OB & L (Lecture 6)

The tip for today:

“Unless commitment is made, there are only promises and hopes;

but no plans.” 
Peter Drucker
 Plan 6. MBA
 Introduction
 Quiz on Organizational Structure
 Check HW-
– Ethical dilemma,
– Change of org structure to Matrix structure (?)
 Discussion. Organizational culture
– Students’ examples
 Case p.532- HW
 HW. case p.532, ch 15
 Qs
 Some scholars believe that a network is an effective design
for global competition Is it true? Any cases when it is not
appropriate?
 Several global companies tried implementing a matrix
structure. However, after they experienced problems, they
switched to hybrid form. Identify problems those companies
experienced
 Why don’t all org group people around geographic-based
divisions?
 Planning for a Change in Org Structure
 Imagine that your company is switching to a matrix structure.
Before, you were working in a functional structure. Now, every
employee is going to report to a team leader as well as a
department manager.
• Draw a hypothetical organizational chart for the previous and
new structures.
• Create a list of things that need to be done before the change
occurs.
• Create a list of things that need to be done after the change
occurs.
• What are the sources of resistance you foresee for a change
such as this? What is your plan of action to overcome this
potential resistance?
 Why Does Organizational Culture
Matter?
 A culture fits with the demands of the company’s environment..
 OC…benefits for the Co’s performance
 “Right and wrong” culture
E.g IT: innovation, adaptability or conservatism, etc?
 OC- is an effective control mechanism for dictating employee’s
behavior (why?)
 OC- is a source of competitive advantage (quality, cost
competitiveness, time,
 OC- a tool of promoting collaboration
 Corporate Culture
 Declared values, beliefs, assumption
 Dress code
 Rituals and symbols
 Heroes? (stories)
 Punishment
 Diversity and equality
 Language and communication
Elements of OC
 Mission Statement and OC
 Enron Co: “As a partner in the communities in
which we operate, Enron believes it has a
responsibility to conduct itself according to certain
basic principles.” “We do not tolerate abusive or
disrespectful treatment. Ruthlessness, callousness
and arrogance don’t belong here.”
Ironical: Many Enron executives were indicted on a variety of charges and were
later sentenced to prison.
The scandal resulted in a wave of new regulations and legislation designed to
increase the accuracy of financial reporting for publicly traded companies.
 Mission Statement and OC
 The Mayo Clinic’s : “The needs of the patient come
first.” .
 Founders: “The best interest of the patient is the only interest
to be considered.”
  Wal-Mart Stores Inc. : “Saving people money so they
can live better.
 Wegmans-?
 Rituals 

 …repetitive activities with symbolic meaning. 

 …create sense of belonging
 … serve to teach employees corporate values
 …create identification with the organization.
e.g.Mary Kay Inc. Award ceremony
e.g. Brown and Brown, Inc. Employees
dressed as medieval executioner,
funeral dirge plays… (poor performers are not tolerated)
 Rituals 

 …refer to repetitive activities within an organization

that have symbolic meaning. Usually rituals have their
roots in the history of a company’s culture. They create
a sense of belonging among employees. They also serve
to teach employees corporate values and create
identification with the organization.
e.g.Mary Kay Inc. Award ceremony
 Rules and Policies
 Reasons: to determine acceptable and unacceptable
behavior, show values:
– fair treatment of others, ethics as a bottom line,
workplace surveillance, open-door policies, sexual
harassment, and corporate social responsibility, etc.
– E.g.“all pricing decisions of merchandise will be made at
corporate headquarters” (a centralized hierarchical culture)
– E.g. benefits to both part-time and full-time employees, flexible
work hours, sabbaticals, and telecommuting opportunities...
 Physical Layout
 Building architecture:
– E.g Nike Inc. (74 acres: artificial lake, soccer fields, warkung
trails, fitness centers) values: energy, physical fitness ,
quality. Only Nike shoes and apparel are allowed
 Office spaces:
– “Open space” (team orientation), isolated offices,
different floors (hierarchy)
( …,
E.g.Intel Corporation - standard cubicles, (equality).
e.g. Oakley Inc,. “war environment”, lobby looks like bomb
shelter, ejection seats from B-52 bomber furnish the waiting room
 Stories
 … colorful and effective way to communicate OC
– - critical event
– - heroic effort
 …engages emotions, stimulates motivation towards
a goal
 … shows history, values, priorities
E.g. 3M Post-it notes, Arthur Fry, Wegmans “adopting a camp that
gives so much…Our Buffalo employees stepped in to help Cradle Beach
Camp, which welcomes children with disabilities from across the region.
 Qs
 What type of a company do you feel would be a good fit for
you? What type of a culture would be a misfit for you? In
your past work experience, were there any moments when
you felt that you did not fit with the organization? Why?
 What is the role of physical layout as an indicator of
company culture? What type of a physical layout would you
expect from a company that is people oriented? Team
oriented? Stable?
 Possible projects

 Research on Hertzberg’ Motivation theory in XX company (survey)

(scale 1-5, e.g. strongly agree, agree, not sure/ cannot say, disagree,
strongly disagree) (ch 1 online)
 Research: Organizational change (structure) in XX company.
Objectives, implementation, outcomes. (survey)
 Research: Level of Employees’ commitment level in XX company
(survey)
 Interview (Taped and scripted) with a Mng of XX company on org
structure and culture.
 Development of Motivation system for XX company
 Employee’s onboarding (what empl, company, mng should do)
 HW
 Leaders and org culture – in groups
 Role of ethics and National culture- in groups
 Zappo case ? Case p. 532?
 Ch on OC