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Organizational Design:
Organizational Structure and
Culture
(Part 2)
QSB2413 Management Science
Organizational Culture
• Organizational culture is the shared beliefs,
values and norms that bind people together
and help them make sense of the systems
within an organization.
Organizational Culture
• The beliefs, values and norms tell people
“what is to be done” and “how it is to be
done”.
• Cultures develop within organizations as their
people interact and share ways of managing,
leading and doing.
Organizational Culture
• Culture influences how people act in organization –
the ways employees relate to each other, to customers,
to shareholders and to business partners.
• It drives behaviors and unites employees around a
shared set of values.
• Example, wearing casual / slippers in office, morning
tea gathering at pantry, platform for information
sharing, assisting each other (teamwork), transparent
management team, focus on people - considering
needs, feelings, exploring their talents (positive side).
Resist to change, no innovative, enjoy the comfort zone
(negative side).
Organizational Culture
Think of the organizational culture in:-
• Apple (Steve Job)
• Google – creative, forward-thinking
• Facebook (Mark) – simple and comfortable
dress code
• McD / Virgin Airline / Intel
What about the construction industry?
• Eco World (innovative)
**Standardization
Keys to Success
Differences Culture
• US company – Speed, Efficiency
• China company – Relationship, hierarchy, do
more than your paid
• Japan company – Loyalty, Employees can only
leave after the boss
• Asian VS American culture – introversion VS
extroversion
**Example only
Organizational Culture
• Managers must also be prepared to adapt
culture to change (economies, laws, social
developments, technologies).
• Change is an ever-present force as companies
face intensifying competitive pressures and
emerging opportunities in the marketplace.
• Organizational change almost always involves
adapting the organization’s culture and the
behavior of people.
Components of an Organization’s
Culture
Culture has two components:-
1. Substance (Invisible) – consists of a shared
system of beliefs, values, expectations and
norms.
2. Form (Visible) – consists of the observable
ways that members of a culture express ideas
(Artifacts).
Components of an Organization’s
Culture
• These two components are illustrated as an
iceberg.
• The surface elements – the artifacts – are
visible routines and practices that constitute
an organization’s culture.
• The much deeper substance elements of
shared values – invisible.
Artifacts
• The visible elements (surface of the iceberg)
are a number of artifacts.
• Artifacts are the cultural routines, rituals and
ceremonies that we see in an organization’s
public functions and events. (Style, formula,
model, observance)
The Impact of Culture on the
Organization
Impact of Culture
• In an organization with a strong culture, shared
values and beliefs create a setting in which
people share an overriding sense of mission.
• Such a culture can be a competitive advantage.
Impact of Culture
• Unique, shared values can provide a strong
corporate identity, enhance collective
commitment, create a stable social system
and reduce the need for formal and
bureaucratic controls.
Impact of Culture
• Employee orientations are sessions where
new employees are introduced to the
organization’s important aspects, including
culture.
• Strong orientation programs focused on
acclimation to the organization’s culture,
coupled with ongoing training and
development opportunities for employees.
(Common theme among Fortune’s “100 Best
Companies to Work For”.)
Summary
• Organizational culture underpins the success of
all organizations and must be aligned with the
organization’s mission and strategy.
• A well-aligned culture will contribute greatly to
the organization’s success; a poorly aligned
culture will significantly impede its success.
Discussion
• List out healthy and positive organizational
culture.
• Unhealthy and negative organizational culture
in an organization.
• Why positive culture so important for an
organization? “I don’t know”, “I am very busy”,
“Not in my job scope”, “Not my job”, finger
pointing, avoid decision-making to reduce risk
and consequences, etc.
Discussion
• Assume that you have own a construction
company, what are the factors you will consider
in developing your organizational culture?
• Develop your own organizational culture for your
company which well-aligned with the mission and
strategy.
Maybe is the environmental activism to be endured
into your company? Or what else you think is
crucial for you to gain your competitive advantage
in this industry?
Discussion
• Competitive advantage
• Core Values
• Core Competency – Efficiency? Construction
industry
• Case Study: Refer to Zappos, online shoe
retailer in Corporate Culture Immersion (Focus
on delivering happiness)
The End

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MS Lecture 4 org structure and culture part 2

  • 1. Organizational Design: Organizational Structure and Culture (Part 2) QSB2413 Management Science
  • 2.
  • 3. Organizational Culture • Organizational culture is the shared beliefs, values and norms that bind people together and help them make sense of the systems within an organization.
  • 4. Organizational Culture • The beliefs, values and norms tell people “what is to be done” and “how it is to be done”. • Cultures develop within organizations as their people interact and share ways of managing, leading and doing.
  • 5. Organizational Culture • Culture influences how people act in organization – the ways employees relate to each other, to customers, to shareholders and to business partners. • It drives behaviors and unites employees around a shared set of values. • Example, wearing casual / slippers in office, morning tea gathering at pantry, platform for information sharing, assisting each other (teamwork), transparent management team, focus on people - considering needs, feelings, exploring their talents (positive side). Resist to change, no innovative, enjoy the comfort zone (negative side).
  • 6. Organizational Culture Think of the organizational culture in:- • Apple (Steve Job) • Google – creative, forward-thinking • Facebook (Mark) – simple and comfortable dress code • McD / Virgin Airline / Intel What about the construction industry? • Eco World (innovative) **Standardization
  • 8. Differences Culture • US company – Speed, Efficiency • China company – Relationship, hierarchy, do more than your paid • Japan company – Loyalty, Employees can only leave after the boss • Asian VS American culture – introversion VS extroversion **Example only
  • 9. Organizational Culture • Managers must also be prepared to adapt culture to change (economies, laws, social developments, technologies). • Change is an ever-present force as companies face intensifying competitive pressures and emerging opportunities in the marketplace. • Organizational change almost always involves adapting the organization’s culture and the behavior of people.
  • 10. Components of an Organization’s Culture Culture has two components:- 1. Substance (Invisible) – consists of a shared system of beliefs, values, expectations and norms. 2. Form (Visible) – consists of the observable ways that members of a culture express ideas (Artifacts).
  • 11.
  • 12. Components of an Organization’s Culture • These two components are illustrated as an iceberg. • The surface elements – the artifacts – are visible routines and practices that constitute an organization’s culture. • The much deeper substance elements of shared values – invisible.
  • 13. Artifacts • The visible elements (surface of the iceberg) are a number of artifacts. • Artifacts are the cultural routines, rituals and ceremonies that we see in an organization’s public functions and events. (Style, formula, model, observance)
  • 14.
  • 15.
  • 16.
  • 17.
  • 18. The Impact of Culture on the Organization
  • 19. Impact of Culture • In an organization with a strong culture, shared values and beliefs create a setting in which people share an overriding sense of mission. • Such a culture can be a competitive advantage.
  • 20. Impact of Culture • Unique, shared values can provide a strong corporate identity, enhance collective commitment, create a stable social system and reduce the need for formal and bureaucratic controls.
  • 21. Impact of Culture • Employee orientations are sessions where new employees are introduced to the organization’s important aspects, including culture. • Strong orientation programs focused on acclimation to the organization’s culture, coupled with ongoing training and development opportunities for employees. (Common theme among Fortune’s “100 Best Companies to Work For”.)
  • 22. Summary • Organizational culture underpins the success of all organizations and must be aligned with the organization’s mission and strategy. • A well-aligned culture will contribute greatly to the organization’s success; a poorly aligned culture will significantly impede its success.
  • 23. Discussion • List out healthy and positive organizational culture. • Unhealthy and negative organizational culture in an organization. • Why positive culture so important for an organization? “I don’t know”, “I am very busy”, “Not in my job scope”, “Not my job”, finger pointing, avoid decision-making to reduce risk and consequences, etc.
  • 24. Discussion • Assume that you have own a construction company, what are the factors you will consider in developing your organizational culture? • Develop your own organizational culture for your company which well-aligned with the mission and strategy. Maybe is the environmental activism to be endured into your company? Or what else you think is crucial for you to gain your competitive advantage in this industry?
  • 25. Discussion • Competitive advantage • Core Values • Core Competency – Efficiency? Construction industry • Case Study: Refer to Zappos, online shoe retailer in Corporate Culture Immersion (Focus on delivering happiness)