FERRELL HIRT FERRELL 3 e Mc GrawHillIrwin Copyright

FERRELL | HIRT | FERRELL 3 e Mc. Graw-Hill/Irwin Copyright © 2013 by The Mc. Graw-Hill Companies, Inc. All rights reserved.

PART 3 • CHAPTER 6 The Nature of Management • CHAPTER 7 Organization, Teamwork, and Communication • CHAPTER 8 Managing Service and Manufacturing Operations 7 -2

ORGANIZATIONAL CULTURE A firm’s shared values, beliefs, traditions, philosophies, rules and role models for behavior (aka corporate culture) § Ensures that organizational members: ü Share values ü Observe common rules ü Share problem solving approaches 7 -3

ORGANIZATIONAL CULTURE Formal expression § Mission statement § Code of ethics § Manuals § Ceremonies § Memoranda 7 -4

ORGANIZATIONAL CULTURE Informal Expression • Dress code (or lack of one) • Work habits • Extracurricular activities 7 -5

ORGANIZATIONAL CULTURE § Helps ensure that all members of a company share values § Suggests rules for how to behave and deal with problems § Has a significant impact on performance and employee retention § Sets a positive tone for decision making and building efficient organizational structure 7 -6

ORGANIZATIONAL CULTURE Higher Grounds Trading Company § Mission to provide quality coffee products and support small organic growers who lead in sustainability and environmental preservation § Encourages employees and community members to interact with growers in the field § Infrastructure and sustainability projects around the world 7 -7

ORGANIZATIONAL STRUCTURE Is the arrangement or relationship of positions within an organization § Structure develops as: • Managers assign work tasks to individuals and groups • Coordination of diverse activities to attain objectives 7 -8

ORGANIZATIONAL STRUCTURE Impacts: § Decision making § Costs & efficiencies § Overall success and sustainability § Employee unity § Understanding of how to deal with problems 7 -9

ORGANIZATIONAL CHARTS Visual displays of the organizational structure, lines of authority, staff relationships, permanent committee arrangements and lines of communication 7 -10

ORGANIZATIONAL CHARTS 7 -11

ASSIGNING TASKS Specialization Managers divide the labor into small, specific tasks and assign employees individual tasks to accomplish § Why specialize? üEfficiency üEase of training üActivities too numerous for one person 7 -12

RISKS OF OVERSPECIALIZATION § § § Employees become bored Job dissatisfaction Poor quality work Increased injuries Increased employee turnover 7 -13

DEPARTMENTALIZATION Grouping of jobs into working units (departments, units, groups, divisions) § § Functional departmentalization Product departmentalization Geographical departmentalization Customer departmentalization 7 -14

DELEGATION OF AUTHORITY Giving employees tasks and empowering them to make commitments, use resources and take action to carry out tasks 7 -15

RESPONSIBILITY Obligation placed on employees to perform assigned tasks and be held accountable for proper execution Accountability • Employees who accept an assignment and the responsibility to complete it are answerable to a superior for work outcomes 7 -16

DEGREE OF CENTRALIZATION Centralized Organizations § Authority is concentrated at the top level § Very little delegation to lower levels Decentralized Organizations § Decision making authority is delegated as far down the chain of command as possible 7 -17

SPAN OF MANAGEMENT The number of subordinates who report to a particular manager § A wide span of management exists when a manager directly supervises a very large number of employees § A narrow span of management exists when a manager directly supervises only a few subordinates 7 -18

SPAN OF MANAGEMENT 7 -19

SPAN OF MANAGEMENT 7 -20

FORMS OF ORGANIZATIONAL STRUCTURE § § Line Structure Line-and-staff structure Multidivisional structure Matrix structure 7 -21

LINE STRUCTURE 7 -22

LINE-AND-STAFF STRUCTURE 7 -23

MULTIDIVISIONAL STRUCTURE § Organizes departments into larger groups called divisions § Occurs as organizations grow larger and more diversified § Divisions can be formed on the same bases as departments • Customer • Product • Geography § Delegation of authority and divisionalized work 7 -24

MATRIX STRUCTURE 7 -25

GROUPS AND TEAMS Group § Two or more individuals who communicate with one another, share a common identity and have a common goal Team § A small group whose members have complementary skills; have a common purpose, goals and approach; hold themselves mutually accountable 7 -26

GROUPS VERSUS TEAMS 7 -27

COMMITTEES AND TASK FORCES Committee § A permanent, formal group performing a specific task Task Force § A temporary group responsible for a particular change activity 7 -28

TEAMS Project Teams § Similar to task forces in that they have total control of a specific project Product Development Teams § Formed to devise, design and implement a new product Quality Assurance Teams (Quality Circles) § Brought together from throughout the organization to solve specific problems Self-directed Work Teams (SDWT) § Responsible for an entire work process that delivers a product to a customer 7 -29

ORGANIZATIONAL COMMUNICATIONS 7 -30

TECHNOLOGY AND COMMUNICATION Technology has generated many alternatives to face-to-face communication § § § Voice mail E-mail Online newsletters Videoconferencing Online meeting services 7 -31

FORMAL COMMUNICATION Flow of communication within the formal organizational structure as depicted on organizational charts. § Upward communication § Downward communication § Horizontal communication § Diagonal communication 7 -32

INFORMAL COMMUNICATION Separate from management’s formal, official communication channels § Also known as the Grapevine § Managers can utilize informal communications as a sounding device 7 -33

MONITORING COMMUNICATIONS § Technological advances and electronic communication have made monitoring communications at work necessary § Managers must monitor communications: • Without invading employee privacy • While generating respect and mindfulness amongst employees 7 -34