Organizational Research and Theory
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UnitI_Presentation.ppsxUnit Lesson
MBA 6001: Unit I
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Structures and levels of authority
Unit I:
Please be sure to turn up your volume or plug in your headphones. The next several slides contain important audio.
(OpenClipartVectors, 2013)
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Organizational Structures
Insert Image of boundary-less design
To date, the purpose of organizational structures mostly deals with the distribution of how the work gets done. Centralized structures determine vertical lines of authority, and decentralized structures consist of authority at lower levels of the organizations. Tall structures have tall layers of managers versus flat, which has a few layers of management. Boundaryless designs are the opposite of traditional designs with open lines of communication and collaboration. Employees can appreciate these designs because they are more contemporary in nature with perks that attract, motivate, and retain employees. The Fortune list of the 100 Best Companies to Work For gives us a list of companies with no boundaries and the perks employees enjoy.
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FLAT
TALL
Organizational Structures
Product-based
Market-based
Geographical
(2.2 Org Structure Diagrams, n.d.)
Other relevant structures include product-based, market-based, and geographical structures. The matrix structure combines several structures and allows for dual reporting. These structures are designed for multilevel organizations with different products and divisions. The progressive, newer designs of today’s organizations include networks, clusters, and more flexible designs. Each structure has advantages and disadvantages. It is important to evaluate the span of control, the decision-making process, and how the reporting structure affects motivation, organizational behavior, and customer satisfaction.
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Stakeholders
(Altmann, 2014a)
Stakeholders are members of the internal or external environment such as executives, employees, competitors, and customers that have personal, social, or legal reasons to drive performance in the organization.
Because their concerns include customer demands, technology advances, and globalization, we have seen organizations make structural changes to accommodate a focus on corporate culture, competitive advantage, or environmental structures such as self-managed teams, cross-functional teams, and virtual teams. In fact, Microsoft recently announced its structure will change to accommodate its strategy and to improve engineering alignment.
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Corporate Culture
(WikimediaImages, 2015)
(Berkemeyer, 2015)
(ClkerFreeVectorImages, 2012a)
Corporate cultures reinforce an organization’s design and influence how individuals view managers, react to change, and take risks. Organizational cultures are formed by the mission, vision, historical events, and leadership. Business leaders set the standard for the value of the organization (Giberson et al., 2009). Once an organization communicates a shared vison, employees can get on board with sales growth, market share, performance goals, and reward systems. People recognize Zappos, Facebook, Google, and Adobe for how they treat their employees as they have a reputation for stellar cultures.
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Ethics
Lack of trust
Disruptive work flows
Unclear communication
Conflict
(Ratliff, 2007)
Ethics deals with right versus wrong, and what is ethical to one person is not ethical to the next person. Ethical principles and leadership policies set the standards for organizational behavior.
Organizational design defines leadership and clarifies lines of authority, work processes, and systems that correlate with strong cultures. Unethical behavior causes a lack of trust, disruptive work flows, unclear communication, and conflict in the workplace.
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Organizational Scandal
(TruncheonM, 2013)
(Mozart, 2014)
Over the past few years, we have seen organizational scandals include financial institutions, WorldCom, Target’s data breach, Uber, Enron, and the NFL sexual scandal. In 2015 alone, Toshiba, Volkswagen, and NBC lost executives or fired CEOs due to scandals.
The key to restoring stakeholder trust is to identify the root cause by monitoring the external environment, and making changes to the culture and leadership (Hurley, Gillespie, Ferrin, & Dietz, 2013). Building high-trust organizations is essential to stakeholders, employees, suppliers, customers, and society. It certainly takes honesty, transparency, and consultative relationships at every level of the organization to improve productivity and accomplish organizational goals.
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Self Check
True or False
Stakeholders are members of the internal or external environment.
(Altmann, 2014b)
The next few slides consist of self check questions for you to test your knowledge regarding the content covered in this unit. The correct answer will be indicated on the next slide.
True or False: Stakeholders are members of the internal or external environment
True or False: Decentralized structures determine vertical lines of authority, and centralized structures consist of authority at lower levels of the organizations.
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TRUE
Stakeholders are members of the internal or external environment such as executives, employees, competitors, and customers that have personal, social, or legal reasons to drive performance in the organization.
(ClkerFreeVectorImages, 2014)
True! Stakeholders are members of the internal or external environment such as executives, employees, competitors, and customers that have personal, social, or legal reasons to drive performance in the organization.
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True or False
Decentralized structures determine vertical lines of authority, and centralized structures consist of authority at lower levels of the organizations.
(Altmann, 2014b)
True or False: Decentralized structures determine vertical lines of authority, and centralized structures consist of authority at lower levels of the organizations.
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FALSE
Centralized structures determine vertical lines of authority, and decentralized structures consist of authority at lower levels of the organizations.
(ClkerFreeVectorImages, 2012b)
The answer is False!
Centralized structures determine vertical lines of authority, and decentralized structures consist of authority at lower levels of the organizations.
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References
2.2 Organizaational Structure. (n.d.). Retrieved from https://ib2-business-p5.wikispaces.com/2.2+Organizational+Structure
Altman, G. (2014a). Stakeholders [Image]. Retrieved from https://pixabay.com/en/partnership-connectedness-personal-526414/
Altmann, G. (2014b). Test [Image]. Retrieved from https://pixabay.com/en/board-school-uni-learn-work-test-361516/
Berkemeyer. (2015). Culture [Image]. Retrieved from https://pixabay.com/en/team-corporate-culture-staff-689399/
ClkerFreeVectorImages. (2012a). Adobe [Image]. Retrieved from https://pixabay.com/en/adobe-pdf-application-acrobat-icon-24943/
ClkerFreeVectorImages. (2012b). X [Image]. Retrieved from https://pixabay.com/en/cancel-no-symbol-sign-wrong-mark-47588/
ClkerFreeVectorImages. (2014). Checkmark [Image]. Retrieved from https://pixabay.com/en/checkmark-tick-check-yes-mark-303752/
Giberson, T. R., Resick, C. J., Dickson, M. W., Mitchelson, J. K., Randall, K. R., & Clark, M. A. (2009). Leadership and organizational culture: Linking CEO characteristics to cultural values. Journal of Business and Psychology, 24(2), 123-137. Doi:http://dx.doi.org/10.1007/s10869-009-9109-1
Hurley, R. F., Gillespie, N., Ferrin, D. L., & Dietz, G. (2013). Designing trustworthy organizations. MIT Sloan Management Review, 54(4), 75-82.
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References
OpenClipartVectors. (2013, October 11). Headset [Image]. Retrieved from https://pixabay.com/en/headphone-headset-music-audio-159569/
Ratliff, C. (2007, March 19). US government code of ethics [Photograph]. Retrieved from https://www.flickr.com/photos/culturecat/428779117/in/photolist-DTB6p-4RW4Sm-8TNzvx-8QoAE3-bs9vKr-bXFedu-abCZ4s-epyiDa-aexxp7-aevc3c-6M8E73-aexs2u-jgWvaV-edB7rG-a3gCpa-aeydYS-edB7yJ-edvrxF-abD11A-akfGrR-a3gDre-8TRAd7-p42eqK-aeuHC8-8TNzwv-naHczg-offYsm-ayVWdw-9RKyBx-aeuYSX-abD12U-aerJag-77wErC-uaoKbq-abAaGk-abD15A-abD14E-abD14f-abAaDF-abAaCk-abAaBz-abAaBe-abAaAV-abCZYj-abAazV-abCZXb-abCZWw-abCZW7-abCZVE-abAawZ/
Mozart, C. (2014, July 30). Target store [Photograph]. Retrieved from https://www.flickr.com/photos/jeepersmedia/14785374341/in/photolist-nS9iid-qEPE1n-nBC3aC-owwUFg-ouUjFX-pbGZkc-qEPDMB-ucoTs-pbGYVV-o9CPo6-oUdJdx-q1sG9g-qUXcDy-qUXdsY-qUXcT1-q1fbdE-qEEFFA-qbaNMv-qEFY57-r7T9XJ-iEv2bQ-qQvtkn-qEPDTZ-gks4XB-qEFXnf-nTc62Y-o9vbqS-qXaKEh-nUZBdX-j9X6iZ-oowrrL-onb1aj-o5HV6V-iJ8cGw-o5GPqG-omZwyu-omVcux-iMVeyp-o9CT8R-o8DtiG-o5GNXq-omZoFq-o5HRcc-nuCU2g-ooXoQp-ooXqQM-oncx1P-r7T9XU-n5spA7-6NNDia“Target Store” by Mike Mozart is licensed under Attribution 2.0 Generic (CC BY 2.0)
TruncheonM. (2013, October 12). NBC [Photograph]. Retrieved from https://pixabay.com/en/rainbow-room-nyc-nbc-studios-666668/
WikimediaImages. (2015). Google [Image]. Retrieved from https://pixabay.com/en/google-plus-logo-favicon-icon-940317/
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