Chapter 8: Organizational Culture and Structure

organizational culture:

the set of shared values, beliefs, norms, and practices that determine how people in an organization behave and interact with each other

how employees learn culture

• symbols

• stories

• rituals

• mentoring

Four types of organization culture

1. Clan

2. Adhocracy

3. Market

4. Hierarchy

Clan Culture

• flexibility

• family like

• employee focused

• emphasizes family-like, close-knit workplace

adhocracy culture

• flexibility

• risk taking

• growth

• innovation

market culture

• competition

• getting things done

• customer focus

• inspiring and demanding leaders

hierarchy

• structure

• stability

• efficiency

• defined rules, policies, and roles

organizational structure

framework that defines how an organization arranges its hierarchy, departments, and positions

organizational structures can be grouped into three broad categories
of organizational design

1. traditional designs (4)

2. horizontal design (1)

3. boundaryless designs (1)

six common types of organizational structure

traditional designs

1. simple: only one hierarchical level of management beneath the owne

2. functional: grouping by similar work specialties

3. divisional: grouping by similarity of purpose (product, geographic, & customer)

4. matrix: functional and product manager

horizontal design

5. horizontal structure: few or no middle managers

boundaryless design

6. virtual design: operates without a central physical office or location