Organizational Structure, Culture, and Change Overview

Organizational Structure

Arrangement of work functions for efficiency and control.

Classical Theory

Early 20th-century theory on organizational form and structure.

Neoclassical Theory

1950s theory focusing on psychological organizational issues.

Systems Theory

1970s theory viewing organizations as interdependent systems.

Functional Principle

Dividing organizations into units performing similar functions.

Scalar Principle

Chain of command grows with authority levels.

Unity of Command

Each subordinate reports to only one supervisor.

Line/Staff Principle

Differentiation between primary and support organizational functions.

Span of Control Principle

Number of subordinates a manager supervises.

Small Span of Control

Fewer subordinates, resulting in tall organizations.

Large Span of Control

More subordinates, resulting in flat organizations.

Division of Labor

Subdividing work into separate jobs for efficiency.

Interdependence

All parts of an organization affect each other.

Mintzberg's Coordinating Mechanism

Methods to coordinate work activities in organizations.

Informal Communication

Sharing information to synchronize work activities.

Concurrent Engineering

Temporary teams from various departments for product development.

Formal Hierarchy

Legitimate power assigned to direct work processes.

Standardized Processes

Creating routine patterns through job descriptions.

Radical Views from Systems Theory

Organizations viewed as living organisms with interlocking systems.

Status and Role Differences

Hierarchical distinctions defining behavior in organizations.

Managerial Rank

Individuals with administrative powers in an organization.

Rank and File

Employees without administrative powers.

External Environment

Physical surroundings and technology affecting organizations.

Objections to Scalar Principle

Interpersonal influences extend beyond formal structure.

Objections to Line/Staff

Distinction between line and staff functions is unclear.

Objections to Span of Control

Complex factors influence effective supervisory spans.

Feasibility

Applicable when tasks are routine and simple.

Standardized Outputs

Defined goals and measures like customer satisfaction.

Standardized Skills and Knowledge

Training employees in specific role behaviors.

Mintzberg's Operating Core

Employees transforming raw goods into products.

Strategic Apex

Executive leadership ensuring organizational goals are met.

Middle Line

Managers ensuring operating core meets strategic goals.

Technostructure

Specialists influencing organization without mainstream work.

Support Staff

Employees providing services aiding organizational mission.

Departmentalization

Grouping employees and activities within the organization.

Formalization

Standardization of behavior through rules and procedures.

Span of Control

Number of direct reports to a manager.

Tall Structure

Hierarchy with many levels of management.

Flat Structure

Hierarchy with few levels of management.

Centralization

Decision-making authority held by top management.

Decentralization

Dispersed decision-making authority throughout organization.

Mechanistic Structure

Narrow span, high formalization, and centralization.

Organic Structure

Wide span, low formalization, and decentralized decisions.

Chain of Command

System of supervision among positions in organization.

Management Overhead Costs

Expenses related to managing a tall hierarchy.

Information Flow

Communication effectiveness within organizational structure.

Delayering

Process of moving towards flatter organizational structures.

Organizational Flexibility

Ability to adapt to changes and new ideas.

Job Dissatisfaction

Negative feelings about one's job or work environment.

Functional Organizational Structure

Employees organized around specific knowledge or resources.

Economy of Scale

Cost savings from increased production levels.

Dysfunctional Conflict

Conflict that hinders organizational goals and performance.

Divisional Structure

Employees organized around products, clients, or regions.

Geographic Structure

Employees organized by distinct geographic regions.

Product/Service Structure

Employees organized around specific products or services.

Client Structure

Employees organized by specific customer groups.

Team-Based Structure

Built around self-directed teams completing work.

Wide Span of Control

Many employees work with minimal supervision.

Matrix Structure

Combines functional and team structures for efficiency.

Network Organizational Structure

Alliance of firms centered around a core firm.

Dynamic Environment

High rate of change requiring organic structures.

Stable Environment

Steady conditions favoring mechanistic structures.

Organizational Strategy

Structure aligns with strategic operational environments.

Differentiation Strategy

Unique products targeting customized client needs.

Cost Leadership Strategy

Maximizes productivity for competitive pricing.

Social Systems

Human components influencing organizational behavior.

Roles

Expectations about behavior in a position.

Norms

Unwritten group expectations governing behavior.

Organizational Culture

Shared values and assumptions guiding employee behavior.

Artifacts

Visible elements representing organizational culture.

Shared Values

Common values prioritized by organization members.

Shared Assumptions

Unconscious beliefs influencing organizational behavior.

Observable Artifacts

Actions that reveal deeper meanings in culture.

Rituals

Daily routines dramatizing organizational culture.

Ceremonies

Planned displays of culture for an audience.

Esooused Values

Values leaders claim guide decisions and actions.

Operating Core

Employees conducting basic duties defining organizational purpose.

Contingencies of Organizational Design

Design influenced by external environment characteristics.

Neoclassical Objections

Critiques classical theory based on psychological research.

Mintzberg's Coordinating Mechanisms

Methods to coordinate work activities in organizations.

Functional Structure

Employees organized around specific knowledge or resources.

Network Structure

Alliance of firms creating a product or service.

Contingencies of Design

Factors influencing organizational structure choices.

Enacted Values

Values guiding decisions and actions in organizations.

Corporate Values

Stated principles that may not reflect actual behavior.

Cultural Content

Ordering of values and types of assumptions.

Corporate Culture Essence

Deeply ingrained beliefs shaping organizational behavior.

Employee Observation

Analyzing actions for understanding shared assumptions.

Dominant Values

Key values that define an organization's culture.

Cultural Change Difficulty

Challenges in altering deeply ingrained shared assumptions.

Example of Enron

Bankruptcy despite stated values of integrity and excellence.

Example of Dell

Focus on efficiency and competitiveness as core values.

Measurement Problems

Challenges in assessing organizational culture accurately.

Cultural Oversimplification

Reduces complexity of diverse values in organizations.

Integration Perspective

Views culture as a cohesive organizational element.

Organizational Culture Profile

Framework for assessing organizational culture dimensions.

Innovation Dimension

Encourages risk-taking and experimentation in culture.

Stability Dimension

Focuses on predictability and security within culture.

Respect for People Dimension

Promotes fairness and tolerance among employees.

Outcome Orientation Dimension

Emphasizes results and high performance expectations.