Chapter 13 & Chapter 16
Organization Structure and Organizational Culture
Division of labor
Unity of command
Authority and responsibility
Span of control
Departmentalization
Complexity
Formalization
Centralization
The simple structure
The bureaucracy
The matrix structure
The team structure
The virtual organization
The boundaryless organization
III. Organizational Culture
What is organizational culture
How do cultures form
How employees learn culture
Functions of organizational culture
I. Basic organizational concepts
- Division of labor: specialization
Horizontal specialization: the way the work to be performed in each hierarchical level of an orga- nization is divided into discrete, individualized jobs.
Vertical specialization: the division of an organization into hierarchical levels
- Unity of command: a subordinate should report to only one boss
- Authority and responsibility
Line authority: direct the work of a subordinate
Staff authority: support, assist, and advise line managers
- Span of control: number of subordinates a manager can efficiently and effectively direct
6? more than 6?
- Departmentalization
Functional departmentalization
Product departmentalization (divisional)
Customer departmentalization
Geographic departmentalization
Process departmentalization
- Complexity: three forms of differentiation
1) Horizontal differentiation: the degree of horizontal separation between units (members and tasks)
2) Vertical differentiation: the depth of the organizational hierarchy
3) Spatial differentiation: the degree to which the location of an organization's physical facilities and personnel are geographically dispersed
- Formalization: the degree to which jobs within the organization are standardized
- Centralization: the degree to which decision making is concentrated at a single point in the organization
- Decentralization
The simple structure:
With low degree of departmentalization, wide spans of control, authority centralized in a single person, and little formalization
The bureaucracy:
With highly routine operating tasks achieved through specialization, very formalized rules and regulations, tasks that are grouped into functional depts., centralized authority, narrow spans of control, and decision making that follows the chain of command
The matrix structure:
It creates dual lines of authority; combines functional and product departmentalization
The team structure:
The use of teams as the central device to coordinate work activities
The virtual organization:
A small, core organization that outsources major business functions
The boundaryless organization:
It seeks to eliminate the chain of command, have limitless spans of control, and replace depts. With empowered teams
III. Organizational culture
- What is organizational culture?
It refers to a system of shared meaning held by members that distinguishes the organization from other organizations.
10 primary characteristics:
1. Member identity
Job --------------------------Organization
2. Group emphasis
Individual-------------------Group
3. People focus
Task ------------------------ People
4. Unit integration
Independent -------------------- Interdependent
5. Control
Loose ------------------- Tight
6. Risk tolerance
Low ---------------------- High
7. Reward criteria
Performance ------------------ Other
8. Conflict tolerance
Low ----------------------- High
9. Means-ends orientation
Means -------------------------- Ends
10. Open-system focus
Internal ---------------------- External
- Some terms
Dominant culture vs. subcultures
Strong vs. weak cultures
Culture vs. formalization
Org. culture vs. national culture
- How do cultures form?
Top
management
Philosophy
of Selection Organiza.
Organi.'s criteria culture
founders Socialization
Socialization: the process that adapts employees to the organization's culture
3 stages: Pre-arrival stage
Encounter stage
Metamorphosis stage
- How do employees learn org. culture?
Stories
Rituals: repetitive sequences of activities that express and reinforce the key values of the organization
Material symbols
Language
- Functions of organizational culture
1) it gives members an organizational identity
2) it facilitates collective commitment
3) it promotes system stability
4) it helps members make sense of their surroundings