BA 316 Chapter 8 Organizational Structure, Design, & Culture

Adhocracy

-A risk-taking culture valuing flexibility -External focus and values flexibility -Attempts to create innovative products Thrusts: Create Means: Adaptability, creativity, agilitiy Ends: Innovation, growth, cutting-edge output

Clan Culture

-An employee-focused culture valuing flexibility, NOT stability. -Internal focus and values flexibility rather than stability and control -Family type organization that encourages collaboration among employees, striving to encourage cohesion through consensus and job satisfaction to increase commitment through employee involvement -Thrusts: Collaboration -Means: Cohesion, participation, communication, empowerment -Ends: Morale, people development, commitment

Market

-Competitive Culture Valuing profits over employee satisfaction -Strong External focus, values stability and control Thrust: Compete Means: Customer focus, proudctivity, enhanging competitiveness Ends: Market share, profitability, goal achievement

Common Purpose

-Element of Organization -Means for Unifying members -Unifies employees or members and gives everyone an understanding of the organizations reason for being

Organizational Structure

A formal system of task and reporting relationships that coordinates and motivates and organizations members so that they can work together to achieve the organization's goals.

Responsibility

The obligation you have to perform the tasks assigned to you

Delegation

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

Span of Control

-Element of Organziation -Refers to the number of people reporting directly to a given manager -2 kinds 1) narrow 2) wide

Functional Structure

Grouping by similar work specialties -People with similar occupational specialties are put together in formal groups

Contingency Design

The process of fitting the organization to its environment -Three factors must be considered in designing an organization's structure 1) Environment-Mechanistic versus organic 2) Environment-Differentiation versus integration 3) Link between strategy, culture, and structure

Hierarchy of Authority

-Element of Organization -Chain of command -Control mechanism for making sure the right people do the righ tthings at the right time

Division of Labor

-Element of Organization -Work specialization for greater efficiency -Arrangement of having discrete parts of a task done by different people

Coordinated Effort

-Element of Organization -Working together for a common purpose -The coordination of individual efforts into a group or organization wide effort

Simple Structure

-For the small firm -Found in a firm's very early, entrepreneurial stages, when the org is apt to reflect the desires and personality of the owner or founder -An organization with this structure has authority centralized in a single person, a flat hierarchy, few rules, and low work specialization *In a Organization chart--There is only ONE hierarchical level of management beneath the owner

What drives an Organizational Culture?

-Founders values -Industry and business environemnt -National Culture -Organization's vision and strategies -Bahavior of leaders

Hierarchy

-Structured culture valuing stability and effectiveness -Internal focus and values stability and control over flexibility -Thrust: Control -Means: Capable processes, consistency, process control, measurement -Ends: Efficiency, timeliness, smooth, functioning

Organization Chart

A box-and lines- illustration showing the formal lines of authority and the organization's official positions or work specializations -Shows an organizations... 1) Vertical hierarchy of authority--who reports to whom 2) Horizontal Specialization--Who specializes in what work

Matrix Structure

A grid of Functional & Divisional for Two Chains of Command -An organization combines the functional and divisional chains of command in a grid so that there are two command structures--vertical and horizontal Most complex looking Organizational Charts

Staff Position/Personnel

Have authority functions; they provide advice, recommendations, and research to line managers -Ex: Spcialists such as legel counsles and special advisers for mergers) -Usually indicated on the organization chart by a dotted line usually horizontal

Line Position/Managers

Have authority to make decisions and usually have people reporting to them -Ex: The president and vice presidents -Line positions are indicated on the organization chart by a solid line (usually a vertical line)

Centralization Authority

Important decisions are made by higher level managers -Small companies tend to be the most centralized -Advantages: -Less duplication of work because fewer employees perform the same task. -Procedures uniform and therefore easier to control

Decentralized Authority

Important decisions are made by middle level and supervisory level managers -Power has been delegated throughout the organization -Advantages: -Mangers are encouraged to solve their own problems rather than to buck the decision to a higher level -Decisions are made more quickly which increases the org.'s effeiciency and flexibility

Accountability

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

Divisional Structure

People with diverse occupational specialties are put together in formal groups by similar products or services, customers or clients, or geographic regions. -Product divisions--Grouping by similar products or services -Customer Divisions--Grouping by common customers or clients -Geographic Divisions--Grouping by Regional Location

Authority

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

8.3 Figure Results

Results reveal that the the 8 type of organizational outcomes had significant and positive relationships with clan, adhocracy, and market cultures . Conclusions from this: -An organizations culture matters -Employees are happier with clan cultures -Elements of these cultures can be used to boost innovation and quality -Changing the organizational culture won't necessarily boost financial performance (but it might) -Market cultures tend to produce better results

Narrow Span of Control

The manager has limited number of people reporting -Ex: three vice presidents reporting to a president for example instead of 9 doing so. -Organization said to be tall when there are many levels with this kind of span of control

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 various environments.

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 versus Decentralization of Authority

What are the 7 Elements of an organization?

Clan, Adhocracy, Market, & Hierarchy

What are the four types of Organizational Culture?

Organic Organization

When Looseness and flexibility works best -Authority is decentralized there are fewer rules and procedures, and networks of employees are encouraged to cooperate and respond quickly to unexpected tasks -Technology companies favor it because they are constantly adjusting to technological changes -Decentralized hierarchy of authority -Few rules and procedures -Shared tasks -Informal communication -Many teams or task forces -Wider span of control, flatter structures

Mechanistic Organization

When Rigidity & Uniformity works best -Usually works best when an organization is operating in a stable environment -Authority is centralized, tasks and rules are clearly specified, and employees are closely supervised. -Centralized heirarchy of authority -Many Rules -Formalized communication -Few teams or task forces -Narrow Span of control, taller structures

Authority, Responsibility, and delegation: Line versus Staff Positions

With authority goes accountability, responsibility, and the ability to delegate one's authority -Authority: -Accountability: -Responsibility: -Delegation:

Horizontal Design

(Non traditional structure like the rest) -Eliminating functional barriers to solve problems -In this design--also called team based design--teams or workgroups, either temporary or permenant, are used to improve collaboration and work on shared tasks by breaking down internal boundaries Shows a mix of Functional and Project team arrangments

For-Profit Organizations

These are formed to make money, or profits, by offering products or services ex: google, southwest airlines, zappos

Nonprofit Organizations

These are formed to offer services to some clients, not to make profit ex: most colleges and hospitals

Mutual-Benefit organization

These are voluntary collectives whose purpose is to advance members' interests ex: Unions, trade associations

Wide Span of Control

This means the manager has several people reporting -Organization said to be flat when there are only a few levels with this span of control -Allows more workers to be involved with decision making