OAM organizational culture, structure, and change

organizational culture

more effective way of managing than rules, gives sense of identity

subculture

a set of values specific to a limited section of an organization

counterculture

shared values that are in direct opposition to values of the broader organization

artifacts

the visible and tangible elements of organizational culture

values

shared principles, standards, and goals

assumptions

taken for granted beliefs about human nature and reality, what organization believes about reality

founder's values

establishes vision for the company in its initial stages, setting the foundation

industry demands

industry demands force similarity across organizational cultures, like business schools

attraction-selection-attrition framework

Culture acts as a self-defending organism and intrusive elements are kept out

attraction

people self-select and apply to organizatins they believe they will fit in

selection

organizations screen candidates and look for those that will fit culture

attrition

organizations will eventually eliminate candidates who do not hold company values

onboarding

process where employees learn how to be an effective organization member

what can organizations do during onboarding

assign formal orientation, assign mentors

what can employees do during onboarding

seek feedback, build social networks

reward systems

plays a role in how culture is maintained, through criteria and rating system

leadership

shape culture through day-to-day actions and reactions to behavior, messaging and responsiveness

control / stable

companies that emphasize predictable and rule-oriented adherence to rules/regulations

performance / aggressive

Companies that emphasize outperforming competitors through being competitive

relationship / people-oriented

companies that emphasize supportiveness, fairness, and respecting individuals

responsive / innovative

Companies that are flexible, adaptable, and willing to experiment with new ideas

centralization

the degree to which decision making authority is concentrated at higher levels, higher means more concentrated to higher ups

clarity

clear chain of command helps ensure coordinates execution

downsides to centralization

employees can lose sense of empowerment, diminish creativity

formalization

the degree to which rules are written explicitly

predictability

reduce ambiguity by taking judgement calls outside of emplyees hands

downsides to formalization

diminished creativity, reduced job satisfaction and motivation, limited number of acceptable responses

departmentalization functional structure

grouping of jobs based on similarity in function

departmentalization divisional structure

grouping of jobs based on similarity in products or services

benefits of functional structure

allows for more expertise, specialists

downsides of functional structure

difficulty in cross-department communication

functional structure best when

organization is in a stable environment, has few products and services

benefits of divisional structure

allows for innovativeness

downsides of divisional structure

difficult to allocate resources efficiently

divisional structure best when

organization is in a dynamic environment with many products and services that are vastly different

hybrid of functional and divisional structure

allows for expertise and flexibility, possible communication conflict

mechanistic structure

structure resembles a bureaucracy, clear division of labor, high centralization and formalization

organic structure

communication lines are more fluid and flexible, autonomous, loose roles, low centralization and formalization

organizational change

movement of an organization from one state of affairs to another

possible reasons for organizational change

changes in environment, technology, globalization, market conditions, performance

disrupted habits

people resist learning something new if it requires cognitive effort

feelings of uncertainty

how change might be implemented and the possible consequences cause stress

fear of failure

people fear their performance might worsen under a new system

stages of change

unfreeze, execute change, refreeze

unfreeze

prepare, create urgency, build coalition, create a vision, communicate

executing change

integrative solutions, target obstacles, create small wins, capitalize on momentum

refreeze

reward change adoption, publicize success, make change part of culture