McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, All Rights Reserved. Chapter Eight Organizational Culture, Structure, and Design Building Blocks of the Organization
Nov 10, 2014
McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, All Rights Reserved.
Chapter Eight
Organizational Culture,
Structure, and Design
Building Blocks of the
Organization
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What Is an Organizational Culture?
• Organizational culture
system of shared beliefs and values that
develops within an organization and
guides the behavior of its members
Also called
corporate culture
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Four Functions of Organizational Culture
Figure 8.1
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Ways Cultures Become Embedded in Organizations
1. Formal statements
2. Slogans & sayings
3. Stories, legends, & myths
4. Leader reaction to crises
5. Role modeling, training, & coaching
6. Physical design
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Ways Cultures Become Embedded in Organizations (cont.)
7. Rewards, titles, promotions, & bonuses
8. Organizational goals & performance
criteria
9. Measurable & controllable activities
10.Organizational structure
11.Organizational systems & procedures
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What is an Organization?
• Organization
a system of consciously coordinated
activities or forces of two or more people
For-profit, nonprofit, mutual-benefit
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The Organization Chart
• Organization Chart
box-and-lines illustration showing the
formal lines of authority and the
organization’s official positions or work
specializations
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Organization Chart
Figure 8.2Example for a hospital
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Line and Staff
Figure 8.3
Line have solid lines, staff
have dotted lines
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Basic Types of Organizational Structures
• Simple structure
authority is centralized in a single person
with few rules and low work specialization
• Functional structure
people with similar occupational
specialties are put together in formal
groups
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Basic Types of Organizational Structures
• Divisional structure
people with diverse occupational specialties
are put together in formal groups by similar
products, customers or geographic regions
• Matrix structure
an organization combines functional and
divisional chains of command in a grid so that
there are two command structures-vertical
and horizontal
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Basic Types of Organizational Structures
• Team-based structure
workgroups are used to improve horizontal
relations and solve problems throughout the
organization
• Network structure
the organization has a central core that is
linked to outside independent firms by
computer connections
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Team-based Structure
Figure 8.8
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Mechanistic vs. Organic Organizations
Table 8.1
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Stages in the Life of an Organization
Stage 1: Birth stage – the organization is
created
Stage 2: Youth stage – growth and expansion
Stage 3: Midlife stage – period of growth
evolving into stability
Stage 4: Maturity stage -organization
becomes very bureaucratic, large, and
mechanistic
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REVISION
1. (p. 240) The "social glue" that binds shareholders with the organization's Board of Directors is called organizational culture.
TRUE OR FALSE
FALSE
• Organizational culture is the "social glue" that binds members of the organization together.
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2. (p. 241) Pfizer Pharmaceuticals, with its culture that manages failure and disappointment, and of helping drug researchers live for the small victories in discovering new drugs for various diseases, is an example of an adhocracy.
TRUE OR FALSE
TRUE
• An adhocracy culture has an external focus and values flexibility. This type of culture attempts to create innovative products (new drugs) by being adaptable, creative, and quick to respond to changes in the marketplace. Employees are encouraged to take risks and experiment with new ways of getting things done (drug research).
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3. (p. 241) Visible culture consists of values,
beliefs, and assumptions.
TRUE OR FALSE
FALSE
• At the most visible level, organizational culture is
expressed in observable artifacts—physical
manifestations such as manner of dress,
awards, myths and stories about the company,
rituals and ceremonies, and decorations, as well
as visible behavior exhibited by managers and
employees.
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4. (p. 243) The pink Cadillac that Mary Kay
presents to the best salespeople of its
cosmetic line is an example of a symbol.
TRUE FALSE
TRUE
• A symbol is an object, act, quality, or event
that conveys meaning to others. The pink
Cadillac conveys excellence in personal
selling in the Mary Kay organization.
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5. (p. 247) Roberto opened a new restaurant in Miami called Cuban Isle. He wanted to be sure a culture of service and excellence was embedded in his new organization so he posted the values of the organization in the kitchen and in the dining room. Roberto is teaching his organization the culture by this action.
TRUE OR FALSE
TRUE
• There are eleven ways that those who found a business and the managers who follow them use to teach the values, beliefs, expectations, behaviors, and business philosophy that constitute the organization's culture. One is making a formal statement of the organization's values as Roberto did.
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