MGMT 3000 (Organizational Behavior) Ch 13
Md
chapter_13_for_printing.pptxMichael A. Hitt
C. Chet Miller
Adrienne Colella
Chapter 13
organizational
structure and
culture
Organizational Structure
Formal system of work roles and relationships
Govern how associates and managers interact
Organizational Culture
Shared values and norms
Influence behavior
Elements of Organizational Structure
Structural Characteristics
Tangible, physical properties
Determine basic shape and appearance of hierarchy
height
span of control
departmentalization
Structuring Characteristics
Policies and approaches
Directly prescribe behavior of managers and associates
centralization
standardization
formalization
specialization
Structural Characteristics
Span of Control
Height
Departmentalization
Average Span of Ten
Average Span of Four
Adapted from Exhibit 13-1: Average Span of Control: Effects on Height of the Hierarchy
(Highest)
Organizational Level
Number of Managers
at Each Level
1
4
17
63
250
1000
Associates
1
10
100
1000
Associates
Functional Organization
Adapted from Exhibit 13-2: Simplified Functional Organization
VP Research & Development
VP Operations
VP Marketing
VP Human Resources
VP Finance
CEO
Adapted from Exhibit 13-3: Simplified Divisional Organization
CEO
Head of Operations
Head of R&D
Head of Human Resources
Head of Finance
Head of Marketing
V.P. Product/Service Area 1
Head of Operations
Head of R&D
Head of Human Resources
Head of Finance
Head of Marketing
V.P. Product/Service Area 2
Head of Operations
Head of R&D
Head of Human Resources
Head of Finance
Head of Marketing
V.P. Product/Service Area 3
DIVISIONAL ORGANIZATION
Structuring Characteristics
Centralization
Degree authority for decisions is retained at the top
Degree rules and standard operating procedures govern behavior
Formalization
Degree rules and operating procedures are documented
Specialization
Degree associates and managers have jobs with narrow scopes and limited variety
Standardization
MODERN ORGANIZATION FLEXIBLE EMPOWERING TYPE OF STRUCTURE
Fewer management levels
Broader spans of control
Less:
centralization
standardization
formalization
specialization
Learning
Nonlearning
Boundaryless
Traditional
Organic
Mechanistic
Role of Strategy
Corporate Strategy
Approach used in interacting with its environment
growth
diversification
Business Strategy
How it competes for success against others in the market
low cost/low price
product/service differentiation
Diversification
Strategy and Structure
Adapted from Exhibit 13-4: Matches between Diversification Strategy and Structure
Holding Company
Unrelated product
Divisional
Unrelated product
Divisional
Related product
Divisional
Dominant product (several products)
Functional
Dominant product (few products)
Functional
Single product
Structure
Diversification
Role of the Environment
Environmental Uncertainty
degree the environment is complex and changing
uncertain environments are difficult to monitor and understand
Environment and Basic Structure
High Uncertainty
Organic
Lower-level managers and employees must think for themselves
Low Uncertainty
Less Organic
Mid- and senior-level managers create rules and procedures to follow
Environment and
Integration
Adapted from Exhibit 13-5: Integration in Organizations
Slack Resources
Self-Contained Tasks
Information Technology
Lateral Relations
Increasing Implementation Complexity
Increasing Richness of Information Processing
Alternative Lateral Processes
Least
Complex
Most
Complex
Direct Contact
Liaison Roles
Task Forces
Teams
Integrating Roles
Managerial Linking Roles
Matrix Designs
Role of Technology
Manufacturing
Small-batch technology
Mass-production technology
Continuous-process production technology
Mass Customization
Organizations and Technology
Adapted from Exhibit 13-6: Organizations and Technology
Low
Task Analyzability
High
High
Low
Task Variability
Specialized Engineering Consulting Firm
Engineering
Public School
Craft
Research and Development Firm
Non-Routine
Mass-Production Firm
Routine
ROLE OF ORGANIZATIONAL SIZE AS ORGANIZATIONS GROW BIGGER…
Becomes taller
Formalization increases
Centralization decreases
Number of associates and managers increases
Developing Organizational Culture
Adapted from Exhibit 13-7: Process of Developing Organizational Culture
Reinforcing Outcomes
Shared Values
Norms
Individual and Group
Behavior
Organizational Culture
Adapted from Exhibit 13-8: Competing Values Model of Organizational Culture
Effectiveness-
Cohesion and Morale
Leadership-
Mentors and Coaches
Clan
Effectiveness-
Creativity and Innovation
Leadership-
Entrepreneurs and Innovators
Adhocracy
Effectiveness-
Goal Achievement and Winning
Leadership-
Hard Drivers and Competitors
Market
Effectiveness-
Efficiency and Order
Leadership-
Monitors and Organizers
Hierarchy
Internal Focus/Integration versus External Focus/Differentiation
Stability/Control versus Flexibility/Discretion
Cultural Socialization
Process through which an organization imparts its values to newcomers
Cultural Audit
Analyze new associate socialization process and content.
Analyze responses to critical incidents in the organization’s history.
Analyze values and beliefs of culture creators and carriers.
Explore anomalies discovered in analysis.
Examine linkage of current culture to goals.
Tool for assessing and understanding the culture of the organization.
Person-Organization Fit
Values
Goals
types of personal goals one ought to have
Behavior
types of behaviors one ought to use in reaching goals
Types of Personal Values
Adapted from Exhibit 13-9: Types of Personal Values
End (Goal) Values
Prosperity
Stimulating
Achievement
World peace
Harmony’
Equality
Security
Freedom
Happiness
Inner peace
Love
National security
Pleasure
Religion
Self-respect
Social respect
Friendship
Wisdom
Means (Behavior) Values
Ambition
Open-mindedness
Competence
Cheerfulness
Cleanliness
Courageousness
Forgiving
Helpfulness
Honesty
Imagination
Independence
Intelligence
Rationality
Affection
Obedience
Courtesy
Responsibility
Self-discipline
