chapter 8: organizational structure and culture

organizing

arranging tasks, people, and other resources to accomplish the work

organization

a system of consciously coordinated activities of two or more people

strategic implementation

• culture

• organizational structure

• HR

key issues of organization

• design of organization

• social glue guides behavior

• human capital

organizational architecture

systems that together determine how efficiently and effectively organizational resources are used

organizational culture

the set of values, ideas, attitudes, and norms of behavior that is learned and shared among the members of an organization

hierarchy culture

has an internal focus and values stability and control over flexibility

adhocracy culture

has an external focus and values flexibility

market culture

has a strong external focus and values stability and control

clan culture

has an internal focus and values flexibility rather than stability and control

assumption level of culture

preconscious

values level of culture

greater level of awareness

artifact level of culture

visible and often not decipherable

socialization

the process by which individuals internalize the values, beliefs, and norms of a given society and learn to function as members of that society

person-organization (P-O) fit

extent to which the values of an employee are consistent with the values held by most others in the organization

four functions of organizational culture

1. organizational identity

2. collective commitment

3. social system stability

4. sense-making device

understanding organizational culture

• antecedents

• culture

• structure and practices

• group and social process

• collective attitudes and behaviors

• organizational outcomes

organizational structure

the vertical and horizontal configuration of departments, authority, and jobs within a company

common purpose

unifies employees or members and gives everyone an understanding of the organization's reason for being

coordinated effort

the coordination of individual efforts into a group or organization wide effort

division of labor

the type of arrangement in which each worker specializes in a particular task or job

hierarchy of authority

a clear chain of command

span of control

the number of subordinates who report directly to a manager

flat

few levels with wide spans of control

tall

many levels with narrow spans of control

authority

• accountability

• responsibility

• delegation

centralized authority

an organization structure in which decision-making authority is maintained at the top level of management

decentralized authority

organizational structure in which important decisions are made by middle-level and first-line managers

vertical organizational chart

• more levels of management

• communication flow in slowed

horizontal organizational chart

• fewer levels of management

• easier access to top executives

functional structure

people with similar occupational specialties are put together in formal groups

divisional structure

people with diverse occupational specialties are put together in formal groups by similar products or services, customers or clients, or geographic regions

matrix structure

combines functional and divisional approaches to emphasize project or program teams

horizontal structure

teams or workgroups, either temporary or permanent, are created to improve collaboration and work on common projects

hallow or network structure

the organization has a central core of key functions and outsources other functions to vendors who can do them cheaper or faster

modular structure

a firm assembles product chunks, or modules, provided by outside contractors

burns and stalker model

mechanistic vs. organic

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, little formalization, and decentralized decision making

differentiation

tendency of the parts of an organization to disperse and fragment

integration

tendency of the parts of an organization to draw together to achieve a common purpose

link between strategy and structure

• structure follows strategy

• different strategies require different structures