The document discusses organizational structure and culture. It covers topics such as corporate culture, how culture is expressed both formally and informally, developing organizational structure through assigning tasks and coordinating activities, different types of organizational structures including functional, product, geographic and customer departmentalization, assigning responsibility and authority, and different forms of organizational structure like line, line-and-staff, multidivisional and matrix structures.

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

3. Organizational Culture
Corporate culture Did You Know?
Shared values Southwest Airlines
employees are continually
Beliefs encouraged to have fun
and make flying exciting
Traditions for their passengers. New
Philosophies employees watch
videotapes and attend
Rules training sessions on the
company’s philosophies,
Role models for behavior policies, and culture.
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Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved

4. How is Corporate Culture Expressed?
Formally Informally
Mission statement Dress codes (or the lack
Codes of ethics thereof)
Memos, manuals Work habits
Ceremonies Extracurricular activities
Stories
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5. 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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6. Stages of Growth
The Evolution of a Clothing Store
Phases 1, 2, and 3
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7. Two Aspects of Assigning Tasks
Specialization
Departmentalization
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8. Specialization
The division of labor into small,
specialized tasks and the assignment of
single tasks to employees
Efficiency
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9. 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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10. Functional Departmentalization
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11. Product Departmentalization
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12. Geographical Departmentalization
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13. Customer Departmentalization
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14. Assigning Responsibility and
Delegating Authority
Delegation of authority
Assigning responsibility
Employee accountability
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15. 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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16. 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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17. Span of Management: Wide Span
and Narrow Span
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18. 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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19. Forms of Organizational Structure
Line
Line-and-staff
Multidivisional
Matrix
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20. Line Structure
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21. Line-and-Staff Structure
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22. An Example of Multidivisional
Structure: The Walt Disney Company
CEO
CEO
Walt Disney
Walt Disney Walt Disney
Walt Disney Consumer
Consumer
Attractions
Attractions Studios
Studios Products
Products
Motion
Motion Disney
Disney
TV
TV Animation
Animation
Pictures
Pictures Channel
Channel
Walt
Walt Magic
Magic Tokyo
Tokyo Euro-
Euro-
Disney
Disney Kingdom
Kingdom Disneyland
Disneyland Disney
Disney
World
World CA
CA
Software
Software
Disney
Disney Disney
Disney Catalog
Catalog
Licensing
Licensing Publishing
Publishing and
and
Stores
Stores Music
Music Marketing
Marketing
Education
Education
Magic
Magic Disney-
Disney-
Epcot
Epcot
Kingdom
Kingdom MGM
MGM 8-22
Center
Center Source: The Walt Disney Company Annual Report
FL
FL Studios
Studios

23. The Matrix Structure
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24. 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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25. Differences Between Groups
and Teams
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26. Types of Groups
Committee
Task force
Project team
Product-development team
Quality assurance team
Self-directed work team (SDWT)
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27. 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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28. The Flow of Communication in an
Organizational Hierarchy
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29. Formal Communication
Communication flow
Upward
Downward
Horizontal
Diagonal
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30. Informal Communication
The informal organization
Friendships 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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31. 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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32. Disciplinary Action for Misuse of
Personal Use of Telecom Equipment
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33. 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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34. 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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35. 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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Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved

36. 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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37. Chapter 8 Quiz
1. Which of the following is most similar to the matrix
structure?
a. line structure
b. functional structure
c. line-and-staff structure
d. ad hoc committee
2. Which of the following is commonly considered an
example of informal organizational structure?
a. Grapevine
b. organizational culture
c. organizational chart
d. employee handbook
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38. 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.
3. The division of labor into small, specialized tasks and
the assignment of single tasks to employees is called
a. centralization.
b. specialization.
c. departmentalization.
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d. accountability.

39. 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.
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