1. © 2006 Pearson Education Canada Inc.Chapter 7- 1 Chapter 7 Organizing and Working in Teams

2. © 2006 Pearson Education Canada Inc.Chapter 7- 2 Effective Organization Structure Coordinate and Control Work Coordinate DivideResponsibilitiesDivideResponsibilities PromoteAccountabilityPromoteAccountability DistributeAuthorityDistributeAuthority

3. © 2006 Pearson Education Canada Inc.Chapter 7- 3 Organization Chart Vertical Organization Chain of Command Work Specialization FormalOrganizationFormalOrganizationInformalOrganizationInformalOrganization Horizontal Coordination

4. © 2006 Pearson Education Canada Inc.Chapter 7- 4 Formal vs. Informal Formal Organization Represented by the organization chart The official role an employee occupies Informal Organization Network of unofficial employee relationships (Grapevine) Influential management resource and/or obstacle

5. © 2006 Pearson Education Canada Inc.Chapter 7- 5 Organization Chart for a Grocery Chain Board of Directors President & CEO Chairperson President & CEO Chairperson VP Human Resources Senior VP Operations Senior VP Operations VP MIS VP MIS VP Finance VP Finance VP Special Projects VP Marketing VP Marketing VP Advertising VP Advertising VP Store Planning Regional Supervisors Area Supervisors Regional Operations Area Supervisors Regional Operations Area Supervisors VP Grocery Operations VP Perishable Operations VP Bakery Operations

6. © 2006 Pearson Education Canada Inc.Chapter 7- 6 Work Specialization AdvantagesAdvantagesDisadvantagesDisadvantages EfficiencyEfficiencyBoredomBoredom ProductivityProductivityAlienationAlienation

7. © 2006 Pearson Education Canada Inc.Chapter 7- 7 Chain of Command ResponsibilityResponsibility –Obligation to perform duties and achieve goals associated with a position AccountabilityAccountability –Obligation to report results and justify outcomes AuthorityAuthority –Power granted by the organization to make decisions, take action and allocate resources DelegationDelegation –Assignment of work and authority down the chain of command

8. © 2006 Pearson Education Canada Inc.Chapter 7- 8 Simplified Line-and-Staff Structure President VP Production VP Production VP Marketing VP Finance VP Finance Legal Department Human Resources Department Head of Accounting Department National Sales Manager LineStaff

9. © 2006 Pearson Education Canada Inc.Chapter 7- 9 Span of Management (Control) Wide Span of Control –Large number of employees report to one manager –Common in Flat Organizations fewer management layers Narrow Span of Control –Small number of employees report to each manager –Common in Tall Organizations Many bureaucratic layers in the structure i.e. The Army

10. © 2006 Pearson Education Canada Inc.Chapter 7- 10 General Colonels Majors Captains,Lieutenants Warrant Officers Sergeants Corporals Privates Army Span of Management (Control) PopeCardinals Archbishops,Bishops Priests Roman Catholic Church

11. © 2006 Pearson Education Canada Inc.Chapter 7- 11 DecentralizedCentralized Decision-Making Authority Top-LevelManagement RichExperienceBroadVision Lower-LevelManagement MoreResponsiveFasterDecisions

12. © 2006 Pearson Education Canada Inc.Chapter 7- 12 Vertical Organizations NetworkMatrix DivisionFunction

13. © 2006 Pearson Education Canada Inc.Chapter 7- 13 Departmentalization by Function SkillsResourceUseExpertise Common departments include: Marketing, Human Resources, Finance, Operations, Research & Development and Accounting

14. © 2006 Pearson Education Canada Inc.Chapter 7- 14 Functional Departments Disadvantages Departmental BarriersDepartmental Barriers Slow Response TimeSlow Response Time Ineffective PlanningIneffective Planning Over-specializationOver-specialization Advantages Resource AllocationResource Allocation Unified DirectionUnified Direction Improved CoordinationImproved Coordination Better CommunicationBetter Communication

15. © 2006 Pearson Education Canada Inc.Chapter 7- 15ProcessesProducts GeographyCustomersDepartmentalization by Division

16. © 2006 Pearson Education Canada Inc.Chapter 7- 16 Departmentalization by Division AdvantagesDisadvantages Flexibility Better Service Management Focus Wasting Resources Poor Coordination Competition

17. © 2006 Pearson Education Canada Inc.Chapter 7- 17 Departmentalization by Matrix PUBLISHER Book Team A Manager Book Team A Manager Book Team B Manager Book Team B Manager Editorial Manager Editorial Manager Production Manager Production Manager Design Manager Design Manager Editor A Production Editor A Production Editor A Designer A Editor B Production Editor B Production Editor B Designer B

18. © 2006 Pearson Education Canada Inc.Chapter 7- 18 Departmentalization by Network AdvantagesDisadvantages Flexibility Responsiveness Variety Dispersed Functions Quality Control Employee Loyalty

19. © 2006 Pearson Education Canada Inc.Chapter 7- 19 Shared Information Neutral Individual Random or Varied Goal Synergy Responsibility Skills Shared Mission Positive Individual and Mutual Complementary Work Groups Work Teams Comparing Work Groups and Work Teams

20. © 2006 Pearson Education Canada Inc.Chapter 7- 20 Workplace Teams Problem-Solving –Team of 5-12 employees –Find ways to improve quality, efficiency and the work environment Self-Managed –Members are responsible for the entire process or operation Functional –Members come from a single department Cross-Functional –Draws together employees from various departments

21. © 2006 Pearson Education Canada Inc.Chapter 7- 21 Types of Cross-Functional Circles Task forces Committees Special purpose

22. © 2006 Pearson Education Canada Inc.Chapter 7- 22 Virtual Teams vProject-management skills vTime-management skills vTechnological expertise vCross-cultural skills vInterpersonal awareness

23. © 2006 Pearson Education Canada Inc.Chapter 7- 23 Working in Teams Advantages  Higher-quality decisions  Improved commitment  Creativity & motivation  Flexibility Disadvantages  Power realignment  Free riders  Increased costs  Groupthink

24. © 2006 Pearson Education Canada Inc.Chapter 7- 24 Characteristics of Effective Teams Appropriate size and structure Clear sense of purpose Open honest communication Creative thinking Focused efforts Decision by consensus

25. © 2006 Pearson Education Canada Inc.Chapter 7- 25 Member Social BehaviorLowHigh Team Member Roles Task Specialist Role Dual Role SocioemotionalRole NonparticipatorRole Member Task Behavior High Low

26. © 2006 Pearson Education Canada Inc.Chapter 7- 26 Five Stages of Team Development Forming Storming Norming Performing Adjourning

27. © 2006 Pearson Education Canada Inc.Chapter 7- 27 Stages of Development Cohesiveness Meeting attendance Interaction Work quality Goal achievement Norms Behaviour Limits Values Expectations

28. © 2006 Pearson Education Canada Inc.Chapter 7- 28 Team Conflict Competition for scarce resources Responsibility issues Poor communication Values, attitudes, and personalities Authority issues Goal incompatibility

29. © 2006 Pearson Education Canada Inc.Chapter 7- 29 PreventionPreventionResolutionResolution Dealing With Conflict Confrontation Diffusion Well-Defined Tasks Communication Avoidance Clear Goals