Organizational Structure

(6 Elements)

1. Work Specialization

2. Departmentalization

3. Chain of Command

4. Span of Control

5. Centralization/Decentralization

6. Formalization

Departmentalization

(4 Groupings)

i. Functions performed

ii. Product and service

iii. Geography

iv. Customers/Market

Common Organizational Designs

(3)

Ch. 15

The Simple Structure (low degree of departmentalization, little formalization)

Bureaucracy (standardization!)

Matrix Structure (functional + product)

- small core organzation that outsources major functions

Boundaryless Organization

Ch. 15

organization without hierarchy and minimizes status anr rank

Two Structural Models (Ch. 15)

Define them.

Mechanistic: basically like bureaucracy

Organic: more like boundaryless organization

Three strategies

implemented by

the two Structures

Ch. 15

1. Innovation Strategy (organic)

2. Cost-minimization strategy (mechanistic)

3. Imitation strategy (both. min. risk but max. opportunity)

Three Environmental Factors

that affect Structure

1.   Capacity – degree to which environment supports growths

2.   Volatility – degree of instability

3.   Complexity – heterogeneity and concentration among elements

Four Factors that Determine an Organization's Structure

1. Strategy

2. Size

3. Technology

4. Environment

5S Culture

(unimportant, ch. 16)

Sorting

Straightening

Shining

Standardizing

Sustaining

7 Characteristics of Organizational Culture

A - PATIOS

Attention to detail

People orientation

Aggressiveness

Team orientation

Innovation and Risk Taking

Outcome orientation

Stability

Strong vs Weak Cultures

core values are both "intensely held and widely shared"

Culture vs Formalization

A Strong culture is similar to formalization minus the documentation

Culture’s Functions

(4)

Ch. 16

1. Defines the org from others

2. Creates common Identity

3. Commitment to the Big Picture

4. Enhances Stability “the social glue”

Culture as a Liability (4 issues):

1. Institutionalization

2. Barriers to Change

3. Barriers to Diversity

4. Barriers to M/A

How a Culture Begins (3 Ways)

1. Founder hires similar people

2. They are indoctrinated

3. Founder's behavior encourages similar behavior

Keeping a Culture Alive (3 Forces)

1. Selection

2. Top Management - behavior

3. Socialization (3 Stages)

Three Stages of Socialization

1. Pre-arrival stage. Recognize individual values

2. Encounter Stage. Where individual expectations are contrasted against reality

3. Metamorphisis Stage (2 practices) - where change happens

Metaphormsis: Two Socialization Practices

1. Institutional: “formal, collective, sequential, fixed, and serial socialization programs” -> soldiers

2. Individual – “informal, individual, random, variable, disjunctive and encourage investiture” -> more innovation

How Cultures Form (4 Ways)

StoRML

1. Stories

2. Rituals (that reinforce key values)

3. Material Symbols (private jet vs flying economy)

4. Language (jargon)

Positive Organizational Culture (3 Traits)

1. Building on Employee Strengths.

2. Rewarding more than Punishing

3. Emphasizing Vitality and Growth

Workplace Spirituality (4 Characteristics)

Global Implications (Ch. 16 - Org Culture)

“a strong culture [can be] difficult to change [even] if it becomes mismatched to its management”

- managers should help with proper socialization and create an ethical culture and positive organizational culture