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Organizational Structure and Communication

6. Organizational Structure and Communication. Introduction . Organization structure determines who works together It is the way managers design their firms to achieve their organization’s mission and goals Organizational communication flows through its structure, which affects: behavior

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Organizational Structure and Communication

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  1. 6 Organizational Structure andCommunication

  2. Introduction • Organization structure determines who works together • It is the way managers design their firms to achieve their organization’s mission and goals • Organizational communication flows through its structure, which affects: • behavior • human relations • performance

  3. 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.

  4. Principles of Organization (1 of 3) • Division of Labor and Departmentalization • Division 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 Command • line of authority from the top to the bottom of the organization, which is shown in an organization chart

  5. Principles of Organization (2 of 3) • Span of Management • refers to number of employees reporting to a manager • Centralized 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

  6. Principles of Organization (3 of 3) • Coordination • With the division of labor and departmentalization comes the need to coordinate the work of all departments

  7. Questions and Answers for Designing Organizational Structure:

  8. President Vice President Production Vice President Finance Vice President Marketing Manager A Manager B Manager C Manager D Manager E Manager F Manager G Manager H Manager I Formal Organization Structure Vertical downward communication Vertical upward communication Exhibit 6.2

  9. Informal Organization Structure President Horizontal communication networks Vice President Production Vice President Finance Vice President Marketing Manager A Manager B Manager C Manager D Manager E Manager F Manager G Manager H Exhibit 6.2

  10. Functional Customer Product Matrix Territory Divisional Common Types of Departmentalization (1 of 4)

  11. Common Types of Departmentalization (2 of 4) • Functional Departmentalization • involves organizing departments around essential input activities, such as: • production and operations • finance and accounting • marketing and sales • human resources • Product (Service) Departmentalization • involves organizing departments around goods and services provided

  12. Common Types of Departmentalization (3 of 4) • Customer Departmentalization • involves 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) Departmentalization • involves organizing departments in each area in which the enterprise does business

  13. Common Types of Departmentalization (4 of 4) • Matrix Departmentalization • combines the functional and product departmental structures • Combination • many large companies have more than one form of departmentalization

  14. Team Organizations and Reengineering Learning Organizations E-Organizations Boundaryless Organizations Virtual Organizations Contemporary Organization Design

  15. American and Japanese Organization 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

  16. Organizational Communication • Organizational communication – the compounded interpersonal communication process across an organization • Communication flows in an organization are: • Vertical • Horizontal • Grapevine (multidirectional)

  17. Vertical and Horizontal Communication Vertical Communication • The flow of information both up and down the chain of command • Formal communication • Recognized as official • Status 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

  18. 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.”

  19. 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

  20. Message Transmission Channels Oral Communication Written Communication Nonverbal Communication

  21. Telephone Face-to-Face Presentations Meetings Oral Communication Media

  22. Written Communication (1 of 2) • With increased use of e-mail, managers substitute face-to-face communication with e-mail • Communication Objective Guidelines • Memos • Letters • Reports • Bulletin board notices • Posters • Computers/e-mail • Fax

  23. Written Communication (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

  24. Vocal Qualities Facial Expressions Posture Gestures Nonverbal Communication

  25. Emotions (1 of 2) • Emotional labor – requires the expression of desired emotions during interpersonal relations • Universal emotions: • happiness • surprise • fear • sadness • anger • disgust

  26. Emotions (2 of 2) • Understanding Feelings • Feelings are subjective – they tell you people’s attitudes and needs • Feelings are usually disguised as factual statements • Feelings are neither right nor wrong but behavior is • Gender Differences • Global Differences

  27. Dealing with Emotional Employees • Calming the emotional person • Use reflecting responses

  28. Criticism Getting Criticism Giving Criticism

  29. Guidelines for Giving Effective Criticism • Give more praise than criticism • Criticize immediately • Criticism should be performance oriented • Give specific and accurate criticism • Open on a positive note and close by repeating what action is needed

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