Ferrell Hirt Ferrell
M: Business
nd
2 Edition
FHF
Organization, Teamwork,
and
Communication
FHF
McGraw-Hill/Irwin
Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved.
Organization 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
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8-3
The Importance of Organizational
Structure
• Impacts:
• Decision making
• Costs & efficiencies
• Overall success and sustainability
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8-4
Google’s Corporate Culture
• Famous for its culture and relaxed work
environment
• Scooters inside the building
• Foosball tables and volleyball courts
• Dog friendly offices
• Local cultural touches like gondolas in Zurich
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8-5
Organizational Culture
Formal expression
• Mission statement
• Code of ethics
• Manuals
• Ceremonies
• Memoranda
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8-6
Organizational Culture (continued)
Informal Expression
• Dress code
• Work habits
• Extracurricular activities
• Stories
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8-7
Organizational Structure
The arrangement or relationship of positions within an
organization
• Structure Develops
• Managers assign work tasks to individuals & groups
• Coordination of diverse activities to attain objectives
Organizational Chart
• A visual display of the organizational structure
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8-8
Organizational Chart
The Evolution of a Clothing Store
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8-9
Specialization
Managers divide the labor into small, specific tasks and assign
to employees to accomplish individual tasks
Why specialize?
• Efficiency
• Ease of training
• Activities too numerous
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8-10
Risks of Overspecialization
• Employees become bored
• Job dissatisfaction
• Poor quality work
• Increased injuries
• Increased employee turnover
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8-11
Departmentalization
Grouping of jobs into working units (departments,
units, groups, divisions)
• Functional departmentalization
• Product departmentalization
• Geographical departmentalization
• Customer departmentalization
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8-12
Functional Departmentalization
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8-13
Product Departmentalization
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8-14
Geographical Departmentalization
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8-15
Customer Departmentalization
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8-16
Delegation of Authority
[
Giving employees tasks and power to
make commitments, use resources,
and take action to carry out tasks
]
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8-17
Assigning Responsibility
Obligation placed on employees to perform assigned tasks
and be held accountable for proper execution
Employee accountability
• Employees are answerable to a superior for work outcomes
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8-18
Level of Centralization
Centralized organizations
• Authority is concentrated at the top level.
Decentralized organizations
• Decision-making authority is delegated as far down
the chain of command as possible
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8-19
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
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8-20
Span of Management
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8-21
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Span of Management
8-22
Forms of Organizational Structure
• Line Structure
• Line-and-staff structure
• Multidivisional structure
• Matrix structure
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8-23
Line Structure
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8-24
Line-and-Staff Structure
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8-25
Matrix Structure
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8-26
Groups and Teams
Group
• two or more individuals who communicate with one
another, share a common identity, and have a common
goal
Team
• a small group whose members have complementary skills,
have a common purposes, goals, and approach; hold
themselves mutually accountable.
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8-27
Groups versus Teams
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8-28
Committees and Task Forces
Committee
• permanent, formal group performing a specific task
Task force
• temporary group responsible for a particular change
activity
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8-29
Teams
• Project teams
• Product development teams
• Quality assurance teams (quality circles)
• Self-directed work teams (SDWT)
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8-30
Organizational Communications
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8-31
Formal Communication
Flow of communication within the formal organizational
structure as depicted on organizational charts.
• Upward communication
• Downward communication
• Horizontal communication
• Diagonal communication
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8-32
Informal Communication
Separate from management’s formal, official
communication channels.
• Also known as the Grapevine
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8-33
Monitoring Communication
• Managers must monitor communication
• Without invading privacy
• Must balance employee privacy with generating
respect and mindfulness amongst employees
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8-34
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8-35