Organization and Teamwork Prentice Hall, 2007 Excellence in Business, 3e Chapter 8-1
Effective Organization Structure Divide Responsibilities Distribute Authority Coordinate and Control Work Promote Accountability Prentice Hall, 2007 Excellence in Business, 3e Chapter 8-2
Chain of Command Organization Chart Vertical Organization Formal Organization Informal Organization Work Specialization Horizontal Coordination Prentice Hall, 2007 Excellence in Business, 3e Chapter 8-3
Organization Chart for Food Lion Grocery Chain Board of Directors President & CEO Chairperson VP Marketing VP Human Resources Senior VP Operations VP MIS VP Finance VP Special Projects VP Advertising VP Grocery Operations VP Perishable Operations VP Bakery Operations VP Store Planning Regional Supervisors Regional Operations Regional Operations Area Supervisors Area Supervisors Area Supervisors Prentice Hall, 2007 Excellence in Business, 3e Chapter 8-4
Identifying Job Responsibilities Work Specialization Advantages Disadvantages Efficiency Boredom Productivity Alienation Prentice Hall, 2007 Excellence in Business, 3e Chapter 8-5
Chain of Command Responsibility Accountability Authority Delegation Prentice Hall, 2007 Excellence in Business, 3e Chapter 8-6
Simplified Line-and-Staff Structure Line Staff President Legal Department Human Resources Department VP Production VP Finance VP Marketing Head of Accounting Department National Sales Manager Prentice Hall, 2007 Excellence in Business, 3e Chapter 8-7
Span of Management United States Army Roman Catholic Church General Pope Colonels Majors Captains, Lieutenants Warrant Officers Cardinals Archbishops, Bishops Priests Sergeants Corporals Privates Prentice Hall, 2007 Excellence in Business, 3e Chapter 8-8
Decision-Making Authority Centralized Decentralized Top-Level Management Lower-Level Management Rich Experience Broad Vision More Responsive Faster Decisions Prentice Hall, 2007 Excellence in Business, 3e Chapter 8-9
Organizing the Workforce Departmentalization Function Division Hybrid Network Matrix Prentice Hall, 2007 Excellence in Business, 3e Chapter 8-10
Functional Structures Job Skills Resource Use Job Requirements Prentice Hall, 2007 Excellence in Business, 3e Chapter 8-11
Departmentalization by Functions Advantages Resource Allocation Unified Direction Improved Coordination Better Communication Disadvantages Departmental Barriers Slow Response Time Ineffective Planning Over Specialization Prentice Hall, 2007 Excellence in Business, 3e Chapter 8-12
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 8-13
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 Processes Geography Customers Prentice Hall, 2005 Excellence in Business, Revised Edition Chapter 8-14
Divisional Structures Products Processes Geography Customers Prentice Hall, 2007 Excellence in Business, 3e Chapter 8-15
Departmentalization by Divisions Advantages Flexibility Disadvantages Wasting Resources Better Service Poor Coordination Management Focus Divisional Competition Prentice Hall, 2007 Excellence in Business, 3e Chapter 8-16
Departmentalization by Matrix PUBLISHER Editorial Manager Production Manager Design Manager Book Team A Manger Editor A Production Editor A Designer A Book Team B Manger Editor B Production Editor B Designer B Prentice Hall, 2007 Excellence in Business, 3e Chapter 8-17
Departmentalization by Network Advantages Disadvantages Lower Costs Lower Control Increase Flexibility Increase Vulnerability Boost Competitiveness Less Distinctiveness Prentice Hall, 2007 Excellence in Business, 3e Chapter 8-18
Functions Divisions Hybrid Structure Network Matrix Prentice Hall, 2007 Excellence in Business, 3e Chapter 8-19
Comparing Work Groups and Work Teams Work Groups Work Teams Shared Information Neutral Individual Random or Varied Goal Synergy Responsibility Skills Shared Mission Positive Individual and Mutual Complementary Prentice Hall, 2007 Excellence in Business, 3e Chapter 8-20
Workplace Teams Problem-Solving Self-Managed Functional Prentice Hall, 2007 Excellence in Business, 3e Chapter 8-21
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, 2005 Excellence in Business, Revised Edition Chapter 7-22
Cross-Functional Teams Task Forces Special Purpose Committees Prentice Hall, 2007 Excellence in Business, 3e Chapter 8-23
CROSS-FUNCTIONAL TEAMS: In contrast to functional teams, crossfunctional 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 7-24
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 7-25
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 7-26
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-toface 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, 2005 Excellence in Business, Revised Edition Chapter 7-27
Virtual Teams Maximize Diversity Employ Technology Promote Teamwork Prentice Hall, 2007 Excellence in Business, 3e Chapter 8-28
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 8-29
Effective Teams Size and Structure Sense of Purpose Communication Prentice Hall, 2007 Excellence in Business, 3e Chapter 8-30
Effective Teams Creative Thinking Focused Efforts Consensus Prentice Hall, 2007 Excellence in Business, 3e Chapter 8-31
Team Development Forming Storming Norming Performing Adjourning Prentice Hall, 2007 Excellence in Business, 3e Chapter 8-32
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, 2005 Excellence in Business, Revised Edition Chapter 7-33
The Level of Team Cohesiveness Competition Evaluation Meeting Attendance Team Interaction Work Quality Goal Achievement Prentice Hall, 2007 Excellence in Business, 3e Chapter 8-34
The Emergence of Team Norms Standards of Conduct Acceptable Behavior Set Limits Identify Values Clarify Expectations Facilitate Survival Prentice Hall, 2007 Excellence in Business, 3e Chapter 8-35
Member Task Behavior Team Member Roles High Task Specialist Role Dual Role Nonparticipator Role Socioemotional Role Low Low Member Social Behavior High Prentice Hall, 2005 Excellence in Business, Revised Edition Chapter 8-36
Causes of Team Conflict Scarce Resources Responsibility Issues Poor Communication Personality Differences Power Struggles Incompatible Goals Prentice Hall, 2007 Excellence in Business, 3e Chapter 8-37
Solutions to Team Conflict Resolution Prevention Avoidance Clear Goals Confrontation Well-Defined Tasks Defusion Open Communication Prentice Hall, 2007 Excellence in Business, 3e Chapter 8-38
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, 2005 Excellence in Business, Revised Edition Chapter 7-39
Productive Team Meetings Clarify the Purpose Select Participants Clarify the Agenda and Stay Focused Prentice Hall, 2007 Excellence in Business, 3e Chapter 8-40
Productive Team Meetings Follow the Rules Promote Participation Close Effectively Prentice Hall, 2007 Excellence in Business, 3e Chapter 8-41