Management ch8

Culture has 4 functions

(1) It gives members an organizational identity. (2) It facilitates collective commitment. (3) It promotes social-system stability. (4) It shapes behavior by helping employees make sense of their surroundings.

Four types of culture are

(1) clan, which has an internal focus and values flexibility; (2) adhocracy, which has an external focus and values flexibility; (3) market, which has a strong external focus and values stability and control; and (4) hierarchy, which has an internal focus and values stability and control.

Three types of organizational design are

(1) traditional (including simple, functional, divisional, and matrix structures), (2) horizontal designs, and (3) boundary-less design (hollow, modular, and virtual structures).

simple structure

An organization with a X has authority centralized in a single person, a flat hierarchy, few rules, and low work specialization.

Organizational culture appears as three layers.

Level 1 is observable artifacts, the physical manifestations of culture. Level 2 is espoused values, explicitly stated values and norms preferred by an organization, although employees are frequently influenced by enacted values, which represent the values and norms actually exhibited in the organization. Level 3 consists of basic assumptions, the core values of the organization.

Geographic divisions

group activities around defined regional locations.

coordinated effort

the coordination of individual efforts into a group or organization wide effort.

four stage lifecylce sequences

Birth stage Youth Stage Midlife Stage Maturity Stage

contingency design

The process of fitting the organization to its environment

modular structure

a firm assembles product chunks, or modules, provided by outside contractors.

The virtual organization

allows the form of boundaryless structure known as the virtual structure, a company outside a company that is created "specifically to respond to an exceptional market opportunity that is often temporary"

division of labor

also known as work specialization, is the arrangement of having discrete parts of a task done by different people.

In a 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 organization

an organization whose members are geographically apart, usually working with e-mail, collaborative computing, and other computer connections,

Rites and rituals

are the activities and ceremonies, planned and unplanned, that celebrate important occasions and accomplishments in the organization's life.

Espoused values

are the explicitly stated values and norms preferred by an organization

The fit perspective

assumes that an organization's culture must align, or fit, with its business or strategic context.

adaptive perspective

assumes that the most effective cultures help organizations anticipate and adapt to environmental changes.

The strength perspective

assumes that the strength of a corporate culture is related to a firm's long-term financial performance.

mechanistic organization

authority is centralized, tasks and rules are clearly specified, and employees are closely supervised. Mechanistic organizations, then, are bureaucratic, with rigid rules and top-down communication.

an 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. Tom Peters and Robert Waterman called this kind of organization a "loose" structure.

Product divisions

group activities around similar products or services.

The four-stage organizational life cycle

has a natural sequence of stages: birth, youth, midlife, and maturity.

A market culture

has a strong external focus and values stability and control.

An adhocracy culture

has an external focus and values flexibility.

clan culture

has an internal focus and values flexibility rather than stability and control.

A hierarchy culture

has an internal focus and values stability and control over flexibility.

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.

An organization chart

is a box-and-lines illustration showing the formal lines of authority and the organization's official positions or work specializations.

boundary-less organization

is a fluid, highly adaptive organization whose members, linked by information technology, come together to collaborate on common tasks. The collaborators may include not only coworkers but also suppliers, customers, and even competitors.

Organizational structure

is a formal system of task and reporting relationships that coordinates and motivate an organization's members so that they can work together to achieve the organization's goals.

A story

is a narrative based on true events, which is repeated—and sometimes embellished upon—to emphasize a particular value.

A hero

is a person whose accomplishments embody the values of the organization.

an organization

is a system of consciously coordinated activities or forces of two or more people. (Chester Barnard)

A symbol

is an object, act, quality, or event that conveys meaning to others.

Organizational design

is concerned with designing the optimal structures of accountability and responsibility that an organization uses to execute its strategies.

The birth stage

is the nonbureaucratic stage, the stage in which the organization is created. Here there are no written rules and little if any supporting staff beyond perhaps a secretary.

Responsibility

is the obligation you have to perform the tasks assigned to you. With more authority comes more responsibility.

differentiation

is the tendency of the parts of an organization to disperse and fragment. The more subunits into which an organization breaks down, the more highly differentiated it is.

Integration

is the tendency of the parts of an organization to draw together to achieve a common purpose.

Accountability

managers must report and justify work results to the managers above them.

the hollow structure

often called the network structure, the organization has a central core of key functions and outsources other functions to vendors who can do them cheaper or faster

The hierarchy of authority

or chain of command, is a control mechanism for making sure the right people do the right things at the right time.

The span of control

or span of management, refers to the number of people reporting directly to a given manager.

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 specialties are put together in formal groups.

Authority

refers to the rights inherent in a managerial position to make decisions, give orders, and utilize resources.

organizational culture

sometimes called corporate culture, is a system of shared beliefs and values that develops within an organization and guides the behavior of its members

horizontal design

teams or workgroups, either temporary or permanent, are used to improve collaboration and work on shared tasks by breaking down internal boundaries.

the midlife stage

the organization becomes bureaucratic, a period of growth evolving into stability. Now the organization has a formalized bureaucratic structure, staffs of specialists, decentralization of functional divisions, and many rules.

the maturity stage

the organization becomes very bureaucratic, large, and mechanistic. The danger at this point is lack of flexibility and innovation.

the youth stage

the organization is in a prebureaucratic stage, a stage of growth and expansion. Now the company has a product that is making headway in the marketplace, people are being added to the payroll (more clerical than professional), and some division of labor and setting of rules are being instituted.

Delegation

the process of assigning managerial authority and responsibility to managers and employees lower in the hierarchy.

The common purpose

unifies employees or members and gives everyone an understanding of the organization's reason for being.

enacted values

which represent the values and norms actually exhibited in the organization.