Chapter 8 MGT

Seven common elements of organizations

1) Common purpose 2) coordinated effort 3) division of labor 4) hierarchy of authority 5) span of control 6) authority and accountability 7) centralization versus decentralization of authority

12 mechanisms that teach each other proffered values, beliefs, expectations, and behaviors

1) formal statements 2) slogans and sayings 3) rites and rituals 4) stories, legends and myths 5) leader reactions to crisis 6) role modeling, training, and coaching 7) physical design 8) rewards, titles, promotions, and bonuses 9) organizational goals and performance criteria 10) measurable and controllable activities 11) organizational structure 12) organizational systems and procedures

Describe and explain the three levels of organizational culture

1) observable artifacts- physical manifestations of culture 2) espoused values- explicitly stated values and norms preferred by an organization, although employees are frequently influenced by enacted values which represent the actual values exhibited within the company 3) basic assumptions- the core values of the organization

Three factors to consider in designing an organizations structure

1)mechanistic or organic 2) differentiation or integration 3) the link between strategy, culture, and structure

Four types of traditional organizational designs

1)simple structure- authority is centralized, few rules, low work specialization. 2) functional structure- people with similar occupational specialities are put into groups. 3) divisional structure- people with diverse occupational specialities are put together in formal groups by similar products or services, customers or clients. 4) modular structure- a firm assembles product chunks, or modules, provided by outside contractors

Organization chart

A box-and- lines illustration showing the formal lines of authority and the organizations official positions or work specializations

Virtual structure

A company outside a company that is created "specifically to respond to an exceptional market opportunity that is often temporary." Ex: Nokia partnered with AT&T and Verizon in order to sell their phones

Modular Structure

A firm assembles product chunks, or modules, provided by outside contractors Ex: 12 modules of different jet gear sent to Kansas in order to be put together in four days

Stories

A narrative based one true events, which is repeats and sometimes embellished upon to emphasize a particular value.

Heroes

A person whose accomplishments embody the values of an organization

Organization

A system of consciously coordinated activities or forces of two or more people

Hierarchy of authority

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

Hollow structure

Aka network structure the organization has a central core of key functions and out scores other functions to vendors who can do them Cheaper or faster

Span of control

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

Horizontal design

Aka team-based design, teams or workgroups, either temporary or permanent, are used to improve collaboration and work I shared tasks by breaking down internal boundaries

Division of labor

Aka work specialization, is the arrangement of having discrete parts of a task done by different people (specialists)

Unity of command

An employee should report to no more than one manager in order to avoid conflicting priorities and demands

Symbol

An object, act, quality, or event that conveys meaning to others

Matrix structures

An organization combines functional and divisional chains of command in a girl so that there are two command structures vertical and horizontal

Simple

Authority centralized in a single person, a flat hierarchy, few rules, and low work specialization Ex: Apple computer company two-man start ups later became large

Staff personnel

Authority functions; they provide advice,recommendations, and research to line managers

Mechanistic organization(Burns and Stalker model)

Authority is centralized, tasks and rules are clearly specified, and employees are closely supervised

Organic organization(Burns and Stalker model)

Authority is decentralized, there are fewer rules and procedures, and networks of employees are encouraged to cooperate and respond quickly to unexpected tasks.

Four types of organizational culture

Clan, Adhocracy, Market, and Hierarchy

Four common elements of organization proposed by Edgar Schien

Common purpose, coordinated effort, division of labor, Hierarchy of authority

Organizational design

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

Flat organization

Defined as one with an organizational structure with few or no levels of middle management between top managers and those reporting to them

Differentiation(Lawrence and Lorsch model)

Differentiation is the tendency of the parts of an organization to disperse and fragment.

The horizontal design

Eliminating functional barriers to solve problems

Three types of Organizations

For-profit, nonprofit, mutual benefit

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

Adhocracy culture

Has external focus and values flexibility (attempts to create innovative products by being adaptable, creative, and quick to respond to changes in the marketplace)

Line managers

Have authority to make decisions and usually have people reporting to them. Ex: president, Vice President

3 designs that open boundaries between organizations

Hollow, modular, and virtual structures

Centralized authority

Important decisions are made by higher-level managers

Decentralized authority

Important decisions are made by middle level and supervisory-level managers

Accountability

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

Three factors to be considered in designing an organizations structure

Mechanistic vs. Organic(burns and stalker), differentiation vs integration(Lawrence and lorsch), and linking strategy, culture, and structure.

Responsibility

Obligation you have to perform the tasks assigned to you

Three levels of organizational culture

Observable artifacts, espoused values, basic assumptions

Virtual organizations

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

To implement an organizations strategy, what are the two kinds of important areas that managers must determine?

Organizational culture and organizational structure

How would you describe the four kinds of organizational cultures, according to the competing values framework?

Organizational cultures can be classified into four different types; 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, 4) hierarchy which has an internal focus and values stability and control.

Divisional

People with diverse occupational specialties are put together in formal groups by similar products or services, customers or clients, or geographic regions

Functional

People with similar occupational specialities are put together. In formal groups. Ex: Faculty, admissions, maintenance, and so forth

Authority

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

Enacted values

Represent the values and norms actually exhibited in the organization Ex: headquarters proclaiming that "trust" was one of its driving Orin couples(espoused value), yet had a policy of searching employees' belongings each time they entered or exited the building(enacted value)

Common elements of organizations, 3 more most authorities agree on

Span of control, authority, responsibility, and delegation, and centralization versus decentralization of authority

How employees learn culture, 4 things?

Symbol, Stories, Heroes, Rites & Rituals

What are four ways in which culture is transmitted to employees?

Symbols, stories, heroes, and rites & rituals

Horizontal organizational designs

Team based design, teams or workgroups are used to improve horizontal relations and solve problems throughout the organization

Rites & Rituals

The activities and ceremonies, planned and unplanned, that celebrate important occasions and accomplishments in the organizations life.

Coordinated effort

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

Espoused values

The explicitly stated values and norms preferred by an organization Ex: The founders of technology company Hewlett stressed the "Hp way" a collegial, egalitarian culture that gave as much authority and job security to employees as possible

Delegation

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

Contingency design

The process of fitting the organization to its environment

Integration(Lawrence and Lorsch model)

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 organizations reason for being

Market culture

has a strong external focus and values stability and control

Traditional designs

simple, functional, divisional and matrix structures