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Chapter Eight Organization, Teamwork, and Communication Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

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Chapter EightChapter EightOrganization, Teamwork, and Communication

Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

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Organizational Culture

Corporate cultureShared valuesBeliefsTraditionsPhilosophiesRulesRole models for behavior

Did You Know? 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 company’s philosophies, policies, and culture.

Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved

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How is Corporate Culture Expressed?

Formally Mission statement

Codes of ethics

Memos, manuals

Ceremonies

InformallyDress codes (or the lack thereof)

Work habits

Extracurricular activities

Stories

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Developing Organizational Structure

Structure is the arrangement or relationship of positions within an organization, and developed by:

Assigning work tasks and activities to specific individuals or work groups

Coordinating the diverse activities required to reach the firm’s objectives

Organizational structure is depicted through organizational charts

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Stages of Growth

The Evolution of a Clothing StorePhases 1, 2, and 3

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Two Aspects of Assigning Tasks

Specialization

Departmentalization

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Specialization

The division of labor into small, specialized tasks and the assignment of single tasks to employees

Efficiency

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Departmentalization

Departmentalization is the grouping of jobs into working units usually called departments, units, groups, or divisions

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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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 level

Decentralized organizations

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

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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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Span of Management: Wide Spanand Narrow Span

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Organizational layers

Organizational layers are the levels of management in an organization

Flat organizations have few layers and have wide spans of management

Tall organizations have many layers and have narrow spans of management

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Forms of Organizational Structure

Line

Line-and-staff

Multidivisional

Matrix

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Line Structure

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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

Walt DisneyWalt DisneyAttractionsAttractionsWalt DisneyWalt DisneyAttractionsAttractions

MotionMotionPicturesPicturesMotionMotion

PicturesPictures TVTVTVTV AnimationAnimationAnimationAnimation DisneyDisneyChannelChannelDisneyDisney

ChannelChannel

DisneyDisneyStoresStoresDisneyDisneyStoresStores

SoftwareSoftwareandand

EducationEducation

SoftwareSoftwareandand

EducationEducation

CatalogCatalogMarketingMarketingCatalogCatalog

MarketingMarketing

MagicMagicKingdomKingdom

FLFL

MagicMagicKingdomKingdom

FLFL

Disney-Disney-MGMMGM

StudiosStudios

Disney-Disney-MGMMGM

StudiosStudios

Walt DisneyWalt DisneyStudiosStudios

Walt DisneyWalt DisneyStudiosStudios

MagicMagicKingdomKingdom

CACA

MagicMagicKingdomKingdom

CACA

TokyoTokyoDisneylandDisneyland

TokyoTokyoDisneylandDisneyland

Euro-Euro-DisneyDisneyEuro-Euro-

DisneyDisney

WaltWaltDisneyDisneyWorldWorld

WaltWaltDisneyDisneyWorldWorld

ConsumerConsumerProductsProducts

ConsumerConsumerProductsProducts

LicensingLicensingLicensingLicensing PublishingPublishingPublishingPublishing DisneyDisneyMusicMusic

DisneyDisneyMusicMusic

EpcotEpcotCenterCenterEpcotEpcotCenterCenter

CEOCEOCEOCEO

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The Matrix Structure

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The Role of Groups and Teams in Organizations

A group Two or more individuals who communicate with one another, share a common identity, and have a common goal

A team A small group whose members have complementary skills; a common purpose, goals, and approach; and who hold themselves mutually accountable

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Differences Between Groupsand Teams

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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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The Flow of Communication in an Organizational Hierarchy

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Formal Communication

Communication flowUpward

Downward

Horizontal

Diagonal

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Informal Communication

The informal organizationFriendships and other nonwork social relationships

The most significant informal communication occurs through the grapevine

• May relate to the job or organization

• May be gossip and rumors unrelated to either

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Monitoring Communications

Monitoring the use of electronic communications in the workplace have become necessary for most companies

70 percent of attacks on corporate computer systems are conducted from inside the firm

Failing to monitor employee’s use of e-mail and the Internet can be costly

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Disciplinary Action for Misuse of Personal Use of Telecom Equipment

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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

1. 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 structureb. functional structurec. line-and-staff structured. ad hoc committee

2. Which of the following is commonly considered an example of informal organizational structure?

a. Grapevineb. organizational culturec. organizational chartd. 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. specialization.

c. departmentalization.

d. accountability.

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Multiple Choice Questions about the Video

1. Colonel Lee Van Arsdale’s Institute for Security Studies is based in

a. Las Vegas.b. Los Angeles.c. Los Alamos.d. Washington D.C.

2. Colonel Lee Van Arsdale served as technical advisor on teamwork and other issues on the film

a. Three Kings.b. Top Gun.c. Black Hawk Down.d. White Owl Down.