chapter eight organization, teamwork, and communication copyright © 2006 by the mcgraw-hill...
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Chapter EightChapter EightOrganization, Teamwork, and Communication
Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin
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Organizational Culture
Corporate cultureShared valuesBeliefsTraditionsPhilosophiesRulesRole models for behavior
Did You Know? 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.
Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved
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How is Corporate Culture Expressed?
Formally Mission statement
Codes of ethics
Memos, manuals
Ceremonies
InformallyDress codes (or the lack thereof)
Work habits
Extracurricular activities
Stories
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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
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Stages of Growth
The Evolution of a Clothing StorePhases 1, 2, and 3
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Two Aspects of Assigning Tasks
Specialization
Departmentalization
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Specialization
The division of labor into small, specialized tasks and the assignment of single tasks to employees
Efficiency
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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
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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 and Delegating Authority
Delegation of authority
Assigning responsibility
Employee accountability
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Degree of 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
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
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Span of Management: Wide Spanand Narrow Span
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Organizational 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
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Forms of Organizational Structure
Line
Line-and-staff
Multidivisional
Matrix
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Line Structure
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Line-and-Staff Structure
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An Example of Multidivisional Structure: The 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
EpcotEpcotCenterCenterEpcotEpcotCenterCenter
CEOCEOCEOCEO
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The Matrix Structure
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The Role of Groups and Teams in Organizations
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
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Differences Between Groupsand Teams
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Types of Groups
Committee
Task force
Project team
Product-development team
Quality assurance team
Self-directed work team (SDWT)
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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.
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The Flow of Communication in an Organizational Hierarchy
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Formal Communication
Communication flowUpward
Downward
Horizontal
Diagonal
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Informal Communication
The informal organizationFriendships 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
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Monitoring Communications
Monitoring the use of electronic communications in the workplace have become necessary for most companies
70 percent of attacks on corporate computer systems are conducted from inside the firm
Failing to monitor employee’s use of e-mail and the Internet can be costly
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Disciplinary Action for Misuse of Personal Use of Telecom Equipment
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Solve the Dilemma
1. What techniques or skills should an employee have to assume a leadership role within a work group?
2. If each work group has a team representative, what problems will be faced in supervising these representatives?
3. Evaluate the pros and cons of the system developed by QS.
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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.
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Additional Discussion Questions and Exercises
1. 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.
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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
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Chapter 8 Quiz
1. Which of the following is most similar to the matrix structure?
a. line structureb. functional structurec. line-and-staff structured. ad hoc committee
2. Which of the following is commonly considered an example of informal organizational structure?
a. Grapevineb. organizational culturec. organizational chartd. employee handbook
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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.
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Multiple Choice Questions about the Video
1. Colonel Lee Van Arsdale’s Institute for Security Studies is based in
a. Las Vegas.b. Los Angeles.c. Los Alamos.d. Washington D.C.
2. Colonel Lee Van Arsdale served as technical advisor on teamwork and other issues on the film
a. Three Kings.b. Top Gun.c. Black Hawk Down.d. White Owl Down.