Copyright © 2009 Pearson Education Canada 7-1 Chapter 7 Organizing and Working in Teams

Copyright © 2009 Pearson Education Canada 7-2 Effective Organization Structure Coordinate and control work Coordinate DivideresponsibilitiesDivideresponsibilities PromoteaccountabilityPromoteaccountability DistributeauthorityDistributeauthority

Copyright © 2009 Pearson Education Canada 7-3 Organization Chart Vertical Organization Chain of Command Work Specialization FormalorganizationFormalorganizationInformalorganizationInformalorganization Horizontal Coordination

Copyright © 2009 Pearson Education Canada 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

Copyright © 2009 Pearson Education Canada 7-5 Organization Chart for a Grocery Store 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

Copyright © 2009 Pearson Education Canada 7-6 Work Specialization AdvantagesAdvantagesDisadvantagesDisadvantages EfficiencyEfficiencyBoredomBoredom ProductivityProductivityAlienationAlienation

Copyright © 2009 Pearson Education Canada 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

Copyright © 2009 Pearson Education Canada 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

Copyright © 2009 Pearson Education Canada 7-9 Span of Management (Control) Wide Span of Control –Large number of employees report to one manager –Common in ‘flat organizations’ with fewer management layers Narrow Span of Control –Small number of employees report to each manager –Common in ‘tall organizations’ with many management layers i.e. The Army

Copyright © 2009 Pearson Education Canada 7-10 General Colonels Majors Captains,Lieutenants Warrant Officers Sergeants Corporals Privates Army Span of Management (Control) PopeCardinals Archbishops,Bishops Priests Roman Catholic Church

Copyright © 2009 Pearson Education Canada 7-11 DecentralizedCentralized Decision-Making Authority Top-levelmanagement RichexperienceBroadvision Lower-levelManagement MoreresponsiveFasterdecisions

Copyright © 2009 Pearson Education Canada 7-12 Vertical Organizations Function

Copyright © 2009 Pearson Education Canada 7-13 Organizational Structure Functional Divisional Matrix Network Hybrid

Copyright © 2009 Pearson Education Canada 7-14 Departmentalization by Function SkillsResourceuseExpertise Common departments include: Marketing, Human Resources, Finance, Operations, Research & Development and Accounting

Copyright © 2009 Pearson Education Canada 7-15 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

Copyright © 2009 Pearson Education Canada 7-16ProcessesProducts GeographyCustomersDepartmentalization by Division

Copyright © 2009 Pearson Education Canada 7-17 Departmentalization by Division AdvantagesDisadvantages Flexibility Better service Management focus Wasting resources Poor coordination Competition

Copyright © 2009 Pearson Education Canada 7-18 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

Copyright © 2009 Pearson Education Canada 7-19 Departmentalization by Network AdvantagesDisadvantages Flexibility Responsiveness Variety Dispersed functions Quality control Employee loyalty

Copyright © 2009 Pearson Education Canada 7-20 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

Copyright © 2009 Pearson Education Canada 7-21 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 Virtual - Uses communication technology

Copyright © 2009 Pearson Education Canada 7-22 Types of Cross-Functional Teams Circles Task forces Special purpose Committees

Copyright © 2009 Pearson Education Canada 7-23 Virtual Teams Project-management skills Time-management skills Technological expertise Cross-cultural skills Interpersonal awareness

Copyright © 2009 Pearson Education Canada 7-24 Working in Teams Advantages Higher-quality decisions Improved commitment Creativity & motivation Flexibility Disadvantages Power realignment Free riders Increased costs Groupthink Expert-think

Copyright © 2009 Pearson Education Canada 7-25 Characteristics of Effective Teams Clear sense of purpose Open honest communication Creative thinking Focused efforts Decision by consensus

Copyright © 2009 Pearson Education Canada 7-26 Member Social BehaviorLowHigh Team Member Roles Task Specialist Role Dual Role SocioemotionalRole NonparticipatorRole Member Task Behavior High Low

Copyright © 2009 Pearson Education Canada 7-27 Five Stages of Team Development Forming Storming Norming Performing Adjourning

Copyright © 2009 Pearson Education Canada 7-28 Stages of Development Cohesiveness Meeting attendance Interaction Work quality Goal achievement Norms Behaviour Limits Values Expectations

Copyright © 2009 Pearson Education Canada 7-29 Team Conflict Competition for scarce resources Responsibility issues Poor communication Values, attitudes, and personalities Authority issues Goal incompatibility

Copyright © 2009 Pearson Education Canada 7-30 ResolutionResolutionPreventionPrevention Dealing With Conflict Clear goals Well-defined tasks Diffusion Avoidance Communication Confrontation

Copyright © 2009 Pearson Education Canada 7-31 Effective Team Meetings Clarify meeting purpose Carefully select participants Establish a clear agenda Stay on track Follow agreed- upon rules Encourage participation Close effectively