Chapter 08 Organization, Teamwork, and Communication

Summary

Objectives:

 

Chapter Outline:

    1. Define organizational structure and relate how organizational structures develop.
      1. Organizational structure – the arrangement or relationship of positions within an organization.
      2. Structure develops when managers assign work tasks to individuals or groups and coordinates the diverse activities required to reach the firm’s objectives.
      3. Structure is established in small increments and the organization grows.

    2. Describe how specialization and departmentalization help an organization achieve its goals
      1. Specialization—the divisions of labor into small, specialized tasks than the assignment of single tasks to employees.
        1. Occurs when activities to perform are too numerous for one individual to handle
        2. Specialization provides efficiency
        3. Minimizes the time lost when workers shift from job to job.
      2. Overspecialization – can have negative consequences such as bored, dissatisfied employees resulting in poor quality work, injury, and high turnover.
      3. Departmentalization – grouping of jobs into working units that are called departments, units, groups or divisions.
      4. Types of Departmentalization:
        1. Functional
        2. Product
        3. Geographical
        4. Customer

    3. Distinguish between groups and teams and identify the types of groups that exit in organizations.
      1. Group – two or more individuals who communicate with one another, share a common identity, and have a common goal.
      2. Team – small group whose members have complementary skills; have a common purpose, goals, and approach; and hold themselves mutually accountable.
      3. Benefits of Teams:
        1. Pool members’ knowledge
        2. Create more solutions than individuals
        3. Motivate employees to more involvement
      4. Types of Groups and Teams:
        1. Committee
        2. Task forces
        3. Project teams
        4. Product-development teams
        5. Quality assurance teams
        6. Self-directed work teams

    4. Determine how organizations assign responsibility for tasks and delegate authority
      1. Delegation of authority – assignment of tasks to employees while giving them the power to make commitments, use resources, and take actions necessary to carry out those tasks.
        1. Responsibility to employees
        2. Accountability for the outcome
        3. Establishes a pattern of relationships and accountability between superior and subordinates.
        4. Authority and responsibility relationships are often shown graphically in an organizational chart.
      2. Degree of centralization – extent to which authority is delegated throughout the organization determines its degree of centralization
        1. Centralized organizations
          1. Authority concentrated at the top
        2. Decentralized organizations
          1. Authority is delegated as far down the chain of command as possible
      3. Span of management – number of subordinates who report to a manager
        1. Narrow span – frequent interaction and problems are common
        2. Wide span – low level of interaction, few problems, standard operating procedures in place
      4. Organizational layers – levels of management in an organization
        1. Tall organizations – span is generally narrow
        2. Flat organizations – wide management spans

    5. Compare and contrast some common forms of organizational structure
      1. Line Structure – simplest form
        1. Advantage
          1. Clear chain of command.
        2. Disadvantage
          1. Requires broad managerial knowledge across functions
      2. Line and Staff structure – traditional line relationships and specialized managers available to assist line managers
        1. Line managers directly involved in operation; staff provide advice and support
        2. May experience overstaffing and ambiguous lines of communication
      3. Multidivisional structure – gathers departments into larger groups called divisions.
        1. Permit delegation of decision making authority
        2. Allow specialization of divisional and department managers
        3. Can focus on region, product or customer
        4. May create duplication
      4. Matrix structure – sets up teams from different departments. Usually temporary.
        1. Advantage
          1. Flexibility, cooperation and creativity
        2. Disadvantage
          1. Expensive and complex

    6. Describe how communication occurs in organizations.
      1. Communication flows in a variety of directions and from a number of sources.
      2. Formal channels of communication
        1. Intentionally defined and designed
        2. Patterns
          1. Upward
          2. Downward
          3. Horizontal
          4. Diagonal
      3. Informal channels of communication
        1. Communication between friends
        2. Grapevine
      4. Organizational culture – organization’s shared values, beliefs, traditions, philosophies, rules, and heroes.