Business a changing world 7e by ferrell chap008

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Business in a
Changing World

Chapter 8

Organization, Teamwork, and
Communication

McGraw-Hill/Irwin

Copyright © 2009 by the McGraw-Hill Companies, Inc. All rights


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PetConnection.com

An organization based on blogging providing a unique
competitive advantage.

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Organization, Teamwork, & Communication
Importance of Organizational Structure

Structure Impacts:

•Decision making
•Costs & efficiencies
•Overall success and sustainability
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Organization, Teamwork, & Communication

Organizational Culture

A firm’s shared values, beliefs, traditions,
philosophies, rules, and role models for behavior.

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Organization, Teamwork, & Communication

Organizational Culture –
•Formal expression
•Informal expression
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Organization, Teamwork, & Communication
Organizational Culture –
•Formal expression
•Mission statement
•Code of ethics

•Manuals
•Ceremonies
•memoranda

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Organization, Teamwork, & Communication
Organizational Culture –
•Informal Expression
•Dress code
•Work habits
•Extracurricular activities
•Stories

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Organization, Teamwork & Communication
Organizational Culture –
satisfying the needs &
expectations of stakeholders

Ensures that organizational members:
•share values
•observe common rules
•share problem solving approaches
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Organization, Teamwork & Communication

The most important drivers of innovation in companies.
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Organization, Teamwork & Communication
Developing
Organizational Structure

Organizational Structure – The arrangement or
relationship of positions within an organization.

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Organization, Teamwork & Communication
Developing
Organizational Structure

Structure Develops –
•Managers assign work tasks to individuals & groups
•Coordination of diverse activities to attain objectives

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Organization, Teamwork & Communication
Organizational Chart

What the Organizational Chart Shows –
•Organizational structure
•Chain of command (lines of authority)
•Other relationships (staff, committees, etc.)
•Lines of communication
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Organizational Structure
The Evolution of a Clothing Store
Phases 1, 2, and 3

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Organization, Teamwork & Communication
Organizational Growth

What does organizational growth require?
•Structuring of resources (human, physical, financial)
•Hiring specialized talent & skills
•Formalized structure (as workforce & specialization grows)
•Assign work tasks to individuals & departments
•Assign responsibility for organizational objectives
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Assigning Tasks – Organizational Structure

Celestial Seasonings – Determining

activities required to meet objectives

Purchase herbs from suppliers
Dry the herbs
Place in tea bags
Package and label tea bags
Ship packages to retail outlets
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Assigning Tasks

Specialization

Managers divide the labor into small, specific
tasks and assign to employees to accomplish
individual tasks.
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Assigning Tasks

Why Specialize?

•Efficiency
•Ease of training
•Activities too numerous
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Assigning Tasks

Overspecialization

•Employees become bored
•Job dissatisfaction
•Poor quality work
•Increased injuries
•Increased employee turnover
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Organizational Structure –
Assigning Tasks
Departmentalization
Grouping of jobs into working units (departments, units,
groups, divisions)

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Assigning Tasks – Organizational Structure
Departmentalization is the grouping of jobs into working
units usually called departments, units, groups, or
divisions.

•Functional departmentalization
•Product departmentalization
•Geographical departmentalization
•Customer departmentalization

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Retailing & Wholesaling
Selling directly to the consumer
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Music stores
Sporting-goods shops
Dry cleaners
Boutiques
Drugstores
Restaurants
Hardware stores

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Functional Departmentalization

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Product Departmentalization

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