Unit 3 Organizational Culture Flashcards
Adhocracy Culture
Creates an environment of innovating, visioning the future, accepting of managing change, and risk taking, rule-breaking, experimentation, entrepreneurship, and uncertainty.
Clan Culture
Focuses on relationships, team building, commitment, empowering human development, engagement, mentoring, and coaching.
Competing Values Framework
(CVF)
Developed by Kim Cameron and Robert Quinn this model is used for diagnosing an organization’s cultural effectiveness and examining its fit with its environment.
Competing Values Framework
(CVF) (Diagram)
Complex-Stable Environments
Environments that have a large number of external elements, and elements are dissimilar and where elements remain the same or change slowly.
Complex-Unstable Environments
Environments that have a large number of external elements, and elements are dissimilar and where elements change frequently and unpredictably
Corporate Culture
Defines how motivating employees’ beliefs, behaviors, relationships, and ways they work creates a culture that is based on the values the organization believes in.
Divisional Structure
An organizational structure characterized by functional departments grouped under a division head.
Domain
The purpose of the organization from which its strategies, organizational capabilities, resources, and management systems are mobilized to support the enterprise’s purpose.
Functional Structure
The earliest and most used organizational designs.
Geographic Structure
An Organizational option aimed at moving from a mechanistic to more organic design to serve customers faster and with relevant products and services; as such, this structure is organized by locations of customers that a company serves.
Government and
Political Environment Forces
The global economy and changing political actions increase uncertainty for businesses, while creating opportunities for some industries and instability in others.
Hierarchy Culture
Emphasizes efficiency, process and cost control, organizational improvement, technical expertise, precision, problem solving, elimination of errors, logical, cautious and conservative, management and operational analysis, careful decision making.
Horizontal Organizational Structures
A “flatter” organizational structure often found in matrix organizations where individuals relish the breath and development that their team offers.
Internal Dimensions of Organizations
How an organization’s culture affects and influences its strategy.
Market Culture
Focuses on delivering value, competing, delivering shareholder value, goal achievement, driving and delivering results, speedy decisions, hard driving through barriers, directive, commanding, competing and getting things done.
Matrix Structure
An organizational structure close in approach to organic systems that attempt to respond to environmental uncertainty, complexity, and instability.
McKinsey 7-S Model
A popular depiction of internal organizational dimensions.
- Strategy
- Structure
- Systems
- Shared Values / Superordinate Goals
- Style
- Staff (People)
- Skills
McKinsey 7-S Model
(Diagram)
Mechanistic Organizational Structures
Best suited for environments that range from stable and simple to low-moderate uncertainty and have a formal “pyramid’ structure.
Natural Disaster and Human Induced Environmental Problems
Events such as high-impact hurricanes, extreme temperatures and the rise in CO2 emissions as well as ‘man-made’ environmental disasters such as water and food crises; biodiversity loss and ecosystem collapse; large-scale involuntary migration are a force that affects organizations.
Networked-Team Structure
A form of the horizontal organization.
Organic Organizational Structures
The opposite of a functional organizational form that works best in unstable, complex changing environments.
Organizational Structures
A broad term that covers both mechanistic and organic organizational structures.
Simple-Stable Environments
Environments that have a small number of external elements, and elements are similar, and the elements remain the same or change slowly.
Simple-Unstable Environments
Environments that have a small number of external elements, and elements are similar and where elements change frequently and unpredictably.
Socio-Cultural Environment Forces
Include different generations’ values, beliefs, attitudes and habits, customs and traditions, habits and lifestyles.
Technological Forces
Environmental influence on organizations where speed, price, service, and quality of products and services are dimensions of organizations’ competitive advantage in this era.
Virtual Structure
A recent organizational structure that has emerged in the 1990’s and early 2000’s as a response to requiring more flexibility, solution based tasks on demand, less geographical constraints, and accessibility to dispersed expertise.
Define the External Environment
of Organizations
Organizations must react and adapt to many forces in their internal and external environments. The context of
the firms such as size and geographic location impact how environmental forces affect each organization
differently. An understanding of the forces and they currently affecting organizations and pressuring
structural change is crucial.
Identify contemporary external forces pressuring organizations
An understanding of the various industries and organizations ‘fit’ with different types of environment in crucial. There are small and large organizations that face environments that are either stable of unstable and managing the organization by recognizing their environment is a crucial skill.
Identify different types of Organizational Structures, and their Strengths and Weaknesses
An understanding of Mechanistic vs Organic Structures and Systems and how they differ and how these major
concepts help classify different organizational structures is crucial to recognizing organizational structures.
Finally, the issue of organizational complexity and its impact on organizational structure needs to be
understood.
You should be able to discuss the evolution of different types of Organizational Structures. You should
understand and identify the six types of organizational structures, and the advantages and disadvantages of
each: Functional, Divisional, Matrix, Geographic, Networked Team, and Virtual.
Explain how Organizations Organize to meet External Market Threats and Opportunities
You should understand and identify the six types of organizational structures, and the advantages and
disadvantages of each structure:
- Functional
- Divisional
- Matrix
- Geographic
- Networked
- TeamVirtual
Identify the fit between Organizational Cultures and the External Environment
You should be able to identify and differentiate between the four types of organizational cultures and the fit of
each with the external environment and describe the CVF framework. Finally, you can identify the internal
dimensions of organizations, the interconnection among the dimensions, and how these affect the ‘fit’ with
external environments.
Identify Environmental Trends, Demands, and Opportunities facing Organizations.
Among the trends in the external environment:
- Persistent inequality and unfairness
- Domestic and international political tensions
- Environmental dangers
- Cyber vulnerabilities.
Another trend is that organizations will no longer solely be judged only for their financial performance, or even the quality of their products or services. Rather, they will be evaluated on the basis of their impact on society at
large—transforming them from business enterprises into social enterprises.