© Prentice Hall, 2004Business In Action 2eChapter 7 - 1 Organizing and Working in Teams.

© Prentice Hall, 2004 Business In Action 2e Chapter 7 - 1

Organizing and Organizing and Working in TeamsWorking in Teams

© Prentice Hall, 2004 Business In Action 2e Chapter 7 - 2

Effective Organization Effective Organization StructureStructure

• Divide responsibilities

• Distribute authority

• Coordinate and control work

• Promote accountability

© Prentice Hall, 2004 Business In Action 2e Chapter 7 - 3

Organization ChartOrganization Chart

• Formal organization

• Informal organization

© Prentice Hall, 2004 Business In Action 2e Chapter 7 - 4

Organization Chart for Food Lion Grocery Organization Chart for Food Lion Grocery ChainChain

Board of Directors

President & CEOChairperson

VP Human Resources

Senior VPOperations

VPMIS

VPFinance

VP Special Projects

VPMarketing

VPAdvertising

VP Store Planning

Regional Supervisors

Area Supervisors

Regional Operations

Area Supervisors

Regional Operations

Area Supervisors

VP Grocery Operations

VP Perishable Operations

VP Bakery Operations

© Prentice Hall, 2004 Business In Action 2e Chapter 7 - 5

Work SpecializationWork Specialization

• Advantages

–Efficiency

–Productivity

• Disadvantages

–Boredom

–Alienation

© Prentice Hall, 2004 Business In Action 2e Chapter 7 - 6

Chain of CommandChain of Command

• Responsibility

• Accountability

• Authority

• Delegation

© Prentice Hall, 2004 Business In Action 2e Chapter 7 - 7

Simplified Line-and-Staff Simplified Line-and-Staff StructureStructure

• Chain of command

–Line organization

–Line-and-staff organization

© Prentice Hall, 2004 Business In Action 2e Chapter 7 - 8

Span of ManagementSpan of Management

• Flat organizations

• Tall organizations

© Prentice Hall, 2004 Business In Action 2e Chapter 7 - 9

Decision-Making Decision-Making AuthorityAuthority

• Centralized

–Top-level management

• Decentralized

–Lower-level management

© Prentice Hall, 2004 Business In Action 2e Chapter 7 - 10

Vertical OrganizationsVertical Organizations

• Function

• Division

• Network

• Matrix

© Prentice Hall, 2004 Business In Action 2e Chapter 7 - 11

Departmentalization by Departmentalization by FunctionFunction

• Skills

• Resource use

• Expertise

© Prentice Hall, 2004 Business In Action 2e Chapter 7 - 12

Functional Functional DepartmentsDepartments

DisadvantagesDisadvantages

•Departmental BarriersDepartmental Barriers

•Slow Response TimeSlow Response Time

•Ineffective PlanningIneffective Planning

•Over-specializationOver-specialization

AdvantagesAdvantages

•Resource AllocationResource Allocation

•Unified DirectionUnified Direction

•Improved CoordinationImproved Coordination

•Better CommunicationBetter Communication

© Prentice Hall, 2004 Business In Action 2e Chapter 7 - 13

Departmentalization by Departmentalization by DivisionDivision

• Products

• Processes

• Geography

• Customers

© Prentice Hall, 2004 Business In Action 2e Chapter 7 - 14

DepartmentalizationDepartmentalizationby Divisionby Division

AdvantagesAdvantages DisadvantagesDisadvantages

FlexibilityFlexibility

Better ServiceBetter Service

Management FocusManagement Focus

Wasting ResourcesWasting Resources

Poor CoordinationPoor Coordination

CompetitionCompetition

© Prentice Hall, 2004 Business In Action 2e Chapter 7 - 15

Departmentalization by Departmentalization by MatrixMatrix

• Advantages

–Skills and expertise

–Resource use

• Disadvantages

–Reporting issues

–Authority issues

– Interpersonal conflicts

© Prentice Hall, 2004 Business In Action 2e Chapter 7 - 16

DepartmentalizationDepartmentalizationby Networkby Network

AdvantagesAdvantages DisadvantagesDisadvantages

FlexibilityFlexibility

ResponsivenessResponsiveness

VarietyVariety

Dispersed FunctionsDispersed Functions

Quality ControlQuality Control

Employee LoyaltyEmployee Loyalty

© Prentice Hall, 2004 Business In Action 2e Chapter 7 - 17

Innovative StructuresInnovative Structures

• Horizontal structures

• Hybrid organization

© Prentice Hall, 2004 Business In Action 2e Chapter 7 - 18

Comparing Work Groups Comparing Work Groups and Work Teamsand Work Teams

• Goals

• Synergy

• Responsibility

• Skills

© Prentice Hall, 2004 Business In Action 2e Chapter 7 - 19

Workplace TeamsWorkplace Teams

• Problem-solving

• Self-managed

• Functional

© Prentice Hall, 2004 Business In Action 2e Chapter 7 - 20

Types of Cross-Types of Cross-Functional TeamsFunctional Teams

• Circles

• Task forces

• Committees

• Special purpose

© Prentice Hall, 2004 Business In Action 2e Chapter 7 - 21

Virtual TeamsVirtual Teams

Project-management skills

Time-management skills

Technological expertise

Cross-cultural skills

Interpersonal awareness

© Prentice Hall, 2004 Business In Action 2e Chapter 7 - 22

Working in TeamsWorking in Teams

AdvantagesAdvantages

Higher-quality decisions

Improved commitment

Creativity & motivation

Flexibility

DisadvantagesDisadvantages

Power realignment

Free riders

Increased costs

Groupthink

© Prentice Hall, 2004 Business In Action 2e Chapter 7 - 23

Characteristics Characteristics of Effective Teamsof Effective Teams

• Appropriate size and structure

• Clear sense of purpose

• Open honest communication

• Creative thinking

• Focused efforts

• Decision by consensus

© Prentice Hall, 2004 Business In Action 2e Chapter 7 - 24

Team Member RolesTeam Member Roles

• Task specialist

• Dual role

• Nonparticipator role

• Socioemotional role

© Prentice Hall, 2004 Business In Action 2e Chapter 7 - 25

Five Stages of Team Five Stages of Team DevelopmentDevelopment

• Forming

• Storming

• Norming

• Performing

• Adjourning

© Prentice Hall, 2004 Business In Action 2e Chapter 7 - 26

Stages of DevelopmentStages of Development

CohesivenessCohesiveness

Meeting attendance

Interaction

Work quality

Goal achievement

NormsNorms

Behavior

Limits

Values

Expectations

© Prentice Hall, 2004 Business In Action 2e Chapter 7 - 27

Team ConflictTeam Conflict

• Competition for scarce resources

• Responsibility issues

• Poor communication

• Values, attitudes, and personalities

• Authority issues

• Goal incompatibility

© Prentice Hall, 2004 Business In Action 2e Chapter 7 - 28

Dealing With ConflictDealing With Conflict

• Resolution– Avoidance– Confrontation– Diffusion

• Prevention– Clear goals–Well-defined tasks– Communication