FHF McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.

part CHAPTER 8 Managing Service and Manufacturing Operations CHAPTER 7 Organization, Teamwork, and Communication 3 CHAPTER 6 The Nature of Management FHF 7-2

FHF Organizational Culture A firm’s shared values, beliefs, traditions, philosophies, rules and role models for behavior (aka corporate culture)  Ensures that organizational members: Share values Observe common rules Share problem solving approaches 7-3 …continued on next page

FHF Organizational Culture Formal expression  Mission statement  Code of ethics  Manuals  Ceremonies  Memoranda 7-4 …continued on next page

FHF Organizational Culture Informal Expression Dress code (or lack of one) Work habits Extracurricular activities 7-5 …continued on next page

FHF Organizational Culture  Helps ensure that all members of a company share values  Suggests rules for how to behave and deal with problems  Has a significant impact on performance and employee retention  Sets a positive tone for decision making and building efficient organizational structure 7-6 …continued on next page

FHF Organizational Structure Is the arrangement or relationship of positions within an organization  Structure develops as: Managers assign work tasks to individuals and groups Coordination of diverse activities to attain objectives 7-7 …continued on next page

FHF Organizational Structure Impacts:  Decision making  Costs & efficiencies  Overall success and sustainability  Employee unity  Understanding of how to deal with problems 7-8

FHF Organizational Charts Visual displays of the organizational structure, lines of authority, staff relationships, permanent committee arrangements and lines of communication 7-9 …continued on next page

FHF Assigning Tasks Specialization Managers divide the labor into small, specific tasks and assign employees individual tasks to accomplish  Why specialize? Efficiency Ease of training Activities too numerous for one person 7-10

FHF Risks of Overspecialization  Employees become bored  Job dissatisfaction  Poor quality work  Increased injuries  Increased employee turnover 7-11

FHF DepartmentalizationDepartmentalization Grouping of jobs into working units (departments, units, groups, divisions)  Functional departmentalization  Product departmentalization  Geographical departmentalization  Customer departmentalization 7-12

[] FHF Delegation of Authority Giving employees tasks and empowering them to make commitments, use resources and take action to carry out tasks 7-13

FHF ResponsibilityResponsibility Obligation placed on employees to perform assigned tasks and be held accountable for proper execution Accountability Employees who accept an assignment and the responsibility to complete it are answerable to a superior for work outcomes 7-14

FHF Degree of Centralization Centralized Organizations  Authority is concentrated at the top level  Very little delegation to lower levels Decentralized Organizations  Decision making authority is delegated as far down the chain of command as possible 7-15

FHF 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 7-16 …continued on next page

FHF Forms of Organizational Structure  Line Structure  Line-and-staff structure  Multidivisional structure  Matrix structure 7-17

FHF Line Structure 7-18

FHF Line-and-Staff Structure 7-19

FHF Multidivisional Structure  Organizes departments into larger groups called divisions  Occurs as organizations grow larger and more diversified  Divisions can be formed on the same bases as departments Customer Product Geography  Delegation of authority and divisionalized work 7-20

FHF Matrix Structure 7-21

FHF Organizational Communications 7-25

FHF Technology and Communication Technology has generated many alternatives to face-to-face communication  Voice mail   Online newsletters  Videoconferencing  Online meeting services 7-26

FHF Formal Communication Flow of communication within the formal organizational structure as depicted on organizational charts.  Upward communication  Downward communication  Horizontal communication  Diagonal communication 7-27

FHF Informal Communication Separate from management’s formal, official communication channels  Also known as the Grapevine  Managers can utilize informal communications as a sounding device 7-28

FHF Monitoring Communications  Technological advances and electronic  communication have made monitoring  communications at work necessary  Managers must monitor communications: Without invading employee privacy While generating respect and mindfulness amongst employees 7-29