The document discusses organizational structure and communication. It covers key topics like principles of organization including division of labor, departmentalization, and span of management. Different types of departmentalization are described such as functional, product, and matrix. Contemporary organization designs like learning organizations and virtual organizations are also presented. The document also examines organizational communication including vertical, horizontal, and grapevine communication. Various communication channels such as oral, written, and nonverbal are analyzed in detail.

1. 6-1
Organizational
Structure
and
Communication
Presented by:
Dr. Akhlas Ahmed
Preston University

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

30. 6 - 30
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