OB - Organizational Structure

What is an organization? What basic foundations are common among all orgs? (4)

A system of consciously coordinated activities or forces of two or more person. Commonalities 1. Coordination of effort 2. Division of labor 3. Aligned goals 4. Hierarchy of authority

Pros and cons of modular structure (include example)

All of the pros and cons that come with hollow/network structures. The difference is that the modular structure adds the competitive adv. stemming from the quality of the assembling parts ex. Boeing gathering all of its airplane parts from diff. countries around the world to make its final product

Two frameworks of CVF

CVF indicates that orgs. vary along two fundamental dimensions: 1. The extent to which an org. focuses its efforts on internal dynamics (employees) or outward dynamics (customers and shareholders) 2. The org.'s preference for flexibility and discretion or control and stability

Employees are more satisfied and committed to organizations with what/which culture(s) (CVF)

Clan culture

Functional vs. divisional group structures

Functional - Traditional structure. Employees grouped according to the business functions they perform. Puts together people who are experts in the same or similar activities. Some orgs. have concluded that this structure divides people too much, ultimately creating silos within the organization. - ex. Manufacturing, marketing, finance Divisional - Traditional structure. Employees grouped based on similar products or services, customers or clients, or geographic regions - ex. Divisions by product: iPhone, Tide detergent, etc.; OR, Division by region: US, Asia, etc.

Hollow vs Modular structure

Hollow/network - Open structure. Designed around a central core of key functions and outsources other functions to other companies or individuals who can do them cheaper or faster. Useful when a firm is faced with strong price competition and there are enough companies that can perform the outsourced jobs Modular - Open structure. The company assembles product parts, components, or modules provided by external contractors. Useful when a company can identify product modules and create design interfaces allowing it to assemble the outsourced parts

In terms of the command principle, how are organizations changing?

It used to be that each employee would report to a single manager. Now, more contemporary organizational structures that have flatter, more organic structures & need a more dynamic way of looking at management

Which culture(s) tend(s) to have more positive organizational outcomes?

Market

Matrix vs. horizontal org. structures

Matrix - Traditional structure. Combines a vertical structure with an equally strong horizontal overlay. Generally combines functional and divisional chains of command to form a grid with two command structures. Application of this structure is not easy and can be complex/confusing Horizontal - Teams or workgroups, either temporary or permanent, created to improve collaboration and work on common projects. Tends to focus on works processes - every task needed to meet a customer need. A common example would be teamwork

Formal statements and Design of physical space

Mechanisms for creating culture Formal statements - Using statements of org. philosophy, mission, vision, values, and materials used for recruiting Design of physical space - Physical spacing among people and buildings. ex. location of office furniture

1. Organizational activities and processes 2. Leader reactions to critical incidents

Mechanisms for creating culture change 1. Leaders pay attention to those activities they can measure and control. These can send messages to employees about acceptable norms 2. People learn and pay attention to emotions exhibited by leaders. Positive emotions spread, but negative emotions travel faster and further

1. Slogans, language, acronyms 2. Role modeling, training coaching

Mechanisms for creating culture change 1. Often powerful forces for cultural change. Easy to remember 2. Structure training to provide an in-depth introduction about organizational values and basic underlying assumptions

1. Rites and Rituals 2. Workflow and organizational structure

Mechanisms for creating culture change 1. Planned and unplanned activities and ceremonies. Used to celebrate important events or achievements 2. Hierarchical structure vs. flatter orgs. Reducing organizational layers. Empower employees and increase employee involvement

1. Explicit rewards, status symbols 2. Stories legends myths

Mechanisms for creating culture change 1. Strong impact on employees due to highly visible and meaningful nature. Strongest way to embed culture 2. Powerful way to send messages about values and behaviors that are desired

Organizational systems and procedures and organizational goals (7)

Mechanisms for creating culture change Reflected in how an organization manages 1. Communication 2. Recruitment 3. Selection 4. Development 5. Promotion 6. Layoffs 7. Retirements

Financial performance through which org. culture(s)?

None are strongly related to financial performance

3 levels of org. culture

Observable artifacts - The physical manifestation of an organization's culture: Rituals/Ceremonies, Stories, Symbols, Language. Easiest to change Espoused, versus enacted, values: Important for managers to reduce this gap - Espoused: explicitly stated values and norms - Enacted: values and norms that are actually exhibited or converted into employee behavior Basic assumptions - Organizational values that have become taken for granted

Boundaryless organization

One where management has largely succeeded in breaking down barriers between internal levels, job functions, and departments, as well as reducing external barriers between the organization and those with whom it does business. This type of structure is fluid and flexible and relies on telecommuting between geographically dispersed people

Virtual structures

Open structures. Members are geographically separated, usually working with email and other forms of info tech. Generally appears to customers as a single, unified org. with a physical location. Can be either: internal or networked with external virtual structures.

Mechanistic vs. organic structures

Pretty comparable to more structure vs. less structure. Think of mechanistic as banks and organic as tech firms (like Google)

Pros (3) and cons (3) of horizontal design

Pros - Business focused - Highly flexible - Reduces coordination and control costs Cons - Difficult to implement - Requires new skills and methods - Needs sophisticated IT Ex. Teams formed to work on common projects

Pros (2) and cons (4) of matrix design (include an example of matrix design)

Pros - Coordination across multiple products/projects - Efficient allocation of professionals to products/projects Cons - Confusion and power struggle - Needs strong leadership skills - High stress - Needs formal processes to coordinate, can be costly Example of matrix design: Head of project management would be the leader of project A's manager, project B's manager, project C's manager, etc.

Pros and cons of the hollow/network structure (include an example)

Pros - Flexible and adaptive - Agile - Quickly access new markets - Gain scale without mass Cons - Loss of control - Difficult to manage - Requires trust among other organizations Ex. A T-shirt company mainly interested in the design aspect of the business - not the logistic side. Thus, they hire external contractors

Pros and cons of virtual structures

Pros - Tap into a wider talent pool - Increase speed in getting things done - Reduce exit costs - Ability to provide product extension or one-stop-shop service Cons - Requires high level of communication/coordination costs - Low employee loyalty, and/or commitment

Pros (3) and cons (3) of functional group structure

Pros - High specialization - Efficiency - Economies of scale Cons - Creates silos - Reduces collaboration - Takes longer to communicate

Org. culture and its four components

Set of shared, taken for granted, implicit assumptions that a group holds. It determines how it perceives, thinks about, and reacts to its various environments. Influences the type of organizational structure adopted by a company 1. Shared concept 2. Learned over time 3. Influences our behavior at work 4. Impacts outcomes at multiple levels

The Congruence Model

Shows how an org. receives input (environment, resources, and history) to create a strategy and use people, work, and informal/formal organization to create output (system, unit, individual)

Disadv. of designing an org structure only around efficiency. What should you do instead?

Since designs only tailored to efficiency are based on predictable commercial patterns, are unsuited to an era of unpredictability and disruption. Instead of mere efficiency, successful organizations must be designed for speed, agility, and adaptability to enable them to compete and win in today's global business environment

Have older org. structures been open or closed? What are they now?

They have been closed. Moving away from the historical perspective, current thinking is that organizations are open systems and dependent on the external environment for survival. Open systems are capable of self-correction, adaptation, and growth, thanks to feedback from the environment

Competing Values Framework (CVF)

This gives us four types of organizational culture, each with different core values and different sets of criteria for assessing organizational effectiveness. Provides a practical way for managers to understand, measure, and change organizational culture

What is the purpose of choosing a specific organizational structure?

To clarify relationships, lines of authority and ways of communicating in a way that best suits the particular organization or enterprise

Diff. b/w an org.'s vision and its strategic plan

Vision: a long-term goal that describes what an organization wants to become Strategic plan: outlines an organization's long-term goals and the actions necessary to achieve those goals

Innovation and quality can be increased by building characteristics associated with what/which culture(s)?

clan, adhocracy, and market cultures

4 Types of Org Culture (CVF)

1. Clan (collaborate) - Flexibility and discretion, internal. Cohesion, participation, communication, and empowerment - Outcome: Morale, people development, and commitment 2. Adhocracy (Create) - Flexibility and discretion, external. Adaptability, creativity, and agility - Outcome: Innovation, growth, and cutting-edge output 3. Hierarchy (Control) - Stability and control, internal. Capable processes, consistency, process control, and measurement - Outcome: Efficiency, timeliness, smooth functioning 4. Market (compete) - Stability and control, External. Customer focus, productivity, enhancing competitiveness - Outcome: Market share, profitability, and goal achievement

4 main functions that org. culture serves

1. Establishes organizational identity. 2. Encourages collective commitment. 3. Ensures social system stability, reflects on if the work environment is positive/reinforcing, and the extent to which conflict and change are effectively managed. 4. Helps employees understand why the org. does what it does and how it intends to accomplish its long-term goals

How to maintain an org. culture? (3)

1. Establishing & enforcing the "rules of behavior" 2. Be consistent 3. Do not reward all people equally

5 elements that drive org. culture

1. Founder's values 2. Industry and business environment 3. National culture 4. Org.'s visions and strategies 5. Behavior of leaders

What 2 questions need to be addressed when devising an org. design?

1. How to divide labor? 2. How to coordinate and control labor?

Contingencies to consider when determining an org. structure (2)

1. Increase structure to capture differentiation benefits - Minimize cost and uncertainty of individual tasks as well as HR tasks (when hiring or evaluating talent) - Avoid worker alienation - Maximize uniformity and managerial control 2. Decrease, or flatten, the structure to avoid integration costs - Improve creativity and autonomy - Intrinsically motivate employees - Avoid attachment to rules (bureaucracy) - Reduce managerial burden

4 things that need to be understood before going through culture change

1. Leaders are the architects and developers of organizational change 2. Changing culture starts with targeting one of the three levels of organizational culture: artifacts, espoused values, basic underlying assumptions 3. Consider how closely the current change aligns with the organization's vision and strategic plan 4. Use a structured approach when implementing culture change

3 categories of organization design

1. Traditional - Orgs tend to have functional, divisional, and/or matrix structures 2. Horizontal - Orgs work hard to flatten hierarchy and organize people around specific segments of the workflow 3. Open - Orgs tend to have a hollow, modular, or virtual structures. Relies on tech and structural flexibility through outsourcing and external collaboration

What 5 things does an appropriate org. structure depend on?

1. strategy 2. environment 3. size 4. decision making 5. technology

Pros (2) and cons (3) of divisional group structure

Pros - Increase focus - Increase coordination Cons - Less efficient - Duplication of effort - More myopic/nearsighted