organizational structure and culture
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TRANSCRIPT
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Sofia Zhukova
Margaux Benoist
Nana Mpaki
Gamze SABA
Nisan KARYENIC
Deniz BARAN
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CONTEXT
• What is organizational structure ?
• Common organizational designs
• Why do structures differ ?
Organizational Structure
• What is organizational culture?
• Creating and sustaining culture
• Creating an ethical organizational culture
Organizational Culture
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What is Organizational Structure
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• how job tasks are formally divided, grouped and coordinated.
What is organizational structure ?
Work specialisation Departmentalisation Chain of command
Span of control Centralisation & decentralisation
Formalisation
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Work Specialization
• describes the degree to which activities in the organization are subdivided into seperate jobs.
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Departmantalisation
Function
Product
Geographic
Process
Customer
The basis by which jobs are grouped together is called departmentalisation.
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Chain of command
• An unbroken line of authority that extends from of the organization to the lowest echelon and clarifies who reports to whom.
• the rights inherent in a managerial position to give orders and expect the orders to be obeyed.
authority
• principle helps preserve the concept of an unbroken line of authority.
The unity of command
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Span of control
1
8
64
512
4,096
1
4
16
64
256
1,024
4,096
it determines the number of levels and managers an organization has.
6 levels
Assuming span of 8
Assuming span of 4
4 levels
Highest level
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Centralisation & decentralisation
• the degree to which decision making is concentrated at a single point in the organization.
• the organization’s key decisions with little or no input from lower-level personnel
Centralisation
• lower personnel provide input or are actually given the discretion to make decisions
Decentralisation
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Formalization
job descriptions,
lots of organizatonal rules,
procedures covering work processes
High formalization
nonprogrammed job behaviours
great deal of to exercise discretion in their work.
Low formalization
refers to degree to which job within the
organization are
standardised.
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Common Organizational Designs
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The Simple Structure
Jack Gold
(owner-manager)
Edna Joiner
(salesperson)
Norma Sloman
(salesperson)
Helen Wright
(cashier)
Johny Moore
(sales person)
Bob Munson
(salesperson)
• Low departmentalization
• Wide spans of control
• Authority centralized in a single person
• Little formalization
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Bureaucracy
Standardized activities in a highly efficient manner
Economies of scale
Less talented,less costly,lower level
manager.
Creating subunit conflicts.
Overriding the overall goals of the organization.
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The Matrix Structure
programs/ academic departments
undergraduate Master’s Ph.d. research Executive development
Community service
accounting
Decision and information systems
Finance
management
marketing
FUNCTIONAL DEPARTMENTS • Allowing the pooling and sharing of specialized resources across information
PRODUCT DEPARTMENTS • Provide a clear responsibility for all activities related to a product but with duplication of activities and costs
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The Virtual Organization
Highly centralized No departmentalization Allow them to contract Manufacturing,distribution,marketing that to be done better or more cheaply The managers in virtual structures spend their time coordinating and controlling external relations
Executive group
Independent research and development
consulting firm
Commission sales
representatives
Advertising agency
Factories in south korea
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The Boundaryless Organization
Eliminate the chain of comman
Limitless spans of control
Replace departments with empowered teams
Knowledge Management
Risk Management Techniques
Integrity Framework
Applying International
SEAAR Standards
By removing vertical boundaries: Management flattens the hierarchy Status and ranks are minimized
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Why do structures differ ?
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Why do structures differ ?
Strategy Organization
Size Technology
Environment Global
implications
Forces that influence the design that is chosen :
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High specialization Rigid departmentalization Clear chain of command Narrow spans of control Centralization High formalization
Cross-functional teams Cross-hierarchical teams Free flow of information
Wide spans of control Decentralization
Low formalization
Mechanistic vs Organic Models
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Strategy
The Strategy Structure Relationship
Innovation
organic
Low
Specialization
Formalization
Decentralization
Cost minimization
mechanistic
High
Specialization
Formalization
Centralization
Imitation
mechanistic and organic
Mix
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Organization Size
more
Specialization
Vertical levels
Rules and Regulations
How the size of an organization affects its structure. As an organizations grows larger it becomes more mechanistic.
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Technology
How a organization transfers its inputs into output
Technology
Structure
Formalization
Centralization
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Environment
Capacity
Volatility
Complexity
Institutions or forces outside the organization that potentially affect the organizations performance.
Stable
Complex Simple
Dynamic
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Global Implications
Does culture really matter to organizational structure ?
•Culture and organizational structure
Do employees in different countries vary in their perceptions of different types of organizational structures ?
•Culture and employee structure preferences
How do cultural considerations fit with our discussions of the boundarlyless organization ?
•Culture and the boundaryless organization
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The span of control refers to:
A ) the number of subordinates reporting directly to a given manager or supervisor.
B )the number of different levels in the chain of hierarchical command.
C )the number of subordinates reporting directly or indirectly to a given manager or supervisor.
D )the total number of managers and supervisors to whom staff report directly or indirectly.
Answer is: C
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Which one of these is not a component of the simple structure?
A ) Low departmentalization
B ) Wide spans of controls
C ) Authority centralized in a single person
D) High formalization
Answer is: D
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A )their structures will be more organic
B )their structures will be more mechanistic
C )their technologies are more complex
D )none of the above
Woodward found that successful companies using mass production technology are likely to differ from those that use unit of continuous process technologies in that:
Answer is: B
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Sofia Zhukova
Margaux Benoist
Nana
Gamze SABA
Nisan KARYENIC
Deniz BARAN
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What is organizational culture?
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Institutionalisation
A condition by which a
organisation takes on a life of its
own and is valued for itself.
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Organisational culture
"The set of the set of beliefs, values, and norms, together with
symbols like dramatized events and personalities, that
represents the unique character of an organization, and provides
the context for action in it and by it.“
Gareth Morgan
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Innovation and risk taking
Characteristics
Attention to detail
Outcome Orientation
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Team orientation
Aggressiveness
People orientation
Stability
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Culture vs Job Satisfaction
Culture
Employees perception of the
organisation and its values
Job Satisfaction
Employees response to the work
environment.
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What do you think?
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From Dominant culture to subculture
Dominant culture
Core values shared by the overall organisation Subcultures
Minicultures which may adopt additional traditions and values
Dominant culture
Department Geographical
Subculture
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Strong culture
Acceptance of values
Commitment to values
Greater influence on
members behaviours
Strong Culture Cycle
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Formalization
• Predicatability
• Orderness
• Consistency
Strong culture
• No formalization
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Boundary
redefying
Sense of identity
Generation of
commitment
Strengthen the stability
of social system
Control mechanism
Culture functions
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Culture liabilities
•Barries to change
•Barriers to diversity
•Barriers to acquisitions and Mergers
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Creating and Sustaining
Culture
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Creating and sustaning culture
Philosophy of organization´s
founders
Selection Criteria
Top Management
and Socialization
Organization Culture
What forces influence the creation of a culture?
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Ultimate source of an organisation: Founders
1. Hire and keep suitable employees
2. Indoctrinate and socialize
3. Act as a model
Philosophy of organization´s
founders
Selection Criteria
Top Management and Socialization
Organization Culture
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• Knowledge, skills and abilities
• Employer select people with similar values
• Candidates learn about the organization
• Example:
Employer Applicant
Philosophy of organization´s
founders
Selection Criteria
Top Management and Socialization
Organization Culture
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• TOP MANAGEMENT
• SOCIALIZATION
Adaptation to the culture
Important: Being proactive
Words
behaviours Norms Organization
Prearrival Encounter Metamorphosis Outcome
Philosophy of organization´s
founders
Selection Criteria
Top Management
and Socialization
Organization Culture
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Entry socialization forms. Which is better for a succesfull metamorphosis?
• Formal vs. Informal
• Individual vs. Collective
• Fixed vs. Variable
• Serial vs. Random
• Investiture vs. Divestiture
Formal, Collective, Fixed, Serial,
divestiture for a succesful metamorphosis
and, therefore Outcome (Productivity,
commitment, turnover)
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How employees learn culture
• Stories
• Rituals
http://www-03.ibm.com/ibm/history/exhibits/music/music_clips.html
• Material symbols
• Language
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Creating an ethical
organizational culture
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Creating an Ethical Organizational Culture
The content and strength of a culture influence an organization’s ethical climate and the ethical behavior of its member.
High in risk tolerance Low to moderate in aggressiveness
Focuses on means as well as outcomes
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Creating an Ethical Organizational Culture
• A case of unethical organizational culture
ENRON American energy, commodities, and services company based in Houston
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Five ways to create a more ethical culture
Be a visible role model Communicate ethical expectations
Provide ethical training
Visibly reward ethical acts and punish unethical ones
Provide protective mechanisms
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Creating a Positive Organizational Culture
A Positive Culture emphasizes on
Employee Strengths
Rewards more than
punishments
Individual vitality and
Growth
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What is Spirituality?
“Workplace spirituality recognizes that people have an inner life that nourishes and is nourished by meaningful work that takes
place in the context of community.”
Spirituality and Organizational Culture
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Reasons for the Growing Interest in Spirituality
As a counterbalance to the contemporary lifestyles
Growing feeling of emptiness
Workplace is dominant in many people’s life
The desire to integrate personal life values with one’s professional life
The pursuit of material acquisitions leave people unfulfilled
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Strong sens of purpose
Trust and Respect
Humanistic work practices
Toleration of employee expression
Cultural Characteristics of
S.O.
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What is a workplace spirituality?
Are spiritual organization legitimate?
Are spirituality and profits compatible?
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TO SUM UP
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QUICK QUIZ
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………… is concerned with how employees perceive the characteristics of an organisational culture
A) Job satisfaction
B) Institutionalization
C) Organizational Culture
D) Subcultures
Select one!
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How is culture transmitted to employees?
A) By using an appropriate selection criteria, socialization and top management practices.
B) By stories, rituals, material symbols and language
C) By material symbols, stories, habits and language
Answer is: B
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What are the characteristics of a Spiritual Organization?
A) It’s characterized by the implementation of religious practises within the Company.
B) It recognizes that people have mind and spirit, seek to find meaning to their work .
C) It’s an Organization which promotes relaxation exercices every mornings before working.
Answer is: B
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THANK YOU! QUESTİONS ?
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References
• Robbins, S. P., & Judge, T. A. (2009). Organizational behavior (13th ed., Internat. ed.). Upper Saddle River, N.J.: Pearson Prentice Hall. ISBN: 978 0 273 71939 7
• http://wps.pearsoned.co.uk/ema_uk_he_mullins_essob_1/44/11449/2931120.cw/index.html
• http://www.sony.net/SonyInfo/News/Press/200806/08-080E/
• David Lei and John W. Slocum, Jr. (2005) Strategic and Organizational
Requirements for Competitive Advantage
• http://www-03.ibm.com/ibm/history/exhibits/music/music_clips.html