1. ©2007 Prentice Hall 13-1 Organization, Teamwork, and Motivation Chapter 13

2. Chapter 13 Objectives After studying this chapter, you will be able to: Discuss the function of a company’s organization structure Explain the concepts of accountability, authority, and delegation Define five major types of organization structure Highlight the advantages and disadvantages of working in teams List the characteristics of effective teams ©2007 Prentice Hall 13-2

3. Chapter 13 Objectives, cont. Review the five stages of team development and highlight six causes of team conflict Compare Maslow’s hierarchy of needs and Herzberg’s two-factor theory, then explain their application to employee motivation Explain why expectancy theory is considered by some to be the best description of employee behavior ©2007 Prentice Hall 13-3

4. Effective Organizational Structure ©2007 Prentice Hall 13-4 Coordinate and Control Work Coordinate DivideResponsibilitiesDivideResponsibilities PromoteAccountabilityPromoteAccountability DistributeAuthorityDistributeAuthority

5. Organizational Chart ©2007 Prentice Hall 13-5

6. Work Specialization ©2007 Prentice Hall 13-6 AdvantagesAdvantagesDisadvantagesDisadvantages EfficiencyEfficiencyBoredomBoredom ProductivityProductivityAlienationAlienation

7. Chain of Command ©2007 Prentice Hall 13-7 Responsibility Accountability Authority Delegation

8. Line and Staff ©2007 Prentice Hall 13-8 President VP Production VP Production VP Marketing VP Finance VP Finance Legal Department Human Resources Department Head of Accounting Department National Sales Manager LineStaff

9. Span of Management ©2007 Prentice Hall 13-9 Flat Organizations Flat Organizations Tall Organization Tall Organization

10. Decision-Making Authority ©2007 Prentice Hall 13-10 DecentralizedCentralized Top-LevelManagement RichExperienceBroadVision Lower-LevelManagement MoreResponsiveFasterDecisions

11. Organizing the Workforce ©2007 Prentice Hall 13-11 DepartmentalizationDepartmentalizationDivisionDivisionFunctionFunctionNetworkNetworkMatrixMatrix HybridHybrid

12. Functional Structures ©2007 Prentice Hall 13-12 Job Skills Resource Use Job Requirements Job Requirements

13. Functional Structures ©2007 Prentice Hall 13-13 AdvantagesAdvantagesDisadvantagesDisadvantages Resource AllocationResource Allocation Unified DirectionUnified Direction Improved CoordinationImproved Coordination Better CommunicationBetter Communication Departmental BarriersDepartmental Barriers Slow Response TimeSlow Response Time Ineffective PlanningIneffective Planning Over SpecializationOver Specialization

14. Divisional Structure ©2007 Prentice Hall 13-14

15. Matrix Structure ©2007 Prentice Hall 13-15 PUBLISHER Book Team A Manager Book Team A Manager Book Team B Manager Book Team B Manager Editorial Manager Editorial Manager Production Manager Production Manager Design Manager Design Manager Editor A Production Editor A Production Editor A Designer A Editor B Production Editor B Production Editor B Designer B

16. Network Structure ©2007 Prentice Hall 13-16 AdvantagesDisadvantages FlexibilityFlexibility ResponsivenessResponsiveness VarietyVariety Dispersed Functions Quality Control Employee Loyalty

17. Hybrid Structure ©2007 Prentice Hall 13-17 Products Process Geography Customer

18. Problem Solving Problem Solving Self-Managed Functional Virtual Workplace Teams ©2007 Prentice Hall 13-18 Cross Functional Cross Functional

19. Working in Teams ©2007 Prentice Hall 13-19 Advantages  Higher-quality decisions  Improved commitment  Creativity & motivation  Flexibility Disadvantages  Power realignment  Free riders  Increased costs  Groupthink

20. Effective Teams ©2007 Prentice Hall 13-20 Size and Structure Sense of Purpose Communication

21. Effective Teams ©2007 Prentice Hall 13-21 Creative Thinking Focused Efforts Consensus

22. Team Development ©2007 Prentice Hall 13-22 Forming Storming Norming Performing Adjourning

23. Causes of Team Conflict ©2007 Prentice Hall 13-23 ScarceResourcesResponsibilityIssuesPoorCommunication PersonalityDifferencesPowerStrugglesIncompatibleGoals

24. Dealing with Conflict ©2007 Prentice Hall 13-24 PreventionPreventionResolutionResolution Confrontation Defusion Well-Defined Tasks Communication Avoidance Clear Goals

25. Team Meetings ©2007 Prentice Hall 13-25 Clarify the Purpose Select Participants Clarify the Agenda and Stay Focused

26. Team Meetings ©2007 Prentice Hall 13-26 Follow the Rules Promote Participation Close Effectively

27. Motivation ©2007 Prentice Hall 13-27 Needs Actions Outcomes

28. Theories of Motivation ©2007 Prentice Hall 13-28 Monetary Rewards Fair Treatment Satisfying Work Work-Life Balance

29. ©2007 Prentice Hall 13-29 Self-Esteem Needs Social Needs Safety Needs Physiological Needs Self- Actualization Maslow’s Hierarchy Five Need Categories

30. ©2007 Prentice Hall 13-30 Herzberg’s Two-Factor Theory Motivation AchievementAchievement RecognitionRecognition ResponsibilityResponsibility Work itselfWork itself Personal growthPersonal growth Highly Satisfied Highly Dissatisfied Neither Satisfied Nor Dissatisfied Motivators Influence Satisfaction Level Hygiene Factors Influence Satisfaction Area of Satisfaction Area of Dissatisfaction Hygiene Factors Working conditionsWorking conditions Pay and securityPay and security Company policiesCompany policies SupervisorsSupervisors Interpersonal relationshipsInterpersonal relationships

31. McGregor’s Assumptions ©2007 Prentice Hall 13-31 Theory X Employees Theory Y Employees Dislike work Motivated by threats Avoid responsibilities Value security Enjoy work Committed to goals Accept responsibilities Have mental potential

32. Ouchi’s Z Theory ©2007 Prentice Hall 13-32 EmployeeInvolvementEmployeeInvolvementFamilyEnvironmentFamilyEnvironment

33. Equity Theory ©2007 Prentice Hall 13-33 Ratio Comparison* Employee’s Perception Outcomes A Inputs A Outcomes A Inputs A Outcomes A Inputs A Outcomes B Inputs B Outcomes B Inputs B Outcomes B Inputs B < = > Inequity (Under-Rewarded) Equity Inequity (Over-Rewarded) * Where A is the employee, and B is a relevant other or referent.

34. Expectancy Theory ©2007 Prentice Hall 13-34 Individual Effort Individual Effort Individual Performance Individual Performance Organizational Rewards Organizational Rewards Individual Goals Individual Goals Quality of Effort... Quality of Effort... Expectations of... Expectations of... Expectations of... Expectations of... Rewards Versus... Rewards Versus...

35. Management by Objectives ©2007 Prentice Hall 13-35 Setting Goals Planning Action Implementing Plans Implementing Plans Reviewing Performance Reviewing Performance

36. Reinforcement Theory ©2007 Prentice Hall 13-36 Behavior Modification Avoid Unpleasant Consequences Obtain Pleasant Consequences PositiveNegativeReinforcement