Organization, Teamwork, and Communication
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CHAPTER 7 Organization, Teamwork, and Communication ©Terry Putman/Shutterstock LEARNING OBJECTIVES After reading this chapter, you will be able to: LO 7-1 Explain the importance of organizational culture. LO 7-2 Define organizational structure, and describe how organizational structures develop. LO 7-3 Describe how specialization and departmentalization help an organization achieve its goals. LO 7-4 Determine how organizations assign responsibility for tasks and delegate authority. LO 7-5 Compare and contrast some common forms of organizational structure. LO 7-6 Distinguish between groups and teams, and identify the types of each that exist in organizations. LO 7-7 Describe how communication occurs in organizations. ENTER THE WORLD OF BUSINESS Keurig Green Mountain Brews Effective Communication Keurig Green Mountain is a leader in the specialty coffee industry. The company sells coffee and beverage selections through a coordinated, multi-channel distribution network of wholesale and consumer direct opera- tions. It also sells Keurig single-pack coffee packets and Keurig brewers, which are single-cup brewing systems. Keurig Green Mountain is decentralized with few layers of management. Although it has functional departments that vary across the company, an openness of communication allows employees access to all levels of the organization. The company uses digital communication channels such as email to inform groups of decisions. Verbal communication is used at meetings, and employees are encouraged to share their views. Written forms of communication, such as agendas, outline the results of meetings and serve to guide efficient decision making. This communication across channels ensures that the collaborative approach to getting things done is spread equally throughout the company. Corporate social responsibility is a major objective of Keurig Green Mountain. Keurig Green Mountain invests in sustainably grown coffee initiatives, and the company is developing K-cup pods that are increasingly recyclable. This is important, as one major criticism of the company is the large amount of waste its pods create over time. Keurig Green Mountain announced the pods would be 100 percent recyclable by 2020. To ensure employees are on board, Keurig Green Mountain communicates this objective across its various communication channels. In 2016, JAB Holding Company purchased Keurig Green Mountain for $13.9 billion. The company was also taken private. A privately held company with fewer owners might make it easier for management to strengthen communication channels both internally and externally. The company must continue to display effective communication skills to ensure a collaborative corporate culture focused on developing specialty coffees sustainably and responsibly.1 DISCUSSION QUESTIONS 1. What types of communication does Keurig Green Mountain use within its organization? 2. Why do you think strong communication is important in a decentralized organization with few layers of management? 3. What are some of the advantages of using functional departmentalization? Introduction An organization’s structure determines how well it makes decisions and responds to problems, and influences employees’ attitudes toward their work. A suitable structure can minimize a business’s costs and maximize its efficiency. Even companies that operate within the same industry may utilize different organizational structures. For example, in the consumer electronics industry, Samsung is organized as a conglomerate with separate business units or divisions. Samsung is largely decentralized. Apple, under CEO Tim Cook, has moved from a hierarchical structure to a more collaborative approach among divisions.2 On the other hand, Ford Motor Company’s board views the CEO, Jim Hackett, as being in charge of the firm’s strategy in a more hierarchical structure.3 A manufacturing firm, like Ford, may require more leadership and control from the top. Because a business’s structure can so profoundly affect its success, this chapter will examine organizational structure in detail. First we discuss how an organization’s culture affects its operations. Then we consider the development of structure, including how tasks and responsibilities are organized through specialization and departmentalization. Next we explore some of the forms organizational structure may take. Finally we consider communication within business. Chapter 7 O i ti T k d C i ti 169 For instance, one of the largest accounting firms in Canada, Organizational Culture Grant Thornton, established an unlimited vacation policy to give its employees more freedom. LO 7-1 Explain the importance of organizational Fewer than 1 percent of firms have this policy, but it culture. seems to be growing in companies like Netflix, where employees have greater autonomy. Some speculate, One of the most important aspects of organizing a busi- however, that these policies will only work at firms with ness is determining its organizational culture, a firm’s employees who are already highly motivated to work hard shared values, beliefs, tradi- and are less likely to take vacations in the first place.4 organizational culture tions, philosophies, rules, A firm’s culture may be expressed formally through its firm’s shared values, beliefs, and role models for behav- mission statement, codes of ethics, memos, manuals, and raditions, philosophies, rules, iour. Also called corporate ceremonies, but it is more commonly expressed informally. nd role models for behaviour culture, an organizational Examples of informal expressions of culture include dress culture exists in every orga- codes (or the lack thereof), employee engagement, and a nization, regardless of size, organizational type, product, creative and enjoyable workplace. In his book, Work Rules, or profit objective. Sometimes behaviours, programs, and Google’s former HR Boss, Laszlo Bock, states that keeping policies enhance and support the organizational culture. things fun discharges employees’ creativity juice. GOING GREEN Connection and Collaboration: How Timberland Works as a Team From its product development team to its Global DISCUSSION QUESTIONS Stewards, Timberland is committed to using team- 1. How does Timberland use teamwork to advance work to advance its goals of sustainable product its goals? offerings. In addition to teamwork among its employ- ees, Timberland has also partnered with suppliers 2. Why would Timberland partner with the and even competitors to create solutions that will competition? positively affect the environment. 3. How do you think Timberland’s use of teams Timberland began by manufacturing footwear empowers employees? and later expanded into clothing and accessories. Timberland is known for its eco-friendly products. *Mindy S. Lubber, “How Timberland, Levi’s Use Teamwork to One-third of the company’s footwear is made at least Advance Sustainability,” Green Biz, May 9, 2011, https://www partially from recycled materials. .greenbiz.com/blog/2011/05/09/howcompanies-court-stakeholders Timberland uses teamwork to positively affect -accelerate-sustainability (accessed December 31, 2017); Engaging the sustainability movement. In 2001, the company Employees: Timberland’s Global Stewards Program 2009 Report, Timberland Company, http://responsibility.timberland.com/wp started a cross-functional team made up of employ- -content/uploads/2011/05/Stewards_Program_2009. pdf (accessed ees from different areas in the company to determine August 6, 2013); Betsy Blaisdell and Nina Kruschwitz, “New Ways to how it could contribute to sustainability. Timber- Engage Employees, Suppliers and Competitors in CSR,” MIT Sloan, land formed its Global Stewards Program, teams of November 14, 2012, https://sloanreview.mit.edu/article/new-ways passionate employee volunteers who take the time to -toengage-employees-suppliers-and-competitors-in-csr/ (accessed December 31, 2017); Focus—Corporate Social Respons- participate as civic leaders within their communities, ibility Report 2001, Timberland Company, http://responsibility empower employees, and lead social responsibility .timberland.com/wp-content/ uploads/2011/05/2001-CSR-Report. projects. pdf (accessed August 6, 2013); Chuck Scofield, “Sharing Strength: Timberland has also partnered with other impor- Lessons about Getting by Giving,” LiNE Zine, http://www.linezine tant stakeholders. It partnered with its leather .com/7.2/articles/cssslagbg.htm (accessed December 31, 2017); David Hellqvist, “Timberland: 40 Years of the Yellow Boot,” The suppliers to decrease energy and water usage at Guardian, April 16, 2013, https://www.theguardian.com/fashion/2013 its leather tanneries. Timberland has also teamed /apr/16/timberland-40-years-yellow-boot (accessed December 31, with competitors on sustainability initiatives. The 2017); About Us, Timberland, https://www.timberland.com/about-us company worked with Nike and many other firms to .html (accessed December 31, 2017); “Responsibility,” Timberland create the Higg Index, a green index for apparel, and Company, https://www.timberland.com/responsibility.html (accessed December 31, 2017); “Timberland Employees Around the Globe with Adidas on a green footwear index. Timberland Take Part in 18th Annual Serv-a-Palooza Service Event,” Timberland recognizes that by developing teams among various Company, September 17, 2015, https://www.timberland.com stakeholders, it can create a major difference within /newsroom/press-releases/timberland-18th-annual-serv-a-palooza its industry.* -service-event.html