Organization and Teamwork - aykancandemir.comaykancandemir.com/business2/chapter8.pdf · ©...

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© Prentice Hall, 2007 Excellence in Business, 3e Chapter 8 - 1 Organization and Teamwork

Transcript of Organization and Teamwork - aykancandemir.comaykancandemir.com/business2/chapter8.pdf · ©...

© Prentice Hall, 2007 Excellence in Business, 3e Chapter 8 - 1

Organization and Teamwork

© Prentice Hall, 2007 Excellence in Business, 3e Chapter 8 - 2

Effective Organization Structure

Coordinate and Control Work

Divide Responsibilities

Promote Accountability

Distribute Authority

© Prentice Hall, 2007 Excellence in Business, 3e Chapter 8 - 3

Organization Chart

Vertical Organization

Ch

ain

of

Co

mm

an

d W

ork

Sp

ecia

lizatio

n

Formal Organization

Informal Organization

Horizontal Coordination

© Prentice Hall, 2007 Excellence in Business, 3e Chapter 8 - 4

Organization Chart for Food Lion Grocery Chain

Board of Directors

President & CEO

Chairperson

VP Human

Resources

Senior VP

Operations

VP

MIS

VP

Finance

VP Special

Projects

VP

Marketing

VP

Advertising

VP Store

Planning

Regional

Supervisors

Area

Supervisors

Regional

Operations

Area

Supervisors

Regional

Operations

Area

Supervisors

VP Grocery

Operations

VP Perishable

Operations

VP Bakery

Operations

© Prentice Hall, 2007 Excellence in Business, 3e Chapter 8 - 5

Identifying Job Responsibilities

Advantages

Efficiency

Productivity

Disadvantages

Boredom

Alienation

Work Specialization

© Prentice Hall, 2007 Excellence in Business, 3e Chapter 8 - 6

Chain of Command

Responsibility

Accountability

Authority

Delegation

© Prentice Hall, 2007 Excellence in Business, 3e Chapter 8 - 7

Simplified Line-and-Staff Structure

President

VP

Production

VP

Marketing

VP

Finance

Legal Department

Human Resources

Department

Head of

Accounting

Department

National

Sales

Manager

Line

Staff

© Prentice Hall, 2007 Excellence in Business, 3e Chapter 8 - 8

General

Colonels

Majors

Captains,

Lieutenants

Warrant

Officers

Sergeants

Corporals

Privates

United States Army

Span of Management

Pope

Cardinals

Archbishops,

Bishops

Priests

Roman Catholic Church

© Prentice Hall, 2007 Excellence in Business, 3e Chapter 8 - 9

Decentralized Centralized

Decision-Making Authority

Top-Level

Management

Rich

Experience

Broad

Vision

Lower-Level

Management

More

Responsive

Faster

Decisions

© Prentice Hall, 2007 Excellence in Business, 3e Chapter 8 - 10

Organizing the Workforce

Departmentalization

Division Function

Network Matrix

Hybrid

© Prentice Hall, 2007 Excellence in Business, 3e Chapter 8 - 11

Functional Structures

Job Skills

Resource Use

Job Requirements

© Prentice Hall, 2007 Excellence in Business, 3e Chapter 8 - 12

Departmentalization by Functions

Disadvantages

•Departmental Barriers

•Slow Response Time

•Ineffective Planning

•Over Specialization

Advantages

•Resource Allocation

•Unified Direction

•Improved Coordination

•Better Communication

© Prentice Hall, 2005 Excellence in Business,

Revised Edition

Chapter 8 - 13

Departmentalization by Function

Common functional departments include marketing, human resources, operations, finance, research and development, and accounting, with

each department working independently of the others.

Skills Resource

Use Expertise

© Prentice Hall, 2005 Excellence in Business,

Revised Edition

Chapter 8 - 14

Departmentalization by Division

establishes self-contained departments that encompass all the major functional resources required to achieve their goals—such as research and

design, manufacturing, finance, and marketing. These departments are typically formed according to similarities in product, process, customer, or

geography.

Products

Geography

Processes

Customers

© Prentice Hall, 2007 Excellence in Business, 3e Chapter 8 - 15

Divisional Structures

Products

Geography

Processes

Customers

© Prentice Hall, 2007 Excellence in Business, 3e Chapter 8 - 16

Departmentalization by Divisions

Advantages Disadvantages

Flexibility

Better Service

Management Focus

Wasting Resources

Poor Coordination

Divisional Competition

© Prentice Hall, 2007 Excellence in Business, 3e Chapter 8 - 17

Departmentalization by Matrix

PUBLISHER

Book Team A

Manger

Book Team B

Manger

Editorial

Manager

Production

Manager

Design

Manager

Editor A Production

Editor A Designer A

Editor B Production

Editor B Designer B

© Prentice Hall, 2007 Excellence in Business, 3e Chapter 8 - 18

Departmentalization by Network

Advantages Disadvantages

Lower Costs

Increase Flexibility

Boost Competitiveness

Lower Control

Increase Vulnerability

Less Distinctiveness

© Prentice Hall, 2007 Excellence in Business, 3e Chapter 8 - 19

Divisions Functions

Network Matrix

Hybrid

Structure

© Prentice Hall, 2007 Excellence in Business, 3e Chapter 8 - 20

Shared Information

Neutral

Individual

Random or Varied

Goal

Synergy

Responsibility

Skills

Shared Mission

Positive

Individual and Mutual

Complementary

Work Groups Work Teams

Comparing Work Groups and Work Teams

© Prentice Hall, 2007 Excellence in Business, 3e Chapter 8 - 21

Workplace Teams

Problem-Solving

Self-Managed

Functional

© Prentice Hall, 2005 Excellence in Business,

Revised Edition

Chapter 7 - 22

• PROBLEM-SOLVING TEAM: Also referred to as quality circles,

problem-solving teams usually consist of 5 to 12 employees from the

same department who meet voluntarily to find ways of improving

quality, efficiency, and the work environment. Any recommendations

they come up with are then submitted to management for approval.

• SELF-MANAGED TEAMS: take problem-solving teams to the next

level. They manage their own activities and require minimum

supervision. Typically they control the pace of work and

determination of work assignments. Fully self-managed teams select

their own members. As you might imagine, many managers are

reluctant to embrace self-managed teams because doing so requires

them to give up significant control.

• FUNCTIONAL TEAMS: or command teams, are organized along the

lines of the organization’s vertical structure and thus may be referred

to as vertical teams. They are composed of managers and employees

within a single functional department.

© Prentice Hall, 2007 Excellence in Business, 3e Chapter 8 - 23

Cross-Functional Teams

Task Forces

Special Purpose

Committees

© Prentice Hall, 2005 Excellence in Business,

Revised Edition

Chapter 7 - 24

• CROSS-FUNCTIONAL TEAMS: In contrast to functional teams, cross-

functional teams, or horizontal teams, draw together employees from

various functional areas and expertise. In many cross-functional

teams, employees are cross-trained to perform a variety of tasks.

Cross-functional teams have many benefits:

(1) They facilitate the exchange of information between employees,

(2) they generate ideas for how best to coordinate the organizational

units that are represented,

(3) they encourage new solutions for organizational problems, and

(4) they aid the development of new organizational policies and

procedures.

© Prentice Hall, 2005 Excellence in Business,

Revised Edition

Chapter 7 - 25

• Task forces. A task force is a type of cross-functional team formed to work on

a specific activity with a completion point. Several departments are usually

involved so that all parties who have a stake in the outcome of the task are

able to provide input. However, once the goal has been accomplished, the task

force is disbanded. Saint Francis Hospital in Tulsa, Oklahoma, established a

task force to find ways to reduce the cost of supplies. The team members

came from many departments, including surgery, laboratory, nursing, financial

planning, administration, and food service. The team not only helped the

hospital save money by curbing supply waste but also generated excitement

among hospital employees about working together for common goals.

• Special-purpose teams. Like task forces, they are created as temporary

entities to achieve specific goals. However, special-purpose teams are

different because they exist outside the formal organization hierarchy.

Such teams remain a part of the organization but have their own

reporting structures, and members view themselves as separate from

the normal functions of the organization. A special-purpose team might

be used to develop a new product when complete creative freedom is

needed. By operating outside the formal organization, the team would

be able to test new ideas and new ways of accomplishing tasks.

© Prentice Hall, 2005 Excellence in Business,

Revised Edition

Chapter 7 - 26

• Committees. In contrast to a task force, a committee usually has a long life

span and may become a permanent part of the organizational structure.

Committees typically deal with regularly recurring tasks. For example, a

grievance committee may be formed as a permanent resource for handling

employee complaints and concerns. Because many committees require official

representation in order to achieve their goals, committee members are usually

selected on the basis of their titles or positions rather than their personal

expertise.

© Prentice Hall, 2005 Excellence in Business,

Revised Edition

Chapter 7 - 27

• Virtual teams, are groups of physically dispersed members who work

together to achieve a common goal. Virtual team members

communicate using a variety of technological formats and devices

such as company intranets, e-mail, electronic meeting software, and

telephones. Occasionally, they may meet face-to-face. The biggest

advantage of virtual teams is that members are able to work together

even if they are thousands of miles and several time zones apart.

• The three primary factors that differentiate virtual teams from face-to-

face teams are the absence of nonverbal cues, a limited social context,

and the ability to overcome time and space constraints. Because

virtual teams must function with less direct interaction among

members, team members require certain competencies. Among these

are project-management skills, time management skills, the ability to

use electronic communication and collaboration technologies, the

ability to work across cultures, and heightened interpersonal

awareness

© Prentice Hall, 2007 Excellence in Business, 3e Chapter 8 - 28

Virtual Teams

Maximize Diversity

Employ Technology

Promote Teamwork

© Prentice Hall, 2007 Excellence in Business, 3e Chapter 8 - 29

Working In Teams

Opportunities Challenges

Higher-quality decisions

Increased commitment

Lower stress levels

Less internal competition

Improved flexibility

Inefficiency

Groupthink

Diminished motivation

Structural disruption

Excessive workloads

© Prentice Hall, 2007 Excellence in Business, 3e Chapter 8 - 30

Effective Teams

Size and Structure

Sense of Purpose

Communication

© Prentice Hall, 2007 Excellence in Business, 3e Chapter 8 - 31

Effective Teams

Creative Thinking

Focused Efforts

Consensus

© Prentice Hall, 2007 Excellence in Business, 3e Chapter 8 - 32

Team Development

• Forming

• Storming

• Norming

• Performing

• Adjourning

© Prentice Hall, 2005 Excellence in Business,

Revised Edition

Chapter 7 - 33

• Forming. The forming stage is a period of orientation and breaking

the ice. Members get to know each other, determine what types of

behaviors are appropriate within the group, identify what is expected of

them, and become acquainted with each other’s task orientation.

• Storming. In the storming stage, members show more of their

personalities and become more assertive in establishing their roles.

Conflict and disagreement often arise during the storming stage as

members jockey for position or form coalitions to promote their own

perceptions of the group’s mission.

• Norming. During the norming stage, these conflicts are resolved,

and team harmony develops. Members come to understand and accept

one another, reach a consensus on who the leader is, and reach

agreement on what each member’s roles are.

• Performing. In the performing stage, members are really committed

to the team’s goals. Problems are solved, and disagreements are

handled with maturity in the interest of task accomplishment.

• Adjourning. Finally, if the team has a limited task to perform, it goes

through the adjourning stage after the task has been completed. In this

stage, issues are wrapped up and the team is dissolved.

© Prentice Hall, 2007 Excellence in Business, 3e Chapter 8 - 34

The Level of Team Cohesiveness

Competition Evaluation

Goal Achievement

Work Quality

Team Interaction

Meeting Attendance

© Prentice Hall, 2007 Excellence in Business, 3e Chapter 8 - 35

The Emergence of Team Norms

Standards of Conduct

Acceptable Behavior

Facilitate Survival

Clarify Expectations

Identify Values

Set Limits

© Prentice Hall, 2005 Excellence in Business,

Revised Edition

Chapter 8 - 36

Member Social Behavior Low High

Team Member Roles

Task Specialist

Role

Dual Role

Socioemotional

Role Nonparticipator

Role Me

mb

er

Ta

sk

Be

ha

vio

r High

Low

© Prentice Hall, 2007 Excellence in Business, 3e Chapter 8 - 37

Causes of Team Conflict

Scarce

Resources

Responsibility

Issues

Poor

Communication

Personality

Differences

Power

Struggles

Incompatible

Goals

© Prentice Hall, 2007 Excellence in Business, 3e Chapter 8 - 38

Prevention Resolution

Solutions to Team Conflict

Confrontation

Defusion

Avoidance

Well-Defined Tasks

Open Communication

Clear Goals

© Prentice Hall, 2005 Excellence in Business,

Revised Edition

Chapter 7 - 39

• Avoidance may involve ignoring the conflict in the hope that it will

subside on its own, or it may even involve physically separating the

conflicting parties.

• Confrontation is an attempt to work through the conflict by getting it

out in the open, which may be accomplished by organizing a meeting

between the conflicting parties.

• Defusion may involve several actions, including downplaying

differences and focusing on similarities between team members or

teams, compromising on the disputed issue, taking a vote, appealing

to a neutral party or higher authority, or redesigning the team.

© Prentice Hall, 2007 Excellence in Business, 3e Chapter 8 - 40

Productive Team Meetings

Clarify the Purpose

Select Participants

Clarify the Agenda and Stay Focused

© Prentice Hall, 2007 Excellence in Business, 3e Chapter 8 - 41

Productive Team Meetings

Follow the Rules

Promote Participation

Close Effectively