• Structure of an organizations is about:– Pattern of

• Roles– work specialization? Departmentalization?

• Authority – chain of command? span of control?

• Communication– centralization? formalization?

Organizational Design

• Organic– A structure that is flat, uses, cross-hierarchical & cross

functional teams, has low formalization, possesses a comprehensive information network, and relies on participative decision making

• Mechanistic– A structure characterized by extensive

departmentalization, high formalization, a limited information network, and centralization

Categories of Organizational Structure

• Not as formally defined– Tall and Flat– Formal and Informal– Large and Small– Public and Private– Top down and Bottom up

Other Categories

• Functional – Design follows the functions – Marketing, R&D, Finance, Operations,

etc…

• Divisional– Design follows the products as separate units

• Geographic– Design is comprehensive within an area

• Network– Design provides for attachments and alliances

• Matrix– Design uses a grid where power and authority are shared as needed

With at least 5 shapes

• Strategy• Environment• Technology• Size• National Culture• The People• Shared Values

7 Factors in shaping Org Design

• A Formal structure– It is shown on the organizational chart– You can see the authority and who is suppose to report

to whom

• An Informal structure– It is known to those who have been around– Operates in the informal politics of the organization– Can create opportunities for efficiency because it can

eliminate bureaucratic red tape

Within every organization there is

Next ……

– 1. Who is Edgar Schein?– 2. Why should we care?

Schein• What is Organizational Culture?

– A pattern of shared basic assumptions that the group learned as it solved its problems of external adaptation and internal integration, that has worked well enough to be considered valid and, therefore, to be taught to new members as the correct way you perceive, think, and feel in relation to those problems.

Schein

• Why should you care about Organizational Culture?– norms, values, behavior patterns, rituals, traditions. – Implication of:

• structural stability• patterning and integration.

– Culture is the accumulated shared learning from shared history.

• 2 problems all groups must deal with: – 1. survival, growth, and adaptation in environment – 2. internal integration that permits functioning and adapting.

• What is “external adaptation”?• 1) Mission and Strategy. a shared understanding • 2) Goals. consensus on goals, derived from mission.• 3) Means. means to be used toward goals, --organization structure, --labor, -- rewards

---authority system.• 4) Measurement. criteria to be used in measuring how well the group is doing --

goals• 5) Correction. remedial or repair strategies

• What is “internal integration”?• Language• Norms• Boundaries• Humor• Celebrations

• Air filters• Guitar strings• Medical implants• Industrial sealants• Signal transmission• Industrial filtration• Window screens• Breathable rain ware• Coaxial cable • Sewing thread• Organic Waste Treatment• Gaskets• Automotive vents• Fuel Cell Components

What do the following have in common?

W. L. Gore & Associates

• 1.58 Billion in annual revenues• 6,300 employees• Privately owned

W. L. Gore & Associates

• 1958 – Bill Gore left DuPont– Communication happens in the car pool– In crisis companies form task forces and throw out

the rules• Non descript campus• Small groups – 150 to 200• No bosses

• http://www.fastcompany.com/magazine/89/open_gore.html

• Or download the posted version

Read

Org Culture Issues

• Three important issues in an organization’s culture:– Ethics– Diversity of employees– Leadership behavior

• How does all this fit together?– Managers and leaders must use good leadership

practices to be sure to introduce, develop, reward, and “cement” ethical practices and positive ways of working with diversity into the organization culture.

What does culture actually do?

• Glue• Sense of identity• Generates commitment• Helps people to make sense of what happens• Provides the “control” function – (norms)

Definition of Organizational Culture

• A system of shared meaning held by members that distinguishes the organization from other organizations.

– Robbins

• Research has shown the system of shared meaning is actually a set seven primary characteristics ---

Seven Characteristics of the Set

• The degree to which ……1. Innovation and risk taking or be safe2. Attention to detail or generalities3. Focus is on outcomes or processes4. People orientation or doesn’t care5. Team orientation or individuality6. Aggressiveness or easygoing7. Activities emphasize stability or change

Foundations of Org Culture

• Organizational Culture– The shared, emotionally charged beliefs, values, and

norms that bind people together and help them make sense of the systems within an organization.

• Form (how they show up)– Consists of the observable ways that members of a

culture express idea• The beliefs, values and norms tell people:

– “What is to be done.”– “How it is to be done.”

Components

SubstanceSubstance

FormForm

Organizational Artifacts

• Artifacts– The cultural routines, rituals, ceremonies seen in

public functions and events staged by the organization that support and reinforce the organization’s shared beliefs, value systems, expectations, and norms.

Rites, Rituals, and Ceremonies

• A relatively dramatic, usually planned set of recurring activities used at special times to influence the behavior and understanding of organizational members.– Through rituals and ceremonies, participants gain

an understanding of and cement beliefs that are important to the organization’s culture.

Language, Metaphors and Symbols

• Language– Certain words, phrases, speeches, etc.

• Metaphors– The use of familiar elements or objects to make

behavior or other unfamiliar processes or actions comprehensible.

• Special terminology Abbreviations• Jargon or slang Gestures

• Symbols– A picture, a shape, or a particular object.

Stories and Sagas

• Stories and Sagas– Graphically and quickly communicate emotionally

charged beliefs to organization members.– Have important meaning for all employees, but

especially for new employees.• Organizational stories tell new members:

– The real mission of the organization– How it operates.– What behavior is acceptable.– How individuals can fit into the organization.

Stories and Sagas (cont’d)

• Stories– Serve as symbols of the organization’s

entrepreneurial orientation and promote values that unify employees from diverse organizational units.

• Sagas– Historical accounts describing the unique

accomplishments of a group and its leaders or heroes.

Getting to culture

• Culture begins with founders• Maintained by selection processes• Actions of Top Management (what we celebrate)• Socialization

– Stories– Rituals– Symbols– Language

Transmission of culture

• Socialization• Stories• Symbols• Jargon and language• Rites and ceremonies• Statements of principles

• Some companies post –

• Some companies pass out laminated cards –

• What is the key point?

Aveda Beliefs• We believe in treating ourselves, each other, and the planet with care and

respect.• We believe social responsibility is our responsibility.• We believe ecological and profit goals are mutually achievable.• We believe our authenticity and experience are our points of difference.• We believe in inspiring and educating people to integrate wellness and beauty in

their lives.• We believe in the power of oneness: from our global image to a focused network.• We believe learning never ends.• We believe in encouraging innovation and empowered decision-making.• We believe our actions, products, and services should always embody excellence.• We believe personal and organizational balance is the key to sustainable success.• We believe true leadership is delivered with passion and by example.

Strong vs Weak Cultures

• Strong Culture• Core values intensely held and widely shared

• Weak Culture• Vagueness, ambiguity, inconsistencies

• Which culture has the greatest impact?

Impact of Culture on Organizations

• Strong Cultures– Positive

• Shared values and beliefs create a setting in which people are committed to one another and share an overriding sense of mission.

– Negative• A strong culture can cause a resistance to change by

reinforcing a singular view of the organization and the environment.

Culture good! Culture bad!

• +s of culture• Organizational commitment• Consistency of employee behavior• Reduces ambiguity – what’s important

• -s of culture• Not everyone fits (sometimes those are good people)• In change hard to respond

The paradox of Diversity

• Culture moves us in the same direction– Because we are part way there (we are the same)

• Organizations embrace diversity because– There is value added by examination from

different perspectives

• Culture / diversity ????

Organizational Culture and Change

• In order to survive, organizations and their cultures must continuously evolve and change.– Conditions prompting change include:

• Economic crises• Changes in laws or regulations• Social developments• Global competition• Demographic trends• Explosive technological changes

– Cultures change when an organization discovers, invents or develops solutions to problems it faces.

• Change is hard• This is what it looks like theoretically:

– Kurt Lewin (look him up in Wikipedia)• Model of change “Force Field Analysis”• Opposing forces shape an organization

– Helping Forces – those driving movement forward– Hindering Forces – those blocking movement

• To Change you must either increase the Helping Forces or decrease the Hindering Forces

Here is the problem --

• Lewin theorized a three step process– Unfreeze– Transition– Refreeze

• Today we think of most change efforts as being ongoing – you don’t refreeze because tomorrow you will have to make more changes

Changing Organizational Culture

• Top leaders can set the tone for a culture and for culture change.– Leaders who strive for high-quality products and

services understand that they must:• Involve the keepers and holders of the culture.

• Build on what all organizational members share.

• Teach new members how to behave.

• What is a dominant culture?

• What is a subculture?

• What is a counterculture?

• Socialization: systematic process of bringing new members into their cultures– The Monkeys from “How Company Policy Begins”

• Seven steps• Careful selection of entry-level candidates• Experiences that cause new members to question prior

» Behavior» Belief» Values

• Training in organization’s core disciplines• Meticulous attention to rewards and control systems• Careful adherence to organization’s core values• Reinforcing folklore• Consistent role models

Where does “Technology” fit with “Culture”?

• Benefits– A culture aligned to maximize technology will embrace

information flows and communication such that it brings organizational layers closer together.

– Managers can provide data employees need and employees can quickly resolve concerns with management.

• Downside– We can “overdo it” with information technology.– People are buried in e-mail messages– Personal use of technology must be managed.

Managing organizational culture

• It’s you ……..» What you pay attention to» How you react to critical incidences» How you allocate scarce resources» What you model, teach, and coach» What you reward and give status to» How you recruit, select, promote, and excommunicate

Managing organizational culture

• It’s the place» Organizational design and structure» Systems and procedures» Design of physical space and buildings