MGMT Chapter 8: Organizing Culture and Structure

Vocabulary practice flashcards covering organizational culture, the competing values framework, culture transmission, organizational features, and traditional and modern organizational structures from Management Chapter 8.

Organizational culture

The shared assumptions that affect how work gets done; a set of shared, taken-for-granted implicit assumptions that a group holds and that determines how it perceives, thinks about, and reacts to various environments.

Organizational structure

A formal system of task and reporting relationships that coordinates and motivates an organization's members so that they can work together to achieve the organization's goals.

Human resource (HR) practices

All the activities an organization uses to manage its human capital, including staffing, appraising, training and development, and compensation.

Three levels of organizational culture

A cultural framework (often illustrated as an iceberg) consisting of observable artifacts at the visible surface, espoused values just beneath, and deeply held basic assumptions at the core.

Observable artifacts

Physical manifestations of organizational culture, such as manner of dress, awards, myths and stories about the company, rituals and ceremonies, decorations, and visible behavior by managers and employees.

Espoused values

Explicitly stated values and norms preferred by an organization, as put forth by the firm's founders or top managers and typically found in mission, vision, and value statements.

Enacted values

The values and norms that are actually exhibited by employees and managers in an organization.

Basic assumptions

The unobservable core values of an organization's culture that are taken for granted, deeply held, and entwined with its identity through past decisions.

Symbols

An object or action that represents an idea or quality, used to help employees understand and adopt organizational culture.

Stories

A narrative based on true events that is repeated—and sometimes embellished upon—to emphasize a particular organizational value.

Heroes

A person whose accomplishments embody the core values of an organization.

Rites and rituals

Planned and unplanned activities and ceremonies that celebrate important occasions and accomplishments in organizational life.

Organizational socialization

The process by which people learn the values, norms, and required behaviors that permit them to participate as members of an organization.

Competing values framework (CVF)

A framework that classifies organizational cultures across two dimensions (flexibility vs. stability and internal vs. external focus) into four distinct types: Clan, Adhocracy, Market, and Hierarchy.

Clan culture

An internal-focused culture that values flexibility and discretion; thrust is collaborate, means are cohesion, participation, communication, and empowerment, and ends are morale, people development, and commitment.

Adhocracy culture

An external-focused culture that values flexibility and discretion; thrust is create, means are adaptability, creativity, and agility, and ends are innovation, growth, and cutting-edge output.

Market culture

An external-focused culture that values stability and control; thrust is compete, means are customer focus, productivity, and enhancing competitiveness, and ends are market share, profitability, and goal achievement.

Hierarchy culture

An internal-focused culture that values stability and control; thrust is control, means are capable processes, consistency, process control, and measurement, and ends are efficiency, timeliness, and smooth functioning.

Person-organization (PO) fit

The extent to which an individual's personality and values match the climate and culture of the organization, directly affecting work attitude and performance.

Common purpose

One of Edgar Schein's four major features of an organization that unifies employees or members and provides an agreed-upon understanding of the organization's reason for being.

Coordinated effort

The coordination of individual efforts into a group- or organization-wide effort to work toward a common purpose.

Division of labor

Also known as work specialization, the arrangement of having discrete parts of a task completed by different people for greater efficiency.

Hierarchy of authority

Also known as the chain of command, a control mechanism across ranks of authority ensuring that the right people do the right things at the right time.

Flat organization

An organizational structure that has few or no levels of middle management between top managers and the individuals reporting directly to them.

Unity of command

The management principle specifying that an employee should report to no more than one manager to prevent conflicting priorities or demands.

Simple structure

An organizational design where authority is centralized in a single person, characterized by a flat hierarchy, few roles, and low work specialization.

Functional structure

An organizational structure in which people with similar occupational specialties are grouped together in formal departments or units.

Divisional structure

An organizational design in which people with diverse occupational specialties are grouped together in formal units based on similar products, customers, or geographic regions.

Product divisions

A divisional grouping arrangement where activities and personnel are organized around similar products or services.

Customer divisions

A divisional grouping arrangement that structures activities around common customer groups or client types.

Geographical divisions

A divisional grouping arrangement that organizes activities around defined regional territories or locations.

Matrix structure

An organizational design that combines functional and divisional chains of command in a grid, creating two simultaneous command structures: vertical and horizontal.

Horizontal design

Also called a team-based design, an organizational structure where temporary or permanent workgroups and teams are used to break down internal boundaries and improve collaboration on shared tasks.

Boundaryless organization

A fluid, highly adaptive organization whose members, linked by information technology, collaborate across organizational boundaries on a common task.

Hollow structure

Also known as the network structure, an organizational design operating with a central core of key functions that outsources other functions to outside vendors who perform them faster and cheaper.

Modular structure

An organizational structure in which a company assembles product chunks or modules provided by external contractors, outsourcing physical product parts rather than entire processes.

Virtual structure

An organizational design in which members are geographically dispersed and collaborate via remote software (such as Slack, Zoom, or Microsoft Teams), presenting the appearance of a single, unified company with a physical location.