organizational structure and culture

Sofia Zhukova

Margaux Benoist

Nana Mpaki

Gamze SABA

Nisan KARYENIC

Deniz BARAN

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

What is Organizational Structure

• 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

Work Specialization

• describes the degree to which activities in the organization are subdivided into seperate jobs.

Departmantalisation

Function

Product

Geographic

Process

Customer

The basis by which jobs are grouped together is called departmentalisation.

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

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

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

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.

Common Organizational Designs

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

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.

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

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

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

Why do structures differ ?

Why do structures differ ?

Strategy Organization

Size Technology

Environment Global

implications

Forces that influence the design that is chosen :

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

Strategy

The Strategy Structure Relationship

Innovation

organic

Low

Specialization

Formalization

Decentralization

Cost minimization

mechanistic

High

Specialization

Formalization

Centralization

Imitation

mechanistic and organic

Mix

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.

Technology

How a organization transfers its inputs into output

Technology

Structure

Formalization

Centralization

Environment

Capacity

Volatility

Complexity

Institutions or forces outside the organization that potentially affect the organizations performance.

Stable

Complex Simple

Dynamic

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

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

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

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

Sofia Zhukova

Margaux Benoist

Nana

Gamze SABA

Nisan KARYENIC

Deniz BARAN

What is organizational culture?

Institutionalisation

A condition by which a

organisation takes on a life of its

own and is valued for itself.

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

Innovation and risk taking

Characteristics

Attention to detail

Outcome Orientation

Team orientation

Aggressiveness

People orientation

Stability

Culture vs Job Satisfaction

Culture

Employees perception of the

organisation and its values

Job Satisfaction

Employees response to the work

environment.

What do you think?

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

Strong culture

Acceptance of values

Commitment to values

Greater influence on

members behaviours

Strong Culture Cycle

Formalization

• Predicatability

• Orderness

• Consistency

Strong culture

• No formalization

Boundary

redefying

Sense of identity

Generation of

commitment

Strengthen the stability

of social system

Control mechanism

Culture functions

Culture liabilities

•Barries to change

•Barriers to diversity

•Barriers to acquisitions and Mergers

Creating and Sustaining

Culture

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?

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

• 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

• 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

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)

How employees learn culture

• Stories

• Rituals

http://www-03.ibm.com/ibm/history/exhibits/music/music_clips.html

• Material symbols

• Language

Creating an ethical

organizational culture

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

Creating an Ethical Organizational Culture

• A case of unethical organizational culture

ENRON American energy, commodities, and services company based in Houston

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

Creating a Positive Organizational Culture

A Positive Culture emphasizes on

Employee Strengths

Rewards more than

punishments

Individual vitality and

Growth

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

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

Strong sens of purpose

Trust and Respect

Humanistic work practices

Toleration of employee expression

Cultural Characteristics of

S.O.

What is a workplace spirituality?

Are spiritual organization legitimate?

Are spirituality and profits compatible?

TO SUM UP

QUICK QUIZ

………… is concerned with how employees perceive the characteristics of an organisational culture

A) Job satisfaction

B) Institutionalization

C) Organizational Culture

D) Subcultures

Select one!

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

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

THANK YOU! QUESTİONS ?

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