ORGANIZATION, TEAMWORK

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ORGANIZATION, TEAMWORK COMMUNICATION
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The Changing Structure of Organizations

• Canadian business adapts to competition and
  becomes more responsive to customer needs
• Changing organizational design from a
  bureaucratic system to one of employee
  empowerment
• Top-down management worked well in the past - it
  is not flexible enough for the new global economy

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Organizational Structure has Evolved

• To understand the evolution of the organizational
  structure, we must study the history of
  organizational theory

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Henri Fayols Ten Principles

• Unity of command
• Hierarchy of authority
• Authority
• Degree of centralization
• Equity
• Clear communication channels
• Division of labor
• Subordination of individual to the group
• Esprit de corps
• Order

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Max Weber and Organizational Theory

• Three Layers of Authority
• Top Managers who are decision makers
• Middle Managers who develop rules and procedures
• Supervisors and Workers who do the work

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Max Webers Principles

• Webers Principles were similar to Fayols with
  the addition of the following
• Job descriptions
• Written rules
• Consistent policies, procedures and regulations
• Staffing and promotions based on qualifications

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Joan Woodwards Research

• She studied Fayols and Webers principles at
  work in the real world and found
• There is no best way to structure all companies
• Labor-intensive organizations function better
  with a more democratic management style
• Highly-automated companies are more successful
  when a more bureaucratic style of management is
  used

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Designing More Responsive Organizations

• Use an Organization Chart to visually illustrate
  departmental relationships
• Tall Organizations have many layers of Management
• Flat Organizations have few layers of management
  they expand sideways
• Flat Organizations are the current trend

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Purpose of an Organization Chart

• 1. Show the activities of the organization.
• 2. Highlight subdivisions of the organization.
• 3. Identify different types of work performed.
• 4. Provide information about different
  management levels.
• 5. Show the lines of authority in the
  organization and the flow of organizational
  communications.

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Departmentalization - dividing organizational
functions into separate units

• Advantages
• Easier to lead and control
• Resources can be centralized
• Skills can be perfected
• Disadvantages
• Lack of communication
• Response to change is slow
• Employees identify with the department
• Employees become narrow specialists

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Departmentalization
Functional Departmentalization
8-2a
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Departmentalization
Product Departmentalization
8-2b
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Departmentalization
Geographical Departmentalization
8-2c
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Departmentalization
Customer Departmentalization
8-2d
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Span of Control

• Variables in Span of Control
• Capabilities of the manager
• Capabilities of the subordinates
• Complexity of the job
• Functional complexity
• Need for coordination
• Planning demands
• Functional similarity
• Geographical closeness

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Span of ManagementWide Span and Narrow Span
Wide Span Flat Organization
Narrow Span Tall Organization
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Centralization vs. Decentralization

• Centralized means authority and decision-making
  remains at the top of the Organization
• Decentralized authority means decision-making is
  delegated down to the lower levels of management
• The trend is toward more decentralized
  organizations

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ORGANIZATIONAL MODELS

• Line Organizations have direct lines of
  communication, authority and responsibility
• Line / Staff Organizations have the line people
  do the job and the staff people to advise and
  assist the line personnel
• Multidivisional Organization organize departments
  into large groups called divisions
• Matrix Organizations bring experts from various
  parts of the organization together to work on
  projects

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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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Matrix Structure
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ADVANTAGES DISADVANTAGES OF MATRIX ORGANIZATIONS

• ADVANTAGES
• Flexibility
• Teamwork
• Creative solutions
• DISADVANTAGES
• Costly complex
• Conflict of 2 bosses
• FOR MATRIX TO WORK NEED GOOD HR SKILLS

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A New Organization Model

• Cross-functional, Self-managed Teams
• The Team manages itself
• The Team is made of staff from different
  functional areas
• The Team often networks internally and externally
  across across corporate or national boundaries

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Differences between Groups and Teams
Team
Working Group

• 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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FILM THE TROUBLE WITH TEAMS

• What are the driving forces that you see for the
  adoption of teams in the workplace?
• When is it better to use teams rather than a
  strong leader?
• Why would a manufacturing business like Ford not
  be successful with teams, but the five partners
  in the technical business were when they started
  out?

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Organizational Culture

• Corporate culture is the widely-shared values
  within an organization
• It is created by the organization's leaders
• It should emphasize customer service
• The best ones stress moral and ethical values

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COMMUNICATION IN AN ORGANIZATION
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The Flow of Communication in an Organizational
Hierarchy
Upward
Downward
Horizontal
Diagonal
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The Informal Organization

• The Formal Organization appears on the
  Organizational Chart
• The Informal Organization is the system of
  relationships amongst the employees
• The Informal Organization can
• Adapt quickly
• Help to foster group cohesiveness
• Aid in communications - the Grapevine

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Examples of Informal Group Norms

• Do your job, but dont produce more than the rest
  of the group.
• Dont tell off-color jokes or use profane
  language among group members.
• Listen to the boss and use his/her expertise, but
  dont trust him/her.
• Everyone is to be clean and organized at their
  work stations.
• Never side with managers in a dispute involving
  group members.
• Respect and help your fellow group members on the
  job.
• Criticize the organization only among group
  members. Never among strangers.
• Drinking is done off-the-job. Never at work!

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CLASS ON 31/10/2005

• TOPIC Production Operations Management
• Read chapter 8 before class
• Class Activity Diamonds on Ice (video), read
  case think about questions (p. 216)