Lecture Business: A changing world - Chapter 8: Organization, teamwork, and communication

Because a business’s structure can so profoundly affect its success, this chapter will examine organizational structure in detail. After reading this chapter, you will be able to: Define organizational structure and relate how organizational structures develop, describe how specialization and departmentalization help an organization achieve its goals, distinguish between groups and teams and identify the types of groups that exist in organizations,...

ChapterEight Organization, Teamwork,andCommunication â2003McGrawưHillRyersonLimited Departmentalization Thegroupingofjobsintoworkingunits 8-1 • • •   Types Functional Product Geographical Customer   © 2003 McGraw­Hill Ryerson Limited  Departmentalization Functional Departmentalization 8-2a President Production Department   Marketing Department   © 2003 McGraw­Hill Ryerson Limited  Finance Department Distribution Department Research and Development Department Departmentalization Product Departmentalization 8-2b President Stereo Equipment Division   Computer Electronics Division   © 2003 McGraw­Hill Ryerson Limited  Consumer Tele­ communications Equipment Division Industrial Tele­ communications Equipment Division Departmentalization Geographical Departmentalization 8-2c President International Operation North American Division   European Division   © 2003 McGraw­Hill Ryerson Limited  Latin American Division Middle East Division Departmentalization Customer Departmentalization 8-2d Product Manager Consumer Foods     © 2003 McGraw­Hill Ryerson Limited  Industrial Foods Differences between Groups and Teams Working Group • • • 8-3 • • • •   Strong, clearly focused leader Individual accountability The same purpose as the broader  organizational mission Creates individual work products Runsefficientmeetings Measuresitseffectiveness indirectlybyitseffectsonothers (e.g.,financialperformanceofthe business Discusses,decides,anddelegates â2003McGrawưHillRyersonLimited Team • • • • • • Shared leadership roles Individual and group accountability A specific purpose that the team  itself delivers Creates collective work products Encourages open­ended discussion  and active problem­solving  meetings Measures performance directly by  assessing collective work products Discusses, decides, and does real  work together Source: Robert Gatewood, Robert Taylor, O.C. Ferrell, Management: Comprehension, Analysis, and Application (Homewood, IL: Austen Press, 1995), 427 Teams: Potential Problems  and Diagnostic Checklists 8-4a Collective amnesia  Diagnostic checklist     © 2003 McGraw­Hill Ryerson Limited  ­  loss of memory Why are we here?  Does the project really  require collective work?  Do team members lead  various aspects of the  project?  Do team members hold  one another accountable? Source: Mark Fischetti, “Team Doctors, Report to ER,” Fast Company, Issue 13, p. 170 Teams: Potential Problems  and Diagnostic Checklists 8-4b Group myopia   ­  Diagnostic checklist     © 2003 McGraw­Hill Ryerson Limited  deficiency of clear, inspiring  goals What are we trying to do?  Does the goal have  measurable results?  Does it force communication  and constructive comment?  Does it make the team work  collectively? Source: Mark Fischetti, “Team Doctors, Report to ER,” Fast Company, Issue 13, p. 170 Teams: Potential Problems  and Diagnostic Checklists 8-4c Leadership phobia  ­  an exaggerated fear of  assuming the leading role How do I lead the team? Diagnostic checklist     © 2003 McGraw­Hill Ryerson Limited   Chart the teams course; design its major  tasks; make its responsibilities clear; and  establish its reward system  Help the team establish its goals and its  ways of working  Once the team starts performing, coach them Source: Mark Fischetti, “Team Doctors, Report to ER,” Fast Company, Issue 13, p. 170 Forms of Organization  Structure • • • • 8-7   Line Line­and­staff Multidivisional Matrix   © 2003 McGraw­Hill Ryerson Limited  Line Structure 8-8 Convenience Store Owner   Manager   © 2003 McGraw­Hill Ryerson Limited  Assistant Manager Hourly Employee Line­and­Staff Structure Line relationship Plant Manager 8-9 Staff relationship Human Resources Engineering Production Manager   Supervisor Supervisor Supervisor Supervisor Employees Employees Employees Employees   © 2003 McGraw­Hill Ryerson Limited  An Example of Multidivisional  Structure: The Walt Disney Company CEO Michael Eisner 8-10 Walt Disney Attractions Walt Disney Studios Motion Pictures Walt Disney World Magic Kingdom CA Disney Stores Magic Kingdom FL   TV Tokyo Disneyland Licensing Epcot Center   © 2003 McGraw­Hill Ryerson Limited  Consumer Products Animation Disney Channel Euro­ Disney Publishing Disney Music Software and Education Catalog Marketing Disney­ MGM Studios Source: The Walt Disney Company Annual Report Matrix Structure General Manager 8-11 General Project Manager Marketing Manager Manager Project A Manager Project B Manager Project C     © 2003 McGraw­Hill Ryerson Limited  Operations  Manager Accounting  Manager Research  Manager The Flow of Communication in  an Organizational Hierarchy Upward Downward CEO 8-12 Dow nw rd a w Up Vice President Manager l na o ag Di Manager     © 2003 McGraw­Hill Ryerson Limited  ar d Vice President Manager Horizontal Horizontal Diagonal Vice President Dia go nal Manager Manager Horizontal Manager Using Structure For  Successful Meetings 8-13a   • A regular time for the meeting is established, or meetings  are scheduled for a period of time. For example, meetings  for a given month, quarter, or year are scheduled at one  time • The meeting leader is prepared • Desired outcomes are written • Important inputs to the meeting are prepared and brought  to the meeting • Meetingrecorder(s)isselected â2003McGrawưHillRyersonLimited UsingStructureFor SuccessfulMeetings 8-13b Themeetingformatisdeveloped The meeting agenda is prepared and available ahead of  time, and is reviewed and modified as needed before the  meeting begins • Planned participation is used within the first 15 minutes • Meeting minutes are recorded • The meeting is critiqued for continuous improvement   © 2003 McGraw­Hill Ryerson Limited  Meeting Outline and  Allotted Times Example A Verify a quorum exits 1 minute 8-14 B Introduce guests 1 minute C Review minutes and follow­up 4  minutes items from last meeting D Address the problem statement  25 minutes E Reports 2  minutes F Draft next meeting minutes 5  minutes Source: http://www.onlinewbc.org/docs/manage/meetings.html © 2003 McGraw­Hill Ryerson Limited      October 19, 1998 G Summarize decisions and assignments 1 minute Solve the Dilemma a What techniques or skills should an employee  have to assume a leadership role within a work  group? b If each work group has a team representative,  what problems will be faced in supervising these  representatives? c Evaluate the pros and cons of the system  developed by QS 8-15     © 2003 McGraw­Hill Ryerson Limited  Explore Your Career Options 8-16 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     © 2003 McGraw­Hill Ryerson Limited  Additional Discussion  Questions and Exercises Which organizational structure would be best of the the following  8-17a 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 direct 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 real estate  division © 2003 McGraw­Hill Ryerson Limited      Additional Discussion  Questions and Exercises 8-17b   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 no 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   © 2003 McGraw­Hill Ryerson Limited  Chapter 8 Quiz 8-18a Which of the following is most similar to the matrix structures? a line structure b functional structure c line­and­staff structure d ad hoc committee Which of the following is commonly considered an example of informal  organizational structure? a grapevine b organizational culture c organizational chart d employee handbook     © 2003 McGraw­Hill Ryerson Limited  Chapter 8 Quiz 8-18b 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 The division of labour into small, specialized tasks and the  assignment of single tasks to employees is called a centralization b specialization c departmentalization d accountability     © 2003 McGraw­Hill Ryerson Limited  ... Software and Education Catalog Marketing Disney­ MGM Studios Source: The Walt Disney Company Annual Report Matrix Structure General Manager 8-1 1 General Project Manager Marketing Manager Manager... 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 real estate ... Project A Manager Project B Manager Project C     © 2003 McGraw­Hill Ryerson Limited  Operations  Manager Accounting  Manager Research  Manager The Flow of Communication in  an Organizational Hierarchy