Organizational structures and culture play an important role in how organizations function. There are two main types of organizational structures - formal and informal. The formal structure is the official hierarchical structure, while the informal structure involves the social relationships between employees. Organizational culture represents the shared values and behaviors within an organization. Managers must consider factors like the organization's goals and environment when designing the structure and culture. Strong, clearly defined cultures can help drive commitment, while also potentially resisting change.

1. MANAGING
ORGANIZATIONAL
STRUCTURE AND
CULTURE
Presenter: Aira May T. Terrible

2. Organizational Structure
■ An organizational structure defines how activities such as task
allocation, coordination and supervision are directed toward the
achievement of organizational aims. It can also be considered as the
viewing glass or perspective through which individuals see their
organization and its environment.
Footnote: https://en.wikipedia.org/wiki/Organizational_structure

3. Types of Organizational Structures
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Footnote: http://www.yourarticlelibrary.com/organization/formal-and-informal-organization-features-advantages-and-disadvantages/8654/

4. Types of Organizational Structures
Formal: The official structure of the organization, which is normally displayed on an
organizational chart, and which denotes the hierarchical relationships between
members of the firm. It is beyond the scope of this site to offer a discussion on the
various formal organizational structures.
Advantages
1. Systematic Working
2. Achievement of Organizational Objectives
3. No Overlapping of Work
4. Co-ordination
5. Creation of Chain of Command
6. More Emphasis on Work
Disadvantages
1. Delay in Action
2. Ignores Social Needs of Employees
3. Emphasis on Work Only
Footnote: http://www.yourarticlelibrary.com/organization/formal-and-informal-organization-features-advantages-and-disadvantages/8654/

5. ■ Informal: The interlocking social structure that governs how people work together
in practice. It is the aggregate of behaviors, interactions, norms, and
personal/professional connections through which work gets done and
relationships are built among people.
Advantages
1. Fast Communication
2. Fulfills Social Needs
3. Correct Feedback
Disadvantages
1. Spread Rumors
2. No Systematic Working
3. May Bring Negative Results
4. More Emphasis to Individual Interest
Types of Organizational Structures
Footnote: http://www.yourarticlelibrary.com/organization/formal-and-informal-organization-features-advantages-and-disadvantages/8654/

6. Designing Organizational Structure
■ Organizing
– The process by which managers establish working
relationships among employees to achieve goals.
Footnote: https://en.Wikipedia.org/wiki

7. Factors Affecting Organizational Structure

8. Designing Organizational Structure
■ Organizational design
– The process by which managers create a specific type
of organizational structure and culture so that a
company can operate in the most efficient and
effective way
Footnote: https://en.Wikipedia.org/wiki

9. The Job Characteristics Model

10. Grouping Jobs into Functions
■ Functional Structure
– An organizational structure composed of all the
departments that an organization requires to produce
its goods or services.
Footnote: https://en.Wikipedia.org/wiki

11. Allocating Authority
■ Authority
– power to hold people accountable for their actions and
to make decisions concerning the use of organizational
resources.
Footnote: https://en.Wikipedia.org/wiki

12. Flat Organizations

13. Tall Organizations

14. Organizational Culture
■ A system of shared assumptions, values, and beliefs, which governs
how people behave in organizations. These shared values have a
strong influence on the people in the organization and dictate how
they dress, act, and perform their jobs.
Footnote: https://en.Wikipedia.org/wiki/Organizational_culture

15. Sources of an Organization’s Culture

16. 7 Primary Characteristics of
Organizational Culture
1. Innovation and Risk Taking
The degree to which employees are encouraged to be innovative and take
risks. 2. Attention to Detail
The degree to which employees are expected to exhibit precision, analysis,
and attention to detail.
3. Outcome Orientation
The degree to which management focuses on results or outcomes rather than
on the techniques and processes used to achieve those outcomes.
4. People Orientation
The degree to which management decisions take into consideration the effect
of outcomes on people within the organization.

17. 5. Team Orientation
The degree to which work activities are organized around teams rather than
individuals.
6. Aggressiveness
The degree to which people are aggressive and competitive rather than easy-
going.
7. Stability
The degree to which organizational activities emphasize maintaining the
status quo in contrast to growth.
7 Primary Characteristics of
Organizational Culture

18. Organizational Culture versus
Job Satisfaction
1. Organizational culture describes how employees perceive the characteristics of an
organization’s culture, not whether or not they like those characteristics. It is a
descriptive term.
2. Job satisfaction seeks to measure affective responses to the work environment: it is
concerned with how employees feel about the organization. It is an evaluative term.

19. Layers of Organizational Culture
1. Dominant Culture
This is the overall organizational culture as expressed by the core values held
by the majority of the organization's members. When people are asked to portray an
organization's culture, they normally describe the dominant culture: a macro view that
gives an organization its distinct personality.
2. Subcultures
These subsets of the overall culture tend to develop in larger organizations to
reflect the common problems, situations, or experiences that are unique to members
of certain departments or geographical areas. The subculture retains the core values
of the dominant culture but modifies them to reflect their own distinct situation.

20. Strong versus Weak Cultures
1. Strong Culture
This exists when an organization's core values are both intensely held and
widely shared. The greater the number of members who accept the core values and
the greater their commitment to these values, the stronger the culture is. A strong
culture creates an internal climate of high behavioral control and builds cohesiveness,
loyalty, and organizational commitment.
2. Weak Culture
In this case, the organization's core values are not widely held or intensely
felt. These cultures have little impact on member behavior.

21. Functions and Liabilities of
Organizational Culture
1. The Functions of Organizational Culture.
a.Defines Boundaries
b.Identity
c. Commitment
d.Social Stability
e.Control Mechanism
2. Culture as a Liability
a.Barrier to Change
b.Barrier to Diversity
c. Barrier to Acquisitions and Mergers

22. CREATING, SUSTAINING & TRANSMITTING
CULTURE
■ How a culture begins
– Founders
■ Keeping culture alive
– Selection practices, Top management, Socialization
■ How employees learn culture
– Stories, Rituals, Languange, Material Symbols
Footnote: http://www.slideshare.net/arianking/managing-organizational-culture-presentation

23. ■ Time and conditions
 Foreign competition
 Changes in government regulations
 Rapid economic shifts
 New technologies
Factors that support changes in cultures
Footnote: http://www.slideshare.net/arianking/managing-organizational-culture-presentation

24. Factors that are against changes in
culture:
■ Cultures are entrenched and resistant to change efforts.
■ Employees become committed to them
■ Written statements about mission and philosophy
■ Design of physical spaces & buildings
■ Dominant leadership pattern
■ Past selection practices
■ Organization’s formal structure
■ Popular stories about key peopleand events
Footnote: http://www.slideshare.net/arianking/managing-organizational-culture-presentation

25. Culture Creation Model