8-1 organization and teamwork chapter 8. 8-2 chapter 8 objectives after studying this chapter, you...
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8-18-1
Organization and Teamwork
Chapter 8
8-2
Chapter 8 Objectives
After studying this chapter, you will be able to:
• Explain the major decisions needed to design an organization structure.
• Define the four major types of organization structure.
• Explain how a team differs from a group and describe the six most common forms of teams.
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Chapter 8 Objectives Cont.
• Highlight the advantages and disadvantages of working in teams and list the characteristics of effective teams.
• Review the five stages of team development and explain why conflict can arise in team settings.
• Explain the concept of an unstructured organization and identify the major benefits and challenges of taking this approach
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Effective Organizational Structure
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CoordinateCoordinateand Control Workand Control Work
CoordinateCoordinateand Control Workand Control Work
DivideDivideResponsibilitiesResponsibilities
DivideDivideResponsibilitiesResponsibilities
PromotePromoteAccountabilityAccountability
PromotePromoteAccountabilityAccountability
DistributeDistributeAuthorityAuthority
DistributeDistributeAuthorityAuthority
Organization Structure: A framework that enables managers to divide responsibilities, ensure employee accountability, and distribute the decision-making authority
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Organizational Chart
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Organization Chart:A diagram that shows how employees and tasks are grouped and where the lines of communication and authority flow.
Agile Organization: A company whose structure, policies, and capabilities allow employees to respond quickly to customer needs and changes in the business environment.
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Work Specialization
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AdvantagesAdvantagesAdvantagesAdvantages DisadvantagesDisadvantagesDisadvantagesDisadvantages
EfficiencyEfficiencyEfficiencyEfficiency BoredomBoredomBoredomBoredom
ProductivityProductivityProductivityProductivity AlienationAlienationAlienationAlienation
Work Specialization: Specialization in or responsibility for some portion of an organization’s overall work tasks. Also called division of labor.
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Chain of Command
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ResponsibilityResponsibility
AccountabilityAccountability
AuthorityAuthority
DelegationDelegation
Chain of Command: A pathway for the flow of authority from one management level to the next.
Line and Staff
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PresidentPresident
VPProduction
VPProduction
VP Marketing
VP Marketing
VPFinance
VPFinance
Legal Department
Legal Department
Human Resources Department
Human Resources Department
Head of Accounting Department
Head of Accounting Department
National Sales
Manager
National Sales
Manager
LineLine
StaffStaff
Line Organization: A chain of command system that establishes a clear line of authority flowing from the top down.
Line-and-Staff Organization: An organization system that has a clear chain of command but that also includes functional groups of people who provide advice and specialized services.
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Span of Management
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Flat Structure
Tall Structure
Span of Management: The number of people under one manager’s control. Also known as span of control.
Tall Organization
Flat Organization
Decision-Making Authority
Decentralized Decentralized CentralizedCentralized
Top-LevelTop-LevelManagementManagement
Rich Rich ExperienceExperience
BroadBroadVisionVision
Lower-LevelLower-LevelManagementManagement
MoreMoreResponsiveResponsive
FasterFasterDecisionsDecisions
Centralization: Concentration of decision-making authority at the top of an organization
Decentralization: Delegation of decision-making authority to employees in lower-level positions
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Organizing the Workforce
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DepartmentalizationDepartmentalizationDepartmentalizationDepartmentalization
DivisionDivisionDivisionDivisionFunctionFunctionFunctionFunction
NetworkNetworkNetworkNetwork MatrixMatrixMatrixMatrix
HybridHybridHybridHybrid
Departmentalization: Grouping people within an organization according to function, division, matrix, or network.
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Functional Structures
©2007 Prentice Hall13-12
Job SkillsJob Skills
Resource UseResource Use
Job Requirements
Job Requirements
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Functional Structure
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Functional Structure
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AdvantagesAdvantages DisadvantagesDisadvantages
•Resource Allocation
•Unified Direction
•Improved Coordination
•Better Communication
•Departmental Barriers
•Slow Response Time
•Ineffective Planning
•Over Specialization
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Divisional Structure
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Product Division Structure
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Customer Division Structure
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Geographic Division Structure
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Matrix Structure
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Network Structure
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AdvantagesAdvantages DisadvantagesDisadvantages
Lower costsLower costs
Increased flexibility
Increased flexibility
Increased competitiveness
Increased competitiveness
Lacks hands-on controlLacks hands-on control
Vulnerable to suppliersVulnerable to suppliers
Lack of competitive distinction
Lack of competitive distinction
Network Structure: A structure in which individual companies are connected electronically to perform selected tasks for a small headquarters organization. Also called virtual organization.
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Hybrid Structure
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Shared Information
Neutral
Individual
Random or Varied
Goal
Synergy
Responsibility
Skills
Shared Mission
Positive
Individual and Mutual
Complementary
Work GroupsWork Groups Work TeamsWork Teams
Comparing Work Groups and Work Teams
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Problem Solving
Problem Solving
Self-ManagedSelf-Managed
FunctionalFunctional
CrossFunctional
CrossFunctional
Organizing in Teams
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VirtualVirtual
Social NetworksSocial Networks
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Organizing in Teams
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A problem-solving team is assembled to find ways of improving quality, efficiency, or other performance issues.
Self-managed teams manage their own activities. Team members are responsible for an entire process or operation and require minimum supervision.
Functional teams, or command teams, are organized along the lines of the organization’s vertical structure and thus may be referred to as vertical teams. They are composed of managers and employees within a single functional department.
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Organizing in Teams
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A cross-functional team, or horizontal team, draws together employees from various functional areas and expertise.
Virtual teams are groups of physically dispersed members who communicate electronically.
Social networking technologies are redefining teamwork and team communication by helping erase the constraints of geographic and organization boundaries.
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Working in Teams
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AdvantagesAdvantages
Higher-quality decisionsHigher-quality decisions
Increased commitmentIncreased commitment
Lower levels of stressLower levels of stress
Improved flexibilityImproved flexibility
DisadvantagesDisadvantages
InefficiencyInefficiency
GroupthinkGroupthink
Diminished motivationDiminished motivation
Structural disruptionStructural disruption
Excessive workloadsExcessive workloads
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Characteristics of Effective Teams
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• Clear sense of purpose
• Open and honest communication
• Creative thinking
• Accountability
• Focus
• Decision by consensus
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Team Development
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Team Development
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• Cohesiveness A measure of how
committed team members are to their team’s goals
• Norms Informal standards
of conduct that guide team behavior
Team Conflict
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Constructive Conflict: Brings important issues into the open, increases the involvement of team members, and generates creative ideas for solving a problem
Destructive Conflict:Diverts energy from more important issues, destroys the morale of teams or individual team members, or polarizes or divides the team
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Causes of Team Conflict
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ScarceScarceResourcesResources
ResponsibilityResponsibilityIssuesIssues
PoorPoorCommunicationCommunication
PersonalityPersonalityDifferencesDifferences
PowerPowerStrugglesStruggles
IncompatibleIncompatibleGoalsGoals
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Solutions to Team Conflict
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Managing an Unstructured Organization
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Unstructured Organization: An organization that doesn’t have a conventional structure but instead assembles talent as needed from the open market; the virtual and networked organizational concepts taken to the extreme
Benefits and Challenges of Unstructured Organizations
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Benefits and Challenges of Unstructured Organizations
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Applying What You’ve Learned
1. Explain the major decisions needed to design an organization structure
2. Define four major types of organization structure
3. Explain how a team differs from a group and describe the six most common forms of teams
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Applying What You’ve Learned
4. Highlight the advantages and disadvantages of working in teams and list the characteristics of effective teams
5. Review the five stages of team development and explain why conflict can arise in team settings
6. Explain the concept of an unstructured organization and identify the major benefits and challenges of taking this approach
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