Understanding Business and Society - Organizational Structure and Teamwork

Course Overview

  • Course Title: BMG100 - Understanding Business and Society

  • Instructor: Vincent Cloutier, MBA

  • Institution: The Williams School of Business, Bishop's University

  • Term: Fall 2025

Learning Objectives

  • Define Organizational Structure:

    • Understand how organizational structures develop.

  • Specialization and Departmentalization:

    • Describe how specialization and departmentalization assist organizations in achieving their goals.

  • Responsibility and Authority:

    • Determine how organizations assign responsibility for tasks and delegate authority.

  • Organizational Structure Forms:

    • Compare and contrast various common forms of organizational structure.

  • Groups vs. Teams:

    • Distinguish between groups and teams and identify the existing types of groups in organizations.

  • Organizational Communication:

    • Describe the mechanisms of communication within organizations.

Organizational Culture

  • Definition:

    • A firm’s shared values, beliefs, traditions, philosophies, rules, and role models for behavior.

  • Corporate Culture:

    • Ensures that organizational members:

    • Share values.

    • Observe common rules.

    • Share problem-solving approaches.

  • Forms of Expression:

    • Formal Expression:

    • Examples: mission statement, code of ethics, manuals, ceremonies, memoranda, etc.

    • Informal Expression:

    • Examples: dress code, work habits, extracurricular activities, etc.

Organizational Structure

  • Definition:

    • The arrangement or relationship of positions within an organization.

    • Managers assign work tasks to individuals & groups, coordinating diverse activities to attain objectives.

  • Organizational Chart:

    • A visual display of structured relationships among tasks, responsibilities, and individuals authorized to perform them.

    • Purpose of Organizational Chart:

    • Helps interpret organizational height, type of departmentalization, chain of command, and span of management.

    • Provides insights about company objectives and centralization degree.

Importance of Organizational Structure

  • Impacts:

    • Influences decision-making, costs, efficiencies, overall success, and sustainability.

  • Objectives Based on Industry/Customer Base:

    • Variability in objectives based on the organization's industry or customer base.

    • Common objectives:

    • Efficiency:

      • Ability to complete a task using the minimum resources.

    • Control:

      • Ability to make decisions and specify their execution.

    • Responsiveness:

      • Speed at which an organization can enhance products in response to feedback or competitive pressures.

    • Empowerment:

      • Degree to which employees can make decisions autonomously.

Specialization

  • Definition:

    • Dividing labor into small, specific tasks assigned to employees to accomplish individual tasks.

  • Reasons for Specialization:

    • Improves efficiency and effectiveness.

  • Risks of Overspecialization:

    • Decreased job satisfaction.

    • Increased boredom.

    • Potential for repetitive-use injuries.

Job Rotation

  • Definition:

    • Systematic shifting of employees from one job to another.

  • Benefits of Job Rotation:

    • Prevents worker boredom and dissatisfaction.

    • Helps avoid repetitive-use injuries.

    • Assists employees in developing new skills and identifying new roles.

    • Leads to higher employee morale and engagement.

Departmentalization

  • Definition:

    • Grouping jobs into working units (departments, units, groups, divisions).

  • Types of Departmentalization:

    • Functional Departmentalization:

    • Activities are grouped by function performed.

    • Product Departmentalization:

    • Jobs grouped according to the product produced.

    • Geographical Departmentalization:

    • Jobs organized based on geographic location.

    • Customer Departmentalization:

    • Grouping based on customer type served.

Delegation of Authority

  • Definition:

    • Assigning tasks and power to employees allowing them to make commitments, use resources, and take action.

  • Assigning Responsibility:

    • Obligation placed on employees for performing assigned tasks and being accountable for execution.

    • Employee Accountability:

    • Employees answerable to superiors for work outcomes.

Level of Centralization

  • Centralized Organizations:

    • Authority concentrated at upper organizational levels.

  • Decentralized Organizations:

    • Authority spread widely among lower-level employees.

Span of Management

  • Definition:

    • Number of subordinates reporting to a particular manager.

  • Organizational Layers:

    • Number of management levels in a business.

    • Organizations with many layers are considered tall, while few layers indicate a flat structure.

  • Wide Span of Management:

    • Manager supervises many employees.

    • Benefits organizations with standard activities or skilled staff.

  • Narrow Span of Management:

    • Manager supervises few subordinates, suitable where interaction between managers and employees is needed.

Forms of Organizational Structure

  • Line Structure:

    • Direct lines of authority from top executive to employees.

    • Advantages:

    • Clear communication, fast decision-making.

    • Disadvantages:

    • Managers may feel isolated, lack resources.

  • Line-and-Staff Structure:

    • Traditional line relationships with specialized managers (staff managers) assisting line managers.

    • Advantages:

    • Support for line managers.

    • Disadvantages:

    • Potential conflicts in reporting structure.

  • Matrix Structure:

    • Teams formed from different departments, creating multiple lines of authority.

    • Advantages:

    • Flexibility, collaboration, innovation.

    • Disadvantages:

    • Employees may have dual supervisors leading to communication issues.

Organizational Design in Today's Economy

  • Cross-Functional Team:

    • Individuals with varying specializations and skills working together toward a common task.

    • Advantages:

    • Optimizes collaboration and promotes organizational agility.

    • Disadvantages:

    • Potential for dual supervision and communication blurring.

Groups vs. Teams

  • Definitions:

    • Group:

    • Two or more individuals sharing a common identity and goal.

    • Team:

    • Small group with complementary skills, working towards common objectives, holding mutual accountability.

  • Two-Pizza Rule:

    • A team should be small enough that it can be fed by two pizzas.

  • Distinctions Between Groups and Teams:

    • Working Group:

    • Focused leader, individual accountability, creates individual work products.

    • Discusses, decides, and delegates.

    • Team:

    • Shared leadership, joint accountability, produces collective work products.

    • Engages in open-ended discussions and problem-solving.

    • Key Difference:

    • All teams are groups, but not all groups are teams.

Committees and Task Forces

  • Committee:

    • Permanent, formal group performing specific tasks (e.g. finance committee, ethics committee).

  • Task Force:

    • Temporary group for specific changes, membership based on expertise, can include external individuals.

Types of Teams

  • Project Teams:

    • Similar to task forces but control their operation for specific projects.

  • Product Development Teams:

    • Design and implement new products.

  • Quality Assurance Teams:

    • Focus on solving quality-related issues (e.g. quality circles).

  • Self-Directed Work Teams (SDWT):

    • Groups managing entire processes delivering products or services.

Organizational Communications

  • Definition:

    • Flow of communication within the formal structure of an organization.

  • Types of Organizational Communications:

    • Upward Communication:

    • From lower to higher organizational levels (reports, suggestions).

    • Downward Communication:

    • From upper to lower levels (directions, feedback).

    • Horizontal Communication:

    • Information exchange among peers.

    • Diagonal Communication:

    • Communication between individuals from different units for problem-solving.

  • Informal Communication:

    • Unofficial channels of communication providing feedback beyond management.

    • Managers can leverage informal communication as a tool for feedback.

Monitoring Communication

  • Manager's Responsibility:

    • Monitor communication without infringing on employee privacy.

    • Balance respect for privacy with the need for effective communication in the organization.

Administrative Notes

  • Upcoming Deadlines:

    • Kayak+ Simulation Decision Round No. 4 due by 4:30 PM on Oct 28.

    • Course 15 (Oct. 29): Service and Manufacturing Operations (Chap. 8).

    • Course 16 & 17 (Oct. 31 & Nov. 5): Motivating the Workforce and Managing Human Resources (Chapters 9 & 10).

  • Practice Quizzes:

    • Available on Moodle to prepare for midterms and check understanding of topics discussed in class.