2. Chapter 8
Organization, Teamwork, and Communication

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

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

6. Organization, Teamwork, & Communication
Organizational Culture
A firm’s shared values, beliefs, traditions, philosophies, rules, and role models for behavior.

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

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

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

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

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

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

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

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

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

16. Organization, Teamwork & Communication
Organizational Growth
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

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

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

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

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

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

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

24. Functional Departmentalization

25. Product Departmentalization

26. Geographical Departmentalization

27. Customer Departmentalization

28. Assigning Responsibility
Delegation creates a responsibility
Delegation of authority
Assigning responsibility
Employee accountability

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

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

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

32. Centralization Centralized organizations Decentralized 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. Span of Management
Span of Management – the number of subordinates who report to a particular manager.

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. Advantages of Small Business Ownership
Costs
Flexibility
Focus
Reputation

36. Span of Management – Organizational layers

37. Span of Management – Organizational layers

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

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

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

41. Forms of Organizational Structure
Matrix Structure

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. 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. Differences between Groups & Teams

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

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

47. Communications in Organizations

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. Communications in Organizations
Informal Communication – separate from management’s formal, official communication channels.
Grapevine