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CHAPTER 7 Organization, Teamwork, and Communication PART 3 CHAPTER 6 The Nature of Management CHAPTER 7 Organization, Teamwork, and Communication CHAPTER 8 Managing Service and Manufacturing Operations 7-2

Organizational Culture A firm’s shared values, beliefs, traditions, philosophies, rules and role models for behavior (aka corporate culture) Ensures that organizational members: Share values Observe common rules Share problem solving approaches 7-3

Organizational Culture Formal expression Mission statement Code of ethics Manuals Ceremonies Memoranda 7-4

Organizational Culture Informal Expression Dress code (or lack of one) Work habits Extracurricular activities 7-5

Organizational Culture Helps ensure that all members of a company share values Suggests rules for how to behave and deal with problems Has a significant impact on performance and employee retention Sets a positive tone for decision making and building efficient organizational structure 7-6

Organizational Culture Higher Grounds Trading Company Mission to provide quality coffee products and support small organic growers who lead in sustainability and environmental preservation Encourages employees and community members to interact with growers in the field Infrastructure and sustainability projects around the world 7-7

Organizational Structure Is the arrangement or relationship of positions within an organization Structure develops as: Managers assign work tasks to individuals and groups Coordination of diverse activities to attain objectives 7-8

Organizational Structure Impacts: Decision making Costs & efficiencies Overall success and sustainability Employee unity Understanding of how to deal with problems 7-9

Organizational Charts Visual displays of the organizational structure, lines of authority, staff relationships, permanent committee arrangements and lines of communication 7-10

Organizational Charts 7-11

Assigning Tasks Specialization Why specialize? Managers divide the labor into small, specific tasks and assign employees individual tasks to accomplish Why specialize? Efficiency Ease of training Activities too numerous for one person 7-12

Risks of Overspecialization Employees become bored Job dissatisfaction Poor quality work Increased injuries Increased employee turnover 7-13

Departmentalization Grouping of jobs into working units (departments, units, groups, divisions) Functional departmentalization Product departmentalization Geographical departmentalization Customer departmentalization 7-14

Delegation of Authority Giving employees tasks and empowering them to make commitments, use resources and take action to carry out tasks 7-15

Responsibility Obligation placed on employees to perform assigned tasks and be held accountable for proper execution Accountability Employees who accept an assignment and the responsibility to complete it are answerable to a superior for work outcomes 7-16

Degree of Centralization Centralized Organizations Authority is concentrated at the top level Very little delegation to lower levels Decentralized Organizations Decision making authority is delegated as far down the chain of command as possible 7-17

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 7-18

Span of Management 7-19

Span of Management 7-20

Forms of Organizational Structure Line Structure Line-and-staff structure Multidivisional structure Matrix structure 7-21

Line Structure 7-22

Line-and-Staff Structure 7-23

Multidivisional Structure Organizes departments into larger groups called divisions Occurs as organizations grow larger and more diversified Divisions can be formed on the same bases as departments Customer Product Geography Delegation of authority and divisionalized work 7-24

Matrix Structure 7-25

Groups and Teams Group Team Two or more individuals who communicate with one another, share a common identity and have a common goal Team A small group whose members have complementary skills; have a common purpose, goals and approach; hold themselves mutually accountable 7-26

Groups versus Teams 7-27

Committees and Task Forces A permanent, formal group performing a specific task Task Force A temporary group responsible for a particular change activity 7-28

Teams Project Teams Product Development Teams Similar to task forces in that they have total control of a specific project Product Development Teams Formed to devise, design and implement a new product Quality Assurance Teams (Quality Circles) Brought together from throughout the organization to solve specific problems Self-directed Work Teams (SDWT) Responsible for an entire work process that delivers a product to a customer 7-29

Organizational Communications 7-30

Technology and Communication Technology has generated many alternatives to face-to-face communication Voice mail E-mail Online newsletters Videoconferencing Online meeting services 7-31

Formal Communication Flow of communication within the formal organizational structure as depicted on organizational charts. Upward communication Downward communication Horizontal communication Diagonal communication 7-32

Informal Communication Separate from management’s formal, official communication channels Also known as the Grapevine Managers can utilize informal communications as a sounding device 7-33

Monitoring Communications Technological advances and electronic communication have made monitoring communications at work necessary Managers must monitor communications: Without invading employee privacy While generating respect and mindfulness amongst employees 7-34