Management chapter 8

Slogans and sayings

- 12 mechanisms - desirable corporate culture can be expressed in language, slogans, sayings, and acronyms

organizational goals and performance criteria

- 12 mechanisms - establish organizational goals and criteria for recruiting, selecting, developing, promoting, dismissing, and retiring people, all of which reinforce the desired organizational culture

leader reactions to crises

- 12 mechanisms - how top managers respond to critical incidents and organizational crises sends a clear cultural message

organizational systems and procedures

- 12 mechanisms - increasingly using electronic networks to increase collaboration among employees, to increase innovation, quality, and efficiency

measurable and controllable activities

- 12 mechanisms - leaders can pay attention to, measure, and control a number of activities, processes, or outcomes that can foster a certain culture

stories, legends, and myths

- 12 mechanisms - narrative about an actual event that happened within the organization - helps to symbolize vision and values to employees

Physical design

- 12 mechanisms - what is the best office layout that will encourage employee productivity and send a strong cultural message?

the environment: mechanistic vs organic

- Burns and Stalker -mechanistic: when rigidity and uniformity work best, authority is centralized, tasks and rules are clearly specified, employees are closely supervised, bureaucratic, rigid rules, and top down, best when operating in a stable environment Organic: when looseness and flexibility work best - authority is decentralized, fewer rules and procedures, networks of employees encouraged to cooperate and respond quickly to unexpected tasks- Peters and Waterman - sometimes called adhocracies - information technology companies - fast changing consumer tastes

Vertical dimension

- CVF - expresses the extent to which an organization prefers flexibility ad discretion versus stability and control

horizontal dimension

- CVF - inward or outward focus? - expresses the extent to which an organization focuses its attention and efforts inward on internal dynamics and employees (internal focus and integration) vs outward toward its external environment and its customers and shareholders (external focus and differentiation)

organization

- Chester I. Barnard - a system of consciously coordinated activities or forces of two or more people

common elements of organizations

- Edgar Schein proposed the first four 1. common purpose 2. coordinated effort 3. division of labor 4. hierarchy of authority 5. span of control 6. authority, responsibility, and delegation 7. centralization vs decentralization of authority

common purpose

- Schein's 4 common elements - the means for unifying members - unifies employees or members and gives everyone an understanding of the organizations reason for being

conglomerate

- a large company that is doing business in different, quite unrelated areas, GE, berkshire hathaway - critics think it spreads management focus too widely

unity of command

- an employee should report to no more than one manager - avoid conflicting priorities and demands

linking strategy, culture, and structure

- as they grow their strategies become more ambitious and elaborate, culture and structure need to change to support strategies - advantages and disadvantages for everything

level 3 organizational culture

- basic assumptions - core values of the organization - not observable, represent the core values of the organizations culture- those that are taken for granted and, as a result, are difficult to change - maintain a healthy balance

virtual structure

- boundaryless - an internet connected partner for a temporary project - members are geographically apart, usually working with email, and other forms of information technology - generally appear to customers as a single, unified organization with a real physical location - allow to tap into a wider geographic talent pool - save real estate money but travel costs

hollow structure

- boundaryless - operating with a central core and outsourcing functions to outside vendors - often called network structure - has a central core of key functions and outsources other functions to vendors who can do them cheaper or faster - important core processes might be design, marketing - outsourcing might be human resources, warehousing, or distribution, thereby seemiing to hollow out the organization - information technology is the glue that holds it together, along with strategic alliances, and contractual agreements with suppliers

Modular structure

- boundaryless - outsourcing pieces of a product to outside firms - oriented around outsourcing certain pieces of a product rather than outsourcing certain processes - a firm assembles product chunks, or modules, provided by outside contractors - " a collection of lego bricks that can snap together"

organizational design

- concerned with designing the optimal structure s of accountability and responsibility that an organization uses to execute its strategies - 3 types 1. traditional designs 2. horizontal designs 3. designs that open boundaries between organizations

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

contingency approach

- emphasizes that a managers approach should vary according to the individual and environmental situation

level 2 organizational culture

- espoused values - explicitly stated values and norms preferred by an organization - put fourth by firms founder or top managers - employees more frequently influenced by enacted values

power

- extent to which a person is able to influence others so they respond to orders

Adhocracy culture

- external focus, values flexibility - creation of new products and services is the strategic thrust - attempts to create innovative products by being adaptable, creative, and quick to respond to changes in the marketplace - employees encouraged to take risks and experiment with new ways of getting things done - well suited for start ups - industries undergoing constant change, those in mature industries in need of innovation to enhance growth - a fearless culture fuels tech

organizational structure

- formal system of task and reporting relationships that coordinates and motivates an organizations members so that they can work together to achieve the organizations goals - concerned with who reports to whom and specializes in what work - challenge for top managers is to align the organizations vision and strategies with its organizational culture and organizational structure - 12 mechanisms - hierarchical structure found in most traditional organizations is more likely to reinforce a culture oriented toward control and authority compared with the flatter organization that eliminates management layers in favor of giving employees more power

product divisions

- group activities around similar products or services

customer divisions

- grouping by common customers or clients - tend to group activities around common customers or clients

geographic divisions

- grouping by regional location] - frequently used by govt agencies

staff personnel

- have authority functions, provide advice, recommendations, and research to line managers - indicated by a dotted line

line managers

- have authority to make decisions and usually have people reporting to them - president, vice presidents, head of accounting - indicated on the organization chart by a solid line

designs that open boundaries between organizations

- hollow, modular, and virtual structures - opposite of bureaucracy - boundaryless organization is a fluid, highly adaptive organization whose members, linked by information technology, come together to collaborate on common tasks - coworkers, suppliers, customers, even competitors - ever changing - informal business relations

heroes

- how culture is transmitted - a person whose accomplishments embody the values of the organization

rites and rituals

- how culture is transmitted - activities and ceremonies, planned and unplanned, that celebrate important occasions and accomplishments in the organizations life - military units and sorts teams - one of 12 mechanisms

symbols

- how culture is transmitted - an object, an act, a quality, or an event that conveys meaning to others - symbols convey most important values

organizational socialization

- how culture is transmitted - defined as the process by which people learn the values, norms, and required behaviors that permit them to participate as members of an organization - three phases: 1. anticipatory socialization phase 2. encounter phase 3. change and acquisition phase

stories

- how culture is transmitted - a narrative based on true events, which is repeated and sometimes embellished upon, to emphasize a particular value - oral histories that are told an retold by members about incidents in the organizations history

70% rule

- if the person you would like to perform the task is able to do it at least 70%as well as you can, you should delegate it

centralized authorityq

- important decisions are made by higher-level managers - small companies tend to be the most centralized - less duplication of work, fewer employees perform the same tasks, task often performed by a department of specialists - procedures are uniform and easier to control

decentralized authority

- important decisions are made y mid level and supervisory level managers - power has been delegated throughout the organization - managers are encouraged to solve their own problems rather than buck the decision to a higher level - decisions are made more quickly - greater flexibility and efficiency

clan culture

- internal focus, values flexibility rather than stability and control - family type organization, encourages collaboration among employees, striving to encourage cohesion through consensus and job satisfaction and to increase commitment through employee involvement - devote considerable resources to hiring and developing employees - view customers as partners

hierarchy culture

- internal focus, values stability and control over flexibility - apt to have a formalized, structured work environment aimed at achieving effectiveness through a variety of control mechanisms that measure efficiency, timeliness, and reliability in the creation and delivery of products - instead of focusing on competitors or technology shifts, continually invest in getting a little bit better

strategy

- large-scale action plans that reflect the organizations vision and are used to set the direction for the organization

consistency across strategy, culture, and structure

- leads to higher performance

narrow or tall span of control

- manager has a limited number of people reporting - said to be tall when there are many levels with narrow spans of control

to implement a particular strategy...

- managers must determine the right kind of organizational culture and organizational structure - mutually influence each other

accountability

- managers must report and justify work results to the managers above them - means you have the responsibility for performing assigned tasks

wide or flat span of control

- means a manager has several people reporting - said to be flat when there are only a few levels with wide spans of control - tend to allow greater worker autonomy

level 1 organizational culture

- observable artifacts - most visible level - physical manifestations of culture such as manner of dress, awards, myths and stories about the company, rituals and ceremonies, and decorations, visible behavior exhibited by managers and employees

nonprofit organizations

- offer services to some clients, not to make a profit - hospitals

organizational culture

- or corporate culture, Edgar Schein - 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 various environments - beliefs and values passed on to new employees by way of socialization and mentoring - affect work outcomes at all levels - organization has a personality, helps employees understand why the organization does what it does and how it intends to accomplish its longterm goals - cultural tone often set in hiring process - can vary considerably, different organizations havng different emphasis on risk taking, treatment of employees, teamwork, rules and regulations, conflict, criticism, and rewards - can have positive and negative effects on employees and overall corporate performance

the horizontal design

- or team based design - teams or workgroups, which can be permanent or temporary, are used to improve collaboration and work on shared tasks by breaking down internal boundaries - cross functional teams to solve particular problems

competing values framework

- organizational effectiveness varies along 2 dimensions 1. the horizontal dimension 2. the vertical dimension - combining these two dimensions creates the 4 types of organizational culture

authority, responsibility, and delegation

- other common elements - authority is related to the management authority in the organization - with authority goes accountability, responsibility, and the ability to delegate ones authority

span of control

- other common elements - narrow (tall) vs wide (flat) - or span of management, refers to the number of people reporting directly to a given manager

centralization vs decentralization of authority

- other common elements - who makes the important decisions in an organization?

The environment: differentiation vs integration

- paul r lawrence and Jay w Lorsch - differentiation: tendency of parts of an organization to disperse and fragment, the more subunits- the more differentiated it is. Technical specialization and division of labor- specialists do not always coordinate with other parts of the organization - integration: tendency of the parts of an organization to draw together to achieve a common purpose - specialists work together to achieve a common goal, formal chain of command, standardization of rules and procedures, cross functional teams and computer networks - frequent communication and coordination of the parts

delegation

- process of assigning managerial authority and responsibility to managers and employees lower in the hierarchy - managers expected to delegate as much of their work as possible - 70% rule

contingency design

- process of fitting the organization to its environment - contingency approach factors for designing the best kind of structure 1. environment- mechanistic vs organic 2. environment - differentiation vs integration 3. link between strategy, culture, and structure

authority

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

person-organization (PO) fit

- reflects the extent to which your personality and values match the climate and culture in an organization - a good fit is associated with more positive work attitudes and task performance, lower stress, aand fewer expressions of intention to quit - more than 50% of job evaluators consider fit to be the most important criteria

enacted values

- represent the values and norms actually exhibited in the organization

division of labor

- scheins 4 common elements - work specialization for greater efficiency - also known as work specialization - arrangement of having discrete parts of a task done by different people - can parcel out the entire complex work effort to be performed by specialists, resulting in greater efficiency

coordinated effort

- scheins 4 common elements - working together for common purpose - common purpose is realized through coordinated effort, the coordination of individuals efforts into a group or organizationwide effort

Hierarchy of command

- scheins 4 common elements - the chain of command - a control mechanism for making sure the right people do the right things at the right time - managers need to have more authority in order to direct the work of others - authority is most effective when arranged in a hierarchy

traditional designs

- simple, funtional, divisional, and matrix structures - tend to favor structures that rely on vertical management - clear departmental boundaries and reporting arrangements

culture

- social glue that binds together organizations

Market culture

- strong external focus, values stability and control - focused on the external environment, driven by competition and a strong desire to deliver results - customers, productivity, and profits take precedence over employee development and satisfaction - employees expected to work hard, react fast, and deliver quality work on time, those who deliver results are rewarded

for profit organizations

- to make money, or profits, by offering products or services

functional structure

- traditional design - grouping by similar work specialties - people with similar occupational specialties are put together in formal groups

divisional structure

- traditional design - grouping by similarity of purpose - people with diverse occupational specialties are put together in formal groups by similar products or services, customers or clients, or geographic regions - product divisions - customer divisions - geographic divisions

simple structure

- traditional design - for the small firm - very early, entrepreneurial stages - apt to reflect the desires and personality of the owner or founder - has authority centralized in a single person, a flat hierarchy, few rules, and low work specialization

Matrix structure

- traditional designs - a grid of functional and divisional for two chains of command - an organization combines functional and divisional chains of command in a grid so that there are two command structures, vertical and horizontal

mutual benefit organizations

- voluntary collectives whose purpose is to advance members interests - unions, trade associations

responsibility

- with more authority comes more responsibility - the obligation you have to perform the tasks assigned to you

radical candor or front stabbing

- workers are encouraged to drop the polite workplace veneer and speak frankly to each other no matter what

how to determine how well you might fit?

- write down your strengths, weaknesses and values - do the same for the organization you are interviewing with - prepare questions to ask interviewer about how well you might fit in

holocracy

- zappos - encourage collaboration by eliminating work place hierarchy - no titles, no bosses

formal statements

-12 mechanisms - embed preferred culture through formal statements of organizational philosophy, mission, vision, and values, as well as materials used for recruiting, selecting, and socializing employees

role modeling, training, and coaching

-12 mechanisms - many companies provide structured training to provide an in depth introduction to thoer organizational values

rewards, titles, promotions, and bonuses

-12 mechanisms - rewards and status symbols are among the strongest ways to embed organizational culture - merit bonuses

adhocracy

-risk taking culture that values flexibility and creativity and that is focused on developing innovative products

6 conclusions about organizational culture

1. an organizations culture matters, can be a source of competitive advantage 2. employees have more positive work attitudes when working in organizations with clan cultures: employees prefer working in organizations that value flexibility over stability and control, as well as those that are more concerned with employee needs than those of shareholders 3. clan and market culture are more likely to deliver higher customer satisfaction and market share- positive employee attitudes associated with clan cultures motivate employees to provide better customer service 4. operational outcomes, quality, and innovation are more strongly related to clan, adhocracy, and market cultures than to hierarchical ones- avoid the use of too many rules and procedures, hierarchical characteristics, when trying to improve these outcomes 5. an organizations financial performance (profit and revenue growth) is not strongly related to organizational culture- only market and hierarchy cultures were associated with financial outcomes- managers should not expect to immediately increase financial performance when they try to change their organizations culture, culture needs time to take hold 6. companies with market cultures tend to have more positive organizational outcomes- encouraged to make culture more market oriented

3 phases of organizational socialization

1. anticipatory socialization phase- occurs before one joins the organization, when a person learns what the organizations job needs and values are and how ones own needs, values, and skills, might fit in 2. encounter phase- when a person is first hired and comes to learn what the organization is really like and how to adjust his or her expectations. May help speed up w familiarization programs 3. change and acquisition phase- once the employee understands his/her work role and must now master the necessary skills and tasks and learn to adjust to the work groups values and norms. May speed up with goal setting, incentives, employee feedback, continued support and ceremonies

four types of organizational culture

1. clan 2. adhocracy 3. market 4. hierarchy

three types of organizations

1. for profit organizations 2. nonprofit organizations 3. mutual benefit organizations

12 mechanisms for changing organizational culture

1. formal statements 2. slogans and sayings 3. rites and rituals 4. stories, legends ,and myths 5. leader reactions to crises 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

3 layers of organizational culture

1. observable artifacts 2. espoused values 3. basic assumptions - each level varies in terms of outward visibility and resistance to change, each level influences another level

4 ways culture is transmitted to employees

1. symbols 2. stories 3. heroes 4. rites and rituals 5. organizational specialization