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Chap007
- 1. FHF McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.
- 2. part Managing for Quality 3 and Competitiveness CHAPTER 6 The Nature of Management CHAPTER 7 Organization, Teamwork, and Communication CHAPTER 8 Managing Service and Manufacturing Operations FHF 7-2
- 3. Organizational Culture A firm’s shared values, beliefs, traditions, philosophies, rules and role models for behavior (aka corporate culture) Ensures that organizational members: Share values Observe common rules Share problem solving approaches …continued on next page FHF 7-3
- 4. Organizational Culture Formal expression Mission statement Code of ethics Manuals Ceremonies Memoranda …continued on next page FHF 7-4
- 5. Organizational Culture Informal Expression •Dress code (or lack of one) •Work habits •Extracurricular activities …continued on next page FHF 7-5
- 6. Organizational Culture Helps ensure that all members of a company share values Suggests rules for how to behave and deal with problems Has a significant impact on performance and employee retention Sets a positive tone for decision making and building efficient organizational structure …continued on next page FHF 7-6
- 7. Organizational Structure Is the arrangement or relationship of positions within an organization Structure develops as: • Managers assign work tasks to individuals and groups • Coordination of diverse activities to attain objectives …continued on next page FHF 7-7
- 8. Organizational Structure Impacts: Decision making Costs & efficiencies Overall success and sustainability Employee unity Understanding of how to deal with problems FHF 7-8
- 9. Organizational Char ts Visual displays of the organizational structure, lines of authority, staff relationships, permanent committee arrangements and lines of communication …continued on next page FHF 7-9
- 10. Assigning Tasks Specialization Managers divide the labor into small, specific tasks and assign employees individual tasks to accomplish Why specialize? Efficiency Ease of training Activities too numerous for one person FHF 7-10
- 11. Risks of Overspecialization Employees become bored Job dissatisfaction Poor quality work Increased injuries Increased employee turnover FHF 7-11
- 12. Depar tmentalization Grouping of jobs into working units (departments, units, groups, divisions) Functional departmentalization Product departmentalization Geographical departmentalization Customer departmentalization FHF 7-12
- 13. Delegation of Authority [ Giving employees tasks and empowering them to make commitments, use resources and take action to carry out tasks ] FHF 7-13
- 14. Responsibility Obligation placed on employees to perform assigned tasks and be held accountable for proper execution Accountability • Employees who accept an assignment and the responsibility to complete it are answerable to a superior for work outcomes FHF 7-14
- 15. Degree of Centralization Centralized Organizations Authority is concentrated at the top level Very little delegation to lower levels Decentralized Organizations Decision making authority is delegated as far down the chain of command as possible FHF 7-15
- 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 …continued on next page FHF 7-16
- 17. Forms of Organizational Structure Line Structure Line-and-staff structure Multidivisional structure Matrix structure FHF 7-17
- 18. Line Structure FHF 7-18
- 19. Line-and-Staf f Structure FHF 7-19
- 20. Multidivisional Structure Organizes departments into larger groups called divisions Occurs as organizations grow larger and more diversified Divisions can be formed on the same bases as departments • Customer • Product • Geography Delegation of authority and divisionalized work FHF 7-20
- 21. Matrix Structure FHF 7-21
- 22. Groups and Teams Group Two or more individuals who communicate with one another, share a common identity and have a common goal Team A small group whose members have complementary skills; have a common purpose, goals and approach; hold themselves mutually accountable FHF 7-22
- 23. Committees and Task Forces Committee A permanent, formal group performing a specific task Task Force A temporary group responsible for a particular change activity FHF 7-23
- 24. Teams Project Teams Similar to task forces in that they have total control of a specific project Product Development Teams Formed to devise, design and implement a new product Quality Assurance Teams (Quality Circles) Brought together from throughout the organization to solve specific problems Self-directed Work Teams (SDWT) Responsible for an entire work process that delivers a product to a customer FHF 7-24
- 25. Organizational Communications FHF 7-25
- 26. Technology and Communication Technology has generated many alternatives to face-to-face communication Voice mail E-mail Online newsletters Videoconferencing Online meeting services FHF 7-26
- 27. Formal Communication Flow of communication within the formal organizational structure as depicted on organizational charts. Upward communication Downward communication Horizontal communication Diagonal communication FHF 7-27
- 28. Informal Communication Separate from management’s formal, official communication channels Also known as the Grapevine Managers can utilize informal communications as a sounding device FHF 7-28
- 29. Monitoring Communications Technological advances and electronic communication have made monitoring communications at work necessary Managers must monitor communications: • Without invading employee privacy • While generating respect and mindfulness amongst employees FHF 7-29
Editor's Notes
- Chapter seven addresses a very important area of business management. We will discuss the organization, teamwork, and communication aspects of business and other types of organizations. We will examine the different ways in which organizations can be structured, differentiate between teams and groups, and describe how communication occurs in organizations.
- Programs and policies can enhance and support an organization’s culture.
- Formal expressions of corporate culture: mission statement, code of ethics, memos, manuals, organizational ceremonies
- Informal expressions: dress codes (or lack of them), work habits, extracurricular activities.
- Some kind of organizational structure, be it explicitly defined or implied, is almost always needed to help obtain organizational objectives. An organizational structure develops when managers assign work tasks and activities to individuals and groups and coordinate the activities required to reach organizational objectives.
- Growth requires organizing, and organizational charts can help an organization remain organized as it expands.
- Assigning tasks requires managers to determine what activities are required to achieve its objectives. Specialization occurs after the manager identifies all the activities that must be accomplished. Specialization helps to improve efficiency through having employees master one specific task and not waste time shifting from one task to another.
- While specialization has definite positive benefits for a firm, there are negative consequences as well. Employees may become bored and work quality will suffer. Repetitive use injuries go up when people perform the same motions all day every day. Employee turnover may be high if employees become especially dissatisfied.
- Different organizations may organize departments in different ways depending on what suits the firm and industry the best.
- Assigning authority is an important decision. Some organizations have skilled employees and need to make decisions quickly. These would likely delegate authority as much as possible. Other organizations are highly centralized and authority remains concentrated among top managers. As an organization grows and decision making becomes more complex, it becomes impossible for one person to make all decisions.
- Delegating authority helps to establish a pattern of relationships and accountability between a superior and his/her subordinates. Delegating authority DOES NOT relieve superiors of accountability.
- Centralized organizations have very concentrated authority at the top level, with little delegation to lower levels. The U.S. Army is a good example of a centralized organization. Decentralized organizations delegate decision making far down the chain of command. Decentralized organizations tend to be able to respond more quickly to challenges. Toyota gives lower-level employees a high level of decision making authority.
- Span of management is how many subordinates a manager manages. This can vary widely from organization to organization. A rule of thumb is that top managers should not supervise more than 4-8 people, regardless of the size or structure of the organization. Lower-level managers can supervise much larger numbers of employees.
- In addition to determining span of management, an organizational structure will take one of the above forms.
- The line structure results in a very flat organization. Is the simplest organizational structure.
- A line-and-staff structure is considerably more complex and taller than a simple line structure. It has a traditional line relationship between superiors and subordinates and specialized managers are available to assist line managers.
- As companies grow larger, line structures become difficult to manage and communication becomes slower and more cumbersome. Many larger firms decide to restructure into divisions. The divisions are based largely on the same criteria as departments and will vary from firm to firm.
- Also called a project management structure because it is often used as a temporary structure on major projects. Sets up teams from different departments, which creates intersecting lines of authority. The matrix structure brings together specialists from different areas to work on a project. The downsides are the fact that this structure is expensive, complex, and can confuse subordinates as to whose authority to follow.
- Most of the essential work of an organization occurs in groups and teams– no matter what the organizational structure.
- Groups and teams are general categories. Committees and task forces are two specific kinds of groups.
- This slide outlines specific types of teams. Teams are becoming more common in U.S. organizations. They help to pool knowledge and skills so as to make better use of them than individuals working alone. Research has shown that team productivity peaks at around five people.
- Organizational communications can move in all directions, with horizontal communication between first-line managers, and upward, downward and diagonal communications between CEOs, Presidents, Vice Presidents and Managers
- Technology has increased the speed of communication, and in many cases has increased the amount of communication.
- Formal communication channels are intentionally defined and designed by the organization. Formal communications can move in virtually any direction, via pre-determined channels.
- Informal communications arise organically and are not defined or controlled by the organization. Information communications can be a valuable source of information for managers.
- Monitoring communications in the digital age has become increasingly difficult. Digital devices can be difficult to monitor and may reduce employee productivity. The issue will vary in severity depending on the industry and the demographics of the workforce.