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Chapter 8 Organizational Design, Culture and Change

LEARNING OBJECTIVES

After studying this chapter, you should be able to:

1. Define organizational design and describe its four objectives
2. Distinguish between mechanistic and organic organizational structures
3. Discuss the influence that contingency factors—organizational strategy, environment,
size, age, and technology—have on organizational design
4. Describe the characteristics, advantages, and disadvantages of functional, divisional,
matrix, team, and network structural designs
5. Define organizational culture and describe the ways that culture is manifested
6. Explain the role of managers and employees in creating culture and making a culture
effective
7. Define change and identify the kinds of change that can occur in an organization
8. Explain the steps managers can follow to implement planned change
9. Identify the organizational qualities that promote change
10. Explain why people resist change and what managers can do to overcome that
resistance
11. Discuss why change efforts fail
12. Explain the purpose of an organizational development program

KEY TERMS

change network structure
change agent organic structure
continuous-process production organizational design
divisional structure organizational development (OD)
evolutionary change organizational learning
flexible manufacturing systems (FMS) organizational life cycle
force-field analysis planned change
functional structure revolutionary change
large batch technology small batch technology
management by reaction social media
mass production technology subculture
matrix structure team structure
mechanistic structure technology
mutual trust three-step approach
unit production technology

© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or
duplicated, or posted to a publicly accessible website, in whole or in part.

CHAPTER OUTLINE

I. INTRODUCTION
II. DESIGNING ORGANIZATIONAL STRUCTURES
A. Organizational Design Defined
III. Objectives of Organizational Design
A. Responding to Change
B. Integrating New Elements
C. Coordinating the Components
D. Encouraging Flexibility
E. Range of Organizational Design Outcomes
IV. Mechanistic Organizational Structures
A. Organic Organizational Structures
V. CONTINGENCY FACTORS AFFECTING ORGANIZATIONAL DESIGN
A. Strategy
B. Environment
C. Size of the Organization
D. Age of the Organization
1. Birth Stage
2. Youth Stage
3. Midlife Stage
4. Maturity Stage
E. Technology
VI. STRUCTURAL OPTIONS IN ORGANIZATIONAL DESIGN
A. Functional Structure
1. Advantages of the Functional Structure
2. Disadvantages of the Functional Structure
B. Divisional Structure
1. Advantages of the Divisional Structure
2. Disadvantages of the Divisional Structure
C. Matrix Structure
1. Advantages of the Matrix Structure
2. Disadvantages of the Matrix Structure

VII. ORGANIZATIONAL CULTURE
A. Organizational Culture Defined
B. Factors Shaping Culture
1. Key Organizational Processes
2. Dominant Coalition
3. Employees and Other Tangible Assets
4. Formal Organizational Arrangements
5. Social System
6. Technology
7. External Environment

Adaptability to the External Environment IX. Rates of Change D. Developing Goals C. Ceremonies I. Role of Managers B. Process-Oriented Change 4. Strategic Change 2. Coherence 2. Physical Environment VIII. Phase 1: Creativity 2. Recognizing the Need for Change B. HOW TO MANAGE CHANGE F. Implementing the Plan I. Phase 3: Delegation 4. External Sources 2. Phase 5: Collaboration X. Planning for Implementation H. CREATION OF CULTURE A. Structural Change 3. Phase 2: Direction 3. Statements of Principle E. NATURE OF CHANGE A. Sources of Change 1. Following Up and Evaluating . Pervasiveness and Depth 3. Climate K. Heroes H. Selecting the Intervention Method F. People-Centered Change C. Selecting a Change Agent D. Types of Change 1. Need for Change: Diagnosing and Predicting it 1. Developing a Plan G. Role of Employees C. C. Phase 4: Coordination 5. Diagnosing the Problem E. Internal Sources B. Steps in Planned Change A. Symbols J. Management and Change E. Factors Contributing to the Effectiveness of Culture 1. Stories F. MANIFESTATIONS OF CULTURE D. Slogans G.

Mutual Trust B. Techniques for Overcoming Resistance XIII. When top management proposes change. The problem was that the changes were not for the better. if the change were to simply involve an increase in pay without any increase in work or negative effects on benefits. there may have been a need for change but not for the change that was selected. In some cases. lower-level managers and employees may lack the big picture that stimulated the proposal. IMPLEMENTATION OF CHANGE A. For example. ORGANIZATIONAL DEVELOPMENT A. could there be merit in encouraging employees and others to resist? Consider the many corporations that were dominant in American business 20 years ago but have since gone out of existence. or job security. or are but a fraction of their size at one time: often the reason was not because they could not implement change but rather because they DID change. and probability of the benefits of the proposed change and compare that analysis to the size. been taken over by another organization. Purposes of Organizational Development B. but their nearness to the frontlines may enable them to see pitfalls that could not have been envisioned in that big picture. Methods of Effecting Change 1. timing. Lack of Time and Poor Timing 6.XI. Lack of Resources 4. Faulty Thinking 2. Organizational Learning C. Adaptability XII. working conditions. Force-Field Analysis XIV. A Resistant Culture B. Strategies of Organizational Development C. Three-Step Approach 2. However. Their focus may be primarily . QUALITIES PROMOTING CHANGE A. Causes 1. if top management uses all the means at its disposal to persuade and involve employees in the proposed change. Employees will look at the size. Sources of Resistance 2. Why Change Efforts Fail A. it is possible that some may not ask the questions that need to be considered in order to prevent the organization from creating a disaster for itself. Employees do not automatically reject change. few would resist the change. and probability of the costs or risks involved in the change. Inadequate Process 3. Evaluating the Effectiveness of Organizational Development Enrichment Vignette Is resistance to change always a bad thing? In fact. Resistance to Change 1. timing. Lack of Acceptance and Commitment 5.

personal rather than organizational but if they are encouraged to raise their concerns. . perhaps it may be discovered by top management that the real need is not so much to overcome employee resistance to change as it is for those at the top to modify their proposed change.

Mechanistic structures typically feature a rigid design. Organizations. INTRODUCTION (CHAPTER OUTLINE: SECTION I) II. Many mechanistic structures exhibit strong bureaucratic qualities. Strategy . E. DESIGNING ORGANIZATIONAL STRUCTURES (CHAPTER OUTLINE: SECTION II) A. I. and display flexibility in order to structure a successful and compatible workplace. Objectives of Organizational Design 1. 3. C. Organic structures more readily adapt to change. line and staff positions. and tendencies. cooperate. 3. upgrades. “Nothing lasts forever. (1) you may present the above chapter outline material in a different sequence. Organic Organizational Structure 1. characteristics. makes organizations common. response. The need for authority. in a true sense of semantics. Organizational design is the creation or change of organizational structure. 2. but it is organized somewhat differently. 2. B. Redesign. Departments must coordinate. which allows them to respond to different conditions. As opposed to mechanistic structures. 3. Organizational Design Defined (CHAPTER OUTLINE: SECTION III) 1. are structurally reorganized through change. and newness all characterize the elements of structure factors that must be dealt with. you have a choice: by using what is in the outline below. departmentalization. organic structures tend to be more flexible. III. Tight controls are readily apparent within mechanistic organizations.” “Change is constant”.LECTURE OUTLINE The outline below (the lecture outline) is referenced to the above chapter outline and contains supplementary material to enhance your discussion of the chapter. or (2) you may use the chapter outline references in the outline below to present the lecture outline material in the same sequence as the chapter outline. As a result. Mechanistic Organizational Structure (CHAPTER OUTLINE: SECTION IV) 1. therefore. 2.. 2. organizations must respond to required or forced changes to their environment. CONTINGENCY FACTORS AFFECTING ORGANIZATIONAL DESIGN (CHAPTER OUTLINE: SECTION V) A. etc. Range of Organizational Design Outcomes D. growth.

such as with soft drinks and gasoline. E. Decision making. Age of the Organization 1. STRUCTURAL OPTIONS IN ORGANIZATIONAL DESIGN (CHAPTER OUTLINE: SECTION VI) A. 3. Specialization is more apparent in larger organizations. Technology is a compilation of knowledge. Life cycles stages of an organization fall in a predictable pattern. and many other such elements influence the relationship of structure to environment. 2. D. Environments impact upon decision making as well as organizational structure. 3. activities. The entire productivity process is accomplished through a series of mechanical or chemical processes in continuous-process technology. Structure must follow strategy in order to achieve objectives regarding the designs of organizations. Expertise and skills are unique to various functional departments. Functional departments distinguish tasks/jobs according to the specific activities performed. span of control.e. . 2. the more formal. changing. 1. C. 4. standardized products. 2. IV. formality. Many large organizations are transforming from mechanistic to organic structures. Grouping related jobs. and materials that transforms inputs into outputs (productivity). longevity begets or correlates to formality. Mass production (large batch) technology is appropriate for high volume. 2. Technology 1. 3. Size of the Organization 1. tasks. Frequently. A change in strategy will cause a change in structure. 4. Mechanistic structures operate well within stable environments.. the older. or processes in various organizational sub-units is called departmentalization. Many mature companies have grown into a state of mechanistic structure. B. 3. As far as organizations are concerned. work procedures. Small batch (unit production) technology is a method of production of goods in small quantities to meet specific customer needs. machinery. Unstable. 2. centralization. Functional Structure 1. Environment 1. or unpredictable environments are more conducive to organic designs. i. size is a determinate of structure. 2. 3.

6. Conflicts regarding functional and divisional objectives are common. and/or arrangements also serve as divisional structures. response to change. Functional specialization is common with the focus and accountability of divisional structures. 3. 3. and economy of scale flourish within matrix organizations. 4. Duplication of time. adaptability. personnel. 2. Accountability and responsibility are identified appropriately. production. A large portion of the day is spent in meetings. including administrative overhead. Divisional Structure 1. Customer or geographic special needs. is needed. Team Structure 1. C. Training must be an integral part of the team concept. E. Functional expertise. 5. Team structures are much flatter than traditional organizational patterns. requests. Matrix Structure 1. and human resources. lack of control is . Narrow perspectives and lack of collaboration and awareness of others are downfalls to functional structuring. Specific areas of work can be “farmed out. These structures are dependent upon “outsiders” performing contractual services and critical functions. marketing. 4. B. Network Structure 1. Separate functions are grouped within this design. The newest approach with the most potential is the team structure. Common functions include finance. and energies for activities and resources are a “black mark” of divisional structures. Gathering specialists by functional structure results in economies of scale. 4. 2. Self-contained strategic business units (SBUs) that produce a single product are divisional by design. The matrix structure is a hybrid design of functional and divisional qualities. A dual or multiple chain of command can result within matrix areas. 4.” 3. Decision making is more decentralized and not as “vertical” as the traditional chain of command. and work duplication is minimized. 5. 5. effort. engineering. 4. Unless specified and enforceable within contractual agreements. 7. 8. Departments are grouped according to organizational output with divisional structures. 3. Speed of effort and response typifies team efforts. Divisional structures are often flexible and adaptable to change. D. 2. 2. Less personnel. This is a drawback to team structuring. 6. 5.

d. Organizational Culture Defined B. and procedures. 2. efficiency. 2. Key organizational processes regarding communication processes. C. 2. land. e. and interrelationships. Every company possesses a special blend of elements that lead to a unique culture. Technology that combines knowledge. Slogans represent a phrase or saying that clearly express the value and operating attitude of the organization. inventory. b. E. process. Statements of Principle 1. Heroes 1. f. a detriment to networks. mutuality. c. ORGANIZATIONAL CULTURE (CHAPTER OUTLINE: SECTION VII) A. and equipment. markets. Factors Shaping Culture 1. Written statements of principle are expressed using terms such as quality. Formal organizational arrangements: rules. External environment: supplies. None is independent of the others. Background and historical accomplishments reaffirm the values of traditional beliefs. and to-the-point expressions reflect cultural identities of companies. facilities. MANIFESTATIONS OF CULTURE A. Dominant coalition comprised of objectives. V. and governing issues. Employees and other tangible assets. Their dynamic interaction shapes organization culture. Slogans 1. and freedom. Short. workflow. Accounts of yesteryear help form the thinking and practice of new and contemporary workers. and productivity. 2. The following are seven cultural-shaping factors: a. and resources. 2. VI. attitudes. finances. or values. responsibility. Hero: an exemplary person who reflects the image. direct. Ceremonies . strategy. Stories 1. Social system made up primarily of norms and values. Founders and executives who spurred corporate success are heroes. g. These expressions set the stage for the culture and guide the company. structure. including population. B. competitors. D. personal characteristics. Each of these factors is in itself a complex phenomenon.

Physical Environment 1. Developing reward systems that reinforce values and goals. Nearly all employees can accept and adapt to any culture through the process of socialization. Climate 1. Many corporate values. Determining the amount of individual autonomy and the degree to which people work separately or in groups. Creating methods of socialization that will bring new workers inside the culture and reinforce the culture for existing workers. Identifying core values. 3. control the resources. Symbols are objects that convey meaning. Role of Employees 1. and achievements of employees. c. Subcultures are units within an organization based upon the values. 1. sales awards. Campus like enclaves typify the intended freedom-to-express philosophy of idea exchanges for the Silicon Valley software and computer industry. Structuring work to achieve goals in accordance with the firm’s values. 3. d. 2. and control the means to influence the results. Role of Managers 1. G. Ceremonies honor promotions. norms. e. Symbols 1.. CREATION OF CULTURE (CHAPTER OUTLINE: SECTION VIII) A. Symbols frequently represent the core values of a business. Managers at all levels in an organization help develop the culture. F. Status is reflected through parking privileges. size/location of office. The surroundings or confines of the corporation signify the physical nature of the work environment. and beliefs of the workers. Worker attitudes dictate the positive or negative “atmosphere” of the workplace. 2. i. 2. etc. Managers help create culture by: a. VII. f. Cultures are made up of climates. . 2. Award banquets and company gatherings that give recognition for accomplishment mark this facet of cultural identity. 2. Quite simply. H. managers set the tone. Climates are subsets of cultures. norms. Clearly defining the company’s mission and goals. and beliefs are shaped by employees. The workplace and morale of workers constitute elements of daily climate. the climate of the shop. 3. b.e. B.

B. Types of Change 1. 4. systems. 2. Change originates in external as well as internal environments. 3. In addition. 2. Primarily. Management policies and styles. policies. Strategic change—sometimes in the course of business operations. when the company changes its procedures. Revolutionary change is bold and continuous with “leaps” of dramatic transformation. structure. and process changes. or people-centered changes. Sources of Change 1. Political. C. 2. procedures. Evolutionary change focuses on incremental steps. social. Middle managers face structural. Often. 3. c. The major areas of change in a company include: a. VIII. Structural change—organizations often find it necessary to change the structural design of the company. skills. Management and Change 1. Various levels of management are affected differently by change. b. Employee acceptance of organizational elements is within coherence. or people-centered changes occur continually in dynamic businesses. and rules. People-centered change—this type of change focuses on changing the attitudes. Top-level managers are involved in strategy. Factors Contributing to the Effectiveness of Culture 1. NATURE OF CHANGE (CHAPTER OUTLINE: SECTION IX) A. changes in one area will impact upon changes in other areas. 2. process-oriented. first-line managers deal with process-oriented and people-centered . 2. The most critical factor that contributes to cultural effectiveness deals with the adaptability to external stimuli and environments. The greater the acceptance of the commitment to organizational values. 3. d. C. process-oriented. technological. or performance of employees in the company. D. and employee attitudes are internal sources of change. it is changing its structure. How well the culture fits the mission is known as coherence. structural. Strategically. behaviors. Rates of Change 1. and economic stimuli are associated with external environments. the stronger the culture. 3. it is necessary to change the strategy to achieve the goals or even to change the mission of the organization. Process-oriented change—reengineering processes to achieve optimum work flow and productivity.

change issues. .

Step 3: Selection of a change agent. a. 2. Step 2: Development of goals. b.” g. f. the change action is put into operation. i. Management by reaction is just one subset of crisis management. and how of the plan are determined. B. Step 7: Planning for implementation. A useful tool to help diagnose the need for organizational change has been developed by Larry Greiner. This step involves actually putting together the “what. a. X. This involves trying to anticipate when changes will occur in the environment—both inside and outside the company—to which management will have to respond and then think about the type of response it will take. The first step in the process is recognition of the need for change. Need for Change: Diagnosing and Predicting 1. The other approach is to adopt a philosophy in which no energy is spent to anticipate change. crushing the employees and bringing turbulence to the environment. b. An event happens and the wheels go into motion.IX. This step requires a decision on the best way to bring about the change. It can come from either external or internal sources. Step 6: Development of a plan. Step 4: Diagnosis. Steps in Planned Change (CHAPTER OUTLINE: SECTION X) 1. where. In this phase the when. 4. d. He has graphed the phases of change that organizations go through—in other words. QUALITIES PROMOTING CHANGE (CHAPTER OUTLINE: SECTION XI) . 3. Step 9: Follow-up and evaluation. it is necessary to determine why the change is necessary and what specific goals are to be achieved. 5. A company and its managers can adopt a philosophy of planned change. a. Step 1: Recognition of the need for change. Management by reaction becomes the philosophy. Before any action is taken. the change agent sets about gathering data about the climate of the organization. b. Step 5: Selection of intervention method. e. it is necessary to create a logical step-by-step approach. they are predictable. After all the questions have been answered. Step 8: Implementation.Once the commitment is made by an individual manager and an organization that change will be planned. Planned change is a product of anticipation and foresight. c. HOW TO MANAGE CHANGE A. The person who will manage the change—a change agent—must be selected. h. 6. The actual results should be compared to the goals. The change agent is the catalysis or activator for the implementation of change. In this step. One way a company can deal with the sources and reasons for change is to try and anticipate them ahead of time and plan for them.

Awareness of weaknesses in the proposed change is frequently a point of contention and/or objection. Mutual Trust 1. Organizational Learning 1. Studies indicate trust is an absolute in effective organizations. b. Managers must trust employees and vice versa. 2. Why Change Efforts Fail (CHAPTER OUTLINE: SECTION XIII) 1. b. 5. whether imagined or real. d. c. The reliance upon others based on character. A manager can view organizational learning in either of two ways: single looped or double looped.Change cannot take place until employees overcome their resistance. 4.People resist change for the following reasons: a. Some change efforts are inefficient. 2. Old habits are difficult to break. Organizational learning is how the manager and the organization integrate new ways into established systems to produce better ways of doing things. c. ability. A single-looped learning situation is one in which only one way exists in which to make adjustments. ineffective. and truthfulness is paramount to a trustful relationship. A sense of adequacy and personal security are primary ingredients. B.The resistance to change is a natural expected phenomenon of human beings. Adaptability 1. 2. Open up all means of communication. e. Managers can overcome resistance to change by initiating the following: a. Managers who are adaptive rather than reactive will minimize wasted energy and maximize the use of time in a change situation. Change scares people with loss of security. Allow those affected to be active participants in the process. B. Typical causes for change failure are: . Reassure against fear by providing an atmosphere of security. 3. Resistance to Change 1. Selective perception is unique to all. Loss of power and control poses a threat to those in authority. Adaptiveness is being prepared for change prior to the actual need for it. Watch timing—give plenty of warning. f. a. 2. 3. Double-looped learning means more than one alternative exists. IMPLEMENTATION OF CHANGE (CHAPTER OUTLINE: SECTION XII) A. Economic losses are obviously fearful. XI. 3. C. e. d. or unsuccessful. Be sensitive and compassionate to the concerns and requests of others. Trust within organizations mitigates fear. b. 4. A. Change for the mere sake of change is inappropriate.

XII. grid OD). Poor timing or inadequate time. They prepare a list of both driving and restraining forces and of the attitudes that surround them. long-term plan. Aspects of the culture need to be changed first. Acceptance and commitment are not taken seriously. b. C. d. role models. Since organizational development is an ongoing. e. Change results from individuals being uncomfortable with the identified negative behaviors and being presented with new behaviors. Methods of Effecting Change There are two approaches or models for handling changes in individuals and their behaviors at work. Inadequate or inappropriate selection of change process. rather than one undertaken by an individual manager. surveys. Strategies of Organizational Development 1. Organizational development (OD) is a companywide. long-term effort to introduce lasting change and to reshape an organization’s technology. B. 2. structure. The change forces are known as driving forces. Refreezing involves recognizing and rewarding new and approved attitudes and patterns of behavior. Faulty thinking from lack of analysis. c. and the resisting forces are known as restraining forces. 2. management by objectives. b. and support. team-building activities. OD strategies consist of various tools. c. meetings and seminars. a. a. Managers who contemplate making changes can diagnose the situation as it presently exists. b. job enrichment. 1. Three-Step Approach This approach focuses on three distinct phases or steps. group discussions. The primary purpose of OD is to bring about a system of organizational renewal that can effectively cope with organizational changes. Purposes of Organizational Development 1. and methods of introducing changes (diagnostic strategies: consultants. devices. a. Force Field Analysis Force field analysis depicts the change process as one which must overcome a person’s or organization’s status quo or existing state of equilibrium—the balance between forces for change and forces that resist change. development programs. change strategies: training programs. 2. ORGANIZATIONAL DEVELOPMENT (CHAPTER OUTLINE: SECTION XIV) A. and . Resources can be lacking. or both. Change can be attempted by weakening the restraining forces or strengthening the driving forces. f. Unfreezing involves identifying deficiencies and confronting the individuals with the behaviors.

Enrichment Vignette Not since the Industrial Revolution has U. the company is ready either to resume the development phase or to deal with change and turn around. C. Operational change. people. Fundamental change. Directional change. the marketplace can compel the organization to implement an alternative strategy or face loss of market share. In this stage. To work with change in all areas.S. Identify the organization’s culture as a valuable resource for new and innovative ideas. strategies. This change can be divided into five stages: 1. 2. Almost every industry has been rocked by the forces of change—divestiture. Recognize that previously successful and even comfortable organizational and leadership qualities may no longer be appropriate for the new business climate and may need to be replaced with an alternative set of critical success factors. 2. 3. A complete turnaround is required when the organization is confronted by business failure or when new management decides to redirect the business into an entirely new market sector. . OD is an expression of management’s efforts to stay flexible and control their own destiny. Apply strategies that are appropriate for prevailing change conditions—not just conventional “micro-strategies” of restructuring or cost controls. and change agents. Results of the OD evaluation will provide feedback needed to redirect and improve programs. and deregulation in the past few years. 3. This occurs when the organization is poised at the top of the change cycle. consolidation. its successful implementation depends on significant investments of money and time. The primary evaluation of OD effectiveness uses the goals established when OD efforts and strategies began. Evaluating the Effectiveness of Organizational Development 1. 4. 2. 5. This is the most common and easiest form of change to deal with. and comes about as the organization addresses perceived operational deficiencies in the face of more efficient competition or an increasing demand for products and services. This occurs when the business climate forces the organization to reexamine its mission and leadership practices. Business leaders who understand change and have learned to manage it to the advantage of their organizations know that change is an opportunity for growth and development. business leaders should: 1. All organizations experience change regardless of their size or business sectors. business experienced so much change and disruption. Delayed change. Total change. When time-tested business strategies become less appropriate in competitive conditions.

or posted to a publicly accessible website. Identify and discuss the four objectives of organizational design. and encourage flexibility. Environment c. what are they developing? The basic elements available to all designers of organizational structure are amounts and types of authority. product and productivity elements. those who resist change will always be confronted by it. Organic structures work well with small batch technology and continuous-process production. Age e. Existing companies that change philosophy. integrate new elements. Strategy b. SUGGESTED RESPONSES TO REVIEW QUESTIONS 1. 3. As an example. A mechanistic structure is better suited to large batch technology. functional considerations. and/or demands. All Rights Reserved. Size d. copied or duplicated. Specifically. Flexibility is needed © 2013 Cengage Learning. and/or strategy must change the structural makeup to accommodate new factors. Strategy dictates the pace and direction of structure. requirements. Managers must respond to change. Technology Structure must follow strategy. they are developing the means to implement plans. May not be scanned. . and decision-making approaches. in whole or in part. ensure collaboration. departments. What are the characteristics of a mechanistic organization? What are the characteristics of an organic organization? Mechanistic Structure Organic Structure • Fixed and specialized tasks • Adaptable and shared tasks • Centralized decision making • Decentralized decision making • Formal vertical communication • Informal horizontal communication • Rigid hierarchical relationships • Vertical and horizontal collaboration • Many rules • Few rules • Strict hierarchy of authority • Relaxed hierarchy: authority 4.Alternatively. PepsiCo must adapt accordingly when they attempt to manufacture an “uncola” such as Crystal. forces. When managers are engaged in organizational design. How does an organization’s strategy influence organizational design? What types of structure are appropriate for the three types of technology? What two needs in organizational design result from a volatile environment? In some way or fashion the following elements all influence organizational design: a. Name factors that influence organizational design. achieve objectives. and accomplish the overall mission. mission. line and staff positions and departments. 2. Student discussion will vary. Organic structures fit within unstable environments more readily.

Accountability is distinguishable. © 2013 Cengage Learning. e. and trust. Duplication of effort. duties. specialization and accountability for these two combined designs are important to a matrix. Control may be lacking because of the indirect nature of “subbing” out the required work. activities. and processes are grouped as sub-units. Functional and divisional differences crop up regarding organizational objectives. Violations of chain of command are possible. Objectives. Specific activities are performed mutually and collectively. May not be scanned. The social system is composed of the norms and values shared by most employees. b. too much time is spent in meetings. tasks. Specific work can be contracted to other specialists. It is the set of relationships that exists among employees in terms of power. and internal relationships of the managers who oversee the organization and control its policymaking constitute the dominant coalition. Advantages of a divisional structure: Customer needs can be catered to more effectively. Accommodations and arrangements for geographic issues are available. 6. Skills and expertise are unique to departments. in whole or in part. affiliations. and time is a problem. personnel characteristics. Characteristics of teams: Separate functional areas can collaborate. copied or duplicated. Often. c. Employees and other tangible assets are namely all the readily available resources of the organization. to respond to needed changes. Adaptability and economy of scale are readily apparent with a matrix structure. All Rights Reserved. Key organizational processes include the way an organization goes about collecting and communicating information necessary to achieve its primary set of goals. What are the characteristics of a functional organization structure? What are the advantages of a divisional structure? What are the characteristics of a matrix organizational structure? What are the characteristics of teams? What are the advantages and disadvantages of networks? Characteristics of a functional organizational design: Related jobs. It also includes how decisions are made as well as the production processes used in developing its products and services. 5. . Structure becomes flatter. a. Characteristics of a matrix organizational structure: Functional and divisional qualities are blended. d. Advantages and disadvantages of networks: The size of staff and operations can be reduced. Flexibility and adaptation to change characterize divisional design. energy. or posted to a publicly accessible website. Decision-making is more horizontal with speed and effort between participants. Activities and resources may become too common if not redundant. strategies. and the structure of such elements as rules and procedures. What are the seven factors that influence culture? Use specific examples to explain how they interact. Respectively. The formal organizational arrangements encompass the personnel. tasks. Close association and cooperation within and across departments must exist within unpredictable environments.

competitors. Employees form subcultures. Diagnose the problem. heroes. 9. stories. Some aspects of culture are explicit. The chief evidences of culture are statements of principle. All Rights Reserved. or posted to a publicly accessible website. What are the four kinds of change that can occur in an organization? An organization can experience strategical. and adaptability to the external environment. g. 10. Select a change agent. It also includes the underlying assumptions about technology. 12. The factors that help determine how effective an organizational culture becomes are coherence. b. What is the role of managers in creating culture? What is the role of employees in creating culture? The manager role is very diverse. May not be scanned. 11. pervasiveness and depth. Develop a plan. shape corporate values. h. and the physical environment. understanding. Technology encompasses the major techniques commonly used by employees while engaging in organizational processes. 7. Develop goals. markets. Plan for implementation. 8. Follow up and evaluate. process-oriented. symbols. and/or people-centered change. and adopt and promote the aspects of the organizational culture. What organizational qualities promote change? Managers can help create a climate that promotes change by developing a © 2013 Cengage Learning. Recognize the need. and associations that influence the organization’s goods and services. structural. some must be inferred. c. slogans. and participation within an organization’s culture are important to management because culture affects performance and productivity. f. The external environment includes all possible suppliers. e. f. climate. g. i. Select the intervention method. d. copied or duplicated. How is culture evidenced? An organization’s culture is nurtured and becomes apparent to its members in various ways. . in whole or in part. What are the steps of planned change? The steps of planned change are as follows: a. ceremonies. It ranges from defining the mission to creating methods of socialization for new and veteran employees. How does culture influence organizational effectiveness? What factors contribute to an effective culture? Awareness. regulators. Implement the plan.

Student responses to this question will vary. Describe three reasons that people resist change. What do the words mean to you? If others in a company share these similar values and beliefs. philosophy toward change that includes three elements: mutual trust. OD is a process of renewal. © 2013 Cengage Learning. and adaptability. updating. It is important that students are able to respond from their experiences and through their perceptions as well as incorporate the specific course content into their reasoning.0 EXERCISES Conversation Prism The Conversation Prism is a graphic that helps chart online conversations between people and communities. Most of these questions cannot be answered in a right/wrong fashion. this question could be utilized as an in-class group or individual assignment for discussion. 14. . What are three reasons that change efforts fail? Similar to question 13 above. These questions are presented to generate thinking and discussion. INSTRUCTIONAL EXPLANATION: DISCUSSION QUESTIONS FOR CRITICAL THINKING These thought-provoking questions are provided by the authors for each chapter as primers for student discussion.0. This method of questioning ensures that the students have read the assigned materials or content. Some organizations make thorough analysis of their problems and then implement long-term solutions to solve them. or posted to a publicly accessible website. They can be used as supplemental homework assignments and/or class discussions that center on specific critical thinking issues and applications. copied or duplicated. 15. Instead. As opposed to a homework assignment. All Rights Reserved. May not be scanned. Such an approach is called organizational development (OD). 13. and individualized contributions. or rebirth that strives to maximize organizational effectiveness and individual work satisfaction. If a manager does it well. awakening. as well as the networks that connect the Social Web. and explain what managers can do to overcome that resistance. in whole or in part. WEB 2. organizational learning. student responses and/or group discussions should be encouraged by the instructor to bring out individualized critical thinking as opposed to absolute correct answers. how might it influence worker behavior? Use the “Conversation Prism” to identify the networks you use and the ones you are missing. Why do organizations adopt an organizational development program? Managing change is an ongoing process. descriptions. explanations. Choose one word from each area (Web 2. ethical virtues) that is most important to you. he or she can maintain a positive organizational climate. popular culture.

Harty has stood unfailing since its founding in 1911. and solutions. That is. . first during summers. When George R. the air is ripe with the smell of ink and the hum of presses. Platt grew up working in the company. Platt.The student answers to these questions will vary greatly. Harty’s CEO George R. all four questions will provide opportunity for students to compare. and then full time after college to work alongside his father and founder. In what ways does Lonely Planet achieve horizontal coordination across departments or offices? Students will note policies that are directed toward achieving interaction among the offices and departments as well as the use of technology and the Wheeler’s personal contact with the various areas of the organization. May not be scanned. A commercial printer of everything from local advertising to slick annual reports. Lonely Planet: Structure That Makes Sense Discussion Questions and Suggested Answers: 1. 2. discussion. SUGGESTED RESPONSES TO EXPERIENTIAL LEARNING CASE: A Cultural Mismatch The questions of this case provide opportunity for students to respond in many ways. regions have some areas of independence and ability to act on their own. It is important that the instructor encourage the students to “back up” or support their answers with specific subject content from the text as well as provide a rational/logical approach to their comments. in whole or in part. George E. and/or debate. copied or duplicated. Does Lonely Planet have a tall structure or a flat structure? Explain briefly. comments. 3. these questions allow students the opportunity to think in a broad. Connecticut. Inside the plant. contrast. However. Students will note that it is neither a pure flat or tall structure but will observe many attributes of a relatively flat structure. or posted to a publicly accessible website. All Rights Reserved. Similar to the critical thinking questions provided throughout the text. Student interpretations and perceptions regarding problem identification will differ greatly. This case provides opportunity for group and/or class interaction. the case is brief and the scenario is complex. creative sense with many variables or choices for response. the business had 20 employees and $1 © 2013 Cengage Learning. In addition. In what ways is Lonely Planet decentralized? In what ways is it centralized? Students will note those activities that have assigned to specific regions and others that serve all regions and which help cut costs and improve efficiency. Platt took over Harty Press. and learn from their recommendations. ADDITIONAL CASE PROBLEMS WITH SUGGESTED ANSWERS A CULTURAL MISMATCH: NUMBER TWO Harty Press operates out of a complex of one-story cinder-block buildings in the industrial section of New Haven.

 Harty’s management is low key. and energy on the development of technology.  Harty is based in the heart of an industrial neighborhood. and controlling. Harty Press bought Pre-Press Graphics for $500. He was sent with no job description and no defined role. They became protective of their knowledge and jobs. people in running shoes and jeans sit in front of computer screens. in whole or in part. The rapid technological changes overtaking the industry. the business had plateaued. Platt immediately had major problems with the change:  It was hard to imagine two more different cultures than those of Harty Press and Pre- Press Graphics.000. “Mis-Match. many with 10 to 20 years of service. and the merging of the two companies began. however.million in sales. (June 1994). May not be scanned. pp. Printing was moving quickly from the world of film. QUESTIONS 1.  Harty’s workers. Based on the experiences of Harty Press and Pre-Press Graphics. limited future growth. In addition. copied or duplicated. and creates autonomy. He found higher-margin market niches. 70–79. and no one ever figured it out because it never took place. Based in nearby Branford. what is the importance of culture in the change process? 2. and carry union cards. With a keen eye for assessing Harty’s strengths and weaknesses—and with a drive to grow—Platt beefed up quality and customer service. or posted to a publicly accessible website. Pre-Press Graphics had been one of the first in the state to aggressively use advanced desktop technology. It had already done much of the costly research and development work Platt knew he would have to undertake. and light to the computer-driven. out in the bustling world of office parks and fast food joints. No one knew what that meant. The firms’ procedures and systems did not dovetail. have ink under their fingernails. What specific mistakes did Harty and Pre-Press make in the change process? Cite examples to support your answer. money.  The move of Harty’s twelve-person prepress department to consolidate with Pre-Press created chaos. But Platt soon learned that building digital desktop capability from scratch would cost more than a million dollars. an immediate hassle resulted with former Pre- Press managers. Training courses on computer technology lasted for only one session. Neither group had been given enough notice to plan for and comprehend the effects of the merger. digitized world of the desktop. The solution to that problem—and to growth—came in the form of Pre-Press Graphics. loose.” Inc. because the owner of Pre-Press had been spending a lot of time. All Rights Reserved.  A key Harty employee was sent to Pre-Press to work on the transition. Platt tried to solve the problem by hiring a specialist to computerize Harty’s prepress process. Connecticut.  Although Harty had bought Pre-Press specifically for its knowledge of desktop publishing. Pre-Press employees who knew how to operate the computers saw that Harty workers lacked those skills. Pre-Press sits twelve miles away. © 2013 Cengage Learning. . At Pre-Press. Source: Edward O. Welles. The owner was looking for a buyer. precise. Then “familiarization training” on the computer was announced. wear smudged aprons. type. What specific cultural factors caused problems in the change process? Cite examples to support your answer 3. The management at Pre- Press was intense.

copied or duplicated. 4. or was the organization getting more complex and difficult to handle? Since founding his first video rental outlet five years ago. he had found that store openings had become a frequent event. knew that something had to change. On his way home. construct a change process to successfully merge Harty Press with Pre-Press Graphics. seven sets of records and budgets to check. But could he trust his store managers to make the right decision? They didn’t have the drive that he had. and he didn’t want it to be his health. There just weren’t enough hours in the day anymore. B. Using as your guide the nine steps for planned change discussed in this chapter. That is.B’s present situation? © 2013 Cengage Learning. The first store had been the nucleus for six more. All Rights Reserved. In the beginning. ANSWERS The questions to this case attempt to allow the students to respond in various ways. located in five towns and cities throughout his home state of Texas. and one or two sales clerks. and competition was presenting a problem. or so it seemed to J. J. Maxwell was feeling unusually tired as he adjourned his weekly meeting with his store managers. There seemed to be more and more problems and more fires to put out over the past several months. himself and his wife. or posted to a publicly accessible website. . B. these questions are subjective in nature and each student will have different perceptions and answers. it had been so simple: one store. They seemed to be more interested in leisure than in work. in whole or in part. He wondered if his initial approach to managing the stores from a central office was still the best approach. B. he thought about the real possibility that time was catching up to him. The stores were profitable but becoming less so. seven sets of orders to approve. Now he had seven stores. Plans and market research for five more stores were on his desk waiting for his careful analysis. J. B. May not be scanned. Question What are two possible answers to J. Was he just getting older and more tired. CONSIDERS DELEGATING J. and seven sets of personnel and finance problems to resolve.

S B. All Rights Reserved. in whole or in part. will in at have to least start the five practice towns in of Texas. ns located J. More alized. he has B. duplicated. what J. direct Much of them. They seven E may stores R to have to manage be with trained plans for to five handle it more on but they his will have desk. bility is ment .B. to take it He has sooner operatio or later. J.A in order could be put together to allow the local managers to adjust to their new N for store responsibilities gradually and in a uniform way. May not be scanned. is to make doing plans to can diversify probably his be manage routinize ment d and activities procedur . copied or responsi manage or posted to a publicly accessible website. local A control handboo and k of greater© 2013 store Cengage Learning. manage As the ment by number exceptio and n— complex dealing ity of with the operatio areas ns that expand need his beyond direct his attention abilities and to intervent control ion the and most. manage has W rs.

Do you think that would make it easier or more difficult to lead such a team? Why? 3. Evo has not had a major problem with lost time due to frequent meetings nor have any team members failed to do their share. How might the size of Evo impact on the effectiveness of its teams? BIZ FLIX VIDEO CASE Video Case: Rendition Video Case Synopsis U. 2. this is a fairly © 2013 Cengage Learning. a CIA analyst. Why might that be the case? How can a team leader make sure that the team is productive without becoming dictatorial? How does selection of members play a role? 2. becomes involved. or posted to a publicly accessible website. S. Many of the teams at Evo consist of people with a wide range of creative skills. D. All Rights Reserved. Based on the video.C. The story has other complications in the form of El-Ibrahimi’s pregnant wife at home who desperately fights for her husband’s safe return. We learn that Congressional aide Alan Smith (Peter Sarsgaard) was once a friend of El-Ibrahimi. What can you infer about this organization and its structure based on the conversation you witness in this video clip? Alan Smith is clearly in a subordinate position in the organizational structure. in whole or in part. He is a suspected terrorist whom the government sends to North Africa for torture and interrogation (extraordinary rendition).ON THE JOB VIDEO CASE SOLUTIONS: Evo Gear: Leading Teams Discussion Questions and Suggested Answers: 1. government operatives suddenly whisk Anwar El-Ibrahimi (Omar Metwally) from his flight from Cape Town. South Africa after it arrives in Washington. Video Case Discussion Questions and Suggested Answers 1. Hawkins and Smith are in conflict about their goal or purpose. whereas Senator Hawkins holds the position of authority. This BizFlix video case opens with a night shot of the Washington Monument. and he feels compelled to attempt to defend him. copied or duplicated. He reacts negatively to the torture techniques and urges El-Ibrahimi’s release. Yet Senator Hawkins (Alan Arkin) tells Alan to back off in no uncertain terms. May not be scanned. and Hawkins wants to influence Smith by reminding him of their need to coordinate their efforts. Douglas Freeman (Jake Gyllenhaal). Would you describe this as a mechanistic or organic organization? Explain your answer. . Students should recognize that on the spectrum from mechanistic to organic.

top-down communication. in whole or in part. and never to offend or upset them. or posted to a publicly accessible website. and use them to analyze the organizational culture he is creating. © 2013 Cengage Learning. 3. All Rights Reserved. Think about some of the specific statements that Hawkins makes to Smith. copied or duplicated. He also warns him against taking risks. . Among the specific reasons they should offer to support this opinion are: the vertical. He advises him to be particularly respectful to people in authority. a heavy emphasis on following the instructions and decision of the superior. such as speaking up for someone he once considered a friend. Hawkins appears to be creating a culture based on fear and self-protection. May not be scanned. and a heavy emphasis on loyalty and obedience. mechanistic organization.