Summary Ch 11 Organization Structures & Ch 12 Organizational Culture and

Change

Chapter 11 Organization Structures

Organizing as a Management Function

- Organizing: arranges, connects, and integrates people and resources to accomplish a
common purpose.
- Organization Structure: a system of tasks, reporting relationships, and communication
linkages.
- Formal Structures:
1. Organization chart: describes the arrangement of work positions within an organization.
2. Formal structure: official structure of the organization.

- Informal Structures & Social Networks:

1. Informal Structure: set of social networks found in unofficial relationships among the
members of an organization.
2. Social Network Analysis (sociometrics): identifies the informal structures and their
embedded social relationships that are active in an organization.
Organizing as a Management Function

- Informal Structures & Social Networks:

1. Functional Structures: groups together people with similar skills who perform similar
tasks.
- Advantages Of Functional Structures:
1. Economies of scale with efficient use of resources
2. Task assignments consistent with expertise and training
3. High-quality technical problem-solving.
4. In-depth training and skill development within functions.
5. Clear career paths within functions.

- Disdvantages Of Functional Structures:

1. The functional chimneys/functional silos problem: lack of communication,
coordination, and problem-solving across functions.
- Divisional structures: groups together people working on the same product, in the same
area, with similar customers, or on the same processes.

1. Product structure: groups together people and jobs focused on a single product or
service.
2. Geographical structure: groups together people and jobs performed in the same
location.
3. Customer structure: groups together people and jobs that serve the same customers or
clients.
4. Process structure: groups jobs and activities that are part of the same process.
5. Work process: group of related tasks that collectively creates a valuable worn product.

- Advantages Of Divisional Structures:

1. More flexibility in responding to environmental changes.
2. Improved coordination across functional departments.
3. Clear points of responsibility for products , and regions.
4. Greater ease in changing size by adding or deleting divisions.

- Disdvantages Of Divisional Structures:

1. Reduce economies of scale
2. Increase costs through the duplication of resources and efforts across divisions.
3. Create unhealthy rivalries as divisions compete for resources and top management
attention.
4. Emphasizing division needs over broader organizational goals.

- Matrix structure: combines the functional & divisional approaches to create permanent
cross-functional project teams.

- Advantages Of Matrix Structures:

1. Better communication and cooperation across functions
2. Improved decision-making; problem-solving takes place at the team level where the best
information is available.
3. Increased flexibility in adding, removing or changing operations to meet changing
demands.
4. Better customer service; there is always a program, product, or project manager.
5. Improved strategic management; top managers are freed from lower-level
problem-solving to focus time on more strategic issues.

- Disdvantages Of Matrix Structures:

1. Additional team leaders needed to staff a matrix structure result in higher costs.
2. •Two-supervisor system is susceptible to power struggles.
3. Problems and frustrations occur when functional supervisors and team leaders don't
coordinate well and end up sending conflicting messages and priorities, or even
competing with one another for authority.
 4. Teams may develop something called "grouptitis ", where strong team loyalties cause a
loss of focus on larger organizational goals.
5. Team meetings in the matrix can take lots of time.

Horizontal Organization Structures

- Team structure: uses permanent and temporary cross-functional teams to improve lateral
relations.
- Cross-functional team: brings together members from different functional departments.
- Project teams: convened for a particular task or project and disband once it is completed.

- Advantages of Team Structures:

1. Helps breakdown interpersonal barriers and mobilize diverse talents.
2. Improve performance by increasing the speed & quality of decisions.
3. Boost morale
4. Greater sense of task involvement and identification.
5. Increased enthusiasm for the job.

- Disadvantages of Team Structures:

1. Conflicting loyalties for members with both team and functional assignments.
2. Issues of time management and group process.
3. Spend a lot of time in meetings, not all meeting time is productive.
4. Quality of outcome depends on how well tastes, relationships, and team dynamics are
managed.
- Network Structures: Uses information technologies to link with networks of outside
suppliers and service contractors.
- Strategic alliance: cooperation agreement with another organization to jointly pursue
activities of mutual interest.

- Advantages of Network Structures:

1. Lean & streamlined.
2. Help organizations stay cost-competitive by reducing overhead and increasing operating
efficiency.
3. Employ outsourcing strategies & contract out specialized business functions.
4. Interesting jobs are created for employees who coordinate the entire system of
relationship.

- Disadvantages of Network Structures:

1. - The more complex the organization's mission, the more complicated it is to control and
coordinate the network of contracts and alliances
2. If one part breaks down, entire system can fail.
3. May lose control over contracted activities
4. Lack of loyalty among contractors who are used infrequently than long term basis.
5. Outsourcing can become so aggressive as to be dangerous to the firm. especially when
critical activities such as finance, logistics, and human resource management are
outsourced.
 - Boundaryless organization: eliminates internal boundaries among subsystems and
external boundaries with the external environment.
- Virtual organization: uses mobile IT to engage a shifting network of strategic alliances.

Organizational Designs
- Organizational designs: process of creating structures that accomplish mission &
objectives.
- Bureaucracy: emphasizes formal authority, order, fairness, & efficiency.
- Mechanic design: centralized, with many rules & procedures, a clear-cut division of
labor. Narrow spans of control, and formal coordination.
 - Organic design: decentralized, with fewer rules & procedures, open divisions of labor,
wide spans of control, and more personal coordination.
- Adaptive organization: operates with a minimum of bureaucratic features & encourages
worker empowerment & teamwork.

Trends in Organizational Designs

- Fewer levels of Management:

1. Chain of command: links all employees with successively higher levels of authority.
2. Span of control: number of subordinates directly reporting to a manager.
3. Tall structures: have narrow spans of control & many hierarchical levels.
4. Flat structures: have wide spans of control & many hierarchical levels.
 - More delegation & empowerment:
1. Delegation: process of distributing & entrusting worn to others.
2. Self -enhancement bias: tendency to view oneself as more capable, intelligent, and
ethical than others.
3. Authority-and-responsibility principle: authority should equal responsibility when
work is delegated.
4. Empowerment: allows others to make decisions and exercise discretion in their work.

- Decentralization with Centralization:

1. Centralization: the concentration of authority for most decisions at the top level of an
organization.
2. Decentralization: dispersion of authority to make decisions throughout all organization
levels.

- Reduced Use Of Staff:

1. Staff positions: provide technical expertise for other parts of the organization.

Chapter 12 Organizational Culture and Change

Organizational Cultures
- Organizational Cultures: system of shared beliefs & values that guides behavior in
organizations.

- Types of Organizational culture:

1. Strong Organizational Cultures: Clear, well-defined, and widely shared among
members.
2. Socialization: on boarding process through which new members learn the cultures of an
organization.

- Observable culture of Organizations: Identifies alternative courses of action to take

when things go wrong.
 1. Observable culture: visible in the way members behave, and in the stories, heroes,
rituals and symbols that are part of daily organizational life.
2. Core culture: consists of the core values, or underlying assumptions and beliefs that
shape and guide people's behaviors in an organization.
3. Core values: beliefs and values shared by organization members.
4. Value based management: actively develops, communicates, and enacts shared values.
5. Symbolic leader: someone whose words & actions consistently communicate core
values.
6. Workplace spirituality: creates meaning & shared community among organizational
members.

Multicultural Organizations & Diversity

- Multiculturalism: involves inclusiveness, pluralism, & respect for diversity.

- Multicultural organization: has core values that respect diversity & support
multiculturalism.
- Characteristics:
1. Pluralism
2. Structural integration
3. Informal network integration
4. Absence of prejudice & discrimination.
5. Minimum intergroup conflict.
- Organizational subcultures/co-cultures: consist of members who share similar beliefs
& values based on their work, personal characteristics, or social identities.
- Ethnocentrism: the belief that one 's membership group & subculture or co-culture is
superior to all others.
- Generational subcultures: form among persons who work together and share similar
ages, such as millennials and baby boomers.
- Gender subcultures: share gender identities & display common patterns of behavior.
- Double-bind dilemma: female leaders get criticized when they act consistent with
female subculture stereotypes & when they act consistent with male subculture
stereotypes.
- Occupational & functional subcultures: share the same skills & work responsibilities.
- Ethnic subcultures: work together & have the same roots in the same ethnic community
or nationality.
- Glass ceiling: invisible barrier to advancement by women & minorities in organizations.
- Leaking pipeline problem: glass ceiling & other obstacles cause qualified &
high-performing women to drop out of upward career paths.
Biculturalism: when minority members display characteristics of majority cultures in order
to succeed
Managing diversity: leadership approach that creates an organizational culture that respects
diversity & supports multiculturalism.

Organizational Change

- Change leader: takes initiative in trying to change the behavior of another person or
within a social system.
- Top-down change: the change initiatives come from senior management.
- Bottom-up change: change initiatives come from all levels in the organization.
- Transformational change: results in a major & comprehensive redirection of the
organization.

- Incremental change: bends & adjusts existing ways to improve performance.

- Phases of Planned change:
1. Unfreezing: phase during which a situation is prepared for change.
2. Changing: phase where a planned change actually takes place.
3. Refreezing: phase which change is stabilized.
- Improvising: makes continual adjustments as changes are being implemented.
- Change strategies:
- Force-coercion strategy: pursues change through formal authority and /or the use of
rewards or punishments.
- Rational persuasion strategy: pursues change through empirical data & rational
argument.
- Shared power strategy: pursues change by participation in assessing change needs,
values, & goals.

- Resistance to Change:
1. Fear of the unknown
2. Disrupted habits
3. Loss of confidence
4. Loss of control
5. Poor timing
6. Work overload
7. Loss of face
8. Lack of purpose

- Resistance to Change:
1. Check benefits
2. Check compability
3. Check simplicity
4. Check friability