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ORGANIZATIONAL

PROCESSES
Organizational Structure,
Culture and Change

Mary Francel D. Ablao


Janice Ewangan
ORGANIZATIONAL STRUCTURE
o Refers to how the work of individuals and teams with an
organization is coordinated.
o In order to achieve organizational goals and objectives,
individual work needs to be coordinated and managed.
KEY ELEMENTS OF
ORGANIZATIONAL
STRUCTURE:

CONFIGURATIONS:
o Centralization
o Mechanistic
o Formalization
Structures
o Hierarchical Levels
o Organic
Structures
o Departmentalization/D
ivisional Structure
A. CENTRALIZATION

Decentralization Centralization

Decisions are faster Greater demands on the mental and


physical capabilities of CEOs and
Provide greater levels of
other higher level managers
procedural fairness to
employees More efficient operations in a
stable environment
B. FORMALIZATION

Policies, procedures, job descriptions and rules are written


and explicitly articulated.
This makes employee behavior predictable.

Disadvantages:
High formalization leads to reduced innovativeness because
employees are used to behaving in a certain manner.
Reduced motivation and job satisfaction
Slower pace of decision making
C. HIERARCHICAL LEVELS

Tall Organizations Flat Organizations


Smaller span of control Wide span of control
Greater opportunities for managers Greater need satisfaction for employees
to supervise and monitor each
Greater levels of self-actualization
employee activities
Employees will not have many opportunities
Better at satisfying security needs
to receive supervision and guidance from
of employees (typical for large and
managers making it necessary for employees
well established companies)
to be self-reliant (role ambiguity)
Limited advancement opportunities
D. DEPARTMENTALIZATION
Functional Structure Divisional Structure

Jobs with similar functions Departments represent the unique


are grouped together; each products, services, customers or
person serves as a geographic locations of the
company is serving
specialized role and
handler of large volumes of Employees act as generalists
transaction; (performing many different tasks
in the service of the product)
Effective when an
More agile and can perform better
organization does not have
in turbulent environments because
a large number of products activities are diverse and
requiring special attention complex.
More effective in stable Employee performance depends on
environments that are their general mental abilities.
slower to change
TWO CONFIGURATIONS
Mechanistic Structures Organic Structures
Similar to Flexible, decentralized and
bureaucracies(highly low levels of formalization
formalized and decentralized)
Communication lines are more
Communications follows formal fluid and flexible
channels
Broader job descriptions
Advantageous in a more stable
environment Higher levels of job
satisfaction
Advantageous for new ventures
Conducive for entrepreneurial
Efficiency
behavior and innovativeness
Reduces innovativeness/slow
responses
Discourages employee
initiative
Limited autonomy and self-
determination
CONTEMPORARY FORMS OF
ORGANIZATIONAL STRUCTURES

MATRIX ORGANIZATIONS BOUNDARYLESS LEARNING


ORGANIZATIONS ORGANIZATIONS
1. Matrix Organizations
-created in response to uncertainty and dynamism of the
environment and the need to give particular attention to
specific products/projects.

Advantages: increase in communication and cooperation among


departments
quick responses to technical problems and customer
demands
Disadvantages: violates the unity of command principle
power struggles/turf wars among managers
managers are more interdependent
interpersonal conflict in the team
role conflict
task conflict
2. Boundaryless Organizations- eliminates traditional barriers
between departments as well as between the organization and the
external environment

Modular Organization
Non-essential functions are outsourced

Strategic Alliances
Two or more companies find an area of
collaboration and combine their efforts to
create partnerships that are beneficial for both
parties
Joint-venture

Self-managing Teams
Eliminating barriers separating employees
Employees coordinate their efforts and change
their own roles to suit the demands of the
situation
3. Learning Organization

experimenting, learning new things and reflecting on new


knowledge are the norms
acquiring knowledge and changing behavior as a result of the
newly gained knowledge are part of an organizations design
Facilitate innovativeness and make it easier to achieve
organizational change
ORGANIZATIONAL CULTURE

A system of shared assumptions, values and beliefs that


show employees what is appropriate and inappropriate
behavior.
Company personality
It has a strong influence on employee behavior as well
as organizational performance
Organizational
Culture Matters
because:

o An organizations
culture maybe one of
its strongest assets,
as well as its biggest
liability
o Culture/Shared values
within the
organization maybe
related to increased
performance
o Organizational Culture
is an effective
control mechanism for
dictating employee
behavior
Three Levels of Organizational Culture
o Assumptions- beliefs about human nature and reality
o Values- shared principles, standards and goals
o Artifacts- visible, tangible aspects of organizational
culture
Flexible and
Emphasizes adaptable
precision and
paying attention to Innovative
details
Value competitiveness
Detail and outperform
Aggressive
Oriented competitors

Collaborative and
emphasizes
cooperation among Organizational Emphasis on
employees Culture Profile
achievement, results
Team Outcome and actions as
Oriented Oriented important values

Value fairness,
supportiveness and People
Stable Predictable, rule-
respect for individual Oriented
rights oriented and
bureaucratic
Others
Service Culture
- Employees are engaged in their
jobs and personally invested in
improving customer experience such
that they identify issues and come
up solutions without necessarily
being told what to do
Safety Culture
- Leaders encourage employees to
demonstrate behaviors such as
volunteering for safety committees,
making recommendations to increase
safety, protecting co-workers from
hazards, whistleblowing and in
general trying to make their jobs
safer
Strength of Culture
- One that is shared by
organizational members
Attraction-
selection-
attrition
Founder
Values and
Preferences New
employee
Early values, onboarding
goals, Organizatio
assumptions nal Culture

Leadership
Industry
Demands

Reward
Systems

CULTURE CREATION CULTURE MAINTENANCE


Culture Creation

Founders Values
- A companys culture, particularly during its early
years, is inevitably tied to the personality, background,
and values of its founders, as well as their vision for
the future of the organization.

Industry Demands
- Industry characteristics and demands act as a force
to create similarities among organizational cultures.
Culture Maintenance

Attraction- Selection- Attrition (ASA)


Attraction-employees are attracted to organizations where they
will fit in
Selection- just as candidates are looking for places where they
will fit in, companies are also looking for people who will fit
in their culture. Many companies are hiring people who fit with
their culture as opposed to fit with a certain job.
Attrition- natural process in which the candidates who do not fit
in will leave the company
As a result, the company attracts, selects and retains people
who share its core values
On- boarding (organizational socialization
process)- process through which new employees
learn the attitudes, knowledge, skills and
behaviors required to function effectively
within an organization
What can employees do during on-boarding?
Feedback seeking
Relationship building/ networking
What can organizations do during on- boarding?
Orientation Program
Leadership (Role Modeling)
-Leaders are instrumental in creating and
changing an organizations culture

Reward Systems
the company culture is shaped by the type of reward
systems used in the organization, and the kinds of
behaviors and outcomes it chooses to reward and
punish.
Whether the organization rewards behaviors or
results
Statement of purpose
describing who the
company is and what it
does
Repetitive activities Can emphasize a
within an organization Mission heroic effort
that have symbolic Statement illustrating the
meaning companys values

Rituals Stories

Building architecture
Determines
may indicate the core
acceptable and
values of an
unacceptable
organizations
behavior
culture

Rules and Physical


Policies Layout
Organizational Organizational Culture
Culture and Ethics around the Globe
The degree to which The values, norms, and beliefs of
employees in an a company may also be at least
organization behave partially imposed by the national
ethically depends on the culture.
culture of the
It is important for managers to
organization. Without a
know the relationship between
culture emphasizing the
national culture and company
importance of integrity,
culture, because the relationship
honesty, and trust,
explains why it would so
mandatory ethics training
programs are often doomed
to fail.
Leaders, by demonstrating
high levels of honesty and
integrity in their actions,
can model the behaviors
that are demanded in an
organization.