Business a changing world 7e by ferrell chap008

Organization, Teamwork, & CommunicationStructure Impacts: •Decision making •Costs & efficiencies •Overall success and sustainability Importance of Organizational Structure... Organizatio

Business in a Changing World

Chapter 8

Organization, Teamwork, and Communication

An organization based on blogging providing a unique competitive advantage.

Organization, Teamwork, & Communication

Structure Impacts:

•Decision making

•Costs & efficiencies

•Overall success and sustainability

Importance of Organizational Structure

A firm’s shared values, beliefs, traditions,

philosophies, rules, and role models for behavior.

Organizational Culture

Organization, Teamwork, & Communication

Organization, Teamwork & Communication

Ensures that organizational members:

•share values

•observe common rules

•share problem solving approaches

Organizational Culture – satisfying the needs &

expectations of stakeholders

Organization, Teamwork & Communication

Organization, Teamwork & Communication

Organizational Structure – The arrangement or

relationship of positions within an organization.

Developing Organizational Structure

Organization, Teamwork & Communication

Structure Develops –

•Managers assign work tasks to individuals & groups

•Coordination of diverse activities to attain objectives

Developing Organizational Structure

Organization, Teamwork & Communication

What the Organizational Chart Shows –

•Organizational structure

•Chain of command (lines of authority)

•Other relationships (staff, committees, etc.)

•Lines of communication

Organizational Chart

Organizational Structure

The Evolution of a Clothing Store

Phases 1, 2, and 3

Organization, Teamwork & Communication

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

Organizational Growth

 Purchase herbs from suppliers

 Dry the herbs

 Place in tea bags

 Package and label tea bags

Celestial Seasonings – Determining activities required to meet objectives

Assigning Tasks – Organizational Structure

Assigning Tasks

Managers divide the labor into small, specific

tasks and assign to employees to accomplish

individual tasks.

Specialization

Assigning Tasks – Organizational Structure

Departmentalization is the grouping of jobs into working

units usually called departments, units, groups, or

Retailing & Wholesaling

Selling directly to the consumer

Functional Departmentalization

Product Departmentalization

Geographical Departmentalization

Customer Departmentalization

Assigning Responsibility

Giving employees tasks and power to make

commitments, use resources, and take action to

carry out tasks.

Delegation of Authority

Assigning Responsibility

Obligation placed on employees to perform

assigned tasks and be held accountable for

proper execution.

Responsibility

Assigning Responsibility

Employees are answerable to a superior for work

outcomes.

Accountability

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.

Span of Management

Span of Management – the number of

subordinates who report to a particular manager.

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

Advantages of Small Business Ownership

•Costs

•Flexibility

•Focus

•Reputation

Span of Management – Organizational layers

Span of Management – Organizational layers

Forms of Organizational Structure

Line Structure

Line-and-staff structure

Multidivisional structure

Matrix structure

Forms of Organizational Structure

Line Structure – Convenience Store as an example

Forms of Organizational Structure

Forms of Organizational Structure

Groups & Teams in Organizations

Group – two or more individuals who

communicate with one another, share a common

identity, and have a common goal

Groups & Teams in Organizations

Team – a small group whose members have

complementary skills, have a common purposes,

goals, and approach; hold themselves mutually

Groups & Teams

Differences between Groups & Teams

Groups & Teams

performing a specific task.

Groups & Teams

Teams

•Project teams

•Product development teams

•Quality assurance teams (quality circles)

•Self-directed work teams (SDWT)

Communications in Organizations

Communications in Organizations

within the formal organizational structure as

depicted on organizational charts.

•Upward communication

•Downward communication

•Horizontal communication

•Diagonal communication

Communications in Organizations

management’s formal, official communication

channels.

•Grapevine