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Module 4 - Background
Organizational Structure and Culture
Required Sources
Organizational Culture
Have you ever observed how some organizations just seem to be
shining stars in their fields, even if the product or service they
produce is not that much different from their competitors? Have
you noticed that it seems that they are the ones who are the
most successful? Did you ever wonder why? Read the following
material on organizational culture for some insights into what
culture is, what it does, how it is formed, and how it is taught to
newcomers in the organization. This reading is available in the
Trident University Library.
Flamholtz, E. & Randle, Y. (2011). Corporate Culture: The
Invisible Asset. Corporate Culture: The Ultimate Strategic
Asset. (pp. 3-25), Stanford, CA: Stanford Business Books.
This material on organizational culture type may be particularly
helpful as you prepare your Module 4 SLP assignment.
McNamara, C. (2000) Organizational Culture. Adapted from the
Fieldguide to Organizational Leadership and Supervision. Free
Management Library.
http://managementhelp.org/organizations/culture.htm
Organizational Structure and Design
The way an organization is designed and structured can have
significant effects on its members and its ability to execute its
strategy. In this module we will try to understand those effects
and analyze the behavioral implications of different
organizational designs.
An organizational structure defines how job tasks are formally
divided, grouped, and coordinated. According to Robbins and
Judge (2014), managers need to address six key elements when
they design their organization’s structure:
Work specialization – the extent to which activities are
subdivided into separate jobs.
Departmentalization – the basis on which jobs will be grouped
together.
Chain of command – the people who individuals and groups
report to.
Span of control – the number of individuals that a manager can
direct efficiently and effectively.
Centralization and de-centralization – the locus of decision-
making authority.
Formalization – the extent to which there will be rules and
regulations to direct employees and managers.
One way to gain insight into the complexity of organizations
and how organizations are structured or designed is through
metaphors. For example, using metaphors, an organization can
be talked about as if it were a machine or as if it were an
organism. The organization that is like a machine is
characterized by extensive departmentalization, high
formalization, and limited by low formalization, flat hierarchy
and the use of cross-hierarchical and cross-functional teams,
free flow of information, and decentralization. Each design has
advantages and disadvantages. For example, organizations that
are like machines are often good at keeping the costs of
standardized products or services down, but could inhibit
innovation and creativity. Read the excerpt (pp. 98-108) for
insight into organizational design and how metaphors can be
used to understand how organizations work:
Cameron, E. & Green, M. (2009) How Organizations Really
Work. Making Sense of Change Management: A Complete
Guide to the Models, Tools, & Techniques of Organizational
Change 2nd Ed. (pp. 98-108). London and Philadelphia: Kogan
Page. http://www.bms.lk/download/GDM_Tutorials/e-
books/Making_Sense_of_Change_Management.pdf
Organizational structures are also considered in how they fit or
align with an organization’s strategy, mission, and objectives.
Traditional structures were divisional structures, functional
structures, team-based or process structures, and flexible
structures. More recently, organizations have needed to take on
more “open boundary” designs. Models of hollow, modular, and
virtual organizations describe these “open boundary”
organizations. Overall, the key learning here is that the
structure selected should match the organization’s strategy – or
it will be very difficult for the organization to be successful.
The following reading considers organization design in an era
of newer strategic considerations such as globalization and
changing market dynamics:
Narasimhan, A., Yu, H. H., & Lane, N. (2012). Organization
design: Inviting the outside in. Retrieved from
https://www.imd.org/research-
knowledge/articles/organizational-design-inviting-the-outside-
in/
Aligning culture and structure
Designing an organization's structure involves more than just
shifting boxes and lines on an organizational chart. Mootee
(2012) offers several critical tests when considering the
adequately designing an organization’s structure:
a. The Future Test: Does the design reflect the needs for how a
company plans to compete in the future?
b. The People/Culture Test: Does the design adequately reflect
the motivations, strengths, and weaknesses of employees?
c. The Competitive Advantage Test: Does the design allocate
sufficient management emphasis to the strategic priorities?
d. The Power Test: Does the design provide the desired
allocated power to groups/individuals that is linked to the
strategic value of the unit or functions?
e. The Agility Test: Is the design adaptable and swift to respond
to future changes? (p. 1)
It makes intuitive sense that organizational culture and
organizational structure should affect each other. Indeed, the
way work is coordinated, the way hierarchies are designed, and
the way communications are channeled should align with the
norms and values of the people who work there. If they do not,
there will be tension and conflict between the way people feel
comfortable working and the structures that force work to be
done in a different way. The following article is an excellent
and compelling analysis of why management should consciously
insure that culture and structure support each other so that the
organization can function as smoothly and effectively as
possible.
Janicijevic, N. (2013). The mutual Impact of organizational
culture and structure. Economic Annals 58(198). Retrieved from
http://www.doiserbia.nb.rs/img/doi/0013-3264/2013/0013-
32641398035J.pdf
Optional Sources
Organizational Culture
Denison, D., Hooijberg, R., & Lane, N. (2012). Building a high-
performance Business Culture. Leading Culture Change in
Global Organizations: Aligning Culture and Strategy. (pp. 1-
23), Hoboken, NJ, USA: John Wiley & Sons. Retrieved from
http://media.wiley.com/product_data/excerpt/4X/04709088/0470
90884X-373.pdf
A classic source for an overview of organizational culture is:
Schein, E. H. (2010) Organizational Culture & Leadership. 4th
ed. San Francisco: Jossey-Bass. Available in the Trident
University Library.
Organizational Structure and Design
“Guidelines for Organizational Design” assembled by Carter
McNamara, PhD, provides library links to several readings on
the topic.
McNamara, C. (n.d.) Guidelines for organization design. In Free
Management Library. Retrieved from
http://managementhelp.org/organizations/design.htm
Mechanistic vs. Organic Organizational Structure: Contingency
Theory (2014) BusinessMate.Org
http://www.businessmate.org/Article.php?ArtikelId=44
Mootee, I. (2012). What is the right organizational design for
your corporation? And what test to use to know if you’ve got
the right one? Innovation Playground. Retrieved from
https://www.futurelab.net/blog/2012/06/what-right-
organization-design-your-corporation-and-what-test-use-know-
if-youve-got
Robbins, S.P. & Judge, T.A. (2014). Essentials of
Organizational Behavior (12th Edition). Pearson.
Discussion: Week 2: Sociopolitical Skills
Discussion Topic
Using the same scenario as Week 1 of this Discussion, answer
the question in bold below.
Week 2 Discussion Question:
In your view, how important to your enduring success in the job
are your early efforts in a new leadership role? Presuming you
already have practiced some or all of the 10 items, how did you
learn to do so?
250 words with in-text citations and references from required
reading notes.
Discussion: Week 1: Sociopolitical Skills
Organizational structure, norms, values, culture, etc., all have
an impact on a leader’s success. Consider the new or advancing
leader. Such a leader is expected to learn how to effectively
perform all of the important administrative and
professional/technical tasks. In addition, the leader needs to
master the necessary social skills associated with early
effectiveness in the new position. Below are 10 “sociopolitical”
categories which may influence a transitioning leader's early
(and enduring) effectiveness. These include, in no particular
order, the ability to:
· enter into an established leader/employee “network”;
· sense, as well as use, appropriate communication and
influence behaviors;
· sense and appropriately act on keen organizational norms;
· become aware of, and sensitively interact with, organizational
“blockers” and “enablers”;
· build political bridges by identifying and relating to key
formal/informal power sources;
· become known as a “go-to/can-do” individual;
· be perceived as a “team player”;
· sense key organizational issues upon which to create early
vision, initiatives, and value;
· identify and appropriately respond to the requirements of
superiors/peers/subordinates; and
· be perceived as having organizationally appropriate ethics,
values, and beliefs.
Please note that these are behavioral skill categories, not actual
behaviors. You likely use many of the actual behaviors (such as
“interpersonal communication”) within a category every day.
Week 1 Discussion Question:
Does this list of “sociopolitical” skill categories match your
sense of what is most required to help ensure a leader's early
success in a new role/position? What might you add or subtract
to help ensure the most effective transition into a new job?
250 words with in-text citations and references from required
reading notes.

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Module 4 - BackgroundOrganizational Structure and CultureRequi.docx

  • 1. Module 4 - Background Organizational Structure and Culture Required Sources Organizational Culture Have you ever observed how some organizations just seem to be shining stars in their fields, even if the product or service they produce is not that much different from their competitors? Have you noticed that it seems that they are the ones who are the most successful? Did you ever wonder why? Read the following material on organizational culture for some insights into what culture is, what it does, how it is formed, and how it is taught to newcomers in the organization. This reading is available in the Trident University Library. Flamholtz, E. & Randle, Y. (2011). Corporate Culture: The Invisible Asset. Corporate Culture: The Ultimate Strategic Asset. (pp. 3-25), Stanford, CA: Stanford Business Books. This material on organizational culture type may be particularly helpful as you prepare your Module 4 SLP assignment. McNamara, C. (2000) Organizational Culture. Adapted from the Fieldguide to Organizational Leadership and Supervision. Free Management Library. http://managementhelp.org/organizations/culture.htm Organizational Structure and Design The way an organization is designed and structured can have significant effects on its members and its ability to execute its strategy. In this module we will try to understand those effects and analyze the behavioral implications of different organizational designs. An organizational structure defines how job tasks are formally divided, grouped, and coordinated. According to Robbins and Judge (2014), managers need to address six key elements when they design their organization’s structure: Work specialization – the extent to which activities are subdivided into separate jobs.
  • 2. Departmentalization – the basis on which jobs will be grouped together. Chain of command – the people who individuals and groups report to. Span of control – the number of individuals that a manager can direct efficiently and effectively. Centralization and de-centralization – the locus of decision- making authority. Formalization – the extent to which there will be rules and regulations to direct employees and managers. One way to gain insight into the complexity of organizations and how organizations are structured or designed is through metaphors. For example, using metaphors, an organization can be talked about as if it were a machine or as if it were an organism. The organization that is like a machine is characterized by extensive departmentalization, high formalization, and limited by low formalization, flat hierarchy and the use of cross-hierarchical and cross-functional teams, free flow of information, and decentralization. Each design has advantages and disadvantages. For example, organizations that are like machines are often good at keeping the costs of standardized products or services down, but could inhibit innovation and creativity. Read the excerpt (pp. 98-108) for insight into organizational design and how metaphors can be used to understand how organizations work: Cameron, E. & Green, M. (2009) How Organizations Really Work. Making Sense of Change Management: A Complete Guide to the Models, Tools, & Techniques of Organizational Change 2nd Ed. (pp. 98-108). London and Philadelphia: Kogan Page. http://www.bms.lk/download/GDM_Tutorials/e- books/Making_Sense_of_Change_Management.pdf Organizational structures are also considered in how they fit or align with an organization’s strategy, mission, and objectives. Traditional structures were divisional structures, functional structures, team-based or process structures, and flexible structures. More recently, organizations have needed to take on
  • 3. more “open boundary” designs. Models of hollow, modular, and virtual organizations describe these “open boundary” organizations. Overall, the key learning here is that the structure selected should match the organization’s strategy – or it will be very difficult for the organization to be successful. The following reading considers organization design in an era of newer strategic considerations such as globalization and changing market dynamics: Narasimhan, A., Yu, H. H., & Lane, N. (2012). Organization design: Inviting the outside in. Retrieved from https://www.imd.org/research- knowledge/articles/organizational-design-inviting-the-outside- in/ Aligning culture and structure Designing an organization's structure involves more than just shifting boxes and lines on an organizational chart. Mootee (2012) offers several critical tests when considering the adequately designing an organization’s structure: a. The Future Test: Does the design reflect the needs for how a company plans to compete in the future? b. The People/Culture Test: Does the design adequately reflect the motivations, strengths, and weaknesses of employees? c. The Competitive Advantage Test: Does the design allocate sufficient management emphasis to the strategic priorities? d. The Power Test: Does the design provide the desired allocated power to groups/individuals that is linked to the strategic value of the unit or functions? e. The Agility Test: Is the design adaptable and swift to respond to future changes? (p. 1) It makes intuitive sense that organizational culture and organizational structure should affect each other. Indeed, the way work is coordinated, the way hierarchies are designed, and the way communications are channeled should align with the norms and values of the people who work there. If they do not, there will be tension and conflict between the way people feel comfortable working and the structures that force work to be
  • 4. done in a different way. The following article is an excellent and compelling analysis of why management should consciously insure that culture and structure support each other so that the organization can function as smoothly and effectively as possible. Janicijevic, N. (2013). The mutual Impact of organizational culture and structure. Economic Annals 58(198). Retrieved from http://www.doiserbia.nb.rs/img/doi/0013-3264/2013/0013- 32641398035J.pdf Optional Sources Organizational Culture Denison, D., Hooijberg, R., & Lane, N. (2012). Building a high- performance Business Culture. Leading Culture Change in Global Organizations: Aligning Culture and Strategy. (pp. 1- 23), Hoboken, NJ, USA: John Wiley & Sons. Retrieved from http://media.wiley.com/product_data/excerpt/4X/04709088/0470 90884X-373.pdf A classic source for an overview of organizational culture is: Schein, E. H. (2010) Organizational Culture & Leadership. 4th ed. San Francisco: Jossey-Bass. Available in the Trident University Library. Organizational Structure and Design “Guidelines for Organizational Design” assembled by Carter McNamara, PhD, provides library links to several readings on the topic. McNamara, C. (n.d.) Guidelines for organization design. In Free Management Library. Retrieved from http://managementhelp.org/organizations/design.htm Mechanistic vs. Organic Organizational Structure: Contingency Theory (2014) BusinessMate.Org http://www.businessmate.org/Article.php?ArtikelId=44 Mootee, I. (2012). What is the right organizational design for your corporation? And what test to use to know if you’ve got the right one? Innovation Playground. Retrieved from https://www.futurelab.net/blog/2012/06/what-right- organization-design-your-corporation-and-what-test-use-know-
  • 5. if-youve-got Robbins, S.P. & Judge, T.A. (2014). Essentials of Organizational Behavior (12th Edition). Pearson. Discussion: Week 2: Sociopolitical Skills Discussion Topic Using the same scenario as Week 1 of this Discussion, answer the question in bold below. Week 2 Discussion Question: In your view, how important to your enduring success in the job are your early efforts in a new leadership role? Presuming you already have practiced some or all of the 10 items, how did you learn to do so? 250 words with in-text citations and references from required reading notes. Discussion: Week 1: Sociopolitical Skills Organizational structure, norms, values, culture, etc., all have an impact on a leader’s success. Consider the new or advancing leader. Such a leader is expected to learn how to effectively perform all of the important administrative and professional/technical tasks. In addition, the leader needs to master the necessary social skills associated with early effectiveness in the new position. Below are 10 “sociopolitical” categories which may influence a transitioning leader's early (and enduring) effectiveness. These include, in no particular order, the ability to: · enter into an established leader/employee “network”; · sense, as well as use, appropriate communication and influence behaviors;
  • 6. · sense and appropriately act on keen organizational norms; · become aware of, and sensitively interact with, organizational “blockers” and “enablers”; · build political bridges by identifying and relating to key formal/informal power sources; · become known as a “go-to/can-do” individual; · be perceived as a “team player”; · sense key organizational issues upon which to create early vision, initiatives, and value; · identify and appropriately respond to the requirements of superiors/peers/subordinates; and · be perceived as having organizationally appropriate ethics, values, and beliefs. Please note that these are behavioral skill categories, not actual behaviors. You likely use many of the actual behaviors (such as “interpersonal communication”) within a category every day. Week 1 Discussion Question: Does this list of “sociopolitical” skill categories match your sense of what is most required to help ensure a leader's early success in a new role/position? What might you add or subtract to help ensure the most effective transition into a new job? 250 words with in-text citations and references from required reading notes.