1. Chapter Eight Organization, Teamwork, and Communication Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

3. 8-3 Organizational Culture Corporate culture Shared values Beliefs Traditions Philosophies Rules Role 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

4. 8-4 How is Corporate Culture Expressed? Formally Mission statement Codes of ethics Memos, manuals Ceremonies Informally Dress codes (or the lack thereof) Work habits Extracurricular activities Stories Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved

5. 8-5 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 Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved

6. 8-6 Stages of Growth The Evolution of a Clothing Store Phases 1, 2, and 3 Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved

7. 8-7 Two Aspects of Assigning Tasks Specialization Departmentalization Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved

8. 8-8 Specialization The division of labor into small, specialized tasks and the assignment of single tasks to employees Efficiency Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved

9. 8-9 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 Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved

10. 8-10 Functional Departmentalization Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved

11. 8-11 Product Departmentalization Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved

12. 8-12 Geographical Departmentalization Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved

13. 8-13 Customer Departmentalization Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved

14. 8-14 Assigning Responsibility and Delegating Authority Delegation of authority Assigning responsibility Employee accountability Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved

15. 8-15 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 Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved

16. 8-16 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 Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved

17. 8-17 Span of Management: Wide Span and Narrow Span Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved

18. 8-18 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 Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved

19. 8-19 Forms of Organizational Structure Line Line-and-staff Multidivisional Matrix Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved

20. 8-20 Line Structure Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved

21. 8-21 Line-and-Staff Structure Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved

22. 8-22 An Example of Multidivisional Structure: The Walt Disney Company Source: The Walt Disney Company Annual Report Walt Disney Attractions Motion Pictures TVTVAnimationAnimation Disney Channel Disney Stores Software and Education Catalog Marketing Magic Kingdom FL Disney- MGM Studios Walt Disney Studios Magic Kingdom CA Tokyo Disneyland Euro- Disney Walt Disney World Consumer Products LicensingLicensingPublishingPublishing Disney Music Epcot Center CEOCEO

23. 8-23 The Matrix Structure Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved

24. 8-24 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 Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved

25. 8-25 Differences Between Groups and Teams

26. 8-26 Types of Groups Committee Task force Project team Product-development team Quality assurance team Self-directed work team (SDWT) Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved

27. 8-27 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.

28. 8-28 The Flow of Communication in an Organizational Hierarchy Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved

29. 8-29 Formal Communication Communication flow Upward Downward Horizontal Diagonal Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved

30. 8-30 Informal Communication The informal organization Friendships 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 Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved

31. 8-31 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 Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved

32. 8-32 Disciplinary Action for Misuse of Personal Use of Telecom Equipment

33. 8-33 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. Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved

34. 8-34 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. Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved

35. 8-35 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. Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved

36. 8-36 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

37. 8-37 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

38. 8-38 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.

39. 8-39 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.