FHF

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

7-3

…continued on next page

FHF

Organizational CultureOrganizational CultureOrganizational CultureOrganizational Culture

Formal expressionMission statementCode of ethicsManualsCeremoniesMemoranda

7-4

…continued on next page

FHF

Organizational CultureOrganizational CultureOrganizational CultureOrganizational Culture

Informal Expression

•Dress code (or lack of one)

•Work habits

•Extracurricular activities

7-5

…continued on next page

FHF

Organizational CultureOrganizational CultureOrganizational CultureOrganizational 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

…continued on next page

FHF

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

7-7

…continued on next page

FHF

Organizational ChartsOrganizational ChartsOrganizational ChartsOrganizational Charts

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

7-9

…continued on next page

Organizational Chart

The Evolution of a Clothing StorePhases 1, 2, and 3

8-7

FHF

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

7-10

FHF

Risks of OverspecializationRisks of OverspecializationRisks of OverspecializationRisks of Overspecialization

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

7-11

FHF

DepartmentalizationDepartmentalizationDepartmentalizationDepartmentalization

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

Product departmentalization

Geographical departmentalization

Customer departmentalization

7-12

Functional DepartmentalizationFunctional Departmentalization

8-11

Product DepartmentalizationProduct Departmentalization

8-12

Geographical DepartmentalizationGeographical Departmentalization

8-13

Customer DepartmentalizationCustomer Departmentalization

8-14

[ ]FHF

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

7-13

FHF

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

7-14

FHF

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

7-15

FHF

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

7-16

…continued on next page

FHF

Forms of Organizational Forms of Organizational StructureStructure

Forms of Organizational Forms of Organizational StructureStructure

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

7-17

FHF

Line StructureLine StructureLine StructureLine Structure

7-18

FHF

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

7-19

FHF

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

7-20

FHF

Matrix StructureMatrix StructureMatrix StructureMatrix Structure

7-21

FHF

Organizational Organizational CommunicationsCommunicationsOrganizational Organizational

CommunicationsCommunications

7-25

FHF

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

7-26

FHF

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

7-27

FHF

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

7-28