Lecture 11: Organizational structure and culture

Chapter 13&14

Organizational structure

the division of labor as well as the patterns of coordination, communication, workflow, and formal power that direct organizational activities

Span of control

the number of people directly reporting to the next level above in the hierarchy

Centralization

the degree to which formal decision authority is held by a small group of people, typically those at the top of the organizational hierarchy

Formalization

the degree to which organizations standardize behavior through rules, procedures, formal training, and related mechanisms

Mechanistic structure

an organizational structure with a narrow span of control and a high degree of formalization and centralization

Organic structure

an organizational structure with a wide span of control, low formalization, and decentralized decision making

Functional structure

an organizational structure in which employees are organized around specific knowledge or other resources

Divisional structure

an organizational structure in which employees are organized around geographic areas, outputs (products or services), or clients

Team-based strcuture

an organizational structure built around self-directed teams that complete an entire piece of work

Matrix structure

an organizational structure that overlays two structures (such as a geographic divisional and a product structure) in order to leverage the benefits of both

Network structure

an alliance of several organizations for the purpose of creating a product or serving a client

Organizational strategy

the way the organization positions itself in its environment in relation to its stakeholders, given the organization’s resources, capabilities, and mission

Organizational culture

the values, norms, and assumptions shared among organizational members

Artifacts

the observable symbols and signs of an organization’s culture

Rituals

the programmed routines of daily organizational life that dramatize the organization’s culture

Ceremonies

planned displays of organizational culture, conducted specifically for the benefit of an audience

Adaptive culture

an organizational culture in which employees are receptive to change, including the ongoing alignment of the organization to its environment and continuous improvement of internal processes

Learning orientation

a set of beliefs and norms in which people are encouraged to question past practices, learn new ideas, experiment putting ideas into practice, and view mistakes as part of the learning process

Bicultural audit

a process of diagnosing cultural relations between companies and determining the extent to which cultural clashes will likely occur

Attraction-selection-attrition (ASA) theory

a theory stating that organizations have a natural tendency to attract, select, and retain people with values and personality characteristics consistent with the organization’s character, resulting in a more homogeneous organization and a stronger culture

Organizational socialization

the process by which individuals learn the values, expected behaviors, and social knowledge necessary to assume their roles in the organization

Psychological contract

the individual’s beliefs about the terms and conditions of a reciprocal exchange agreement between that person and another party (typically an employer)

Reality shock

the stress that results when employees perceive discrepancies between their preemployment expectations and on-the-job reality

Realistic job preview (RJP)

a method of improving organizational socialization in which job applicants are given a balance of positive and negative information about the job and work context