Lecture 10: Organizational structure and culture Flashcards
Organizational structure
Defines how job tasks are formally divided, grouped and coordinated –> good structure has clarity for all employees about how it is organized in the organization
- Work specialization
- Departmentalization
- Chain of command
- Span of control
- Centralization and decentralization
- Formalization
- Boundary of spanning
Work specialization
Division of labor, to what degree are activities subdivided into separate jobs
Departmentalization
On what basis will jobs be grouped together
- Functions (similar functions)
- Product/service (similar service)
- Location (geography)
Chain of command
To whom do individuals/groups report
Span of control
How many individuals can a manager effectively direct/supervise
Centralization/decentralization
Where does decision-making authority lie
Formalization
To what degree will there be rules and regulation to direct employees and managers (job description)
Boundary spanning
Do individuals from different areas need to regularly interact –> leads to positive outcomes
Simple structure
- Flat (usually young and small) organization
- Low departmentalization
- Wide span of control
- High authority ( 1 manager)
- Low formalization
Bureaucracy
- Specialized on routine operational tasks
- Centralized authority
- Narrow span of control
- Big organizations (for example banks)
- High formalization
- Departmentalization –> functional
Matrix structure
- Combined structure of functional departmentalization and product/service departmentalization
- Complex and interdependent activities
- Multiple supervisors (multiple chains of command)
Virtual structure
- Implementing outsourcing for main functions and centralization of the organization to other companies –> flexible, innovative, change quickly
Team structure
- Team as main force in coordinating job activities
- Decentralized down to team level
Circular structure
- Executives in the center
- Managers specialists and workers radiating outward in rings grouped by function
- Centralized authority
- functional departmentalization –> innovation
Organizational culture
System of shared meaning held by members that distinguish the organization from other organizations
Cultural iceberg
- Under the surface are the beliefs, values, attitudes and basic assumptions of the organization –> not directly visible by outsiders
- Observable is the top: artefacts, stories, metaphors and rituals
Types of organizational cultures
- Clan
- Adhocracy
- Hierarchy
- Market
Clan
- Internal focus and integration
- Flexibility and discretion
- Human development and participation
- Collaborative, friendly, trust, support
- Succesful leaders are seen as mentors
Adhocracy
- Flexibility and discretion, external focus and differentiation
- Creative
- Succesful leaders are seen as innovators, entrepeneurs
- Innovation, vision and new resources
Hierarchy
- Internal focus and integration, stability and control
- Strict rules and procedures, controlling
- Succesful leaders are seen as coordinaters, organizers
- Control and efficiency with capable processes
Market
- External focus and differentiation, stability and control’
- Competing environment, result oriented
- Succesful leaders are hard driving, competitive and producers
- Aggressively competing and customer-focused
Creating and sustaining culture, 3 principles
1) Selection process (match between person and organization)
2) Actions of top management
3) Socialization
