Chapter 7
Organizing
and Working
in Teams
Copyright © 2009 Pearson Education Canada
7-1
Effective
Organization Structure
Divide
responsibilities
Distribute
authority
Coordinate
and control work
Promote
accountability
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7-2
Organization Chart
Formal
organization
Informal
organization
Work Specialization
Chain of Command
Vertical Organization
Horizontal Coordination
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7-3
Formal vs. Informal
• Formal Organization
• Represented by the organization chart
• The official role an employee occupies
• Informal Organization
• Network of unofficial employee relationships
(Grapevine)
• Influential management resource and/or
obstacle
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7-4
Organization Chart for a Grocery Store Chain
Board of Directors
President & CEO
Chairperson
VP
Marketing
VP Human
Resources
Senior VP
Operations
VP
MIS
VP
Advertising
VP Grocery
Operations
VP Perishable
Operations
VP Bakery
Operations
Regional
Supervisors
Regional
Operations
Regional
Operations
Area
Supervisors
Area
Supervisors
Area
Supervisors
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VP
Finance
VP Special
Projects
VP Store
Planning
7-5
Work Specialization
Advantages
Disadvantages
Efficiency
Boredom
Productivity
Alienation
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7-6
Chain of Command
• Responsibility
– Obligation to perform duties and achieve
goals associated with a position
• Accountability
– Obligation to report results and justify
outcomes
• Authority
– Power granted by the organization to
make decisions, take action and allocate
resources
• Delegation
– Assignment of work and authority down
the chain of command
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7-7
Simplified Line-and-Staff Structure
Line
Staff
President
Legal department
Human resources
department
VP
Production
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VP
Finance
VP
Marketing
Head of
Accounting
Department
National
Sales
Manager
7-8
Span of Management (Control)
• Wide Span of Control
– Large number of employees report to one manager
– Common in ‘flat organizations’ with fewer
management layers
• Narrow Span of Control
– Small number of employees report to each manager
– Common in ‘tall organizations’ with many
management layers
• i.e. The Army
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7-9
Span of Management (Control)
Army
Roman Catholic Church
General
Pope
Colonels
Cardinals
Majors
Captains,
Lieutenants
Archbishops,
Bishops
Warrant
Officers
Priests
Sergeants
Corporals
Privates
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7-10
Decision-Making Authority
Centralized
Decentralized
Top-level
management
Lower-level
Management
Rich
experience
Broad
vision
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More
responsive
Faster
decisions
7-11
Vertical Organizations
Function
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7-12
Organizational Structure
• Functional
• Divisional
• Matrix
• Network
• Hybrid
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7-13
Departmentalization
by Function
Common departments include: Marketing, Human Resources,
Finance, Operations, Research & Development and Accounting
Skills
Resource
use
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Expertise
7-14
Functional Departments
Advantages
Disadvantages
•Resource allocation
•Departmental barriers
•Unified direction
•Slow response time
•Improved coordination
•Ineffective planning
•Better communication
•Over-specialization
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7-15
Products
Processes
Departmentalization
by Division
Geography
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Customers
7-16
Departmentalization
by Division
Advantages
Disadvantages
Flexibility
Wasting resources
Better service
Poor coordination
Management focus
Competition
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7-17
Departmentalization by Matrix
PUBLISHER
Editorial
Manager
Production
Manager
Design
Manager
Book Team A
Manager
Editor A
Production
Editor A
Designer A
Book Team B
Manager
Editor B
Production
Editor B
Designer B
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7-18
Departmentalization
by Network
Advantages
Disadvantages
Flexibility
Dispersed functions
Responsiveness
Quality control
Variety
Employee loyalty
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7-19
Comparing Work Groups and Work Teams
Work Groups
Shared Information
Neutral
Individual
Random or Varied
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Work Teams
Goal
Synergy
Responsibility
Skills
Shared Mission
Positive
Individual and Mutual
Complementary
7-20
Workplace Teams
• Problem-Solving
– Team of 5-12 employees
– Find ways to improve quality,
efficiency and the work environment
• Self-Managed
– Members are responsible for the entire
process or operation
• Functional
– Members come from a single department
• Cross-Functional
- Draws together employees from various departments
• Virtual
- Uses communication technology
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7-21
Types of Cross-Functional
Teams
• Circles
• Task forces
• Special purpose
• Committees
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7-22
Virtual Teams
• Project-management skills
• Time-management skills
• Technological expertise
• Cross-cultural skills
• Interpersonal awareness
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7-23
Working in Teams
Advantages
•
Higher-quality decisions
•
Improved commitment
•
•
Disadvantages
• Power realignment
•
Free riders
•
Increased costs
•
Groupthink
•
Expert-think
Creativity & motivation
Flexibility
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7-24
Characteristics
of Effective Teams
• Clear sense of purpose
• Open honest communication
• Creative thinking
• Focused efforts
• Decision by consensus
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7-25
Team Member Roles
Member Task Behavior
High
Task Specialist
Role
Dual Role
Nonparticipator
Role
Socioemotional
Role
Low
Low
Member Social Behavior
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High
7-26
Five Stages of Team
Development
• Forming
• Storming
• Norming
• Performing
• Adjourning
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7-27
Stages of Development
Cohesiveness
Norms
•
Meeting attendance
•
Behaviour
•
Interaction
•
Limits
•
Work quality
•
Values
•
Goal achievement
•Expectations
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7-28
Team Conflict
• Competition for scarce resources
• Responsibility issues
• Poor communication
• Values, attitudes, and personalities
• Authority issues
• Goal incompatibility
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7-29
Dealing With Conflict
Prevention
Resolution
Communication
Confrontation
Clear goals
Diffusion
Well-defined tasks
Avoidance
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7-30
Effective Team Meetings
• Clarify meeting
purpose
• Carefully select
participants
• Establish a clear
agenda
• Stay on track
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• Follow agreedupon rules
• Encourage
participation
• Close effectively
7-31