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Business in a
Changing World

Chapter 8
Organization, Teamwork, and
Communication

McGraw-Hill/Irwin

Copyright 2009 by the McGraw-Hill Companies, Inc. All rights

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PetConnection.com

An organization based on blogging

providing a unique competitive
advantage.
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Organization, Teamwork, &

Communication
Importance of Organizational Structure

Structure Impacts:
Decision making
Costs & efficiencies
Overall success and sustainability
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Organization, Teamwork, &

Communication
Organizational Culture

A firms shared values, beliefs,

traditions, philosophies, rules, and role
models for behavior.
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Organization, Teamwork, &

Communication

Organizational Culture
Formal expression
Informal expression
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Organization, Teamwork, &

Communication
Organizational
Culture
Formal expression
Mission statement
Code of ethics
Manuals
Ceremonies
memoranda

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Organization, Teamwork, &

Communication
Organizational
Culture
Informal Expression
Dress code
Work habits
Extracurricular
activities
Stories

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Organization, Teamwork &

Communication
Organizational Culture
satisfying the needs &
expectations of stakeholders

Ensures that organizational

members:
share values
observe common rules
share problem solving approaches
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Organization, Teamwork &

Communication

The most important drivers of innovation in

companies.
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Organization, Teamwork &

Communication
Developing
Organizational Structure

Organizational Structure The

arrangement or relationship of
positions within an organization.
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Organization, Teamwork &

Communication
Developing
Organizational Structure

Structure Develops
Managers assign work tasks to individuals &
groups
Coordination of diverse activities to attain
objectives
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Organization, Teamwork &

Communication
Organizational Chart

What the Organizational Chart

Shows
Organizational structure
Chain of command (lines of authority)
Other relationships (staff, committees, etc.)
Lines of communication

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Organizational Structure
The Evolution of a Clothing Store
Phases 1, 2, and 3

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Organization, Teamwork &

Communication
Organizational Growth

What does organizational growth

require?
Structuring of resources (human, physical, financial)
Hiring specialized talent & skills
Formalized structure (as workforce & specialization
grows)
Assign work tasks to individuals & departments
Assign responsibility for organizational objectives

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Assigning Tasks Organizational

Structure
Celestial Seasonings
Determining activities
required to meet objectives

Purchase herbs from suppliers

Dry the herbs
Place in tea bags
Package and label tea bags
Ship packages to retail outlets
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Assigning Tasks

Specialization

Managers divide the labor into

small, specific tasks and assign to
employees to accomplish
individual tasks.
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Assigning Tasks

Why Specialize?

Efficiency
Ease of training
Activities too numerous
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Assigning Tasks

Overspecialization

Employees become bored

Job dissatisfaction
Poor quality work
Increased injuries
Increased employee turnover
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Organizational Structure
Assigning Tasks
Departmentalization

Grouping of jobs into working units

(departments, units, groups,
divisions)
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Assigning Tasks Organizational

Structure
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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Retailing & Wholesaling

Selling directly to the
consumer

Music stores
Sporting-goods shops
Dry cleaners
Boutiques
Drugstores
Restaurants
Hardware stores

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Functional Departmentalization

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Product Departmentalization

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Geographical Departmentalization

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Customer Departmentalization

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Assigning Responsibility

Delegation creates a
responsibility
Delegation of authority
Assigning responsibility
Employee accountability
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Assigning Responsibility

Delegation of
Authority

Giving employees tasks and power to

make commitments, use resources, and
take action to carry out tasks.
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Assigning Responsibility

Responsibility

Obligation placed on employees to

perform assigned tasks and be held
accountable for proper execution.
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Assigning Responsibility

Accountability

Employees are answerable to a

superior for work outcomes.

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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

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Span of Management

Span of Management the number

of subordinates who report to a
particular manager.
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Span of Management

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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Advantages of Small Business

Ownership
Costs
Flexibility
Focus
Reputation

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Span of Management
Organizational layers

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Span of Management
Organizational layers

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Forms of Organizational Structure

Line Structure
Line-and-staff structure
Multidivisional structure
Matrix structure
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Forms of Organizational Structure

Line Structure Convenience Store

as an example

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Forms of Organizational Structure

Line-and-staff Structure
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Forms of Organizational Structure

Matrix Structure
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Groups & Teams in Organizations

Group two or more individuals who

communicate with one another, share a
common identity, and have a common
goal
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Groups & Teams in Organizations

Team a small group whose members

have complementary skills, have a
common purposes, goals, and
approach; hold themselves mutually
accountable.

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Groups & Teams

Differences between Groups & Teams

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Groups & Teams

Committee permanent, formal group

performing a specific task.
Task force temporary group
responsible for a particular change
activity

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Groups & Teams

Teams
Project teams
Product development teams
Quality assurance teams (quality
circles)
Self-directed work teams (SDWT)
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Communications in Organizations

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Communications in Organizations
Formal Communication flow of
communication within the formal
organizational structure as depicted on
organizational charts.
Upward communication
Downward communication
Horizontal communication
Diagonal communication
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Communications in Organizations

Informal Communication separate

from managements formal, official
communication channels.
Grapevine
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