• Structure of an organizations is about:– Pattern of• Roles– work specialization? Departmentalization?• Authority– chain of command? span of control?• Communication– centralization? formalization?Organizational Design
• Organic– A structure that is flat, uses, cross-hierarchical & crossfunctional teams, has low formalization, possesses acomprehensive information network, and relies onparticipative decision making• Mechanistic– A structure characterized by extensivedepartmentalization, high formalization, a limitedinformation network, and centralizationCategories of Organizational Structure
• Not as formally defined– Tall and Flat– Formal and Informal– Large and Small– Public and Private– Top down and Bottom upOther Categories
• Functional– Design follows the functions –Marketing, R&D, Finance, Operations, etc…• Divisional– Design follows the products as separate units• Geographic– Design is comprehensive within an area• Network– Design provides for attachments and alliances• Matrix– Design uses a grid where power and authority are shared asneededWith at least 5 shapes
• Strategy• Environment• Technology• Size• National Culture• The People• Shared Values7 Factors in shaping Org Design
• A Formal structure– It is shown on the organizational chart– You can see the authority and who is suppose toreport to whom• An Informal structure– It is known to those who have been around– Operates in the informal politics of the organization– Can create opportunities for efficiency because it caneliminate bureaucratic red tapeWithin every organization there is
Next ……– 1. Who is Edgar Schein?– 2. Why should we care?
Schein• Why should you care about Organizational Culture?– norms, values, behavior patterns, rituals, traditions.– Implication of:• structural stability• patterning and integration.– Culture is the accumulated shared learning from sharedhistory.• 2 problems all groups must deal with:– 1. survival, growth, and adaptation in environment– 2. internal integration that permits functioning and adapting.
• What is “external adaptation”?• 1) Mission and Strategy. a shared understanding• 2) Goals. consensus on goals, derived from mission.• 3) Means. means to be used toward goals, --organization structure, --labor, -- rewards---authority system.• 4) Measurement. criteria to be used in measuring how well the group is doing --goals• 5) Correction. remedial or repair strategies• What is “internal integration”?• Language• Norms• Boundaries• Humor• Celebrations
• Air filters• Guitar strings• Medical implants• Industrial sealants• Signal transmission• Industrial filtration• Window screens• Breathable rain ware• Coaxial cable• Sewing thread• Organic Waste Treatment• Gaskets• Automotive vents• Fuel Cell ComponentsWhat do the following have in common?
W. L. Gore & Associates• 1.58 Billion in annual revenues• 6,300 employees• Privately owned
W. L. Gore & Associates• 1958 – Bill Gore left DuPont– Communication happens in the car pool– In crisis companies form task forces and throw outthe rules• Non descript campus• Small groups – 150 to 200• No bosses
• http://www.fastcompany.com/magazine/89/open_gore.html• Or download the posted versionRead
Org Culture Issues• Three important issues in an organization’sculture:– Ethics– Diversity of employees– Leadership behavior• How does all this fit together?– Managers and leaders must use good leadershippractices to be sure to introduce, develop, reward,and “cement” ethical practices and positive ways ofworking with diversity into the organization culture.
What does culture actually do?• Glue• Sense of identity• Generates commitment• Helps people to make sense of what happens• Provides the “control” function – (norms)
Definition of Organizational Culture• A system of shared meaning held by membersthat distinguishes the organization from otherorganizations.– Robbins• Research has shown the system of sharedmeaning is actually a set seven primarycharacteristics ---
Seven Characteristics of the Set• The degree to which ……1. Innovation and risk taking or be safe2. Attention to detail or generalities3. Focus is on outcomes or processes4. People orientation or doesn’t care5. Team orientation or individuality6. Aggressiveness or easygoing7. Activities emphasize stability or change
Foundations of Org Culture• Organizational Culture– The shared, emotionally charged beliefs, values, andnorms that bind people together and help them makesense of the systems within an organization.• Form (how they show up)– Consists of the observable ways that members of aculture express idea• The beliefs, values and norms tell people:– “What is to be done.”– “How it is to be done.”
Language, Metaphors and Symbols• Language– Certain words, phrases, speeches, etc.• Metaphors– The use of familiar elements or objects to makebehavior or other unfamiliar processes or actionscomprehensible.• Special terminology Abbreviations• Jargon or slang Gestures• Symbols– A picture, a shape, or a particular object.
Stories and Sagas• Stories and Sagas– Graphically and quickly communicate emotionallycharged beliefs to organization members.– Have important meaning for all employees, butespecially for new employees.• Organizational stories tell new members:– The real mission of the organization– How it operates.– What behavior is acceptable.– How individuals can fit into the organization.
Stories and Sagas (cont’d)• Stories– Serve as symbols of the organization’sentrepreneurial orientation and promote valuesthat unify employees from diverse organizationalunits.• Sagas– Historical accounts describing the uniqueaccomplishments of a group and its leaders orheroes.
Getting to culture• Culture begins with founders• Maintained by selection processes• Actions of Top Management (what we celebrate)• Socialization– Stories– Rituals– Symbols– Language
Transmission of culture• Socialization• Stories• Symbols• Jargon and language• Rites and ceremonies• Statements of principles
• Some companies post –• Some companies pass out laminated cards –• What is the key point?
Aveda Beliefs• We believe in treating ourselves, each other, and the planet with care and respect.• We believe social responsibility is our responsibility.• We believe ecological and profit goals are mutually achievable.• We believe our authenticity and experience are our points of difference.• We believe in inspiring and educating people to integrate wellness and beauty intheir lives.• We believe in the power of oneness: from our global image to a focused network.• We believe learning never ends.• We believe in encouraging innovation and empowered decision-making.• We believe our actions, products, and services should always embody excellence.• We believe personal and organizational balance is the key to sustainable success.• We believe true leadership is delivered with passion and by example.
Strong vs Weak Cultures• Strong Culture• Core values intensely held and widely shared• Weak Culture• Vagueness, ambiguity, inconsistencies• Which culture has the greatest impact?
Impact of Culture on Organizations• Strong Cultures– Positive• Shared values and beliefs create a setting in whichpeople are committed to one another and share anoverriding sense of mission.– Negative• A strong culture can cause a resistance to change byreinforcing a singular view of the organization and theenvironment.
Culture good! Culture bad!• +s of culture• Organizational commitment• Consistency of employee behavior• Reduces ambiguity – what’s important• -s of culture• Not everyone fits (sometimes those are good people)• In change hard to respond
The paradox of Diversity• Culture moves us in the same direction– Because we are part way there (we are the same)• Organizations embrace diversity because– There is value added by examination fromdifferent perspectives• Culture / diversity ????
Organizational Culture and Change• In order to survive, organizations and theircultures must continuously evolve and change.– Conditions prompting change include:• Economic crises• Changes in laws or regulations• Social developments• Global competition• Demographic trends• Explosive technological changes– Cultures change when an organization discovers,invents or develops solutions to problems it faces.
• Change is hard• This is what it looks like theoretically:– Kurt Lewin (look him up in Wikipedia)• Model of change “Force Field Analysis”• Opposing forces shape an organization– Helping Forces – those driving movement forward– Hindering Forces – those blocking movement• To Change you must either increase the Helping Forcesor decrease the Hindering ForcesHere is the problem --
• Lewin theorized a three step process– Unfreeze– Transition– Refreeze• Today we think of most change efforts asbeing ongoing – you don’t refreeze becausetomorrow you will have to make morechanges
Changing Organizational Culture• Top leaders can set the tone for a culture andfor culture change.– Leaders who strive for high-quality products andservices understand that they must:• Involve the keepers and holders of the culture.• Build on what all organizational members share.• Teach new members how to behave.
• What is a dominant culture?• What is a subculture?• What is a counterculture?
• Socialization: systematic process of bringing newmembers into their cultures– The Monkeys from “How Company Policy Begins”• Seven steps• Careful selection of entry-level candidates• Experiences that cause new members to question prior» Behavior» Belief» Values• Training in organization’s core disciplines• Meticulous attention to rewards and control systems• Careful adherence to organization’s core values• Reinforcing folklore• Consistent role models
Where does “Technology” fit with“Culture”?• Benefits– A culture aligned to maximize technology willembrace information flows and communication suchthat it brings organizational layers closer together.– Managers can provide data employees need andemployees can quickly resolve concerns withmanagement.• Downside– We can “overdo it” with information technology.– People are buried in e-mail messages– Personal use of technology must be managed.
Managing organizational culture• It’s you ……..» What you pay attention to» How you react to critical incidences» How you allocate scarce resources» What you model, teach, and coach» What you reward and give status to» How you recruit, select, promote, and excommunicate
Managing organizational culture• It’s the place» Organizational design and structure» Systems and procedures» Design of physical space and buildings
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