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Organisational Structure - BAF
- 1. FHF Ferrell Hirt Ferrell M: Business 2nd Edition
- 2. FHF Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Organization, Teamwork, and Communication
- 3. FHF • 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 Organization Culture 8-3
- 4. FHF • Impacts: • Decision making • Costs & efficiencies • Overall success and sustainability The Importance of Organizational Structure 8-4
- 5. FHF • Famous for its culture and relaxed work environment • Scooters inside the building • Foosball tables and volleyball courts • Dog friendly offices • Local cultural touches like gondolas in Zurich Google’s Corporate Culture 8-5
- 6. FHF Formal expression • Mission statement • Code of ethics • Manuals • Ceremonies • Memoranda Organizational Culture 8-6
- 7. FHF Informal Expression • Dress code • Work habits • Extracurricular activities • Stories Organizational Culture (continued) 8-7
- 8. FHF The arrangement or relationship of positions within an organization • Structure Develops • Managers assign work tasks to individuals & groups • Coordination of diverse activities to attain objectives Organizational Chart • A visual display of the organizational structure Organizational Structure 8-8
- 9. FHF Organizational Chart The Evolution of a Clothing Store 8-9
- 10. Specialization FHF Managers divide the labor into small, specific tasks and assign to employees to accomplish individual tasks Why specialize? • Efficiency • Ease of training • Activities too numerous 8-10
- 11. FHF • Employees become bored • Job dissatisfaction • Poor quality work • Increased injuries • Increased employee turnover Risks of Overspecialization 8-11
- 12. FHF Grouping of jobs into working units (departments, units, groups, divisions) • Functional departmentalization • Product departmentalization • Geographical departmentalization • Customer departmentalization Departmentalization 8-12
- 17. [ ] FHF Giving employees tasks and power to make commitments, use resources, and take action to carry out tasks Delegation of Authority 8-17
- 18. FHF Obligation placed on employees to perform assigned tasks and be held accountable for proper execution Employee accountability • Employees are answerable to a superior for work outcomes Assigning Responsibility 8-18
- 19. Level of Centralization FHF 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 8-19
- 20. FHF 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 Span of Management 8-20
- 22. FHF Span of Management 8-22
- 23. FHF • Line Structure • Line-and-staff structure • Multidivisional structure • Matrix structure Forms of Organizational Structure 8-23
- 27. FHF 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 purposes, goals, and approach; hold themselves mutually accountable. Groups and Teams 8-27
- 29. FHF Committee • permanent, formal group performing a specific task Task force • temporary group responsible for a particular change activity Committees and Task Forces 8-29
- 30. Teams FHF • Project teams • Product development teams • Quality assurance teams (quality circles) • Self-directed work teams (SDWT) 8-30
- 32. FHF Flow of communication within the formal organizational structure as depicted on organizational charts. • Upward communication • Downward communication • Horizontal communication • Diagonal communication Formal Communication 8-32
- 33. FHF Separate from management’s formal, official communication channels. • Also known as the Grapevine Informal Communication 8-33
- 34. FHF • Managers must monitor communication • Without invading privacy • Must balance employee privacy with generating respect and mindfulness amongst employees Monitoring Communication 8-34
- 35. FHF 8-35
Editor's Notes
- Click on 1st hyperlink for Google’s webpage Click on title for video (length: 7:30) interview with author Jeff Jarvis about his book What Would Google Do?
- What the Organizational Chart Shows – Organizational structure Chain of command (lines of authority) Other relationships (staff, committees, etc.) Lines of communication
- Employees grouped into department based on the day-to-day nature of their job descriptions
- Employees grouped into departments based on the product they are making
- Employees grouped by geographical region
- Employees grouped into departments based on their end consumer (consumers or businesses)
- A tall organization will have more layers of management between employees at the bottom and top-level management
- The line structure results in a very flat organization
- A line and staff structure is considerably more complex, and taller than a simple line structure
- 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