Organization and Teamwork

Name: Organization and Teamwork
Uploaded: 2017-08-21T15:14:50+00:00
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Description: Organization and Teamwork

Organization and Teamwork
Chapter 8

Copyright © 2015 Pearson Education, Inc.
Learning Objectives Explain the major decisions needed to design an organization structure Define four major types of organization structures Explain how a team differs from a group and describe the six most common forms of teams Copyright © 2015 Pearson Education, Inc.

Learning Objectives Highlight the advantages and disadvantages of working in teams and list the characteristics of effective teams Review the five stages of team development and explain why conflict can arise in team settings Explain the concept of an unstructured organization and identify the major benefits and challenges of taking this approach Copyright © 2015 Pearson Education, Inc.

Designing an Effective Organization Structure
A framework that enables managers to divide responsibilities, ensure employee accountability, and distribute the decision-making authority Organization Chart A diagram that shows how employees and tasks are grouped and where the lines of communication and authority flow A company’s organization structure has a dramatic influence on the way employees and managers make decisions, communicate, and accomplish important tasks. This structure helps the company achieve its goals by providing a framework for managers to divide responsibilities, effectively distribute the authority to make decisions, coordinate and control the organization’s work, and hold employees accountable for their work. When managers design an organization’s structure, they use an organization chart to provide a visual representation of how employees and tasks are grouped and how the lines of communication and authority flow (see Exhibit 8.1 on the next page). An organization chart depicts the official design for accomplishing tasks that lead to achieving the organization’s goals, a framework known as the formal organization. Copyright © 2015 Pearson Education, Inc.

Designing an Effective Organization Structure (cont.)
Agile Organization A company whose structure, policies, and capabilities allow employees to respond quickly to customer needs and changes in the business environment In the past, organizations were usually designed around management’s desire to control workers, with everything set up in a hierarchy. Today, however, the goal of many companies is an agile organization that allows employees to respond quickly to customer needs and changes in the business environment and to bring the best mix of talents and resources to every challenge. Copyright © 2015 Pearson Education, Inc.

Identifying Core Competencies
Activities that a company considers central and vital to its business Core competencies are activities at which a company excels and that give it the potential to create competitive advantages. Copyright © 2015 Pearson Education, Inc.

Identifying Job Responsibilities
Work Specialization specialization in or responsibility for some portion of an organization’s overall work tasks also called division of labor Once a company knows what it wants to focus on, it can design each job so as to deliver those competencies. A key decision here is finding the optimal level of work specialization, sometimes referred to as the division of labor—the degree to which organizational tasks are broken down into separate jobs. Work specialization can improve organizational efficiency by enabling each worker to perform tasks that are well defined and that require specific skills. When employees concentrate on the same specialized tasks, they can perfect their skills and perform those tasks quickly. In addition to aligning skills with job tasks, specialization prevents overlapping responsibilities and communication breakdowns. Copyright © 2015 Pearson Education, Inc.

Defining the Chain of Command
A pathway for the flow of authority from one management level to the next Line Organization A chain of command system that establishes a clear line of authority flowing from the top down With the various jobs and their individual responsibilities identified, the next step is to define the chain of command. This can be defined as the lines of authority that connect the various groups and levels within the organization. The chain of command helps the organization function smoothly by making two things clear: who is responsible for each task and who has the authority to make decisions. The simplest and most common chain of command system is known as line organization because it establishes a clear line of authority flowing from the top down, as Exhibit 8.1 depicts. Everyone knows who is accountable to whom, as well as which tasks and decisions each is responsible for. Copyright © 2015 Pearson Education, Inc.

Line-and-Staff Organization An organization system that has a clear chain of command but that also includes functional groups of people who provide advice and specialized services A more elaborate system, called line-and-staff organization, was developed to address the need to combine specialization with management control. In such an organization, managers in the chain of command are supplemented by functional groupings of people known as staff, who provide advice and specialized services but who are not in the line organization’s overall chain of command. Copyright © 2015 Pearson Education, Inc.

Span of Management The number of people under one manager’s control Also known as span of control The number of people a manager directly supervises is called the span of management, or span of control. When a large number of people report directly to one person, that person has a wide span of management. This situation is common in flat organizations with relatively few levels in the management hierarchy. In contrast, tall organizations have many hierarchical levels, typically with fewer people reporting to each manager than is the case in a flat organization. In these organizations, the span of management is narrow. Copyright © 2015 Pearson Education, Inc.

Centralization Versus Decentralization
Concentration of decision-making authority at the top of an organization Decentralization Delegation of decision-making authority to employees in lower-level positions Organizations that focus decision-making authority near the top of the chain of command are said to be centralized. Centralization can benefit a company by utilizing top management’s experience and broad view of organizational goals. In addition, it can help companies coordinate large undertakings more efficiently, accelerate decisions that might otherwise get bogged down in discussions and disagreements, and reduce the number of overlapping capabilities. In contrast, decentralization pushes decision-making authority down to lower organizational levels—such as department heads—while control over essential companywide matters remains with top management. Implemented properly, decentralization can stimulate responsiveness because decisions don’t have to be referred up the hierarchy. Copyright © 2015 Pearson Education, Inc.

Organizing the Workforce
Departmentalization Grouping people within an organization according to function, division, matrix, or network The decisions regarding job responsibilities, span of management, and centralization versus decentralization provide insights that managers need in order to choose the best organization structure. The arrangement of activities into logical groups that are then clustered into larger departments and units to form the total organization is known as departmentalization. Copyright © 2015 Pearson Education, Inc.

Organizing the Workforce
Functional Structure Grouping workers according to the similarity in their skills, resource use, and expertise Divisional Structure Grouping departments according to similarities in product, process, customers, or geography The functional structure groups employees according to their skills, resource use, and job requirements. Common functional subgroups include research and development (R&D), production or manufacturing, marketing and sales, and human resources. The divisional structure establishes self-contained suborganizations that encompass all the major functional resources required to achieve their goals—such as research and design, manufacturing, finance, and marketing. Copyright © 2015 Pearson Education, Inc.

Exhibit 8.4 Customer Division Structure Focusing each division on a single type of customer can help a company market its products more efficiently and serve customers more responsively. Copyright © 2015 Pearson Education, Inc.

Matrix Structure Matrix Structure A structure in which employees are assigned to both a functional group and a project team (thus using functional and divisional patterns simultaneously) A matrix structure is an organizational design in which employees from functional departments form teams to combine their specialized skills (see Exhibit 8.5). This structure allows the company to pool and share resources across divisions and functional groups. The matrix may be a permanent feature of the organization’s design, or it may be established to complete a specific project. The matrix structure can help big companies function like smaller ones by allowing teams to devote their attention to specific projects or customers without permanently reorganizing the company’s structure. Copyright © 2015 Pearson Education, Inc.

Network Structure Network Structure A structure in which individual companies are connected electronically to perform selected tasks for a small headquarters organization Also called virtual organization A network structure stretches beyond the boundaries of a company to connect a variety of partners and suppliers that perform selected tasks for a headquarters organization. Also called a virtual organization, a network organization can outsource engineering, marketing, research, accounting, production, distribution, or other functions. The design of a network structure stems from decisions about core competencies, with executives deciding which functions to focus on internally and which to outsource. Copyright © 2015 Pearson Education, Inc.

Organizing in Teams Team A unit of two or more people who share a mission and collective responsibility as they work together to achieve a goal A team is a unit of two or more people who work together to achieve a shared goal. Teams differ from work groups in that work groups interact primarily to share information and to make decisions to help one another perform within each member’s area of responsibility. In other words, the performance of a work group is merely the summation of all group members’ individual contributions. Copyright © 2015 Pearson Education, Inc.

Types of Teams Problem-Solving Team A team that meets to find ways of improving quality, efficiency, and the work environment Self-Managed Team A team in which members are responsible for an entire process or operation A problem-solving team is assembled to find ways of improving quality, efficiency, or other performance measures. In some cases, a team attacks a single, specific problem and disbands after presenting or implementing the solution. As the name implies, a self-managed team manages its own activities and requires minimal supervision. Typically, these teams control the pace of work and determination of work assignments. Fully self-managed teams select their own members. Self-managed teams represent a significant change for organizations and managers accustomed to rigid command-and-control structures. Copyright © 2015 Pearson Education, Inc.

Types of Teams Functional Team A team whose members come from a single functional department which is based on the organization’s vertical structure Cross-Functional Team A team that draws together employees from different functional areas A functional team, or command team, is organized along the lines of the organization’s vertical structure and thus may be referred to as a vertical team. Such teams are composed of managers and In contrast to functional teams, a cross-functional team, or horizontal team, draws together employees from various functional areas and expertise. Cross-functional teams can facilitate information exchange, help coordinate multiple organizational units, encourage new solutions for organizational problems, and aid the development of new organizational policies and procedures. employees within a single functional department, and the structure of a vertical team typically follows the formal chain of command. Copyright © 2015 Pearson Education, Inc.

Cross-functional Teams
Task Force A team of people from several departments who are temporarily brought together to address a specific issue Committee A team that may become a permanent part of the organization and is designed to deal with regularly recurring tasks A cross-functional team can take on a number of formats. A task force is formed to work on a specific activity with a completion point. Several departments are usually involved so that all parties who have a stake in the outcome of the task are able to provide input. In contrast, a committee usually has a long life span and may become a permanent part of the organization structure. Committees typically deal with regularly recurring tasks, such as addressing employee grievances. Copyright © 2015 Pearson Education, Inc.

Types of Teams Virtual Team A team that uses communication technology to bring together geographically distant employees to achieve goals A virtual team is composed of members at two or more geographic locations. Research indicates that virtual teams can be as effective as face-to-face teams, as long as they take steps to overcome the disadvantages of not being able to communicate face to face. For instance, some virtual teams meet in person at least once to allow the members to get to know one another before diving into their work. Copyright © 2015 Pearson Education, Inc.

Advantages of Working on Teams
Higher quality decisions Increased diversity of views Increased commitment to solutions and changes Lower levels of stress and destructive internal competition Improved flexibility and responsiveness Managers must weigh the pros and cons of teams when deciding whether and how to use them. A well-run team can provide a number of advantages. Copyright © 2015 Pearson Education, Inc.

Disadvantages of Working on Teams
Inefficiency Groupthink Diminished individual motivation Structural disruption Excessive workloads Although the advantages of teamwork help explain the widespread popularity of teams in today’s business environment, teams also present a number of potential disadvantages, particularly if they are poorly structured or poorly managed. Copyright © 2015 Pearson Education, Inc.

Team Member Roles Exhibit 8.7 Team members assume one of the four roles outlined here. Members who assume a dual role—emphasizing both task progress and people needs—often make the most effective team leaders. Copyright © 2015 Pearson Education, Inc.

Team Development Forming Storming Norming Performing Adjourning Forming. The forming stage is a period of orientation and ice-breaking. Storming. In the storming stage, members show more of their personalities and become more assertive in establishing their roles. Norming. During the norming stage, conflicts are resolved, and team harmony develops. Performing. In the performing stage, members are really committed to the team’s goals. Adjourning. Finally, if the team has a specific task to perform, it goes through the adjourning stage after the task has been completed. Copyright © 2015 Pearson Education, Inc.

Team Development Cohesiveness A measure of how committed team members are to their team’s goals Norms Informal standards of conduct that guide team behavior As a team moves through these stages, two important developments occur. First, it develops a certain level of cohesiveness, a measure of how committed the members are to the team’s goals. Cohesiveness is reflected in meeting attendance, team interaction, work quality, and goal achievement. Cohesiveness is influenced by many factors, particularly competition and evaluation. The second development is the emergence of norms, informal but often powerful standards of conduct that members share and use to guide their behavior. Norms define acceptable behavior by setting limits, identifying values, and clarifying expectations. By encouraging consistent behavior, norms boost efficiency and help ensure the group’s survival. Individuals who deviate from these norms can find themselves ridiculed, isolated, or even removed from the group entirely. Copyright © 2015 Pearson Education, Inc.

Team Conflict Constructive Conflict Brings important issues into the open, increases the involvement of team members, and generates creative ideas for solving a problem Destructive Conflict Diverts energy from more important issues, destroys the morale of teams or individual team members, or polarizes or divides the team As teams mature and go about their work, conflicts can arise. Although the term conflict sounds negative, conflict isn’t necessarily bad. It can be constructive if it brings important issues into the open, increases the involvement of team members, and generates creative ideas for solving a problem. Teamwork isn’t necessarily about happiness and harmony; even teams that have some interpersonal friction can excel if they have effective leadership and team players committed to strong results. In contrast, conflict is destructive if it diverts energy from more important issues, destroys the morale of teams or individual team members, or polarizes or divides the team. Destructive conflict can lead to win-lose or lose-lose outcomes, in which one or both sides lose, to the detriment of the entire team. If you approach conflict with the idea that both sides can satisfy their goals to at least some extent (a win-win strategy), you can minimize losses for everyone. Copyright © 2015 Pearson Education, Inc.

Solutions to Team Conflict
Proactive attention Communication Openness Research Flexibility Fair play Alliance • Proactive attention. Deal with minor conflict before it becomes major conflict. • Communication. Get those directly involved in a conflict to participate in resolving it. • Openness. Get feelings out in the open before dealing with the main issues. • Research. Seek factual reasons for a problem before seeking solutions. • Flexibility. Don’t let anyone lock into a position before considering other solutions. • Fair play. Insist on fair outcomes and don’t let anyone avoid a fair solution by hiding behind the rules. • Alliance. Get opponents to fight together against an “outside force” instead of against each other. Copyright © 2015 Pearson Education, Inc.

Managing an Unstructured Organization
An organization that doesn’t have a conventional structure but instead assembles talent as needed from the open market; the virtual and networked organizational concepts taken to the extreme THE END Much of the thinking in past decades about organization strategies in business centered on the best way to structure a company to compete effectively and operate efficiently. However, many companies are concluding that the best way to organize might be with little or no structure at all, at least in terms of the traditional forms. Such unstructured organizations are using digital technologies—and global socioeconomic changes enabled by these technologies—to rapidly form and re-form work patterns that bear almost no resemblance to the classic structures. Copyright © 2015 Pearson Education, Inc.

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