10 Organization, Teamwork & Communication Organizational Culture – satisfying the needs & expectations of stakeholdersEnsures that organizational members:share valuesobserve common rulesshare problem solving approaches
11 Organization, Teamwork & Communication The most important drivers of innovation in companies.
12 Organization, Teamwork & Communication DevelopingOrganizational StructureOrganizational Structure – The arrangement or relationship of positions within an organization.
13 Organization, Teamwork & Communication DevelopingOrganizational StructureStructure Develops –Managers assign work tasks to individuals & groupsCoordination of diverse activities to attain objectives
14 Organization, Teamwork & Communication Organizational ChartWhat the Organizational Chart Shows –Organizational structureChain of command (lines of authority)Other relationships (staff, committees, etc.)Lines of communication
15 Organizational Structure The Evolution of a Clothing StorePhases 1, 2, and 3
16 Organization, Teamwork & Communication Organizational GrowthWhat does organizational growth require?Structuring of resources (human, physical, financial)Hiring specialized talent & skillsFormalized structure (as workforce & specialization grows)Assign work tasks to individuals & departmentsAssign responsibility for organizational objectives
17 Assigning Tasks – Organizational Structure Celestial Seasonings – Determining activities required to meet objectivesPurchase herbs from suppliersDry the herbsPlace in tea bagsPackage and label tea bagsShip packages to retail outlets
18 Assigning TasksSpecializationManagers divide the labor into small, specific tasks and assign to employees to accomplish individual tasks.
19 Efficiency Ease of training Activities too numerous Assigning TasksWhy Specialize?EfficiencyEase of trainingActivities too numerous
21 Organizational Structure – Assigning Tasks DepartmentalizationGrouping 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 departmentalizationProduct departmentalizationGeographical departmentalizationCustomer departmentalization
23 Retailing & Wholesaling Selling directly to the consumerMusic storesSporting-goods shopsDry cleanersBoutiquesDrugstoresRestaurantsHardware stores
28 Assigning Responsibility Delegation creates a responsibilityDelegation of authorityAssigning responsibilityEmployee accountability
29 Assigning Responsibility Delegation of AuthorityGiving 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 AccountabilityEmployees are answerable to a superior for work outcomes.
32 Centralization Centralized organizations Decentralized organizations Authority is concentrated at the top level.Decentralized organizationsDecision-making authority is delegated as far down the chain of command as possible.
33 Span of ManagementSpan of Management – the number of subordinates who report to a particular manager.
34 Span of ManagementA 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 CostsFlexibilityFocusReputation
48 Communications in Organizations Formal Communication – flow of communication within the formal organizational structure as depicted on organizational charts.Upward communicationDownward communicationHorizontal communicationDiagonal communication
49 Communications in Organizations Informal Communication – separate from management’s formal, official communication channels.Grapevine