Chapter%20Eight

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Chapter Eight

• Organization,Teamwork, and Communication

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Issues in Developing an Organization

• The Right Structure
• Necessary Areas of Specialization
• Degree of Departmentalization

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Specialization

• Dividing labor into small, specific tasks and
  assigning employees to do a single task.

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Departmentalization
The grouping of jobs into working units

• Types
• Functional Departmentalization
• Product Departmentalization
• Geographical Departmentalization
• Customer Departmentalization

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Functional Departmentalization
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Product Departmentalization
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Geographical Departmentalization
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Customer Departmentalization
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The Differences BetweenGroups and Teams
Working Group
Team

• Shared leadership roles
• Individual and group accountability
• A specific purpose that the team itself delivers
• Creates collective work products
• Encourages open-ended discussion and active
  problem-solving meetings
• Measures performance directly by assessing
  collective work products
• Discusses, decides, and does real work together

• Strong, clearly focused leader
• Individual accountability
• The same purpose as the broader organizational
  mission
• Creates individual work products
• Runs efficient meetings
• Measures its effectiveness indirectly by its
  effects on others (e.g., financial performance of
  the business
• Discusses, decides, and delegates

Source Robert Gatewood, Robert Taylor, O.C.
Ferrell, Management Comprehension, Analysis, and
Application (Homewood, IL Austen Press, 1995),
427.
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Types of Groups

• Committee
• Task Force
• Project Team
• Product-development team
• Quality Assurance Team
• Self-directed Work Team (SDWT)

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Virtual Teams

• Employees Reactions To Virtual Work
• 91 enjoyed the experience
• 73 would like to engage in virtual work more
  frequently
• 35 felt it enhanced their relationships with
  other employees

Source Darryl Haralson and Adrienne Lewis, USA
Today Snapshots, USA Today, April 26, 2001, p.
B1.
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Assigning Responsibility and Delegating Authority

• Delegation of Authority
• Assigning Responsibility
• Employee Accountability

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Degree of Centralization

• Centralized Organizations
• Authority is concentrated at the top and very
  little decision-making authority is delegated to
  lower levels

• Decentralized Organizations
• Decision-making authority is delegated as far
  down the chain of command as possible

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Span of ManagementWide Span and Narrow Span
Narrow Span Tall Organization
Wide Span Flat Organization
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Span of ManagementOrganizational layers
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Forms of Organizational Structure

• Line
• Line-and-staff
• Multidivisional
• Matrix

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Line Structure
Convenience Store
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Line-and-Staff Structure
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An Example of Multidivisional Structure The Walt
Disney Company
Source The Walt Disney Company Annual Report
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The Matrix Structure
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The Flow of Communication in an Organizational
Hierarchy
Upward
Downward
Horizontal
Diagonal
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Formal Communication

• Upward communication flow
• Downward communication flow
• Horizontal communication flow
• Diagonal communication flow

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Informal Communication

• The informal organization
• The grapevine

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Organizational Culture

• The firms shared values, beliefs, traditions,
  philosophies, rules, and heroes.

FAST FACT Southwest Airlines employees are
continually encouraged to have fun and make
flying exciting for their passengers. New
employees watch videotapes and attend training
sessions on the companys philosophies,
policies, and culture.
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Solve the Dilemma

1. What techniques or skills should an employee
   have to assume a leadership role within a work
   group?
2. If each work group has a team representative,
   what problems will be faced in supervising these
   representatives?
3. Evaluate the pros and cons of the system
   developed by QS.

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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.

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Additional Discussion Questions and Exercises

• Which organizational structure would be best in
  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 directs 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
  residential division.

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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
  now 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.

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Chapter 8 Quiz

• 1. Which of the following is most similar to the
  matrix structure? a. line structure b. functi
  onal structure c. line-and-staff
  structure d. ad hoc committee
• 2. Which of the following is commonly considered
  an example of informal organizational
  structure? a. grapevine b. organizational
  culture c. organizational chart d. employee
  handbook

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Chapter 8 Quiz

• 3. Compared with flat organizations, which of the
  following is most typical of tall
  organizations? a. The span of management is
  wide. b. The communication is
  faster. c. Administrative costs are usually
  higher. d. Fewer layers of management are
  needed to carry out operations.
• 4. The division of labor into small, specialized
  tasks and the assignment of single tasks to
  employees is called a. centralization. b. spec
  ialization. c. departmentalization. d. account
  ability.

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Multiple Choice Questions about the Video

• 1. Which of the following best describes Big
  Apple Bagel?
• a. decentralized b. centralized c. concentri
  cal d. recentralized
• 2. St. Louis Bread Company introduced ________ in
  order to address the authority and task
  boundaries that occur with growth. a. dysfunctio
  nal and team-managed work groups b. functional
  and self-managed work teams c. cross-functional
  and self-managed work teams d. functional and
  team-managed work groups