1. Organization and Teamwork
Chapter 8
8-1

2. Chapter 8 Objectives After studying this chapter, you will be able to:
Explain the major decisions needed to design an organization structure.
Define the four major types of organization structure.
Explain how a team differs from a group and describe the six most common forms of teams.
8-2

3. Chapter 8 Objectives Cont.
Highlight the advantages and disadvantages of working in teams and list the characteristics of effective teams.
Review the five stages of team development and explain why conflict can arise in team settings.
Explain the concept of an unstructured organization and identify the major benefits and challenges of taking this approach.
8-3

4. Effective Organizational Structure
Organization Structure: A framework that enables managers to divide responsibilities, ensure employee accountability, and distribute the decision-making authority
Divide
Responsibilities
Distribute
Authority
Coordinate
and Control Work
Promote
Accountability
8-4

5. Organizational Chart Organization Chart:
A diagram that shows how employees and tasks are grouped and where the lines of communication and authority flow.
Agile Organization: A company whose structure, policies, and capabilities allow employees to respond quickly to customer needs and changes in the business environment.
8-5

6. Work Specialization
Core competencies: Activities that a company considers central and vital to its business
Work Specialization: Specialization in or responsibility for some portion of an organization’s overall work tasks. Also called division of labor.
Advantages
Disadvantages
Efficiency
Boredom
Productivity
Alienation
8-6

7. Chain of Command
Chain of Command: A pathway for the flow of authority from one management level to the next.
Responsibility
Accountability
Authority
Delegation
8-7

8. Line and Staff Line Organization: Line-and-Staff Organization: Line
A chain of command system that establishes a clear line of authority flowing from the top down.
President VP
Production
VP Marketing
Finance
Legal Department
Human Resources Department
Head of Accounting Department
National Sales Manager
Line
Staff
Line-and-Staff Organization:
An organization system that has a clear chain of command but that also includes functional groups of people who provide advice and specialized services.
8-8

9. Span of Management
Span of Management: The number of people under one manager’s control. Also known as span of control.
Tall Structure
Tall Organization
Flat Structure
Flat Organization
8-9

10. Decision-Making Authority
Centralization: Concentration of decision-making authority at the top of an organization
Decentralization: Delegation of decision-making authority to employees in lower-level positions
Centralized
Decentralized
Top-Level
Management
Lower-Level
Management
Rich
Experience
Broad
Vision
More
Responsive
Faster
Decisions

11. Organizing the Workforce
Departmentalization: Grouping people within an organization according to function, division, matrix, or network.
Departmentalization
Division
Function
Network
Matrix
Hybrid
8-11

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

13. Functional Structure

14. Functional Structure Advantages Disadvantages Resource Allocation
Departmental Barriers
Unified Direction
Slow Response Time
Improved Coordination
Ineffective Planning
Better Communication
Over Specialization
8-14

15. Divisional Structure
8-15

16. Product Division Structure

17. Customer Division Structure

18. Geographic Division Structure

19. Matrix Structure
8-19

20. Lacks hands-on control Vulnerable to suppliers competitive distinction
Network Structure
Network Structure: A structure in which individual companies are connected electronically to perform selected tasks for a small headquarters organization. Also called virtual organization.
Advantages
Disadvantages
Lower costs
Lacks hands-on control
Increased
flexibility
Vulnerable to suppliers
Increased
competitiveness
Lack of
competitive distinction
8-20

21. Hybrid Structure
Divisional
Geographic
Functional
Network
8-21

22. Comparing Work Groups and Work Teams
Shared Information
Neutral
Individual
Random or Varied
Goal
Synergy
Responsibility
Skills
Shared Mission
Positive
Individual and Mutual
Complementary

23. Organizing in Teams Problem Solving Cross Functional Self-Managed
Virtual
Functional
Social Networks
8-23

24. Organizing in Teams
A problem-solving team is assembled to find ways of improving quality, efficiency, or other performance issues.
Self-managed teams manage their own activities. Team members are responsible for an entire process or operation and require minimum supervision.
Functional teams, or command teams, are organized along the lines of the organization’s vertical structure and thus may be referred to as vertical teams. They are composed of managers and employees within a single functional department.
12-24 24

25. Organizing in Teams
A cross-functional team, or horizontal team, draws together employees from various functional areas and expertise.
Virtual teams are groups of physically dispersed members who communicate electronically.
Social networking technologies are redefining teamwork and team communication by helping erase the constraints of geographic and organization boundaries.
12-25 25

26. Working in Teams Advantages Disadvantages Higher-quality decisions
Increased diversity of views
Increased commitment to solutions and changes
Lower levels of stress and destructive internal competition
Improved flexibility and responsiveness
Inefficiency
Groupthink
Diminished individual motivation
Structural disruption
Excessive workloads
8-26

27. Characteristics of Effective Teams
Clear sense of purpose
Open and honest communication
Creative thinking
Accountability
Focus
Decision by consensus
8-27

28. Team Member Roles

29. Characteristics of Effective Teams (1 of 2)
Make Effective Teamwork A Top Management Priority
• Recognize and reward group performance where appropriate
• Provide ample training opportunities for employees to develop team skills
Select Team Members Wisely
• Involve key stakeholders and decision makers
• Limit team size to the minimum number of people needed to achieve team goals
• Select members with a diversity of views
• Select creative thinkers
Build A Sense Of Fairness In Decision Making
• Encourage debate and disagreement without fear of reprisal
• Allow members to communicate openly and honestly
• Consider all proposals
• Build consensus by allowing team members to examine, compare, and reconcile differences—but don’t let a desire for 100 percent consensus bog the team down
• Avoid quick votes
• Keep everyone informed
• Present all the facts

30. Characteristics of Effective Teams (2 of 2)
Manage Conflict Constructively
• Share leadership
• Encourage equal participation
• Discuss disagreements openly and calmly
• Focus on the issues, not the people
• Don’t let minor disagreements boil over into major conflicts
Stay On Track
• Make sure everyone understands the team’s purpose
• Communicate what is expected of team members
• Stay focused on the core assignment
• Develop and adhere to a schedule
• Develop rules and follow norms

31. Team Development
Forming
Storming
Norming
Performing
Adjourning
8-31

32. Team Development Cohesiveness Norms
A measure of how committed team members are to their team’s goals
Norms
Informal standards of conduct that guide team behavior

33. Team Conflict Constructive Conflict: Destructive Conflict:
Brings important issues into the open, increases the involvement of team members, and generates creative ideas for solving a problem
Destructive Conflict:
Diverts energy from more important issues, destroys the morale of teams or individual team members, or polarizes or divides the team

34. Causes of Team Conflict
Scarce
Resources
Responsibility
Issues
Poor
Communication
Personality
Differences
Power
Struggles
Incompatible
Goals
8-34

35. Solutions to Team Conflict
Proactive attention
Communication
Openness
Research
Flexibility
Fair play
Alliance
8-35

36. Managing an Unstructured Organization
An organization that doesn’t have a conventional structure but instead assembles talent as needed from the open market; the virtual and networked organizational concepts taken to the extreme.

37. Benefits and Challenges of Unstructured Organizations (1 of 2)
Potential Benefits
For Companies
For Workers
Increased agility: Companies can responds to or create opportunities faster and then reorganize and move on when needed.
Performance-based evaluation: The only thing that matters is getting the jobs done.
Lower fixed costs: Fewer employees means fewer bills to pay every month.
Freedom and flexibility: Workers have more leeway in choosing which projects they want and how much they to work.
More flexible capacity management: Firms can ramp capacity up and down more quickly and with less trauma.
Access to more interesting and more fulfilling work: Workers can connect with opportunities that might be unreachable otherwise.
Benefiting from competition: Firms can “rent” top talent that is too expensive to work full time or unwilling to works full time.
Blank
Benefiting from competitions: Firms can stage competitions in talents markets to see who can devise the best solutions to problems.

38. Benefits and Challenges of Unstructured Organizations (2 of 2)
Potential Challenges
Potential Benefits
For Companies
For Workers
Complexity and control issues: Workers often have competing demands on their time and attention, and managers lack many of the organizational control and incentive “levers” that a regular company has.
Uncertainty: Workers can’t be sure they’ll have work from one project to the next.
Uncertainty: Without staff at the ready, companies won’t always know if they’ll be able to get the talent they need.
Loss of meaning and connection: Independent workers don’t get the same of working together for a larger, shared purpose that employees get.
Diminished loyalty: Managers have to deal with a workforce that doesn’t have the same sense of loyalty to the organization that many full-time employees do.
Diminished loyalty: Workers don’t have the same sense employees often do that an organization is looking out for them and will reward sacrifices and effort above and beyond contractual obligations.
Management succession: Companies with fewer employees will find it harder to groom replacement managers and executives.
Career development: Without full-time employers to guide, support, and train them, workers are left to fend for themselves and to keep their skills current at their own expense.
Accountability and liability: Unstructured organizations lack the built-in accountability of conventional structures, and the distribution of work among multiple independent parties could create liability concerns.
Blank

39. Applying What You’ve Learned
Explain the major decisions needed to design an organization structure
Define four major types of organization structure
Explain how a team differs from a group and describe the six most common forms of teams

40. Applying What You’ve Learned
Highlight the advantages and disadvantages of working in teams and list the characteristics of effective teams
Review the five stages of team development and explain why conflict can arise in team settings
Explain the concept of an unstructured organization and identify the major benefits and challenges of taking this approach