Post on 26-Mar-2015
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© 2008 The McGraw-Hill Companies, Inc. All rights reserved
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ChapterChapterChapterChapter
McGraw-Hill/Irwin
Organizational Organizational Structure Structure
andandCommunicationCommunication
66
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Introduction Introduction
Organization structure determines who works togetherIt is the way managers design their firms to
achieve their organization’s mission and goalsOrganizational communication flows
through its structure, which affects:behaviorhuman relationsperformance
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The transition from an economy based on materials to an economy based on flows of
information has created considerable challenges for organizational structure, and
communication.
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Principles of Organization Principles of Organization (1 of 3)(1 of 3)
Division of Labor and DepartmentalizationDivision of labor, or work specialization – refers to
the degree to which tasks are subdivided into separate jobs
Departmentalization – grouping of related activities into units
Chain of Commandline of authority from the top to the bottom of the
organization, which is shown in an organization chart
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Principles of Organization Principles of Organization (2 of 3)(2 of 3)
Span of Managementrefers to number of employees reporting to a
managerCentralized and Decentralized Authority
With centralized authority, top managers make important decisions
With decentralized authority, middle and first-line managers make important decisions where the action is
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Principles of Organization Principles of Organization (3 of 3)(3 of 3)
CoordinationWith the division of labor and departmentalization
comes the need to coordinate the work of all departments
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Questions and Answers for Questions and Answers for Designing Organizational Structure:Designing Organizational Structure:
Questions Answers
How should we subdivide work? Division of Labor and Departmentalization
Who should departments and individuals report to?
Chain of Command
How many individuals should report to each manager?
Span of Management
At what level should decisions be made?
Centralization vs. Decentralization
How do we get everyone to work together as a team?
Coordination
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Formal Organization Structure Formal Organization Structure
PresidentPresident
Vice PresidentProduction
Vice PresidentFinance
Vice PresidentMarketing
ManagerA
ManagerB
ManagerC
ManagerD
ManagerE
ManagerF
ManagerG
ManagerH
ManagerI
Vertical downward communication
Vertical upward communication
Exhibit 6.2
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Informal Organization Structure Informal Organization Structure
PresidentPresident
Vice PresidentProduction
Vice PresidentProduction
Vice PresidentFinance
Vice PresidentFinance
Vice PresidentMarketing
Vice PresidentMarketing
ManagerA
ManagerA Manager
B
ManagerB Manager
C
ManagerC Manager
D
ManagerD Manager
E
ManagerE Manager
F
ManagerF Manager
G
ManagerG Manager
H
ManagerH
Horizontal communication
networks
Exhibit 6.2
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Common Types Common Types of Departmentalizationof Departmentalization (1 of 4) (1 of 4)
Divisional Territory Matrix
Product Customer
Functional
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Common Types of Common Types of Departmentalization Departmentalization (2 of 4) (2 of 4)
Functional Departmentalizationinvolves organizing departments around essential
input activities, such as:production and operationsfinance and accountingmarketing and saleshuman resources
Product (Service) Departmentalizationinvolves organizing departments around goods
and services provided
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Common Types of Common Types of Departmentalization Departmentalization (3 of 4) (3 of 4)
Customer Departmentalizationinvolves organizing departments around the
needs of different types of customers with unique needs calling for different sales staffs and products
Divisional Departmentalization (M-Form)the firm develops independent lines of business
that operate as separate companies, all contributing to the corporation profitability
Territory (Geographic) Departmentalizationinvolves organizing departments in each area in
which the enterprise does business
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Common Types of Common Types of Departmentalization Departmentalization (4 of 4) (4 of 4)
Matrix Departmentalizationcombines the functional and product
departmental structuresCombination
many large companies have more than one form of departmentalization
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Contemporary Organization Design Contemporary Organization Design
VirtualOrganizations
BoundarylessOrganizations
E-Organizations
LearningOrganizations
Team Organizationsand
Reengineering
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American and Japanese Organization American and Japanese Organization Structures Structures
Division of labor tends to be a bit less specialized in Japan
Both countries use the same types of departmentalization
American organizations tend to be quicker to hire, lay off, and to change jobs than the Japanese
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Organizational Communication Organizational Communication
Organizational communication – the compounded interpersonal communication process across an organization
Communication flows in an organization are:VerticalHorizontal
Grapevine (multidirectional)
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Vertical and Horizontal Vertical and Horizontal Communication Communication
Vertical CommunicationThe flow of information
both up and down the chain of command
Formal communicationRecognized as officialStatus and power are not
equal among participants in vertical communication
Horizontal Communication
• The flow of information between colleagues and peers
• Informal communication
• Does not follow the chain of command
• Not recognized as official
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Grapevine Communication Grapevine Communication
Grapevine – the informal vehicle through which messages flow throughout the organization
“When the grapevine allows employees to know about a management decision almost before it is made, management must be doing something right.”
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Communication Networks Communication Networks
Communication networks – sets of employees who have stable contact through which information is generated and transmitted
Two major types of communication networks: 1. within organizations 2. within departments and small groups
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Message Transmission Channels Message Transmission Channels
Oral Communication
Written Communication
Nonverbal Communication
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Oral Communication Media Oral Communication Media
Face-to-Face Telephone
Meetings Presentations
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Written Communication Written Communication (1 of 2)(1 of 2)
With increased use of e-mail, managers substitute face-to-face communication with e-mail
Communication Objective GuidelinesMemosLettersReportsBulletin board noticesPostersComputers/e-mailFax
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Written Communication Written Communication (2 of 2)(2 of 2)
Writing skills Grammar – rules for use of the eight parts
of speech To simplify grammar, we use subjects,
predicates, modifiers, and connectives
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Nonverbal Communication Nonverbal Communication
FacialExpressions
VocalQualities
Gestures Posture
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Emotions Emotions (1 of 2)(1 of 2)
Emotional labor – requires the expression of desired emotions during interpersonal relations
• Universal emotions:– happiness– surprise– fear– sadness– anger– disgust
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Emotions Emotions (2 of 2) (2 of 2)
Understanding FeelingsFeelings are subjective – they tell you people’s
attitudes and needsFeelings are usually disguised as factual
statementsFeelings are neither right nor wrong but behavior
isGender DifferencesGlobal Differences
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Dealing with Emotional Employees Dealing with Emotional Employees
Calming the emotional personUse reflecting responses
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Criticism Criticism
Getting Criticism Giving Criticism
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Guidelines for Giving Effective Guidelines for Giving Effective Criticism Criticism
Give more praise than criticismCriticize immediatelyCriticism should be performance orientedGive specific and accurate criticismOpen on a positive note and close by
repeating what action is needed