Download - © 2006 Pearson Education Canada Inc.Chapter 7- 1 Chapter 7 Organizing and Working in Teams
© 2006 Pearson Education Canada Inc. Chapter 7- 1
Chapter 7Chapter 7
Organizing and Organizing and Working in Working in
TeamsTeams
© 2006 Pearson Education Canada Inc. Chapter 7- 2
EffectiveEffectiveOrganization StructureOrganization Structure
CoordinateCoordinateand Control Workand Control Work
CoordinateCoordinateand Control Workand Control Work
DivideDivideResponsibilitiesResponsibilities
DivideDivideResponsibilitiesResponsibilities
PromotePromoteAccountabilityAccountability
PromotePromoteAccountabilityAccountability
DistributeDistributeAuthorityAuthority
DistributeDistributeAuthorityAuthority
© 2006 Pearson Education Canada Inc. Chapter 7- 3
Organization ChartOrganization Chart
Vertical OrganizationVertical Organization
Ch
ain
of
Co
mm
and
Ch
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of
Co
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and
Wo
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pe
cializa
tion
Wo
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cializa
tion
FormalFormalOrganizationOrganization
FormalFormalOrganizationOrganization
InformalInformalOrganizationOrganization
InformalInformalOrganizationOrganization
Horizontal CoordinationHorizontal Coordination
© 2006 Pearson Education Canada Inc. Chapter 7- 4
Formal vs. InformalFormal vs. Informal
•Formal Organization•Represented by the organization chart•The official role an employee occupies
•Informal Organization•Network of unofficial employee relationships (Grapevine)
• Influential management resource and/or obstacle
© 2006 Pearson Education Canada Inc. Chapter 7- 5
Organization Chart for a Grocery ChainOrganization Chart for a Grocery Chain
Board of DirectorsBoard of Directors
President & CEOChairperson
President & CEOChairperson
VP Human ResourcesVP Human Resources
Senior VPOperationsSenior VPOperations
VPMISVPMIS
VPFinance
VPFinance
VP Special Projects
VP Special Projects
VPMarketing
VPMarketing
VPAdvertising
VPAdvertising
VP Store PlanningVP Store Planning
Regional SupervisorsRegional
Supervisors
Area Supervisors
Area Supervisors
Regional OperationsRegional
Operations
Area Supervisors
Area Supervisors
Regional OperationsRegional
Operations
Area Supervisors
Area Supervisors
VP Grocery OperationsVP Grocery Operations
VP Perishable Operations
VP Perishable Operations
VP Bakery OperationsVP Bakery Operations
© 2006 Pearson Education Canada Inc. Chapter 7- 6
Work SpecializationWork Specialization
AdvantagesAdvantagesAdvantagesAdvantages DisadvantagesDisadvantagesDisadvantagesDisadvantages
EfficiencyEfficiencyEfficiencyEfficiency BoredomBoredomBoredomBoredom
ProductivityProductivityProductivityProductivity AlienationAlienationAlienationAlienation
© 2006 Pearson Education Canada Inc. Chapter 7- 7
Chain of Chain of CommandCommand
• ResponsibilityResponsibility– Obligation to perform duties and achieve Obligation to perform duties and achieve
goals associated with a positiongoals associated with a position
• AccountabilityAccountability– Obligation to report results and justify Obligation to report results and justify
outcomesoutcomes
• AuthorityAuthority– Power granted by the organization to make Power granted by the organization to make
decisions, take action and allocate resourcesdecisions, take action and allocate resources
• DelegationDelegation– Assignment of work and authority down the Assignment of work and authority down the
chain of command chain of command
© 2006 Pearson Education Canada Inc. Chapter 7- 8
Simplified Line-and-Staff StructureSimplified Line-and-Staff Structure
PresidentPresident
VPProduction
VPProduction
VP Marketing
VP Marketing
VPFinance
VPFinance
Legal DepartmentLegal Department
Human Resources Department
Human Resources Department
Head of Accounting Department
Head of Accounting Department
National Sales
Manager
National Sales
Manager
LineLine
StaffStaff
© 2006 Pearson Education Canada Inc. Chapter 7- 9
Span of Management (Control)Span of Management (Control)
• Wide Span of Control– Large number of employees report to one manager– Common in Flat Organizations
• fewer management layers
• Narrow Span of Control– Small number of employees report to each manager– Common in Tall Organizations
• Many bureaucratic layers in the structure• i.e. The Army
© 2006 Pearson Education Canada Inc. Chapter 7- 10
GeneralGeneral
ColonelsColonels
MajorsMajors
Captains,Captains,LieutenantsLieutenants
Warrant Warrant OfficersOfficers
SergeantsSergeants
CorporalsCorporals
PrivatesPrivates
ArmyArmy
Span of Management (Control)Span of Management (Control)
PopePope
CardinalsCardinals
Archbishops,Archbishops,BishopsBishops
PriestsPriests
Roman Catholic ChurchRoman Catholic Church
© 2006 Pearson Education Canada Inc. Chapter 7- 11
Decentralized Decentralized CentralizedCentralized
Decision-Making AuthorityDecision-Making Authority
Top-LevelTop-LevelManagementManagement
Rich Rich ExperienceExperience
BroadBroadVisionVision
Lower-LevelLower-LevelManagementManagement
MoreMoreResponsiveResponsive
FasterFasterDecisionsDecisions
© 2006 Pearson Education Canada Inc. Chapter 7- 12
Vertical OrganizationsVertical Organizations
NetworkNetworkNetworkNetwork MatrixMatrixMatrixMatrix
DivisionDivisionDivisionDivisionFunctionFunctionFunctionFunction
© 2006 Pearson Education Canada Inc. Chapter 7- 13
DepartmentalizationDepartmentalizationby Functionby Function
SkillsSkillsSkillsSkills ResourceResourceUseUse
ResourceResourceUseUse ExpertiseExpertiseExpertiseExpertise
Common departments include: Marketing, Human Resources, Finance, Operations, Research &
Development and Accounting
© 2006 Pearson Education Canada Inc. Chapter 7- 14
Functional Functional DepartmentsDepartments
DisadvantagesDisadvantages
•Departmental BarriersDepartmental Barriers
•Slow Response TimeSlow Response Time
•Ineffective PlanningIneffective Planning
•Over-specializationOver-specialization
AdvantagesAdvantages
•Resource AllocationResource Allocation
•Unified DirectionUnified Direction
•Improved CoordinationImproved Coordination
•Better CommunicationBetter Communication
© 2006 Pearson Education Canada Inc. Chapter 7- 15
ProcessesProcessesProductsProducts
GeographyGeography CustomersCustomers
DepartmentalizationDepartmentalizationby Divisionby Division
© 2006 Pearson Education Canada Inc. Chapter 7- 16
DepartmentalizationDepartmentalizationby Divisionby Division
AdvantagesAdvantages DisadvantagesDisadvantages
FlexibilityFlexibility
Better ServiceBetter Service
Management FocusManagement Focus
Wasting ResourcesWasting Resources
Poor CoordinationPoor Coordination
CompetitionCompetition
© 2006 Pearson Education Canada Inc. Chapter 7- 17
Departmentalization by MatrixDepartmentalization by Matrix
PUBLISHERPUBLISHER
Book Team AManager
Book Team AManager
Book Team BManager
Book Team BManager
EditorialManagerEditorialManager
ProductionManager
ProductionManager
DesignManagerDesign
Manager
Editor AEditor A ProductionEditor A
ProductionEditor A Designer ADesigner A
Editor BEditor B ProductionEditor B
ProductionEditor B Designer BDesigner B
© 2006 Pearson Education Canada Inc. Chapter 7- 18
DepartmentalizationDepartmentalizationby Networkby Network
AdvantagesAdvantages DisadvantagesDisadvantages
FlexibilityFlexibility
ResponsivenessResponsiveness
VarietyVariety
Dispersed FunctionsDispersed Functions
Quality ControlQuality Control
Employee LoyaltyEmployee Loyalty
© 2006 Pearson Education Canada Inc. Chapter 7- 19
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
© 2006 Pearson Education Canada Inc. Chapter 7- 20
Workplace TeamsWorkplace Teams• Problem-Solving
– Team of 5-12 employees – Find ways to improve quality, efficiency and the work environment
• Self-Managed– Members are responsible for the entire process or operation
• Functional– Members come from a single department
• Cross-Functional– Draws together employees from various departments
© 2006 Pearson Education Canada Inc. Chapter 7- 21
Types of Cross-Types of Cross-FunctionalFunctional
• Circles
• Task forces
• Committees
• Special purpose
© 2006 Pearson Education Canada Inc. Chapter 7- 22
Virtual TeamsVirtual Teams
Project-management skills
Time-management skills
Technological expertise
Cross-cultural skills
Interpersonal awareness
© 2006 Pearson Education Canada Inc. Chapter 7- 23
Working in TeamsWorking in Teams
AdvantagesAdvantages
Higher-quality decisions
Improved commitment
Creativity & motivation
Flexibility
DisadvantagesDisadvantages
Power realignment
Free riders
Increased costs
Groupthink
© 2006 Pearson Education Canada Inc. Chapter 7- 24
Characteristics Characteristics of Effective Teamsof Effective Teams
• Appropriate size and structure
• Clear sense of purpose
• Open honest communication
• Creative thinking
• Focused efforts
• Decision by consensus
© 2006 Pearson Education Canada Inc. Chapter 7- 25
Member Social BehaviorLow High
Team Member RolesTeam Member Roles
Task SpecialistTask SpecialistRoleRole
Dual RoleDual Role
SocioemotionalSocioemotionalRoleRole
NonparticipatorNonparticipatorRoleRoleM
em
be
r T
ask
Be
ha
vio
rHigh
Low
© 2006 Pearson Education Canada Inc. Chapter 7- 26
Five Stages of Team Five Stages of Team DevelopmentDevelopment
• Forming
• Storming
• Norming
• Performing
• Adjourning
© 2006 Pearson Education Canada Inc. Chapter 7- 27
Stages of DevelopmentStages of Development
CohesivenessCohesiveness
Meeting attendance
Interaction
Work quality
Goal achievement
NormsNorms
Behaviour
Limits
Values
Expectations
© 2006 Pearson Education Canada Inc. Chapter 7- 28
Team ConflictTeam Conflict
• Competition for scarce resources
• Responsibility issues
• Poor communication
• Values, attitudes, and personalities
• Authority issues
• Goal incompatibility
© 2006 Pearson Education Canada Inc. Chapter 7- 29
PreventionPreventionPreventionPreventionResolutionResolutionResolutionResolution
Dealing With ConflictDealing With Conflict
ConfrontationConfrontationConfrontationConfrontation
DiffusionDiffusionDiffusionDiffusion
Well-Defined TasksWell-Defined TasksWell-Defined TasksWell-Defined Tasks
CommunicationCommunicationCommunicationCommunication
AvoidanceAvoidanceAvoidanceAvoidance Clear GoalsClear GoalsClear GoalsClear Goals