Foundations of organization structure

1. 1 FOUNDATIONS OF ORGANIZATION STRUCTURE (Case Study)
2 ORGANIZATIONAL CULTURES (Review Questions)
Assignment

2. Name: Qulb e Abbas Date: 5th June 2017
Topic 1 Case Study
Foundations of Organization Structure
Aim
By the end of this case, you will be able to Identify the six elements of an organization’s structure.
1.1 Six elements of an organization’s structure
o Work specialization Nature of job
o Departmentalization How much department co have
o Chain of command Authority to lower level.
o Span of control How many employees/ manager control
o Centralization and decentralization How much power is concentrated
o Formalization degree to which jobs within the organization are standardized.
1.2 Common Organizational Designs
The Simple Structure
 The simple structure is most widely practiced in businesses in which the manager and the owner are one
and the same.
Coca Cola Beverage Company Pakistan
 The strength of the simple structure lies in its simplicity.
 It is fast, flexible, inexpensive to maintain, and accountability is clear.
 One major weakness is that it is difficult to maintain in anything other than organizations.
 The other weakness is that it is risky—everything depends on one person. Illness can literately destroy
the information and decision making center of the company.
MD
HR
Managers
Frontline
Manager
Workers
Marketing
Manager
Frontline
Manager
Workers
Finance
Manager
Frontline
Manager
Workers
Production
Manager
Frontline
Manager
Workers
Quality
Manager
Frontline
Manager
Workers
Admin
Manager
Frontline
Manager
Workers

3. Questions
1. What do Kleinfeld’s efforts at Siemens tell you about the difficulties of restructuring organizations?
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2. Why do you think Löscher’s restructuring decisions have generated less controversy than did Kleinfeld’s?
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3. Assume a colleague read this case and concluded, “This case proves restructuring efforts do not
necessarily improve a company’s financial performance.” How would you respond?
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4. Do you think a CEO who decides to restructure or downsize a company takes the well-being of
employees into account? Should he or she do so? Why or why not?
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4. Topic 2 Review Questions
ORGANIZATIONAL CULTURE
By using the hint you will solve the review questions
Q 3 HINT: SUSTAINING CULTURE (P 519)
A. Introduction
 Once an organization’s culture is established it rarely fades award.
B. How a Culture Begins
 Ultimate source of an organization’s culture is its founders.
 Culture creation occurs in three ways.
C. Keeping a Culture Alive
1. Selection
2. Top Management
3. Socialization
D. Summary: How Cultures Form
1. Founders philosophy guides culture
2. Hiring is strongly influenced by founder
3. Employees are socialized for the culture
Q 3 What factors create and sustain an organization’s culture?
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Q 4 HINT: HOW EMPLOYEES LEARN CULTURE (P 512)
1. Introduction
2. Stories
3. Rituals
4. Material Symbols
5. Language
Q 4 How is culture transmitted to employees?
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5. Q 5 HINT: ETHICAL ORGANIZATIONAL CULTURE (P 525)
 Characteristics shaping high ethical standards:
o High in risk tolerance
o Low to moderate in aggressiveness
o Focuses on means as well as outcomes
o Managers are supported for taking risks and innovating
a) Strong culture exerts more influence on employees than a weak one
b) How can management 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.
Q 5 How can an ethical culture be created?
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Q 6 Hint: CREATING A POSITIVE ORGANIZATIONAL CULTURE (P 527)
A Introduction
 There is a trend today for organizations to attempt to create a positive organizational
culture.
B. Key Variables Shaping Positive Organizational Cultures
 Build on employee strengths
 Reward more than punish
 Emphasize vitality and growth
C. Limits of Positive Culture
Q 6 What is a positive organizational culture?
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