftwareSoftwareandand

EducationEducation

SoftwareSoftwareandand

EducationEducation

CatalogCatalogMarketingMarketingCatalogCatalog

MarketingMarketing

MagicMagicKingdomKingdom

FLFL

MagicMagicKingdomKingdom

FLFL

Disney-Disney-MGMMGM

StudiosStudios

Disney-Disney-MGMMGM

StudiosStudios

Walt DisneyWalt DisneyStudiosStudios

Walt DisneyWalt DisneyStudiosStudios

MagicMagicKingdomKingdom

CACA

MagicMagicKingdomKingdom

CACA

TokyoTokyoDisneylandDisneyland

TokyoTokyoDisneylandDisneyland

Euro-Euro-DisneyDisneyEuro-Euro-

DisneyDisney

WaltWaltDisneyDisneyWorldWorld

WaltWaltDisneyDisneyWorldWorld

ConsumerConsumerProductsProducts

ConsumerConsumerProductsProducts

LicensingLicensingLicensingLicensing PublishingPublishingPublishingPublishing DisneyDisneyMusicMusic

DisneyDisneyMusicMusic

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CEOCEOCEOCEO

The Role of Groups and Teams in The Role of Groups and Teams in OrganizationsOrganizations

• A group – Two or more individuals who communicate

with one another, share a common identity, and have a common goal

• A team – A small group whose members have

complementary skills; a common purpose, goals, and approach; and who hold themselves mutually accountable

Characteristics of TeamsCharacteristics of Teams

• Teams are accountable for achieving specific common goals

• Teams function interdependently• Teams are stable• Teams have authority

What Makes Teams Effective?What Makes Teams Effective?

• Reliance on one another• Trust among team members• Team members work better together than

separately• Team members become boosters• Members derive satisfaction from being on

the team• Leadership rotates – teams function

effectively when leadership responsibility is shared over time

Why Teams Fail – Obstacles to SuccessWhy Teams Fail – Obstacles to Success

• Unwillingness to cooperate – members don’t commit to a common goal or set of activities

• Lack of Managerial Support• Failure of managers to delegate authority• Failure of teams to cooperate – a company really

is a team-based organization and requires cooperation among teams to achieve stated goals

Flow of Formal Communication in an Flow of Formal Communication in an Organization Organization

• Communication flow– Upward – Downward – Horizontal – Diagonal

The Flow of Communication in an The Flow of Communication in an Organizational HierarchyOrganizational Hierarchy

Informal CommunicationInformal Communication

• The informal organization– Friendships and other nonwork social

relationships

• The most significant informal communication occurs through the grapevine

• May relate to the job or organization• May be gossip and rumors unrelated to either

Protocol for Handling Issues Protocol for Handling Issues

• Peer with a Peer• Subordinate with a Supervisor• Supervisor with a Subordinate