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8-1. Business in a Changing World McGraw-Hill/Irwin Copyright © 2009 by the McGraw-Hill Companies, Inc. All rights reserved. Chapter 8 Organization, Teamwork,

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Presentation on theme: "8-1. Business in a Changing World McGraw-Hill/Irwin Copyright © 2009 by the McGraw-Hill Companies, Inc. All rights reserved. Chapter 8 Organization, Teamwork,"— Presentation transcript:

1 8-1

2 Business in a Changing World McGraw-Hill/Irwin Copyright © 2009 by the McGraw-Hill Companies, Inc. All rights reserved. Chapter 8 Organization, Teamwork, and Communication

3 8-3

4 8-4 PetConnection.com An organization based on blogging providing a unique competitive advantage.

5 8-5 Organization, Teamwork, & Communication Structure Impacts: Decision making Costs & efficiencies Overall success and sustainability Importance of Organizational Structure

6 8-6 A firms shared values, beliefs, traditions, philosophies, rules, and role models for behavior. Organizational Culture Organization, Teamwork, & Communication

7 8-7 Organizational Culture – Formal expression Informal expression Organization, Teamwork, & Communication

8 8-8 Organizational Culture – Formal expression Mission statement Code of ethics Manuals Ceremonies memoranda Organization, Teamwork, & Communication

9 8-9 Organizational Culture – Informal Expression Dress code Work habits Extracurricular activities Stories Organization, Teamwork, & Communication

10 8-10 Organization, Teamwork & Communication Ensures that organizational members: share values observe common rules share problem solving approaches Organizational Culture – satisfying the needs & expectations of stakeholders

11 8-11 Organization, Teamwork & Communication The most important drivers of innovation in companies.

12 8-12 Organization, Teamwork & Communication Organizational Structure – The arrangement or relationship of positions within an organization. Developing Organizational Structure

13 8-13 Organization, Teamwork & Communication Structure Develops – Managers assign work tasks to individuals & groups Coordination of diverse activities to attain objectives Developing Organizational Structure

14 8-14 Organization, Teamwork & Communication What the Organizational Chart Shows – Organizational structure Chain of command (lines of authority) Other relationships (staff, committees, etc.) Lines of communication Organizational Chart

15 8-15 Organizational Structure The Evolution of a Clothing Store Phases 1, 2, and 3

16 8-16 Organization, Teamwork & Communication What does organizational growth require? Structuring of resources (human, physical, financial) Hiring specialized talent & skills Formalized structure (as workforce & specialization grows) Assign work tasks to individuals & departments Assign responsibility for organizational objectives Organizational Growth

17 8-17 Purchase herbs from suppliers Dry the herbs Place in tea bags Package and label tea bags Ship packages to retail outlets Celestial Seasonings Celestial Seasonings – Determining activities required to meet objectives Assigning Tasks – Organizational Structure

18 8-18 Assigning Tasks Managers divide the labor into small, specific tasks and assign to employees to accomplish individual tasks. Specialization

19 8-19 Assigning Tasks Efficiency Ease of training Activities too numerous Why Specialize?

20 8-20 Assigning Tasks Employees become bored Job dissatisfaction Poor quality work Increased injuries Increased employee turnover Overspecialization

21 8-21 Organizational Structure – Assigning Tasks Grouping of jobs into working units (departments, units, groups, divisions) Departmentalization

22 8-22 Assigning Tasks – Organizational Structure Departmentalization is the grouping of jobs into working units usually called departments, units, groups, or divisions. Functional departmentalization Product departmentalization Geographical departmentalization Customer departmentalization

23 8-23 Retailing & Wholesaling Selling directly to the consumer Music stores Sporting-goods shops Dry cleaners Boutiques Drugstores Restaurants Hardware stores

24 8-24 Functional Departmentalization

25 8-25 Product Departmentalization

26 8-26 Geographical Departmentalization

27 8-27 Customer Departmentalization

28 8-28 Assigning Responsibility Delegation of authority Assigning responsibility Employee accountability Delegation creates a responsibility

29 8-29 Assigning Responsibility Giving employees tasks and power to make commitments, use resources, and take action to carry out tasks. Delegation of Authority

30 8-30 Assigning Responsibility Obligation placed on employees to perform assigned tasks and be held accountable for proper execution. Responsibility

31 8-31 Assigning Responsibility Employees are answerable to a superior for work outcomes. Accountability

32 8-32 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.

33 8-33 Span of Management Span of Management – the number of subordinates who report to a particular manager.

34 8-34 Span of Management 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.

35 8-35 Advantages of Small Business Ownership Costs Flexibility Focus Reputation

36 8-36 Span of Management – Organizational layers

37 8-37 Span of Management – Organizational layers

38 8-38 Forms of Organizational Structure Line Structure Line-and-staff structure Multidivisional structure Matrix structure

39 8-39 Forms of Organizational Structure Line Structure – Convenience Store as an example

40 8-40 Forms of Organizational Structure Line-and-staff Structure

41 8-41 Forms of Organizational Structure Matrix Structure

42 8-42 Groups & Teams in Organizations Group – two or more individuals who communicate with one another, share a common identity, and have a common goal

43 8-43 Groups & Teams in Organizations Team – a small group whose members have complementary skills, have a common purposes, goals, and approach; hold themselves mutually accountable.

44 8-44 Groups & Teams Differences between Groups & Teams

45 8-45 Groups & Teams Committee – permanent, formal group performing a specific task. Task force – temporary group responsible for a particular change activity

46 8-46 Groups & Teams Teams Project teams Product development teams Quality assurance teams (quality circles) Self-directed work teams (SDWT)

47 8-47 Communications in Organizations

48 8-48 Communications in Organizations Formal Communication – flow of communication within the formal organizational structure as depicted on organizational charts. Upward communication Downward communication Horizontal communication Diagonal communication

49 8-49 Communications in Organizations Informal Communication – separate from managements formal, official communication channels. Grapevine


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