Transcript Chapter 1
Part 3 Managing for Quality and Competitiveness © 2015 McGraw-Hill Education. 7-2 CHAPTER 6 The Nature of Management CHAPTER 7 Organization, Teamwork, and Communication CHAPTER 8 Managing Service and Manufacturing Operations 7-3 Learning Objectives LO 7-1 Define organizational structure and relate how organizational structures develop. LO 7-2 Describe how specialization and departmentalization help an organization achieve its goals. LO 7-3 Determine how organizations assign responsibility for tasks and delegate authority. LO 7-4 Compare and contrast some common forms of organizational structure. LO 7-5 Distinguish between groups and teams and identify the types of groups that exist in organizations. LO 7-6 Describe how communication occurs in organizations. 7-4 Organizational Culture Organizational Culture (Corporate Culture) • A firm’s shared values, beliefs, traditions, philosophies, rules, and role models for behavior o Ensures that organizational members: Share values Observe common rules Share problem solving approaches 7-5 Organizational Structure Structure • The arrangement or relationship of positions within an organization o An organization’s structure develops when: 1. Managers assign work tasks to specific individuals or work groups 2. Coordinate the diverse activities required to reach the firm’s objectives 7-6 The organizational structure at TOMS Shoes consists of two parts The for-profit component of the company manages overall operations Its nonprofit component, Friends of TOMS, is responsible for volunteer activities and shoe donations 7-7 Organizational Charts Organizational Chart • A visual display of the organizational structure, lines of authority (chain of command), staff relationships, permanent committee arrangements, and lines of communication 7-8 The Evolution of a Clothing Store, Phases 1, 2, and 3 7-9 Assigning Tasks Specialization • The division of labor into small, specific tasks and the assignment of employees to do a single task o Why specialize: Efficiency Ease of training Activities too numerous for one person 7-10 Learning Organization A learning organization is one that opens communication between departments in order to increase the level of learning among employees within the organization The manager creating and sustaining this kind of organization invests in employees through extensive training and minimal restrictions so that creativity is emphasized Through the knowledge that is created and captured, employees are encouraged to experiment with the ideas that have the most value for customers Managers encourage a healthy level of risk taking and learning from mistakes Failure is valued as a learning experience and success, while celebrated, is seen as a fleeting experience that should not be the focus of the future because there is not much to learn from success 7-11 Departmentalization Overspecialization can have negative consequences • • • • • Employees become bored Job dissatisfaction Poor quality work Increased injuries Increased employee turnover Departmentalization • The grouping of jobs into working units usually called departments, units, groups, or divisions • Functional departmentalization • Product departmentalization • Geographical departmentalization • Customer departmentalization 7-12 Functional Departmentalization Functional Departmentalization • The grouping of jobs that perform similar functional activities, such as finance, manufacturing, marketing, and human resources 7-13 Product Departmentalization Product Departmentalization • The organization of jobs in relation to the products of the firm 7-14 The Campbell Soup Company uses product departmentalization to organize its company However, the firm also engages in a type of geographic departmentalization for various regions 7-15 Geographical Departmentalization Geographical Departmentalization • The grouping of jobs according to geographic location, such as state, region, country, or continent 7-16 Customer Departmentalization Customer Departmentalization • The arrangement of jobs around the needs of various types of customers 7-17 An Organizational Chart for the City of Corpus Christi 7-18 Delegation of Authority Delegation of Authority • Giving employees not only tasks, but also the power to make commitments, use resources, and take whatever actions are necessary to carry out those tasks As a business grows, so do the number and complexity of decisions that must be made; no one manager can handle them all Delegation of authority frees a manager to concentrate on larger issues such as planning or dealing with problems and opportunities 7-19 Responsibility and Accountability Responsibility • The obligation, placed on employees through delegation, to perform assigned tasks satisfactorily and be held accountable for the proper execution of work Accountability • The principle that employees who accept an assignment and the authority to carry it out are answerable to a superior for the outcome 7-20 Degree of Centralization Centralized Organizations • A structure in which authority is concentrated at the top, and very little decision-making authority is delegated to lower levels • Overcentralization can cause serious problems for a company, in part because it may take longer for the organization as a whole to implement decisions and to respond to changes and problems on a regional scale Decentralized Organizations • An organization in which decision-making authority is delegated as far down the chain of command as possible • Delegating authority to lower levels of managers may increase the organization’s productivity 7-21 Span of Management 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 7-22 Organizational Layers Organizational Layers • The levels of management in an organization Complements the concept of span of management A company with many layers of managers is considered tall; in a tall organization, the span of management is narrow Organizations with few layers are flat and have wide spans of management 7-23 Forms of Organizational Structures Forms of Organizational Structures • • • • Line structure Line-and-staff structure Multidivisional structure Matrix structure 7-24 Line Structure Line Structure • The simplest organizational structure in which direct lines of authority extend from the top manager to the lowest level of the organization 7-25 Line-and-Staff Structure Line-and-Staff Structure • A structure having a traditional line relationship between superiors and subordinates and also specialized managers – called staff managers – who are available to assist line managers 7-26 Line-and-Staff Structure 7-27 Multidivisional Structure Multidivisional Structure • A structure that 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, and/or geography) Delegation of authority and divisionalized work 7-28 Matrix Structure Matrix Structure • A structure that sets up teams from different departments, thereby creating two or more intersecting lines of authority; also called a projectmanagement structure 7-29 Matrix Structure 7-30 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; and hold themselves mutually accountable 7-31 Differences Between Groups and Teams 7-32 Committees and Task Forces Committee • A permanent, formal group that performs a specific task Task Force • A temporary group of employees responsible for bringing about a particular change Typically come from across all departments and levels of an organization Membership is usually based on expertise rather than organizational position Occasionally, a task force may be formed from individuals outside a company 7-33 Teams Project Teams • Groups similar to task forces which normally run their operation and have total control of a specific work project Product-Development Teams • A specific type of project team formed to devise, design, and implement a new product Quality-Assurance Teams (or Quality Circles) • Small groups of workers brought together from throughout the organization to solve specific quality, productivity, or service problems Self-Directed Work Teams (SDWT) • A group of employees responsible for an entire work process or segment that delivers a product to an internal or external customer 7-34 The Flow of Communication in an Organizational Hierarchy 7-35 Formal Communication Flow of communication within the formal organizational structure as depicted on organizational charts Upward Communication • Flows from lower to higher levels of the organization • Includes information such as progress reports, suggestions for improvement, inquiries, and grievances Downward Communication • Refers to the traditional flow of information from upper organizational levels to lower levels • Typically involves directions, the assignment of tasks and responsibilities, performance feedback, and certain details about the organization’s strategies and goals 7-36 Formal Communication Horizontal Communication • Involves the exchange of information among colleagues and peers on the same organizational level, such as across or within departments • Information informs, supports, and coordinates activities both within the department and with other departments Diagonal Communication • When individuals from different units and organizational levels communicate • With firms downsizing and increasing the use of work teams, workers are being required to communicate with others in different departments and on different levels to solve problems and coordinate work 7-37 Informal Communication Grapevine • An informal channel of communication, separate from management’s formal, official communication channels Managers can utilize informal communications as a sounding device Can obtain valuable information from the grapevine that could improve decision making Some organizations use the grapevine to their advantage by floating ideas, soliciting feedback, and reacting accordingly 7-38 Non-Verbal Communication Non verbal communication is embedded in most forms of communication and send messages out through hand movements, head nodding, and tone of voice or written word These indirect forms of communication can be more informative than the direct message being transmitted It is important to be aware of one’s own non verbal communication style in order to ensure sending the intended message 7-39 Improving Communication Effectiveness Encourage employees to provide feedback Helps identify strengths and weaknesses Avoid interruptions Develop strong and effective communication channels through training Important for companies to communicate their e-mail policies throughout the organization 7-40 Discussion ? ? Indentify four types of departmentalization and give an example of each type. Discuss the different forms of organizational structure. What are the primary advantages and disadvantages of each form?