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 metaphor.