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Chapter

Chapter. 5. 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:

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Chapter

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  1. Chapter 5 Organizational Structure and Communication

  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. Chain of Command Division of Labor and Departmentalization Centralized and Decentralized Authority Coordination Span of Management Principles of Organization

  5. Questions and Answers for Designing Organizational Structure:

  6. Formal Organization Structure Vertical downward communication Vertical upward communication

  7. 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

  8. Example of Wide Span of Management President Supervisor Supervisor

  9. Example of Narrow Span of Management President Department Head Department Head Supervisor Supervisor Supervisor Supervisor

  10. Functional Customer Product Matrix Territory Divisional Common Types of Departmentalization

  11. Functional Departmentalization Chief Executive Officer Engineering Finance Public Relations Reliability Manufacturing Distribution Human Resources Purchasing

  12. Product (Service) Departmentalization Vice President & General Manager Consumer Products Division Director of Human Resources Director of Marketing Staff Services Director of Marketing Research Director of Distribution & Planning Director of Quality Assurance Comptroller Division Vice President & General Sales Manager Division Vice President & General Manager Infant & Baby Products Division Vice President & General Manager Household Products Division Vice President & General Manager Commercial Products Vice President Manufacturing

  13. Customer Departmentalization President Retail Division Business Division Government Division Production Production Production Marketing Marketing Marketing Finance Finance Finance

  14. Divisional Departmentalization President Computer Division Software Division Consulting Source Division Production Production Production Marketing Marketing Marketing Finance Finance Finance

  15. Territory (Geographic) Departmentalization Chairman CEO Northeast regional manager Midwest regional manager Southeast regional manager Southwest regional manager Pacific regional manager General managers for: New York Philadelphia Boston General managers for: Cleveland Chicago St. Louis General managers for: Raleigh Atlanta Orlando General managers for: Dallas Houston Albuquerque General managers for: Seattle San Francisco Los Angeles

  16. Example of the Matrix Departmentalization Functions Project or product A Project or product B Project or product C Project or product D Project or product E Projects, products Manufacturing Marketing Engineering Finance

  17. Example of the Matrix Departmentalization President Vice President Finance Vice President Operations Vice President Manufacturing Vice President Sales and Marketing Region A Manager Region B Manager Region C Manager

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

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

  20. 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 Vertical and Horizontal Communication

  21. 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.”

  22. 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

  23. Message Transmission Channels Oral Communication Written Communication Nonverbal Communication

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

  25. Vocal Qualities Facial Expressions Posture Gestures Nonverbal Communication

  26. Emotional labor – requires the expression of desired emotions during interpersonal relations Universal emotions: happiness surprise fear sadness anger disgust Communicating with Emotional Employees:

  27. 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

  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

  30. Consultative Communication Style Autocratic Communication Style Laissez-Faire Communication Style Participative Communication Style Situational Communication Styles

  31. Situational Variables (1 of 2) • Time –Do I have enough time to use two-way communication? • Information –Do I have the necessary information to communicate my message, make a decision, or take action? • Acceptance – Will the other party accept my message without any input?

  32. Situational Variables (2 of 2) • Capability – • Ability:Does the other party have the experience or knowledge to participate in two-way communication? • Motivation:Does the other party want to participate?

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