Learning Objectives Chapter 7

1
Learning Objectives Chapter 7

• Discuss the function of a company's
  organizational structure.
• Explain the concepts of accountability,
  authority, and delegation.
• Define four types of departmentalization.
• Describe the five most common forms of teams.
• Highlight the advantages and disadvantages of
  working in teams.
• List the characteristics of effective teams.
• Review the five stages of team development.

2
Organization Structure

• Framework for division of responsibilities.
• Effectively distribute the authority.
• A way to help hold employees accountable.

3
Organizational Chart

• Provides a visual representation of how employees
  and tasks are grouped.
• Shows how the lines of communication and
  authority flow.

4
Chain of Command
Unbroken line of authority, connects each level
of management to the next.
Makes clear who is responsible for each task.
Makes clear who has the authority to make
official decisions.
5
Responsibility
Authority
All Employees Have
Accountability
Delegation Powers
6
Common Chain of CommandLine-and-Staff
Organization
PRESIDENT
7
Span of Control

• Wide Span of Control Large number of individuals
  report to that person.
• Flat organizations associated with wide span of
  control.
• Narrow Span of Control Few individuals reporting
  to supervisor.
• Tall organizations associated with narrow span of
  control.

8
Tall versus Flat Organizations
Source Business Today, Ninth Edition, Mescon,
Bovee Thill, Prentice Hall Publishers.
9
Four Common Ways of Departmentalizing

• Function
• Division
• Matrix
• Network

10
Functional Departments

• ADVANTAGES
• Efficient use of resources.
• Encourages development of skills.
• Enables unified direction.
• Enhances communication and coordination
  activities.

• DISADVANTAGES
• Slow response to change.
• Hindering of effective planning.
• Overemphasizing work specialization.

11
Departmentalization by Function
Source Business Today, Ninth Edition, Mescon,
Bovee Thill, Prentice Hall Publishers
12
Typical Department

• Product Divisions
• Process Divisions
• Customer Divisions
• Geographic Divisions

13
Product Divisions
Time Warner
Entertainment Group
Publishing Division
Music Group
14
Matrix Departmentalization
15
Horizontal Organization

• Rejects the separation of people and work into
  functional departments.
• Uses the team concept.
• Biggest benefit, everyone works together.

16
Vertical Chain of Command

• Is a tried and true method for organizing.
• Decision making authority is often located up the
  management hierarchy.
• May be slow to react to change.
• May overlook ideas generated at lower levels.

17
Types of Teams

• Problem solving teams.
• Self-managed teams.
• Functional teams.
• Cross functional teams.
• Virtual teams.

18
Effective Teams

• Generally the optimal size is 5-12 members.
• Structure is a major consideration.
• Needs to satisfy its members needs for social
  well being.

19
Four Possible Team Member Roles

• Task Specialist Help team reach its goal.
• Socioemotional Focus on supporting the teams
  emotional needs and social unity.
• Dual Roles Concern with task and emotional
  needs.
• Non-participators Contribute little to team
  goals or emotional needs.

20
Characteristics of Effective Teams

• Clear sense of purpose.
• Open and honest communications.
• Creative thinking.
• Focused.
• Decision by consensus.

21
Five Stages of Team Development

• Forming Period of orientation and breaking the
  ice.
• Storming More personalities can become more
  assertive, conflict and disagreement often arise.
• Norming Conflicts are resolved, team harmony
  develops.
• Performing Members are really committed to the
  team goals.
• Adjourning Issues are wrapped up and the team is
  dissolved.

22
Causes of Team Conflict

• Competition for scarce resources.
• Disagreement about who is responsible for a
  specific task.
• Poor communication.
• Differences in values, attitudes and
  personalities.
• Pursuit of different goals.