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Lecture Business: A changing world - Chapter 8: Organization, teamwork, and communication

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Because a business’s structure can so profoundly affect its success, this chapter will examine organizational structure in detail. After reading this chapter, you will be able to: Define organizational structure and relate how organizational structures develop, describe how specialization and departmentalization help an organization achieve its goals, distinguish between groups and teams and identify the types of groups that exist in organizations,...

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©  2003 McGraw­Hill Ryerson Limited 

Chapter Eight

Organization, Teamwork, and Communication

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MarketingDepartment

Research andDevelopmentDepartment

Production

Department

Functional Departmentalization

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communications Equipment

Division

ComputerElectronicsDivision

Industrial Tele­

communications Equipment

Division

Stereo

Equipment

Division

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EuropeanDivision Middle EastDivision

North

American

Division

PresidentInternationalOperation

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ProductManager

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©  2003 McGraw­Hill Ryerson Limited 

Differences between Groups and Teams

• Discusses, decides, and delegates

• Shared leadership roles

• Individual and group accountability

• A specific purpose that the team  itself delivers

• Creates collective work products

• Encourages open­ended discussion  and active problem­solving 

meetings

• Measures performance directly by  assessing collective work products

• Discusses, decides, and does real  work together

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©  2003 McGraw­Hill Ryerson Limited 

Teams: Potential Problems  and Diagnostic Checklists

 Do team members hold  one another accountable?

8-4a

Source: Mark Fischetti, “Team Doctors, Report to ER,”

Fast Company, Issue 13, p. 170.

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©  2003 McGraw­Hill Ryerson Limited 

Teams: Potential Problems  and Diagnostic Checklists

2 Group myopia   ­  deficiency of clear, inspiring 

goals What are we trying to do?

Diagnostic checklist  Does the goal have 

measurable results?

 Does it force communication  and constructive comment?

 Does it make the team work  collectively?

8-4b

Source: Mark Fischetti, “Team Doctors, Report to ER,”

Fast Company, Issue 13, p. 170.

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©  2003 McGraw­Hill Ryerson Limited 

Teams: Potential Problems  and Diagnostic Checklists

3 Leadership phobia   ­  an exaggerated fear of 

assuming the leading role How do I lead the team?

Diagnostic checklist  Chart the teams course; design its major 

tasks; make its responsibilities clear; and establish its reward system

 Help the team establish its goals and its ways of working

 Once the team starts performing,coach them

8-4c

Source: Mark Fischetti, “Team Doctors, Report to ER,”

Fast Company, Issue 13, p. 170.

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ProductionManagerSupervisor SupervisorSupervisor Supervisor

Employees Employees Employees Employees

Line relationship Staff relationship

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©  2003 McGraw­Hill Ryerson Limited 

An Example of Multidivisional  Structure: The Walt Disney Company

8-10

Source: The Walt Disney Company Annual Report

CEO Michael Eisner

Walt Disney Attractions Walt DisneyStudios ConsumerProducts

Motion Pictures TV Animation ChannelDisneyMagic

Kingdom CA

Tokyo Disneyland DisneyEuro­

Walt Disney World

Disney Stores Licensing Publishing DisneyMusic

Software and Education

Catalog Marketing Magic

Kingdom FL

Epcot Center

Disney­

MGM Studios

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Operations  Manager

Marketing Manager Accounting Manager Research Manager

General Project Manager

Manager Project A

Manager Project B Manager Project C

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Manager Manager Manager Manager Manager Manager

Horizontal Horizontal

Diagonal

Diagon

al

Upward Downward Horizontal Diagonal

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©  2003 McGraw­Hill Ryerson Limited 

Using Structure For  Successful Meetings

• A regular time for the meeting is established, or meetings  are scheduled for a period of time. For example, meetings  for a given month, quarter, or year are scheduled at one  time.

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©  2003 McGraw­Hill Ryerson Limited 

Using Structure For  Successful Meetings

• The meeting format is developed.

• The meeting agenda is prepared and available ahead of  time, and is reviewed and modified as needed before the  meeting begins.

• Planned participation is used within the first 15 minutes.

• Meeting minutes are recorded.

• The meeting is critiqued for continuous improvement.

8-13b

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©  2003 McGraw­Hill Ryerson Limited 

Meeting Outline and  Allotted Times Example

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©  2003 McGraw­Hill Ryerson Limited 

Solve the Dilemma

a What techniques or skills should an employee  have to assume a leadership role within a work  group?

b If each work group has a team representative,  what problems will be faced in supervising these  representatives?

c Evaluate the pros and cons of the system  developed by QS.

8-15

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©  2003 McGraw­Hill Ryerson Limited 

Explore Your Career Options

What is the main quality of employees  who will be successful in their job? 

Explain how this quality is helpful in a  small business and in a large company.

8-16

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©  2003 McGraw­Hill Ryerson Limited 

Additional Discussion  Questions and Exercises

1 Which organizational structure would be best of the the following 

situations? Draw an organizational chart that would be appropriate for  each of the situations

a The owner of a real estate agency has opened an office with three 

real estate agents. The owner direct the agency

b The real estate agency above has grown in the last five years. The 

business has grown in two different directions: residential and commercial. The owner still directs the real estate agency. He now  has five agents handling commercial real estate details and 15 

agents handling residential real estate details. He would like 

to  appoint one of the agents to be manager of a commercial division  and another agent to be manager of the real estate division

8-17a

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©  2003 McGraw­Hill Ryerson Limited 

Additional Discussion  Questions and Exercises

c Another five years has elapsed. The same real estate agency has 

grown. Most of the business is still centered in two divisions: residential and commercial. The owner has no added a vice president to oversee the residential and commercial 

divisions.  Also, the agency has added advertising and office management  departments; the purpose of these staff 

departments is to  provide advice and support to the residential and commercial  divisions

8-17b

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a centralization.

b specialization.

c departmentalization.

d accountability.

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