1. Managing for Quality and Competitiveness
Part 3
Managing for Quality and Competitiveness
© 2015 McGraw-Hill Education.

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

3. Learning Objectives
LO 7-1 Define organizational structure and relate how organizational structures develop.
LO Describe how specialization and departmentalization help an organization achieve its goals.
LO Determine how organizations assign responsibility for tasks and delegate authority.
LO Compare and contrast some common forms of organizational structure.
LO Distinguish between groups and teams and identify the types of groups that exist in organizations.
LO Describe how communication occurs in organizations.

4. Organizational Culture
Organizational Culture (Corporate Culture)
A firm’s shared values, beliefs, traditions, philosophies, rules, and role models for behavior
Structure
The arrangement or relationship of positions within an organization
Organizational Chart
A visual display of the organizational structure, lines of authority (chain of command), staff relationships, permanent committee arrangements, and lines of communication

5. Overspecialization can have negative consequences
Departmentalization
Specialization
The division of labor into small, specific tasks and the assignment of employees to do a single task
Employees become bored
Job dissatisfaction
Poor quality work
Increased injuries
Increased employee turnover
Overspecialization can have negative consequences
Departmentalization
The grouping of jobs into working units usually called departments, units, groups, or divisions
Functional departmentalization
Product departmentalization
Geographical departmentalization
Customer departmentalization

6. Departmentalization Functional Departmentalization
The grouping of jobs that perform similar functional activities, such as finance, manufacturing, marketing, and human resources
Product Departmentalization
The organization of jobs in relation to the products of the firm
Geographical Departmentalization
The grouping of jobs according to geographic location, such as state, region, country, or continent
Customer Departmentalization
The arrangement of jobs around the needs of various types of customers

7. Delegation of Authority
Giving employees not only tasks, but also the power to make commitments, use resources, and take whatever actions are necessary to carry out those tasks
Responsibility
The obligation, placed on employees through delegation, to perform assigned tasks satisfactorily and be held accountable for the proper execution of work
Accountability
The principle that employees who accept an assignment and the authority to carry it out are answerable to a superior for the outcome

8. Degree of Centralization
A structure in which authority is concentrated at the top, and very little decision-making authority is delegated to lower levels
Overcentralization can cause serious problems for a company, in part because it may take longer for the organization as a whole to implement decisions and to respond to changes and problems on a regional scale
Centralized Organizations
An organization in which decision-making authority is delegated as far down the chain of command as possible
Delegating authority to lower levels of managers may increase the organization’s productivity
Decentralized Organizations

9. Organizational Layers
Span of Management
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
Organizational Layers
The levels of management in an organization

10. Organizational Structure
Line Structure
The simplest organizational structure in which direct lines of authority extend from the top manager to the lowest level of the organization
Line-and-Staff Structure
A structure having a traditional line relationship between superiors and subordinates and also specialized managers – called staff managers – who are available to assist line managers
Multidivisional Structure
A structure that organizes departments into larger groups called divisions
Matrix Structure
A structure that sets up teams from different departments, thereby creating two or more intersecting lines of authority; also called a project-management structure

11. 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; and hold themselves mutually accountable

12. Committees and Task Forces
A permanent, formal group that performs a specific task
Task Force
A temporary group of employees responsible for bringing about a particular change
Typically come from across all departments and levels of an organization
Membership is usually based on expertise rather than organizational position
Occasionally, a task force may be formed from individuals outside a company

13. Teams Project Teams Quality-Assurance Teams (or Quality Circles)
Groups similar to task forces which normally run their operation and have total control of a specific work project
Product-Development Teams
A specific type of project team formed to devise, design, and implement a new product
Quality-Assurance Teams (or Quality Circles)
Small groups of workers brought together from throughout the organization to solve specific quality, productivity, or service problems
Self-Directed Work Teams (SDWT)
A group of employees responsible for an entire work process or segment that delivers a product to an internal or external customer

14. Formal Communication Upward Communication Downward Communication
Flows from lower to higher levels of the organization
Includes information such as progress reports, suggestions for improvement, inquiries, and grievances
Downward Communication
Refers to the traditional flow of information from upper organizational levels to lower levels
Typically involves directions, the assignment of tasks and responsibilities, performance feedback, and certain details about the organization’s strategies and goals
Horizontal Communication
Involves the exchange of information among colleagues and peers on the same organizational level, such as across or within departments
Information informs, supports, and coordinates activities both within the department and with other departments
Diagonal Communication
When individuals from different units and organizational levels communicate
With firms downsizing and increasing the use of work teams, workers are being required to communicate with others in different departments and on different levels to solve problems and coordinate work

15. Informal Communication
Grapevine
An informal channel of communication, separate from management’s formal, official communication channels
Managers can utilize informal communications as a sounding device
Can obtain valuable information from the grapevine that could improve decision making
Some organizations use the grapevine to their advantage by floating ideas, soliciting feedback, and reacting accordingly