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they may buy it in from the parent pany when required。 This maintains
the concept of full profit accountability。
SBUs are further divided into those that simply have control over current
revenue and expenditure and those ‘investment centres’ that can make
capital expenditure decisions such as se。。ing up a new plant; investing in
research and development or buying up petitors。
Figure 4。6 Strategic business unit organization chart
Accounts Human Resources
Sales and Marketing Manufacturing
Strategic Business Unit 1
Europe
Accounts Human Resources
Sales and Marketing Manufacturing
Strategic Business Unit 2
Asia
Top management
Succession planning
No general would fight a ba。。le without having a reserve force ready to plug
gaps that appear in the front line or are caused by casualties in key staff。
Perhaps the most spectacular military example was the rapid deployment
of Montgomery to head the 8th Army when Churchill’s own preferred
candidate; ‘Strafer’ Go。。; was killed flying back to Cairo。
For business and other organizations this reserve is usually limited
to the process of identifying future potential leaders to fill key positions
when staff leave or are themselves promoted。 A subsidiary but nonetheless
important role of any organization chart is to facilitate this planning。
Elements to consider in this area include:
。 broadening existing managers’ petences by lateral moves in the
organization;
。 training and development across a wider skill base than is required for
current roles;
Organizational Behaviour 127
。 having a database of outsiders who can rapidly be approached by head
hunters (specialist recruitment consultants) when the need arises。
Teams
Teams are the ponent parts of a business’s structure and their effective
creation and operation are a key way to get exceptional results from an
organization。 A group of people; even if they work together; are not necessarily
a team。 Look at Figure 4。7; which pares some of the characteristics
of a sports team with those of a random collection of people that meet for a
game。 You can see immediately what needs to be done to weld people into
a team。
Sports team Sports club
。 Has the right number of players for
the game
。 Everyone has a clearly defined role
。 Concrete and measurable
objectives
。 An obvious petitor for the team
to unite against
。 A coach to train and improve
players’ game
。 Right equipment for the game
。 Just the number of people who turn
up
。 Positions of players decided on the
day
。 Often the aims have never been
explained and where they have;
different people have different aims
。 Sometimes the internal petition is
more important than winning a game
。 Training is ad hoc
。 The right equipment is sometimes
missing and not all players have the
right equipment
Successful teams have certain features in mon。 They all have strong
and effective leadership; clear objectives; appropriate resources; the ability
to municate freely throughout the organization; the authority to act
quickly on decisions; a good balance of team members; the ability to work
collectively; and a size appropriate to the task。
Team types
Teams can be made up of anything from 5 to 20 people。 Anything above 20 is
usually too unwieldy and will take up more resources than an organization
can afford to devote to one aspect of the business。
Business teams
These are a group of people tasked with managing functions and achieving
specific results over the longer term。 In this example there are three of these;
Figure 4。7 Groups are not the same as teams
128 The Thirty…Day MBA
covering sales; administration and warehouse/dispatch。 So; for example;
the sales team is expected to meet sales targets and the dispatch team to
get goods to customers on time。 In practice; every firm will have its own
definition of business functions。
Project teams
These are o。。en cross…functional; made up of people from different areas。
These can be assembled for any period of time to look at a particular project。
In this example we have assumed that each of these teams has been asked
to look at how each function could be made more efficient。 The value of
having someone from other functions in these teams is to ensure that too
parochial a view is not taken。
Taskforce teams
This is a short…term body put together quickly to look at one narrow issue
or specific problem。 For example; if you proposed changing your working
hours a taskforce could look at the implications for everyone inside
and outside the firm and report back。 Then a decision based on the best information;
provided by people most affected by the change; can be made。
Team roles
However talented the soloists are in an organization; in the end it is orchestras
that make enough ‘noise’ to make things happen。 But teams don’t just
occur naturally。 The presumption that people are going to work together is
usually a mistake。 Chaos is more likely than teamwork。
Cultures in businesses have very different pedigrees and can pull the
organization in very different directions。 Take one successful new internet
business for example; where people came from financial services; retail and
more recently technology。 The pany’s roots were in financial services。
Their petitors were banks and brokerage firms and their employees
had moved around the sector in search of the ultimate accolade; to bee
a vice…president。 The focus was inwards towards ‘hierarchy and title’。 Their
second cohort of employees came from retailing; the staff of their one…time
expanding branch network。 For retailers the focus is outwards towards
the customer。 Their success was measured in the market and the best salespeople
had the greatest respect and power。 The third group; and the most
recent; was the technologists。 For these people success was measured by
technical expertise。 Titles were irrelevant and their main concern was for
the pletion of the project。 Their loyalty was not to the hierarchy but to
the principles of the project itself; and to their team。
Pu。。ing people with disparate cultures into teams because of their particular
professional or job skills may not be effective。 If the team is to function
effectively; the balance of behavioural styles has to mesh too。 These are the
Organizational Behaviour 129
key roles identified by Meredith Belbin while a Research Fellow at Cranfield
(belbin); which need to be taken if a team is to work effectively
(there are other methods of categorizing team roles):
。 Chairman/team leader。 Stable; dominant; extrovert。 Concentrates on
objectives。 Does not originate ideas。 Focuses people on what they do
best。
。 Plant。 Dominant; high IQ; introvert。 A ‘ sca。。erer of seeds’ who originates
ideas。 Misses out on detail。 Thrustful but easily offended。
。 Resource investigator。 Stable; dominant; extrovert and sociable。 Lots
of contacts with the outside word。 Strong on networks。 Salesperson/
diplomat/liaison officer。 Not an original thinker。
。 Shaper。 Anxious; dominant; extrovert。 Emotional and impulsive。 Quick
to challenge