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6-1

Organizational
Structure
and
Communication
Presented by:
Dr. Akhlas Ahmed
Preston University
6-2

Introduction
Organization

structure determines who
works together
It

is the way managers design their firms to
achieve their organization’s mission and goals

Organizational

communication flows
through its structure, which affects:
behavior
human

relations
performance
6-3

The transition from an economy based on
materials to an economy based on flows of
information has created considerable
challenges for organizational structure, and
communication.
6-4

Principles of Organization (1 of 3)
Division

of Labor and Departmentalization

Division

of labor, or work specialization – refers to
the degree to which tasks are subdivided into
separate jobs
Departmentalization – grouping of related
activities into units
Chain
line

of Command

of authority from the top to the bottom of the
organization, which is shown in an organization
chart
6-5

Principles of Organization (2 of 3)
Span

of Management

refers

to number of employees reporting to a
manager

Centralized
With

and Decentralized Authority

centralized authority, top managers make
important decisions
With decentralized authority, middle and first-line
managers make important decisions where the
action is
6-6

Principles of Organization (3 of 3)
Coordination
With

the division of labor and departmentalization
comes the need to coordinate the work of all
departments
Questions and Answers for
Designing Organizational Structure:
Questions

Answers

How should we subdivide work?

Division of Labor and
Departmentalization

Who should departments and
individuals report to?

Chain of Command

How many individuals should report to Span of Management
each manager?
At what level should decisions be
made?

Centralization vs.
Decentralization

How do we get everyone to work
together as a team?

Coordination

6-7
6-8

Formal Organization Structure
Vertical downward
communication

President

Vice President
Production

Vice President
Finance

Vice President
Marketing

Vertical upward
communication

Manager
A

Manager
B

Manager
C

Manager
D

Manager
E

Exhibit 6.2

Manager
F

Manager
G

Manager
H

Manager
I
6-9

Informal Organization Structure
Horizontal
communication
networks

President
President

Vice President
Vice President
Production
Production

Manager
A

Manager
B

Vice President
Vice President
Finance
Finance

Manager
C

Manager
D

Manager
E

Exhibit 6.2

Vice President
Vice President
Marketing
Marketing

Manager
F

Manager
G

Manager
H
Common Types
of Departmentalization (1 of 4)
Functional

Product

Divisional

Customer

Territory

Matrix

6 - 10
Common Types of
Departmentalization (2 of 4)
Functional

6 - 11

Departmentalization

involves

organizing departments around essential
input activities, such as:
 production

and operations
 finance and accounting
 marketing and sales
 human resources
Product

(Service) Departmentalization

involves

organizing departments around goods
and services provided
Common Types of
Departmentalization (3 of 4)
Customer

6 - 12

Departmentalization

involves

organizing departments around the
needs of different types of customers with unique
needs calling for different sales staffs and
products

Divisional

Departmentalization (M-Form)

the

firm develops independent lines of business
that operate as separate companies, all
contributing to the corporation profitability

Territory

(Geographic) Departmentalization

involves

organizing departments in each area in
which the enterprise does business
Common Types of
Departmentalization (4 of 4)
Matrix

Departmentalization

combines

the functional and product
departmental structures

Combination
many

large companies have more than one form
of departmentalization

6 - 13
6 - 14

Contemporary Organization Design

Learning
Organizations

Virtual
Organizations

Team Organizations
and
Reengineering

Boundaryless
Organizations

E-Organizations
6 - 15

American and Japanese Organization
Structures
Division

of labor tends to be a bit less
specialized in Japan
Both countries use the same types of
departmentalization
American organizations tend to be quicker to
hire, lay off, and to change jobs than the
Japanese
6 - 16

Organizational Communication
Organizational

communication – the
compounded interpersonal communication
process across an organization
Communication flows in an organization are:
Vertical
Horizontal

Grapevine

(multidirectional)
Vertical and Horizontal
Communication
Vertical Communication
The flow of information
both up and down the
chain of command
Formal communication
Recognized as official
Status and power are not
equal among participants
in vertical
communication

•

•
•
•

Horizontal
Communication
The flow of
information between
colleagues and peers
Informal
communication
Does not follow the
chain of command
Not recognized as
official

6 - 17
6 - 18

Grapevine Communication
Grapevine

– the informal vehicle through
which messages flow throughout the
organization
“When the grapevine allows employees to
know about a management decision almost
before it is made, management must be
doing something right.”
6 - 19

Communication Networks
Communication

networks – sets of
employees who have stable contact through
which information is generated and
transmitted
Two major types of communication networks:

1. within organizations

2. within departments and small groups
6 - 20

Message Transmission Channels
Oral Communication
Written
Communication
Nonverbal
Communication
6 - 21

Oral Communication Media

Face-to-Face

Telephone

Meetings

Presentations
6 - 22

Written Communication (1 of 2)
With

increased use of e-mail, managers
substitute face-to-face communication with email
Communication Objective Guidelines
Memos
Letters
Reports
Bulletin

board notices

Posters
Computers/e-mail
Fax
6 - 23

Written Communication (2 of 2)
Writing

skills

 Grammar

– rules for use of the eight parts of speech
 To simplify grammar, we use subjects, predicates,
modifiers, and connectives
6 - 24

Nonverbal Communication

Facial
Expressions

Vocal
Qualities

Gestures

Posture
6 - 25

Emotions (1 of 2)
Emotional

labor –
requires the expression
of desired emotions
during interpersonal
relations

• Universal emotions:
– happiness
– surprise
– fear
– sadness
– anger
– disgust
6 - 26

Emotions (2 of 2)
Understanding

Feelings

Feelings

are subjective – they tell you people’s
attitudes and needs
Feelings are usually disguised as factual
statements
Feelings are neither right nor wrong but behavior
is
Gender

Differences
Global Differences
6 - 27

Dealing with Emotional Employees
Calming

the emotional person
Use reflecting responses
6 - 28

Criticism

Getting Criticism

Giving Criticism
Guidelines for Giving Effective
Criticism
Give

more praise than criticism
Criticize immediately
Criticism should be performance oriented
Give specific and accurate criticism
Open on a positive note and close by
repeating what action is needed

6 - 29
6 - 30

THANKS

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Lecture 01 organizational communication

  • 2. 6-2 Introduction Organization structure determines who works together It is the way managers design their firms to achieve their organization’s mission and goals Organizational communication flows through its structure, which affects: behavior human relations performance
  • 3. 6-3 The transition from an economy based on materials to an economy based on flows of information has created considerable challenges for organizational structure, and communication.
  • 4. 6-4 Principles of Organization (1 of 3) Division of Labor and Departmentalization Division of labor, or work specialization – refers to the degree to which tasks are subdivided into separate jobs Departmentalization – grouping of related activities into units Chain line of Command of authority from the top to the bottom of the organization, which is shown in an organization chart
  • 5. 6-5 Principles of Organization (2 of 3) Span of Management refers to number of employees reporting to a manager Centralized With and Decentralized Authority centralized authority, top managers make important decisions With decentralized authority, middle and first-line managers make important decisions where the action is
  • 6. 6-6 Principles of Organization (3 of 3) Coordination With the division of labor and departmentalization comes the need to coordinate the work of all departments
  • 7. Questions and Answers for Designing Organizational Structure: Questions Answers How should we subdivide work? Division of Labor and Departmentalization Who should departments and individuals report to? Chain of Command How many individuals should report to Span of Management each manager? At what level should decisions be made? Centralization vs. Decentralization How do we get everyone to work together as a team? Coordination 6-7
  • 8. 6-8 Formal Organization Structure Vertical downward communication President Vice President Production Vice President Finance Vice President Marketing Vertical upward communication Manager A Manager B Manager C Manager D Manager E Exhibit 6.2 Manager F Manager G Manager H Manager I
  • 9. 6-9 Informal Organization Structure Horizontal communication networks President President Vice President Vice President Production Production Manager A Manager B Vice President Vice President Finance Finance Manager C Manager D Manager E Exhibit 6.2 Vice President Vice President Marketing Marketing Manager F Manager G Manager H
  • 10. Common Types of Departmentalization (1 of 4) Functional Product Divisional Customer Territory Matrix 6 - 10
  • 11. Common Types of Departmentalization (2 of 4) Functional 6 - 11 Departmentalization involves organizing departments around essential input activities, such as:  production and operations  finance and accounting  marketing and sales  human resources Product (Service) Departmentalization involves organizing departments around goods and services provided
  • 12. Common Types of Departmentalization (3 of 4) Customer 6 - 12 Departmentalization involves organizing departments around the needs of different types of customers with unique needs calling for different sales staffs and products Divisional Departmentalization (M-Form) the firm develops independent lines of business that operate as separate companies, all contributing to the corporation profitability Territory (Geographic) Departmentalization involves organizing departments in each area in which the enterprise does business
  • 13. Common Types of Departmentalization (4 of 4) Matrix Departmentalization combines the functional and product departmental structures Combination many large companies have more than one form of departmentalization 6 - 13
  • 14. 6 - 14 Contemporary Organization Design Learning Organizations Virtual Organizations Team Organizations and Reengineering Boundaryless Organizations E-Organizations
  • 15. 6 - 15 American and Japanese Organization Structures Division of labor tends to be a bit less specialized in Japan Both countries use the same types of departmentalization American organizations tend to be quicker to hire, lay off, and to change jobs than the Japanese
  • 16. 6 - 16 Organizational Communication Organizational communication – the compounded interpersonal communication process across an organization Communication flows in an organization are: Vertical Horizontal Grapevine (multidirectional)
  • 17. Vertical and Horizontal Communication Vertical Communication The flow of information both up and down the chain of command Formal communication Recognized as official Status and power are not equal among participants in vertical communication • • • • Horizontal Communication The flow of information between colleagues and peers Informal communication Does not follow the chain of command Not recognized as official 6 - 17
  • 18. 6 - 18 Grapevine Communication Grapevine – the informal vehicle through which messages flow throughout the organization “When the grapevine allows employees to know about a management decision almost before it is made, management must be doing something right.”
  • 19. 6 - 19 Communication Networks Communication networks – sets of employees who have stable contact through which information is generated and transmitted Two major types of communication networks:  1. within organizations  2. within departments and small groups
  • 20. 6 - 20 Message Transmission Channels Oral Communication Written Communication Nonverbal Communication
  • 21. 6 - 21 Oral Communication Media Face-to-Face Telephone Meetings Presentations
  • 22. 6 - 22 Written Communication (1 of 2) With increased use of e-mail, managers substitute face-to-face communication with email Communication Objective Guidelines Memos Letters Reports Bulletin board notices Posters Computers/e-mail Fax
  • 23. 6 - 23 Written Communication (2 of 2) Writing skills  Grammar – rules for use of the eight parts of speech  To simplify grammar, we use subjects, predicates, modifiers, and connectives
  • 24. 6 - 24 Nonverbal Communication Facial Expressions Vocal Qualities Gestures Posture
  • 25. 6 - 25 Emotions (1 of 2) Emotional labor – requires the expression of desired emotions during interpersonal relations • Universal emotions: – happiness – surprise – fear – sadness – anger – disgust
  • 26. 6 - 26 Emotions (2 of 2) Understanding Feelings Feelings are subjective – they tell you people’s attitudes and needs Feelings are usually disguised as factual statements Feelings are neither right nor wrong but behavior is Gender Differences Global Differences
  • 27. 6 - 27 Dealing with Emotional Employees Calming the emotional person Use reflecting responses
  • 28. 6 - 28 Criticism Getting Criticism Giving Criticism
  • 29. Guidelines for Giving Effective Criticism Give more praise than criticism Criticize immediately Criticism should be performance oriented Give specific and accurate criticism Open on a positive note and close by repeating what action is needed 6 - 29