I can see positives even when things go wrong. • I am good at learning from experience. • I am good at problem solving. • I am strong and hold up well when times are tough. • I have been able to turn bad situations into positive gains. Get To Know Yourself Better Take the Resiliency Quick Test. A score of 35 or better suggests you are highly resilient; with any lower score you should question how well you hold up under pressure. Double-check the test results by looking at your behavior. Write notes on how you handle situations like a poor grade at school, a put-down from a friend, a denial letter from a job application, or criticism from a supervisor or co-worker on your job. Summarize what you’ve learned in a memo to yourself about how you might benefit from showing more resiliency in difficult situations. Bureaucratic Control One form of external control uses authority, policies, procedures, job descriptions, budgets, and day-to-day supervision to encourage people to work toward organizational interests. It’s called bureaucratic control, control that flows through the organization’s hierarchy of authority. Organizations typically have policies and procedures regarding sexual harassment, for example. Their goal is encourage members to behave respectfully and with no suggestion of sexual pressure or impropriety. Organizations also use budgets for personnel, equipment, travel expenses to keep behavior targeted within set limits. Bureaucratic control influences behavior through authority, policies, procedures, job descriptions, budgets, and day-to-day supervision. Another level of bureaucratic control comes from laws and regulations. An example is the Sarbanes-Oxley Act of 2002 (SOX), which establishes procedures to regulate financial reporting and governance in publicly traded corporations.11 SOX was passed in response to major corporate scandals over inaccurate financial reports. Under SOX, chief executives and chief financial officers must personally sign off on financial reports and certify their accuracy. Those who misstate financial records can go to jail and face substantial personal fines. Many firms now appoint chief compliance officers (CCOs) and set up compliance departments. They are most effective when the CCO reports directly the chief executive or to the board of directors.12 Actions are also being taken to strengthen governance by boards. Stricter management oversight is evident in moves for directors to become more actively involved in leadership and to separate the CEO and board chairman roles.13 Clan Control Whereas bureaucratic control emphasizes hierarchy and authority, clan control influences behavior through norms and expectations set by the organization’s culture. Sometimes called normative control, it harnesses the power of cohesiveness and collective identity to influence behavior in teams and organizations. Clan control influences behavior through norms and expectations set by the organizational culture. Analysis: Make Data Your Friend Office workers get distracted as often as once every 3 minutes; it can take 23 minutes to refocus after a major interruption. Small Distractions Can Be Goal Killers Hiya Images/Corbis/Getty Images Most of us work with good intentions. But when distractions hit, focus gets lost, plans fall by the wayside, and progress suffers. Whether it’s chatting with co-workers, following social media, or tackling electronic in-boxes, interruptions are more plentiful than we might admit. • Office workers get distracted as often as once every 3 minutes and it takes an average of 23 minutes to refocus after a major interruption. • Handling up to 100 electronic messages can kill up to one-half of a workday. • Facilitators of disruptions include open-plan office spaces, use of multiple electronic devices, and constant checking of social media and messaging windows. Lacy Roberson, eBay’s director of learning and organization development, calls the situation an epidemic” and says it’s hard for people to get their work done with all the interruptions and the strain that they cause. The fight against disruptions causes some employees to start their day very early or to stay late to get their jobs done. Employers are starting to fight back and to try to protect “real work” time. “No devices” is a rule at some eBay meetings. Intel is experimenting with allowing workers blocks of “think time” where they don’t answer messages or attend meetings. Abbot Laboratories is retraining workers to use the telephone rather than e-mail for many internal office communications. Your Thoughts? How prone are you to letting distractions consume your time? Does this problem apply to your personal affairs and relationships, not just work? It’s interesting that some employers are trying to step in and set policies that might minimize the negative impact of distractions, particularly electronic ones. Where’s the self-control? Aren’t there things we can all do to protect our time and keep our work and goals on track? Clan control happens as people who share values and identify strongly with one another behave in consistent ways. Just look around the typical college classroom and campus. You’ll see clan control reflected in how students dress, use language, and act in class and during leisure time. People typically behave according to the expectations of peers and the groups with whom they identify. The same holds true in organizations, where clan control influences the members of teams and work groups to display common behavior patterns. Market Control Market control is essentially the influence of customers and competition on the behavior of organizations and their members. Business firms show the influence of market control in the way that they adjust products, pricing, promotions, and other practices in response to consumer feedback and what competitors are doing. A good example is the growing emphasis on green products and sustainability practices. When a firm like Walmart starts to get positive publicity from setting goals linked to climate change and sustainability, for example, the effect is felt by competitors.14 They have to adjust their practices to avoid losing the public relations advantage. In this sense the time-worn phrase “keeping up with the competition” is really another way of expressing the dynamics of market controls in action. Market control is essentially the influence of market competition on the behavior of organizations and their members. Organizing is the process of arranging, connecting, and integrating people and resources to accomplish a goal. Its purpose as one of the basic functions of management is a division of labor and coordination of processes and results to achieve a common purpose. Zoom Out Organizing arranges, connects, and integrates people and resources to accomplish a common purpose. Figure 11.1 shows the role that organizing plays in the management process. Once plans are created, the manager’s task is to ensure they are carried out. Once strategy is set and plans are made, organizing launches implementation and accomplishment by clarifying jobs and working relationships. It identifies who does what, who is in charge of whom, and how different people and parts of the organization relate to and work with one another. All of this can be done in many different ways. The challenge is to choose the best organizational form to fit the firm’s strategy and other situational/market demands. What Is Organization Structure? The way in which the parts of an organization are arranged is usually referred to as organization structure. It is the system of tasks, workflows, reporting relationships, and communication channels connecting the work and activities of people and groups in a firm. An organization’s structure should both allocate tasks through a division of labor and coordinate performance results. A structure that accomplishes both well helps accomplish an organization’s strategy. But as stated earlier, the problem for managers is that it is much easier to describe what a good structure does than it is to create one. Organization structure is a system of tasks, reporting relationships, and communication linkages. Organizing- to create structures • Divide up the work • Arrange resources • Coordinate activities Planning — to set the direction Controlling- to ensure results Leading- to inspire effort FIGURE 11.1 Organizing viewed in relationship with the other management functions. Formal Structures You may know the concept of structure best in the form of an organization chart. It diagrams reporting relationships and work positions.3 A typical organization chart identifies positions, job titles and the lines of authority and communication between them. It shows the formal structure, and how the organization is intended to function. But you have to interpret this information with caution. Charts can be useful… or confusing and out of date. At best, they provide a snapshot of how an organization is supposed to work in respect to: • Division of work-Positions and titles show work responsibilities. Supervisory relationships-Lines show who reports to whom. Communication channels-Lines show formal communication flows. Major subunits-Positions reporting to a common manager are shown. • Levels of management-Vertical layers of management are shown. . An organization chart describes the arrangement of work positions within an organization. Formal structure is the official structure of the organization. Informal Structures and Social Networks Underneath an organization’s formal structure is an informal structure. This is a “shadow” organization made up of social networks of unofficial, but important, working relationships connecting organizational members. Informal structure is the set of social networks found in unofficial relationships among the members of an organization. Look at Figure 11.2. No organization can be fully understood without understanding its web of informal networks as well as the formal organizational structure. 4 If the informal structure could be drawn, it would show who talks and interacts with whom, regardless of their formal titles and relationships. The lines of the informal structure cut across levels and move from side to side. They show people interacting through social media, meeting for coffee, joining in exercise groups, and participating in leisure activities-all driven by friendship rather than formal requirements. A tool known as social network analysis, or sociometrics, is one way of identifying informal structures and social relationships.5 This analysis can be done by surveys that ask people to identify others they ask for help most often, with whom they communicate regularly, and who give them energy and motivation. It can also be done using data mined from an organization’s social media sites, and even with data gathered from special electronic badges worn by employees and that record their interactions. Lines are then drawn to create a social network map or informal structure that shows how a lot of work really gets done and who the “influencers” really are. This information can be used to update the organization chart to reflect how things actually work. It also helps legitimate the informal networks people use in their daily work and identifies talented people whose value as connectors and networkers may otherwise go unnoticed by management. S Social network analysis or sociometrics identifies the informal structures and their embedded social relationships that are active in an organization. FIGURE 11.2 Informal structures and the “shadow” organization. Informal structures and social networks bring advantages that are essential to organizational success. They allow people to make contacts with others who can help them get things done. They stimulate informal learning as people work and interact throughout the workday. And, they are also sources of emotional support and friendship that satisfy social needs. Of course, informal structures also have potential disadvantages. They can be susceptible to rumor, carry inaccurate information, breed resistance to change, and even divert work efforts from important objectives. Another problem sometimes found in informal structures is “in” and “out” groups. Those who perceive themselves as “outsiders” may become less engaged in their work and more dissatisfied. Organizing is the process of arranging, connecting, and integrating people and resources to accomplish a goal. Its purpose as one of the basic functions of management is a division of labor and coordination of processes and results to achieve a common purpose. Zoom Out Organizing arranges, connects, and integrates people and resources to accomplish a common purpose. Figure 11.1 shows the role that organizing plays in the management process. Once plans are created, the manager’s task is to ensure they are carried out. Once strategy is set and plans are made, organizing launches implementation and accomplishment by clarifying jobs and working relationships. It identifies who does what, who is in charge of whom, and how different people and parts of the organization relate to and work with one another. All of this can be done in many different ways. The challenge is to choose the best organizational form to fit the firm’s strategy and other situational/market demands. What Is Organization Structure? The way in which the parts of an organization are arranged is usually referred to as organization structure. It is the system of tasks, workflows, reporting relationships, and communication channels connecting the work and activities of people and groups in a firm. An organization’s structure should both allocate tasks through a division of labor and coordinate performance results. A structure that accomplishes both well helps accomplish an organization’s strategy. But as stated earlier, the problem for managers is that it is much easier to describe what a good structure does than it is to create one. Organization structure is a system of tasks, reporting relationships, and communication linkages. Organizing- to create structures • Divide up the work • Arrange resources • Coordinate activities Planning — to set the direction Controlling- to ensure results Leading- to inspire effort FIGURE 11.1 Organizing viewed in relationship with the other management functions. Formal Structures You may know the concept of structure best in the form of an organization chart. It diagrams reporting relationships and work positions.3 A typical organization chart identifies positions, job titles and the lines of authority and communication between them. It shows the formal structure, and how the organization is intended to function. But you have to interpret this information with caution. Charts can be useful… or confusing and out of date. At best, they provide a snapshot of how an organization is supposed to work in respect to: • Division of work-Positions and titles show work responsibilities. Supervisory relationships-Lines show who reports to whom. Communication channels-Lines show formal communication flows. Major subunits-Positions reporting to a common manager are shown. • Levels of management-Vertical layers of management are shown. . An organization chart describes the arrangement of work positions within an organization. Formal structure is the official structure of the organization. Informal Structures and Social Networks Underneath an organization’s formal structure is an informal structure. This is a “shadow” organization made up of social networks of unofficial, but important, working relationships connecting organizational members. Informal structure is the set of social networks found in unofficial relationships among the members of an organization. Look at Figure 11.2. No organization can be fully understood without understanding its web of informal networks as well as the formal organizational structure. 4 If the informal structure could be drawn, it would show who talks and interacts with whom, regardless of their formal titles and relationships. The lines of the informal structure cut across levels and move from side to side. They show people interacting through social media, meeting for coffee, joining in exercise groups, and participating in leisure activities-all driven by friendship rather than formal requirements. A tool known as social network analysis, or sociometrics, is one way of identifying informal structures and social relationships.5 This analysis can be done by surveys that ask people to identify others they ask for help most often, with whom they communicate regularly, and who give them energy and motivation. It can also be done using data mined from an organization’s social media sites, and even with data gathered from special electronic badges worn by employees and that record their interactions. Lines are then drawn to create a social network map or informal structure that shows how a lot of work really gets done and who the “influencers” really are. This information can be used to update the organization chart to reflect how things actually work. It also helps legitimate the informal networks people use in their daily work and identifies talented people whose value as connectors and networkers may otherwise go unnoticed by management. S Social network analysis or sociometrics identifies the informal structures and their embedded social relationships that are active in an organization. FIGURE 11.2 Informal structures and the “shadow” organization. Informal structures and social networks bring advantages that are essential to organizational success. They allow people to make contacts with others who can help them get things done. They stimulate informal learning as people work and interact throughout the workday. And, they are also sources of emotional support and friendship that satisfy social needs. Of course, informal structures also have potential disadvantages. They can be susceptible to rumor, carry inaccurate information, breed resistance to change, and even divert work efforts from important objectives. Another problem sometimes found in informal structures is “in” and “out” groups. Those who perceive themselves as “outsiders” may become less engaged in their work and more dissatisfied. Functional Structures In functional structures, people with similar skills and who perform similar tasks are grouped together into formal work units. Members of functional departments share technical expertise, interests, and responsibilities. The first example in Figure 11.3 shows a functional structure you might find in a medium-sized business, with top management arranged by the functions of marketing, finance, technology, and human resources. Under this structure, sales tasks are the responsibility of the Chief Sales Officer, data networks and information systems tasks are the responsibility of the Chief Technology Officer, and so on. The figure also shows how functional structures are used in other types of organizations such as banks and hospitals. A functional structure groups together people with similar skills who perform similar tasks. President Business Firm Chief Sales Chief Finance Chief Talent Chief Technology Officer Officer Officer Officer Branch Manager Branch Bank Manager Manager Manager Digital Banking Manager Commerical Banking Relationship Banking Auditing & Control Executive Director Community Hospital Director Director Director Director Medical Staff Nursing Staff Billing & Finance Human Resources FIGURE 11.3 Functional structures in a business firm, branch bank, and community hospital. Advantages of Functional Structures The goal of the functional structure is to put together people with the same expertise and help together. fund does its work properly, the organization as a wh successful. These structures work well organizations only a products or vice: They also tend to work best in relatively stable environments where problems are predictable and the demands for change and innovation are limited. The major advantages of functional structures include the following: • Economies of scale with efficient use of resources. • Task assignments consistent with expertise and training. High-quality technical problem solving. • In-depth training and skill development within functions. • Clear career paths within functions. Disadvantages of Functional Structures One of the major problems with functional structures is the tendency for each department or function to focus primarily on its own concerns, avoid communications with other functions, and neglect “big picture” issues. There is too little cross-functional collaboration as a sense of common purpose gets lost and as self-centered and narrow viewpoints become emphasized. 10 This is shown in Figure 11.4, as the functional chimneys or functional silos problem-a lack of communication, coordination, and problem solving across functions. A Wall Street Journal reporter describes the problem this way: “How do you get aggressive, fast-talking salespeople to cooperate with reserved, detail-oriented engineers?”11 The functional chimneys or functional silos problem is a lack of communication, coordination, and problem solving across functions. Organizations are supposed to be cooperative systems, but the functional chimneys problem builds invisible walls that hinder collaboration across functions. This happens because the functions become formalized not only on the organization chart, but also in people’s mind-sets. Members of various functions end up viewing the function as the center of the organizational world rather than as one among many important parts that need to be working together. This problem tends to get worse as organizations get larger and as the functions get more specialized. • Too little communication across functions • Too many problems referred upward for solution FIGURE 11.4 The ‘Functional Chimneys’ problem in organizations. Divisional Structures A second organizing alternative is the divisional structure. As illustrated in Figure 11.5, this structure puts together people who work on the same product or process, serve similar customers, or are located in the same geographical region. The idea is to overcome some of the disadvantages of a functional structure, especially the “functional chimneys” problem. Divisional structures are common in organizations with diverse operations extending across many products, territories, customer segments, and work processes. 12 A divisional structure groups together people working on the same product, in the same area, with similar customers, or on the same processes. Types of Divisional Structures Product structures group together jobs and activities focused on a single product or service. They clearly link costs, profits, problems, and successes in a market area with a central point of accountability. This prompts managers to be responsive to changing market demands and customer tastes. Procter & Gamble, for example, is organized around six divisions: grooming, health care, beauty care, fabric and home care, baby and feminine care, family care and new ventures.13 A product structure groups together people and jobs focused on a single product or service. Type Focus Example General Manager Product Good or service produced Grocery products Drugs and toiletries President Geographical Location of activity Asian division European division Agency Administrator Customer Customer or client serviced Problem youth Senior citizens

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