Organizational Structure and Culture


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Organizational Structure and Culture

  1. 1. Gamze SABANisan KARYENIC Deniz BARAN Sofia ZhukovaMargaux Benoist Nana Mpaki
  2. 2. CONTEXT • What is organizational structure ?Organizational • Common organizational designs Structure • Why do structures differ ? • What is organizational culture?Organizational • Creating and sustaining culture Culture • Creating an ethical organizational culture
  3. 3. What is OrganizationalStructure
  4. 4. What is organizational structure ?• how job tasks are formally divided, grouped and coordinated. Work specialisation Departmentalisation Chain of command Centralisation & Formalisation Span of control decentralisation
  5. 5. Work Specialization• describes the degree to which activities in the organization are subdivided into seperate jobs.
  6. 6. Departmantalisation Function ProductThe basis by whichjobs are grouped Geographictogether is calleddepartmentalisation. Process Customer
  7. 7. Chain of command• An unbroken line of authority that extends from of the organization to the lowest echelon and clarifies who reports to whom. The unity of • the rights inherent in a command managerial position to give orders and expect • principle helps preserve the orders to be obeyed. the concept of an unbroken line of authority. authority
  8. 8. Span of control Highest level 6 levels 4 levelsit determines the 1number of levels and 1managers an 4 8organization has. 16 64 64 512 256 4,096 Assuming span of 8 1,024 4,096 Assuming span of 4
  9. 9. Centralisation & decentralisation• the degree to which decision making is concentrated at a single point in the organization. • the organization’s key decisions with little or no Centralisation input from lower-level personnel • lower personnel provide input or are actually given Decentralisation the discretion to make decisions
  10. 10. Formalization High Lowformalization formalization nonprogrammed job descriptions, job behaviours great deal of to lots of exercise organizatonal discretion in their rules, work. procedures covering work processes refers to degree to which job within the organization are standardised.
  11. 11. CommonOrganizational Designs
  12. 12. The Simple Structure Jack Gold (owner-manager) Norma Helen Wright Johny Moore Bob MunsonEdna Joiner Sloman(salesperson) (cashier) (sales person) (salesperson) (salesperson) • Low departmentalization • Wide spans of control • Authority centralized in a single person • Little formalization
  13. 13. Bureaucracy Standardized activities in a highly efficient manner Economies of scale Less talented,less costly,lower level manager.Creating subunit conflicts. Overriding the overallgoals of the organization.
  14. 14. The Matrix StructureFUNCTIONAL DEPARTMENTS PRODUCT DEPARTMENTS• Allowing the pooling and sharing • Provide a clear responsibility for allof specialized resources across activities related to a product but withinformation duplication of activities and costsprograms/ undergraduate Master’s Ph.d. research Executive Communityacademic development servicedepartmentsaccountingDecision andinformationsystemsFinancemanagementmarketing
  15. 15. The Virtual OrganizationHighly centralizedNo departmentalizationAllow them to contractManufacturing,distribution,marketing that to Independent research andbe done better or more cheaply developmentThe managers in virtual structures spend consulting firmtheir time coordinating and controlling externalrelations Factories in Executive Commission sales south korea group representatives Advertising agency
  16. 16. The Boundaryless Organization Eliminate the chain of comman Limitless spans of control Replace departments with empowered teams By removing vertical boundaries:  Management flattens the hierarchy  Status and ranks are minimized Risk Management Techniques Knowledge Management Applying International Integrity SEAAR Framework Standards
  17. 17. Why do structures differ ?
  18. 18. Why do structures differ ?Forces that influence the design that is chosen : Organization Strategy Technology Size Global Environment implications
  19. 19. Mechanistic vs Organic Models High specialization  Cross-functional teams Rigid departmentalization  Cross-hierarchical teams Clear chain of command  Free flow of information Narrow spans of control  Wide spans of control Centralization  Decentralization High formalization  Low formalization
  20. 20. StrategyThe Strategy Structure Relationship Innovation Cost minimization Imitation organic mechanistic Low High mechanistic and Specialization Specialization organic Formalization Formalization Decentralization Centralization Mix
  21. 21. Organization SizeHow the size of an organization affects itsstructure. As an organizations grows larger itbecomes more mechanistic. Specialization more Vertical levels Rules and Regulations
  22. 22. TechnologyHow aorganization Formalizationtransfers itsinputs into Structure Centralizationoutput Technology
  23. 23. Environment CapacityInstitutions or forces Volatilityoutside the organizationthat potentially affect Complexitythe organizations Stableperformance. Simple Complex Dynamic
  24. 24. Global ImplicationsDoes culture really matter to organizational structure ?• Culture and organizational structureDo employees in different countries vary in theirperceptions of different types of organizational structures ?• Culture and employee structure preferencesHow do cultural considerations fit with our discussions ofthe boundarlyless organization ?• Culture and the boundaryless organization
  25. 25. The span of control refers to:A ) the number of subordinates reporting directly to a given manager or supervisor.B )the number of different levels in the chain of hierarchical command.C )the number of subordinates reporting directly or indirectly to a given manager or supervisor.D )the total number of managers and supervisors to whom staff report directly or indirectly. Answer is: C
  26. 26. Which one of these is not a component of the simple structure?A ) Low departmentalizationB ) Wide spans of controlsC ) Authority centralized in a single personD) High formalization Answer is: D
  27. 27. Woodward found that successful companies using massproduction technology are likely to differ from those that use unitof continuous process technologies in that: A )their structures will be more organic B )their structures will be more mechanistic C )their technologies are more complex D )none of the above Answer is: B
  28. 28. Gamze SABANisan KARYENIC Deniz BARAN Sofia ZhukovaMargaux Benoist Nana
  29. 29. What is organizational culture?
  30. 30. Institutionalisation A condition by which aorganisation takes on a life of its own and is valued for itself.
  31. 31. Organisational culture "The set of the set of beliefs, values, and norms, together with symbols like dramatized events and personalities, thatrepresents the unique character of an organization, and provides the context for action in it and by it.“ Gareth Morgan
  32. 32. Characteristics Innovation and risk taking Attention to detail Outcome Orientation
  33. 33. Team orientation Aggressiveness People orientation Stability
  34. 34. Culture vs Job Satisfaction Culture Job Satisfaction Employees Employees response perception of the to the workorganisation and its environment. values
  35. 35. What do you think?
  36. 36. From Dominant culture to subculture Dominant culture Dominant culture Subculture Core values shared by the overall Subcultures organisation Minicultures whichDepartment Geographical may adopt additional traditions and values
  37. 37. Strong Culture Cycle Strong culture Greaterinfluence on Acceptance of members values behaviours Commitment to values
  38. 38. Formalization Strong culture• Predicatability • No formalization• Orderness• Consistency
  39. 39. Boundar Generation Strengthen Sense of of the stability Control y identity commitme of social mechanismredefying nt system Culture functions
  40. 40. Culture liabilities •Barries to change •Barriers to diversity•Barriers to acquisitions and Mergers
  41. 41. Creating and Sustaining Culture
  42. 42. Creating and sustaning cultureWhat forces influence the creation of a culture? Top Philosophy of organization´s Selection Management Organization Criteria and Culture founders Socialization
  43. 43. Philosophy of Organization Selection Top Management organization´s Criteria and Socialization founders CultureUltimate source of an organisation: Founders1. Hire and keep suitable employees2. Indoctrinate and socialize3. Act as a model
  44. 44. Philosophy of organization´s Selection Top Management Organization founders Criteria and Socialization Culture• Knowledge, skills and abilities• Employer select people with similar values• Candidates learn about the organization Employer Applicant• Example:
  45. 45. Top Philosophy of Selection Management Organization organization´s Culture founders Criteria and Socialization• TOP MANAGEMENT Words Norms Organization behaviours• SOCIALIZATIONAdaptation to the cultureImportant: Being proactive Prearrival Encounter Metamorphosis Outcome
  46. 46. Entry socialization forms. Which is better for a succesfull metamorphosis?• Formal vs. Informal• Individual vs. Collective• Fixed vs. Variable• Serial vs. Random• Investiture vs. Divestiture Formal, Collective, Fixed, Serial, divestiture for a succesful metamorphosis and, therefore Outcome (Productivity, commitment, turnover)
  47. 47. How employees learn culture• Stories• Rituals• Material symbols• Language
  48. 48. Creating an ethicalorganizational culture
  49. 49. Creating an Ethical Organizational CultureThe content and strengthof a culture influence an  High in risk toleranceorganization’s ethical  Low to moderate in aggressivenessclimate and the ethicalbehavior of its member.  Focuses on means as well as outcomes
  50. 50. Creating an Ethical Organizational Culture• A case of unethical organizational culture ENRON American energy, commodities, and services company based in Houston
  51. 51. Five ways to create a more ethical culture  Be a visible role model  Communicate ethical expectations  Provide ethical training  Visibly reward ethical acts and punish unethical ones  Provide protective mechanisms
  52. 52. Creating a Positive Organizational Culture Employee Strengths RewardsA Positive Culture emphasizes on more than punishments Individual vitality and Growth
  53. 53. Spirituality and Organizational CultureWhat is Spirituality?“Workplace spirituality recognizes that people have an inner life that nourishes and is nourished by meaningful work that takes place in the context of community.”
  54. 54. Reasons for the Growing Interest in Spirituality As a counterbalance to the contemporary lifestyles Growing feeling of emptiness Workplace is dominant in many people’s lifeThe desire to integrate personal life values with one’s professional life The pursuit of material acquisitions leave people unfulfilled
  55. 55. Strong sens of purposeToleration of Cultural Trust and employee Characteristics of Respect expression S.O. Humanistic work practices
  56. 56. What is a workplace spirituality?Are spiritual organization legitimate?Are spirituality and profits compatible?
  57. 57. TO SUM UP
  58. 58. QUICK QUIZ
  59. 59. ………… is concerned with how employees perceive the characteristics of an organisational cultureA) Job satisfactionB) InstitutionalizationC) Organizational CultureD) SubculturesSelect one!
  60. 60. How is culture transmitted to employees?A) By using an appropriate selection criteria, socialization and top management practices.B) By stories, rituals, material symbols and languageC) By material symbols, stories, habits and language Answer is: B
  61. 61. What are the characteristics of a Spiritual Organization?A) It’s characterized by the implementation of religious practises within the Company.B) It recognizes that people have mind and spirit, seek to find meaning to their work .C) It’s an Organization which promotes relaxation exercices every mornings before working. Answer is: B
  63. 63. References• Robbins, S. P., & Judge, T. A. (2009). Organizational behavior (13th ed., Internat. ed.). Upper Saddle River, N.J.: Pearson Prentice Hall. ISBN: 978 0 273 71939 7••• David Lei and John W. Slocum, Jr. (2005) Strategic and Organizational Requirements for Competitive Advantage•