MAN3025 Chapter 8: Organizational Culture, Structure and Design

organization chart

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

hierarchy of authority

a control mechanism for making sure the right people do the right things at the right time

modular structure

a firm assembles product chunks provided by outside contractors

organizational structure

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

story

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

hero

a person whose accomplishments embody the values of the organization

organization

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

horizontal design

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

symbol

an object or action that represents an idea or quality

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 structure

an organization whose members are geographically apart, usually working with e-mail and other forms of information technology, yet which generally appears to customers as a single, unified organization with a real physical location

rites and rituals

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

flat organization

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

mechanistic organization

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

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

geographic divisions

group activities around defined regional locations

product divisions

group activities around similar products or services

market culture

has a strong external focus and values stability and control

adhocracy culture

has an external focus and values flexibility

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

simple structure

has authority centralized in a single person, a flat hierarchy, few rules, and low work specialization

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

boundaryless organization

is a fluid, highly adaptive organization whose members, linked by information technology, come together to collaborate on common tasks

organizational design

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

accountability

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

contingency approach to organizational design

organizations are more effective when they are structured to fit the demands of the situation, and when the structure is aligned with the strategies and internal actions of the organization

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 specialities are put together in formal groups

person-organization fit

reflects the extent to which your personality and values match the climate and culture in an organization

enacted values

represent the values and norms actually exhibited in the organization

customer divisions

tend to group activities around common customers or clients

division of labor

the arrangement of having discrete parts of a task done by different people

coordinated effort

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

espoused values

the explicitly stated values and norms preferred by an organization

span of control

the number of people reporting directly to a given manager

responsibility

the obligation you have to perform the tasks assigned to you

hollow structure

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

organizational socialization

the process by which people learn the values, norms, and required behaviors that permit them to participate as members of an organization

delegation

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

authority

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

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 environments

differentiation

the tendency of the parts of an organization to disperse and fragment

integration

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 organization's reason for being