1. Organization, Teamwork, and Communication
Chapter Eight
Organization, Teamwork, and Communication

2. Issues in Developing an Organization
The Right Structure
Necessary Areas of Specialization
Degree of Departmentalization

3. Specialization
Dividing labor into small, specific tasks and assigning employees to do a single task.

4. Departmentalization Types: Functional Departmentalization
The grouping of jobs into working units
Types:
Functional Departmentalization
Product Departmentalization
Geographical Departmentalization
Customer Departmentalization

5. Functional Departmentalization
President
Distribution Department
Finance Department
Marketing Department
Research and Development Department
Production Department

6. Product Departmentalization
President
Consumer Tele- communications Equipment Division
Computer Electronics Division
Industrial Tele- communications Equipment Division
Stereo Equipment Division

7. Geographical Departmentalization
Latin American Division
European Division
Middle East Division
Pacific Rim Division
President International Operations

8. Customer Departmentalization
Industrial Foods
Consumer Foods
Product Manager

9. The Differences Between Groups and Teams
Working Group
Team
Strong, clearly focused leader
Individual accountability
The same purpose as the broader organizational mission
Creates individual work products
Runs efficient meetings
Measures its effectiveness indirectly by its effects on others (e.g., financial performance of the business
Discusses, decides, and delegates
Shared leadership roles
Individual and group accountability
A specific purpose that the team itself delivers
Creates collective work products
Encourages open-ended discussion and active problem-solving meetings
Measures performance directly by assessing collective work products
Discusses, decides, and does real work together
Source: Robert Gatewood, Robert Taylor, O.C. Ferrell, Management: Comprehension, Analysis, and Application (Homewood, IL: Austen Press, 1995), 427.

10. Types of Groups Committee Task Force Project Team
Product-development team
Quality Assurance Team
Self-directed Work Team (SDWT)

11. 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.

12. Assigning Responsibility and Delegating Authority
Delegation of Authority
Assigning Responsibility
Employee Accountability

13. Degree of Centralization
Centralized Organizations
Authority is concentrated at the top and very little decision-making authority is delegated to lower levels
Decentralized Organizations
Decision-making authority is delegated as far down the chain of command as possible

14. Span of Management: Wide Span and Narrow Span
Flat Organization
Narrow Span:
Tall Organization

15. Span of Management: Organizational layers

16. Forms of Organizational Structure
Line
Line-and-staff
Multidivisional
Matrix

17. Line Structure Convenience Store Owner Manager Assistant Manager
Hourly Employee

18. Line-and-Staff Structure
Plant Manager
Engineering
Human Resources
Production Manager
Supervisor
Employees
Line relationship
Staff relationship

19. An Example of Multidivisional Structure: The Walt Disney Company
CEO
Walt Disney Attractions
Walt Disney Studios
Consumer Products
Motion Pictures TV
Animation
Disney Channel
Magic Kingdom CA
Tokyo Disneyland
Euro- Disney
Walt Disney World
Disney Stores
Licensing
Publishing
Disney Music
Software and Education
Catalog Marketing
Magic Kingdom FL
Epcot Center
Disney- MGM Studios
Source: The Walt Disney Company Annual Report

20. General Project Manager
The Matrix Structure
General Manager
Functional Manager
Functional Manager
General Project Manager
Manager Project A
Manager Project B
Manager Project C

21. The Flow of Communication in an Organizational Hierarchy
Upward
Downward
CEO
Vice President
Manager
Upward
Downward
Horizontal
Diagonal
Horizontal
Diagonal

22. Formal Communication Upward communication flow
Downward communication flow
Horizontal communication flow
Diagonal communication flow

23. Informal Communication
The informal organization
The grapevine

24. Organizational Culture
The firm’s shared values, beliefs, traditions, philosophies, rules, and heroes.
FAST FACT:
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.

25. Solve the Dilemma
What techniques or skills should an employee have to assume a leadership role within a work group?
If each work group has a team representative, what problems will be faced in supervising these representatives?
Evaluate the pros and cons of the system developed by QS.

26. 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.

27. Additional Discussion Questions and Exercises
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.

28. 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.

29. Chapter 8 Quiz
1. Which of the following is most similar to the matrix structure? a. line structure b. functional structure c. line-and-staff structure d. ad hoc committee
2. Which of the following is commonly considered an example of informal organizational structure? a. grapevine b. organizational culture c. organizational chart d. employee handbook

30. 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.

31. Multiple Choice Questions about the Video
1. Which of the following best describes Big Apple Bagel?
a. decentralized b. centralized c. concentrical d. recentralized
2. St. Louis Bread Company introduced ________ in order to address the authority and task boundaries that occur with growth. a. dysfunctional and team-managed work groups b. functional and self-managed work teams c. cross-functional and self-managed work teams d. functional and team-managed work groups