2. CONTEXT
• What is organizational structure ?
Organizational • Common organizational designs
Structure • Why do structures differ ?
• What is organizational culture?
Organizational • Creating and sustaining culture
Culture • Creating an ethical organizational culture
4. What is organizational structure ?
• how job tasks are formally divided, grouped
and coordinated.
Work specialisation Departmentalisation Chain of command
Centralisation &
Formalisation Span of control
decentralisation
6. Departmantalisation
Function
Product
The basis by which
jobs are grouped
Geographic
together is called
departmentalisation.
Process
Customer
7. 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 unity of
• the rights inherent in a command
managerial position to
give orders and expect • principle helps preserve
the orders to be obeyed. the concept of an
unbroken line of
authority.
authority
8. Span of control
Highest
level
6 levels 4 levels
it determines the
1
number of levels and 1
managers an 4 8
organization has. 16 64
64 512
256
4,096
Assuming span of 8
1,024
4,096
Assuming span of 4
9. 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
Centralisation input from lower-level
personnel
• lower personnel provide
input or are actually given
Decentralisation the discretion to make
decisions
10. Formalization
High Low
formalization formalization
nonprogrammed
job descriptions,
job behaviours
great deal of to
lots of
exercise
organizatonal
discretion in their
rules,
work.
procedures
covering work
processes
refers to degree to which
job within the
organization are
standardised.
12. The Simple Structure
Jack Gold
(owner-manager)
Norma Helen Wright Johny Moore Bob Munson
Edna Joiner
Sloman
(salesperson) (cashier) (sales person) (salesperson)
(salesperson)
• Low departmentalization
• Wide spans of control
• Authority centralized in a single person
• Little formalization
13. 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.
14. The Matrix Structure
FUNCTIONAL DEPARTMENTS PRODUCT DEPARTMENTS
• Allowing the pooling and sharing • Provide a clear responsibility for all
of specialized resources across activities related to a product but with
information duplication of activities and costs
programs/ undergraduate Master’s Ph.d. research Executive Community
academic development service
departments
accounting
Decision and
information
systems
Finance
management
marketing
15. The Virtual Organization
Highly centralized
No departmentalization
Allow them to contract
Manufacturing,distribution,marketing that to Independent
research and
be done better or more cheaply development
The managers in virtual structures spend consulting
firm
their time coordinating and controlling external
relations
Factories in Executive Commission
sales
south korea group representatives
Advertising
agency
16. The Boundaryless Organization
Eliminate the chain of comman
Limitless spans of control
Replace departments with empowered teams
By removing vertical boundaries:
Management flattens the hierarchy
Status and ranks are minimized Risk
Management
Techniques
Knowledge
Management
Applying
International
Integrity
SEAAR
Framework
Standards
18. Why do structures differ ?
Forces that influence the design that is chosen :
Organization
Strategy Technology
Size
Global
Environment
implications
19. Mechanistic vs Organic Models
High specialization Cross-functional teams
Rigid departmentalization Cross-hierarchical teams
Clear chain of command Free flow of information
Narrow spans of control Wide spans of control
Centralization Decentralization
High formalization Low formalization
20. Strategy
The Strategy Structure Relationship
Innovation Cost minimization Imitation
organic mechanistic
Low High mechanistic and
Specialization Specialization organic
Formalization Formalization
Decentralization Centralization Mix
21. Organization Size
How the size of an organization affects its
structure. As an organizations grows larger it
becomes more mechanistic.
Specialization
more Vertical levels
Rules and Regulations
23. Environment
Capacity
Institutions or forces Volatility
outside the organization
that potentially affect Complexity
the organizations Stable
performance.
Simple Complex
Dynamic
24. 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
25. 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
26. 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
27. Woodward found that successful companies using mass
production technology are likely to differ from those that use unit
of continuous process technologies in that:
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
Answer is: B
30. Institutionalisation
A condition by which a
organisation takes on a life of its
own and is valued for itself.
31. 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
32. Characteristics
Innovation and risk
taking
Attention to detail
Outcome Orientation
34. Culture vs Job Satisfaction
Culture Job Satisfaction
Employees Employees response
perception of the to the work
organisation and its environment.
values
36. From Dominant culture to
subculture
Dominant
culture
Dominant culture
Subculture Core values shared
by the overall
Subcultures
organisation
Minicultures which
Department Geographical may adopt additional
traditions and values
37. Strong Culture Cycle
Strong culture
Greater
influence on Acceptance of
members values
behaviours
Commitment
to values
42. Creating and sustaning culture
What forces influence the creation of a culture?
Top
Philosophy of
organization´s
Selection Management Organization
Criteria and Culture
founders
Socialization
43. Philosophy of Organization
Selection Top Management
organization´s Criteria and Socialization
founders Culture
Ultimate source of an organisation: Founders
1. Hire and keep suitable employees
2. Indoctrinate and socialize
3. Act as a model
44. Philosophy of
organization´s
Selection Top Management Organization
founders Criteria and Socialization Culture
• Knowledge, skills and abilities
• Employer select people with similar values
• Candidates learn about the organization
Employer Applicant
• Example:
45. Top
Philosophy of Selection Management Organization
organization´s Culture
founders
Criteria and
Socialization
• TOP MANAGEMENT
Words Norms Organization
behaviours
• SOCIALIZATION
Adaptation to the culture
Important: Being proactive
Prearrival Encounter Metamorphosis Outcome
46. 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)
47. How employees learn culture
• Stories
• Rituals
http://www-03.ibm.com/ibm/history/exhibits/music/music_clips.html
• Material symbols
• Language
49. Creating an Ethical Organizational Culture
The content and strength
of a culture influence an High in risk tolerance
organization’s ethical
Low to moderate in aggressiveness
climate and the ethical
behavior of its member. Focuses on means as well as outcomes
50. Creating an Ethical Organizational Culture
• A case of unethical organizational culture
ENRON
American energy,
commodities, and services
company based in Houston
51. 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
52. Creating a Positive Organizational Culture
Employee
Strengths
Rewards
A Positive Culture emphasizes on more than
punishments
Individual
vitality and
Growth
53. Spirituality and Organizational Culture
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.”
54. 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
55. Strong sens of
purpose
Toleration of Cultural
Trust and
employee Characteristics of
Respect
expression S.O.
Humanistic
work practices
56. What is a workplace
spirituality?
Are spiritual organization
legitimate?
Are spirituality and profits
compatible?
59. ………… is concerned with how employees perceive the
characteristics of an organisational culture
A) Job satisfaction
B) Institutionalization
C) Organizational Culture
D) Subcultures
Select one!
60. 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
61. 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
63. 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_1/44/11449/293
1120.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
