MAN3025 Chapter 8: Organizational Culture, Structure and Design
organization chart
a box-and-line illustration showing the formal lines of authority and the organization's official positions or work specializations
hierarchy of authority
a control mechanism for making sure the right people do the right things at the right time
modular structure
a firm assembles product chunks provided by outside contractors
organizational structure
a formal system of task and reporting relationships that coordinates and motivates an organization's members so that they can work together to achieve the organization's goals
story
a narrative based on true events, which is repeated - and sometimes embellished upon - to emphasize a particular value
hero
a person whose accomplishments embody the values of the organization
organization
a system of consciously coordinated activities or forces of two or more people
horizontal design
aka team-based design, teams or workgroups, either temporary or permanent, are used to improve collaboration and work on shared tasks by breaking down internal boundaries
symbol
an object or action that represents an idea or quality
matrix structure
an organization combines functional and divisional chains of command in a grid so that there are two command structures - vertical and horizontal
virtual structure
an organization whose members are geographically apart, usually working with e-mail and other forms of information technology, yet which generally appears to customers as a single, unified organization with a real physical location
rites and rituals
are the activities and ceremonies, planned and unplanned, that celebrate important occasions and accomplishments in the organization's life
flat organization
as one with an organizational structure with few or no levels of middle management between top managers and those reporting to them
mechanistic organization
authority is centralized, tasks and rules are clearly specified, and employees are closely supervised
organic organization
authority is decentralized, there are fewer rules and procedures, and networks of employees are encouraged to cooperate and respond quickly to unexpected tasks
geographic divisions
group activities around defined regional locations
product divisions
group activities around similar products or services
market culture
has a strong external focus and values stability and control
adhocracy culture
has an external focus and values flexibility
clan culture
has an internal focus and values flexibility rather than stability and control
hierarchy culture
has an internal focus and values stability and control over flexibility
simple structure
has authority centralized in a single person, a flat hierarchy, few rules, and low work specialization
staff personnel
have authority functions, they provide advice, recommendations, and research to line managers
line managers
have authority to make decisions and usually have people reporting to them
centralized authority
important decisions are made by higher-level managers
decentralized authority
important decisions are made by middle-level and supervisory-level managers
unity of command
in which an employee should report to no more than one manager in order to avoid conflicting priorities and demands
boundaryless organization
is a fluid, highly adaptive organization whose members, linked by information technology, come together to collaborate on common tasks
organizational design
is concerned with designing the optimal structures of accountability and responsibility that an organization uses to execute its strategies
accountability
managers must report and justify work results to the managers above them
contingency approach to organizational design
organizations are more effective when they are structured to fit the demands of the situation, and when the structure is aligned with the strategies and internal actions of the organization
divisional structure
people with diverse occupational specialties are put together in formal groups by similar products or services, customers or clients, or geographic regions
functional structure
people with similar occupational specialities are put together in formal groups
person-organization fit
reflects the extent to which your personality and values match the climate and culture in an organization
enacted values
represent the values and norms actually exhibited in the organization
customer divisions
tend to group activities around common customers or clients
division of labor
the arrangement of having discrete parts of a task done by different people
coordinated effort
the coordination of individual efforts into a group or organization wide effort
espoused values
the explicitly stated values and norms preferred by an organization
span of control
the number of people reporting directly to a given manager
responsibility
the obligation you have to perform the tasks assigned to you
hollow structure
the organization has a central core of key functions and outsources other functions to vendors who can do them cheaper or faster
organizational socialization
the process by which people learn the values, norms, and required behaviors that permit them to participate as members of an organization
delegation
the process of assigning managerial authority and responsibility to managers and employees lower in the hierarchy
authority
the rights inherent in a managerial position to make decisions, give orders, and utilize resources
organizational culture
the set of shared, taken-for-granted implicit assumptions that a group holds and that determines how it perceives, thinks about, and reacts to its environments
differentiation
the tendency of the parts of an organization to disperse and fragment
integration
the tendency of the parts of an organization to draw together to achieve a common purpose
common purpose
unifies employees or members and gives everyone an understanding of the organization's reason for being