Organizational Culture, Structure, & Design

staff personnel

(horizontal) have authority functions; provide advice, recommendations, and research to line managers

line managers

(vertical) have authority to make decisions and usually have people reporting to them

what drives an organizational culture?

-founder's values -industry& business environment -national culture -organization's vision and strategies -behavior of leaders

4 common elements of organizations (edgar schein)

1. common purpose: unifies employees or members and gives everyone an understanding of the organization's reason for being 2. coordinated effort: coordination of individual efforts into a group or organization-wide effort 3. division of labor: aka work specialization, the arrangement of having discrete parts of a task done by different people 4. hierarchy of authority: aka chain of command, a control mechanism for making sure the right people do the right things at the right time (flat organization: organizational structure with few or no levels of middle management between top managers and those reporting to them) (unity of command: employee should report to no more than one manager in order to avoid conflicting priorities and demands)

12 mechanisms for changing/embedding organizational culture

1. formal statements 2. slogans & 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

3 factors to consider in designing an organization's structure

1. the environment--mechanistic vs organic 2. the environment--differentiation vs integration 3. link between strategy, culture, and structure

3 types of organizational designs

1. traditional designs: simple, functional, divisional, and & matrix Structures 2. horizontal design: eliminating functional barriers to solve problems 3. designs that open boundaries between organizations: hallow, modular, & virtual

3 more common elements that most authorities agree on

5. span of control: narrow (or tall) vs wide (or flat)-- refers to the number of people reporting directly to a given manager narrow: limited number of people reporting wide: several people reporting to 6. authority, responsibility, & delegation 7. centralization vs decentralization of authority (centralized authority: important decisions are made by higher-level managers) (decentralized: important decisions are made by middle-level and supervisory-level managers)

A formal chain of command, standardization of rules and procedures, and use of cross-functional teams and computer networks so that there is frequent communication and coordination of the parts are the means for achieving ________. A. a common goal through integration B. differentiation through specialization C. higher sales through analytics D. lower costs through efficiency E. higher profits through goal setting

A. a common goal through integration

Phillip, owner of Technology Sales, said, "We have to focus on our customers and how can we beat the competition, so we have to be flexible." He encourages his R&D department to develop innovative products and focuses on being quick to respond to market changes. Technology Sales has a(n) ________. A. adhocracy culture B. clan culture C. goal-driven agenda D. market culture E. focused approach

A. adhocracy culture An adhocracy culture has an external focus and values flexibility. This type of culture attempts to create innovative products by being adaptable, creative, and quick to respond to changes in the marketplace. Adhocracy cultures are well suited for companies in industries undergoing constant change.

Employees apply their individual efforts in a ______ to fulfill a common purpose. A. Coordinated Effort B. Division of Labor C. Unity of Command D. Delegation E. Chain of Command

A. coordinated effort

Symbols, stories, heroes, and rites and rituals are ways in which ________ is(are) most often transmitted to employees. A. culture B. goals C. objectives D. plans E. ethics

A. culture Culture is transmitted to employees in several ways, most often through such devices as symbols, stories, heroes, and rites and rituals.

Espoused values are ________. A. explicitly stated values and norms preferred by an organization B. the values and norms actually exhibited in the community C. a narrative based on true events, which emphasize a particular value D. physical manifestations of organizational culture E. profit and cost expectations stated in the business plan

A. explicitly stated values and norms preferred by an organization Espoused values are the explicitly stated values and norms preferred by an organization, as may be put forth by the firm's founder or top managers.

The Safety Committee, a temporary team, was established to make the workplace a safer place. Members of the committee still work in their departments full-time, but meet twice a month for a few hours as a committee. This is an example of a ________. A. horizontal design B. vertical design C. modular design D. multipurpose design E. common purpose

A. horizontal design In a horizontal design, teams or workgroups, either temporary or permanent, are used to improve collaboration and work on shared tasks by breaking down internal boundaries. Team members still have their full-time functional work responsibilities and often still formally report to their own managers above them in the functional-division hierarchy.

Manner of dress, awards, myths and stories told about the company, and rituals and ceremonies are ________. A. observable artifacts of organizational culture B. enacted values of organizational culture C. espoused values of organizational culture D. basic assumptions about organizational culture E. invisible artifacts of that industry's culture and values

A. observable artifacts of an organizational culture At the most visible level, organizational culture is expressed in observable artifacts, which are physical manifestations such as manner of dress, awards, myths and stories about the company, rituals and ceremonies, and decorations, as well as visible behavior exhibited by managers and employees.

According to the competing values framework, clan, adhocracy, market, and hierarchy are ________. A. organizational cultures B. organizational values C. organizational norms D. MBO levels of achievement E. industry cultural standards

A. organizational cultures According to the competing values framework, organizational cultures can be classified into four types: (1) clan, (2) adhocracy, (3) market, and (4) hierarchy (see Figure 8.2).

Which of the following is an accurate conclusion from the "Organizational Culture and Organizational Effectiveness: A Meta-Analytic Investigation of the Competing Values Framework's Theoretical Suppositions" study involving the culture of 1,000 companies? A. Changing the organizational culture generally boosts financial performance. B. Managers can use elements of these cultures to boost innovation and quality. C. Employees prefer market cultures. D. An organization's culture does not matter. E. Adhocracy cultures produce better results.

B. Managers can use elements of these cultures to boost innovation and quality. 25 years of research on the relationship between organizational culture and various measures of organizational effectiveness demonstrated that the eight types of organizational outcomes had significant and positive relationships with clan, adhocracy, and market cultures, especially with the outcomes of job satisfaction and organizational commitment. One general conclusion was that managers can build into their organizations characteristics of some or all of these three cultures—clan, adhocracy, and market—to increase innovation and improve the quality of their products.

A hierarchy of authority is ________. A. a diversity structure used in planning with recruiting, selection, and hiring B. a control mechanism for making sure the right people do the right things at the right time C. also known as a division of labor D. also known as work specialization E. the arrangement of having discrete parts of a task done by different people

B. a control mechanism for making sure the right people do the right things at the right time aka chain of command

Sometimes culture can be strong enough to take the place of an organization's ________. A. performance standards B. formal rules and regulations C. code of ethics D. mission statement E. business plan

B. formal rules and regulations Sometimes culture can be strong enough to take the place of bureaucracy; that is, the expectations of the culture replace formal rules and regulations.

The structure of Shoe Mart consists of people with similar specialties put together in formal groups, such as the marketing, accounting, and human resource departments. This is an example of a ________. A. centralized structure B. functional structure C. hollow structure D. focused structure E. simple structure

B. functional structure In a functional structure, people with similar occupational specialties are put together in formal groups. This is a quite commonplace structure, seen in all kinds of organizations, for-profit and nonprofit. (See Figure 8.7.)

Quality Paper Products utilizes a structure that includes functional divisions and a divisional chain of command. For example, Mary Beth, a salesperson, reported to both her sales manager and the office products manager when she first started working on the city of Springfield account. Quality Paper Products has developed a ________. A. modular structure B. matrix structure C. geographic-divisional structure D. hollow structure E. team-based approach

B. matrix structure In a matrix structure, an organization combines functional and divisional chains of command in a grid so that there are two command structures, vertical and horizontal.

Peter, the owner of Happy Burger, is involved in the company's daily decisions and has established procedures for every task. The company rules are clearly specified in the handbook, and Peter also believes in close supervision of all employees. Happy Burger is a(n) ________ organization. A. non-herarchal B. mechanistic C. organic D. decentralized E. informal

B. mechanistic In a mechanistic organization, authority is centralized, tasks and rules are clearly specified, and employees are closely supervised.

Twitter's organizational culture most resembles a ______ culture. A. Market B. Competitive C. Clan D. Adhocracy E. Hierarchy

C. clan

A major advantage/major advantages of decentralization are that managers are: A. More apt to coordinate with other divisions in making important decisions B. Able to see how all of the parts of the company work together C. Encouraged to solve their own problems D. Inclined to make slower, more deliberate decisions E. Incentivized to run decisions by their supervisors first

C. encouraged to solve their own problems An advantage of decentralized authority is that managers are encouraged to solve their own problems rather than to buck the decision to a higher level. In addition, decisions are made more quickly, which increases the organization's flexibility and efficiency.

The clan culture has a(n) ________. A. external focus and values flexibility B. internal focus and values stability and control C. internal focus and values flexibility D. strong external focus and values stability and control E. continual focus on efficiency, cost cutting, and outsourcing

C. internal focus and values flexibility A clan culture has an internal focus and values flexibility rather than stability and control.

Adam, the owner of Adam's Roofing, was talking to a visitor in his office, telling her that "We are a fun-loving group that believes in teamwork and a family atmosphere at work, which significantly affects our work outcomes. Plus, we do things together outside of work. This is the 'social glue' that binds the members of our company together." Adam was referring to his company's ________. A. organizational MBO B. diversity plan C. organizational culture D. analytics E. code of ethics

C. organizational culture Organizational culture, or corporate culture, is a system of shared beliefs and values that develops within an organization and guides the behavior of its members. This is the "social glue" that binds members together. Just as a human being has a personality, such as fun-loving, warm, uptight, competitive, so an organization has a "personality," too, and that is its culture.

Time Warner has different divisions for magazines, movies, recordings, cable television, and so on. The Warner Bros. part of the empire alone has divisions spanning movies and television, a broadcast network, retail stores, theaters, amusement parks, and music. Time Warner is an example of an organization with ________. A. merchandise divisions B. geographic divisions C. product divisions D. common divisions E. customer divisions

C. product divisions Product divisions group activities around similar products or services.

A company with authority centralized in a single person, a flat hierarchy, few rules, and low work specialization is a characteristic of an organization with a ________. A. hollow structure B. functional structure C. simple structure D. horizontal design E. team-based design

C. simple structure

IKEA employees are expected to work hard, inspired by an anecdote from their Swedish founder, Invar Kamprad, in which he told how he was berated by his father for failing repeatedly to get out of bed to milk the cows on his family's farm. Then one day he got an alarm clock. "'Now by jiminy, I'm going to start a new life,' he determined, setting the alarm for twenty to six and removing the 'off button.'" Invar Kamprad is an example of a ________. A. urban legend B. trend C. fable D. hero E. key employee

D. hero A hero is a person whose accomplishments embody the values of the organization. The accomplishments of heroes, past and present, are put forth to motivate other employees to do the right thing.

A hierarchy culture has a(n) ________. A. continual focus on efficiency, cost cutting, and outsourcing B. external focus and values flexibility C. strong external focus and values stability and control D. internal focus and values stability and control E. internal focus and values innovation and creaticity

D. internal focus and values stability and control A hierarchy culture has an internal focus and values stability and control over flexibility.

Voluntary collectives with the purpose of advancing their members' interests are known as ________. A. mutual associations B. volunteer co-ops C. for-profit organizations D. mutual-benefit organizations E. nonprofit organizations

D. mutual benefit organization

The two kinds of spans of control are ________. A. tall and short B. tall and hollow C. flat and broad D. narrow and wide E. hierarchy and nonhierarchy

D. narrow and wide

Rites and rituals are ________. A. company expectations for employees, such as working hard, ethically, and honestly B. a narrative based on true events that emphasize a particular value C. company values included in the code of ethics D. the activities and ceremonies that celebrate important occasions and accomplishments for an organization E. objects, acts, or the quality that conveys meaning to others

D. the activities and ceremonies that celebrate important occasions and accomplishments for an organization planned and unplanned

Elly and Sylvia, owners of Organic Foods, do not have a formal policy about dress code and work procedures because they see their company as a family place that is enjoyable to work for. Elly and Sylvia believe that if you treat employees like family, the company will do well and grow. These beliefs by the owners of Organic Foods represent the core values of their organization's culture, and are known as ________. A. family codes B. observable artifacts C. a code of ethics D. rites and rituals E. basic assumptions

E. basic assumptions Basic assumptions, which are not observable, represent the core values of an organization's culture. They are those that are taken for granted and, as a result, are difficult to change.

Organizations using a matrix structure ________. A. contain multiple overlapping command structures, in which employees report to several managers B. utilize teams or workgroups with few lines of authority C. centralize authority into a single person D. establish a hierarchy in which employees report to only one supervisor E. contain two command structures, in which some people actually report to two bosses

E. contain two command structures, in which some people actually report to two bosses In a matrix structure, an organization combines functional and divisional chains of command in a grid so that there are two command structures, vertical and horizontal. For example, a marketing person may report to both the vice president of marketing and to the project manager.

Making formal statements, holding rites and rituals, utilizing employee training and coaching, demonstrating how a leader reacts to a crises, being a role model, and giving rewards, promotions, and bonuses are some of the teaching methods that organizations can utilize to ________. A. perform competitive analysis B. conduct formal market research C. follow legal requirements D. write a strategic plan E. effect corporate change

E. effect corporate change Changing organizational culture is a teaching process in which organizational members teach each other about the organization's preferred values, beliefs, expectations, and behaviors. The process is accomplished by using one or more of the following 12 mechanisms: formal statements; slogans and sayings; rites and rituals; stories, legends, and myths; leader reactions to crises; role modeling, training, and coaching; physical design; rewards, titles, promotions, and bonuses; organizational goals and performance measurable and controllable activities; organizational structure; and organizational systems and procedures.

Della, the new CEO of Sky Advertising, has been with the firm for over 25 years. She was picked by the board to turn the 85-year-old agency around and to do so, Della wants to bring back some old ideas that previously worked at Sky. She plans on having managers and veteran employees instruct each other about the organization's chosen values, beliefs, and expectations through holding some of the old rites and rituals, retelling stories about company legends, bringing back training and coaching, and once again having quarterly reward ceremonies. The things Della wants to do are an example of ________. A. a value stabilizing plan B. MBO C. TQM D. decentralizing authority E. embedding culture

E. embedding culture Changing organizational culture is a teaching process in which organizational members teach each other about the organization's preferred values, beliefs, expectations, and behaviors. The process is accomplished by using one or more of the following 12 mechanisms: formal statements; slogans and sayings; rites and rituals; stories, legends, and myths; leader reactions to crises; role modeling, training, and coaching; physical design; rewards, titles, promotions, and bonuses; organizational goals and performance measurable and controllable activities; organizational structure; and organizational systems and procedures.

With a hollow structure, the organization ________. A. is a rigid non-adaptive structure B. assembles product chunks, or modules, provided by outside contractors C. groups activities around similar products or services D. is often called a horizontal organization E. has a central core of key functions and outsources others to vendors who are less expensive or faster

E. has a central core of key functions and outsources others to vendors who are less expensive or faster aka network structure

Organizational design is concerned with an organization developing ________. A. the most favorable methods of accomplishing both the diversity and synergy plans B. important decisions that are suggested by employees C. new MBO goals D. the best structures of costs and efficiency that an organization uses to meet goals E. optimal structures of accountability and responsibility to execute its strategies

E. optimal structures of accountability and responsibility to execute its strategies We may categorize organizational designs as three types: (1) traditional designs, (2) horizontal designs, and (3) designs that open boundaries between organizations.

A clan culture is a type of dysfunctional organization that has little collaboration and cohesion among employees, thus worker job satisfaction and commitment are low. T/F

False A clan culture has an internal focus and values flexibility rather than stability and control (see Figure 8.2).

A system of shared beliefs and values that develops within an organization and guides the behavior of its members is known as the corporate system. T/F

False A system of shared beliefs and values that develops within an organization and guides the behavior of its members is known as the company's culture or organizational culture. Organizational structure is a formal system of task and reporting relationships that coordinate and motivates an organization's members so that they can work together to achieve the organization's goals.

When the new nurse was hired at the hospital, HR gave her a handout containing a chart that showed a family-tree-like pattern of boxes and lines, the formal lines of authority and the organization's official positions at the hospital. This handout is known an emergency process and procedures flow chart. T/F

False Although sometimes an organizational chart can give clear directives for the chain of command in states of emergency, those details are often reserved for separate procedures not beholden to formal lines of authority and official organizational positions.

An advantage of centralization is that procedures are not uniform and thus easier to control. T/F

False An advantage of centralization is that procedures are uniform and thus easier to control; all purchasing, for example, may have to be put out to competitive bids. Another advantage in using centralized authority is that there is less duplication of work because fewer employees perform the same task; rather, the task is often performed by a department of specialists.

Companies that have gone through a rough start-up period may decide to change their structures so that they are less mechanistic, to enable greater flexibility. T/F

False Companies that have gone through a rough-and-tumble start-up period may decide to change their structures so that they are more mechanistic, with clear lines of authority.

Key IT Products has decided to retain its computer design, human resources, and marketing departments at its corporate office. But to cut costs and increase speed, it outsources many other functions such as production in Canada, accounting in a neighboring city, warehousing and distribution across town. Many components are manufactured overseas. This is an example of a matrix structure. T/F

False In the hollow structure, often called the network structure, the organization has a central core of key functions and outsources other functions to vendors who can do them cheaper or faster (see Figure 8.11).

When there are fewer rules and procedures, and networks of employees are encouraged to cooperate and respond quickly to unexpected tasks, this is known as integration. T/F

False Integration is the tendency of the parts of an organization to draw together to achieve a common purpose.

Just as human beings have a personality, organizations also have a "personality"—the product(s) they sell and the type(s) of market(s) they participate in. T/F

False Just as a human being has a personality, organizations also have a "personality"—their culture.

The formal and informal marketing systems of goods, services, and ideas, along with the customer relationships, that an organization sells are known as its organizational structure. T/F

False Organizational structure is a formal system of task and reporting relationships that coordinate and motivate an organization's members so that they can work together to achieve the organization's goals.

Dave, the HR manager, was meeting with Amy, the new controller. He mentioned to her that "If you glance left and right on the line of that chart, you will see horizontal specialization, the different jobs and work specializations." The chart that Dave was showing to Amy is an organization chart. T/F

True

The arrangement of having discrete parts of a task done by different people is known as division of labor. T/F

True

The tendency of the parts of an organization to disperse and fragment is known as differentiation. T/F

True

Dave, a graphic designer with Development Advertising, enjoys the flexibility of his management and its culture, which encourages risk taking, innovation, and creativity. Because it is a small company, Dave gets quick answers from his boss, which allows him and Development Advertising to quickly respond to changes in the marketplace. Development Advertising is an example of an adhocracy culture. T/F

True An adhocracy culture has an external focus and values flexibility. This type of culture attempts to create innovative products by being adaptable, creative, and quick to respond to changes in the marketplace. Employees are encouraged to take risks and experiment with new ways of getting things done.

At Ace Sales, the CEO and HR director are line managers, and the special adviser is an example of a staff position. T/F

True Line managers have authority to make decisions and usually have people reporting to them, an example of which is a director of operations. Staff personnel have authority functions; they provide advice, recommendations, and research to line managers.

North Community College strives to portray its image to citizens of the community through advertising and the actions of its faculty and staff that "community is our middle name." This act of trying to depict this image is a symbol. T/F

True A symbol is an object, act, quality, or event that conveys meaning to others. In an organization, symbols convey its most important values.

Joe, the owner of Ace Product Sales, emphasizes a professional culture. He is strict when it comes to the way his employees dress in the office and while visiting customers, saying "Our image and success is based on how people view us, so the way we dress is a priority." In addition, Joe strongly believes in awarding his employees during monthly ceremonies. Joe said, "We reward our employees so they feel good about what they are doing, which is the mark of a professional organization." This is a good example of how organizational culture is expressed in observable artifacts. T/F

True At the most visible level, organizational culture is expressed in observable artifacts, like manner of dress, awards, stories, and ceremonies as well as visible behavior exhibited by managers and employees.

Beautiful Homes builds new homes with products from numerous companies, such as garages from Home Depot and specially designed kitchens from a company in North Carolina. Beautiful Homes is an example of a modular structure. T/F

True In a modular structure, a firm assembles product chunks, or modules, provided by outside contractors.

The employees of XYZ Production enjoy a culture that has developed over time to become a model for local companies. A manager with XYZ mentioned that "Through a careful selection process while hiring and the strong culture we have developed, our employee turnover is one of the lowest our industry." This is an example of how low turnover can be a consequence of a good organizational culture. T/F

True Organizational culture facilitates collective commitment. Consider 3M, one of whose corporate values is to be "a company that employees are proud to be part of." This collective commitment results in a turnover rate of less than 3% among salaried personnel.

organizational structure

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

1. traditional designs-- the matrix structure

a grid of functional and divisional for 2 chains of command and organization combines functional and divisional chains of command in a grid so that there are 2 command structures-- vertical and horizontal

adhocracy culture

a risk-taking culture has an external focus and values flexibility

organizational culture

aka corporate culture 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

3. designs that open boundaries between organizations-- the hallow structure

aka network structure organization has central core of key functions and outsources other functions to vendors who can do them cheaper and faster

clan culture

an employee focused culture internal focus and values flexibility rather than stability and control

3. designs that open boundaries between organizations-- the virtual structure

an internet-connected partner for a temporary project virtual organization: an organization whose members are geographically apart, usually working with email, collaborative computing, and other computer connections virtual structure: company outside a company that is created "specifically to respond to an exceptional market opportunity that is often temporary"

what organizational benefits are associated with what organizational cultures?

an organization's culture matters for competitive advantage employees= happier with clan cultures elements of clan, market, and adhocracy can be used to boost innovation and quality changing the organizations culture won't necessarily boost financial performance (but it might) market cultures tend to produce better results

organizational chart

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

mechanistic organizations

centralized hierarchy of authority many rules and procedures specialized tasks formalized communication few teams or task forces narrow span of control, taller structures

Four Types of Organizational Culture

clan, adhocracy, market and hierarchy

market culture

competitive culture valuing profits over employee strong external focus and values stability and control

organizational design

concerned with designing the optimal structures of accountability and responsibility that an organization uses to execute its strategies 3 types: traditional designs, horizontal designs, designs that open boundaries between organizations

organic organizations

decentralized hierarchy of authority few rules and procedures shared tasks informal communication many teams or task forces wider span of control, flatter structures

2. the environment-- differentiation vs integration

differentiation: tendency of the parts of an organization to disperse and fragment integration: tendency of the parts of an organization to draw together to achieve a common purpose

drivers and flow of organizational culture

drivers of culture--> organizational culture--> organizational structure & internal processes--> group and social processes--> work attitudes & behaviors--> overall performance

2. the horizontal design

eliminating functional barriers to solve problems 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

person-organization fit

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

competing values framework

flexibility and discretion vs stability and control internal focus and integration vs external focus and differentiation

3 types of organization

for profit nonprofit mutual-benefit

1. traditional designs-- the simple structure

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

1. traditional designs--the functional structure

grouping by similar work specialities people with similar work occupational specialties are put together in formal groups

1. traditional designs--the divisional structure

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: grouping by similar products or services customer divisions: grouping by common customers or clients geographic divisions: grouping by regional location

3. linking strategy, culture, and structure

if managers of an organization change its strategy, they must change the culture and structure to support that strategy

3 levels of organizational culture

level 1: observable artifacts--physical manifestations of culture such as manner of dress, awards, myths and stories about company, rituals ceremonies and decorations, visible behavior exhibited by managers and employees level 2: espoused values--explicitly stated values and norms preferred by an organization (enacted values: values and norms actually exhibited in the organization) level 3: basic assumptions-- core values of the organization (not observable, taken for granted so difficult to change)

accountability

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

1. the environment: mechanistic vs organic organizations

mechanistic: (when rigidity and uniformity work best) authority is centralized, tasks and rules are clearly specified, and employees are closely supervised organic: (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-- adhocracies

responsibility

obligation you have to perform the tasks assigned to you

3. designs that open boundaries between organizations

opposite of bureaucracy boundary-less organizations: fluid, highly adaptive organization whose members, linked by info technology, come together to collaborate on common tasks collaborators may include not only coworkers but also suppliers, customers, and even competitors

3. designs that open boundaries between organizations-- the modular structure

outsourcing pieces of a product to outside firms a firm assembles product chunks, or modules, provided by outside contractors

delegation

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

contingency design

process of fitting the organization to its environment

authority

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

hierarchy culture

structured culture valuing stability and effectiveness has an internal focus and values stability and control over flexibility

how employees learn culture

symbols: an object, act, quality, or event that conveys meaning to others stories: narrative based on true events, which is repeated to emphasize a particular value heroes: person whose accomplishments embody the values of the organization rites and rituals: activities and ceremonies, planned and unplanned, that celebrate important occasions and accomplishments in the organization's life

organization

system of consciously coordinated activities or forces of 2 or more people

The activities and ceremonies, planned and unplanned, that celebrate important occasions and accomplishments in the organization's life are known as rites and rituals. T/F

true Rites and rituals are the activities and ceremonies, planned and unplanned, that celebrate important occasions and accomplishments in the organization's life. Military units and sports teams have long known the value of ceremonies handing out decorations and awards, but many companies have rites and rituals as well.

vertical hierarchy of authority

who reports to whom chain of command, official communication network

horizontal specialization

who specializes in what work different jobs or work specialization