Chap007

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McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.

part

Managing for Managing for QualityQuality

and and CompetitivenessCompetitiveness

CHAPTER 8 Managing Service and Manufacturing Operations

CHAPTER 7 Organization, Teamwork, and Communication

3CHAPTER 6 The Nature of Management

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Organizational CultureOrganizational CultureOrganizational CultureOrganizational Culture

A firm’s shared values, beliefs, traditions, philosophies, rules and role models for behavior (aka corporate culture)Ensures that organizational members:Share valuesObserve common rulesShare problem solving approaches

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Formal expressionMission statementCode of ethicsManualsCeremoniesMemoranda

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Informal Expression

•Dress code (or lack of one)

•Work habits

•Extracurricular activities

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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

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Organizational StructureOrganizational StructureOrganizational StructureOrganizational Structure

Is the arrangement or relationship of positions within an organizationStructure develops as:

• Managers assign work tasks to individuals and groups

• Coordination of diverse activities to attain objectives

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Organizational StructureOrganizational StructureOrganizational StructureOrganizational Structure

Impacts:Decision makingCosts & efficienciesOverall success and sustainabilityEmployee unityUnderstanding of how to deal with problems

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Organizational ChartsOrganizational ChartsOrganizational ChartsOrganizational Charts

Visual displays of the organizational structure, lines of authority, staff relationships, permanent committee arrangements and lines of communication

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Assigning TasksAssigning TasksAssigning TasksAssigning Tasks

Specialization Managers divide the labor into small, specific tasks and assign employees individual tasks to accomplish

Why specialize? Efficiency

Ease of training

Activities too numerous for one person

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Risks of OverspecializationRisks of OverspecializationRisks of OverspecializationRisks of Overspecialization

Employees become bored Job dissatisfaction Poor quality work Increased injuries Increased employee turnover

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DepartmentalizationDepartmentalizationDepartmentalizationDepartmentalization

Grouping of jobs into working units (departments, units, groups, divisions)Functional departmentalization

Product departmentalization

Geographical departmentalization

Customer departmentalization

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Delegation of AuthorityDelegation of AuthorityDelegation of AuthorityDelegation of Authority

Giving employees tasks and empowering them to make commitments, use resources and take action to carry out tasks

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ResponsibilityResponsibilityResponsibilityResponsibility

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

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Degree of CentralizationDegree of CentralizationDegree of CentralizationDegree 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

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Span of ManagementSpan of ManagementSpan of ManagementSpan of Management

The number of subordinates who report to a particular managerA 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

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Forms of Organizational Forms of Organizational StructureStructure

Forms of Organizational Forms of Organizational StructureStructure

Line Structure Line-and-staff structure Multidivisional structure Matrix structure

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Line StructureLine StructureLine StructureLine Structure

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Line-and-Staff StructureLine-and-Staff StructureLine-and-Staff StructureLine-and-Staff Structure

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Multidivisional StructureMultidivisional StructureMultidivisional StructureMultidivisional 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

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Matrix StructureMatrix StructureMatrix StructureMatrix Structure

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Groups and TeamsGroups and TeamsGroups and TeamsGroups and Teams

GroupTwo or more individuals who communicate with one another, share a common identity and have a common goal

TeamA small group whose members have complementary skills; have a common purpose, goals and approach; hold themselves mutually accountable

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Committees and Task ForcesCommittees and Task ForcesCommittees and Task ForcesCommittees and Task Forces

CommitteeA permanent, formal group performing a specific task

Task ForceA temporary group responsible for a particular change activity

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TeamsTeamsTeamsTeams

Project TeamsSimilar to task forces in that they have total control of a specific project

Product Development TeamsFormed 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

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Organizational Organizational CommunicationsCommunicationsOrganizational Organizational

CommunicationsCommunications

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Technology and Technology and CommunicationCommunicationTechnology and Technology and CommunicationCommunication

Technology has generated many alternatives to face-to-face communicationVoice mail

E-mail

Online newsletters

Videoconferencing

Online meeting services

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Formal CommunicationFormal CommunicationFormal CommunicationFormal Communication

Flow of communication within the

formal organizational structure as depicted on organizational charts.Upward communication

Downward communication

Horizontal communication

Diagonal communication

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Informal CommunicationInformal CommunicationInformal CommunicationInformal Communication

Separate from management’s formal, official communication channelsAlso known as the Grapevine

Managers can utilize informal communications as a sounding device

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Monitoring CommunicationsMonitoring CommunicationsMonitoring CommunicationsMonitoring 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

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Education

Chap007