Additional Factors That Influence an Organization Corporate culture The inner rites, rituals, heroes, and values of a firm Indicators of corporate culture The physical setting (e.g., building and office layout) Corporate statements about itself How the company greets its guests How employees spend their time at work (alone or in groups) Cultural change is needed when The business environment changes Company performance is mediocre The company is growing or becomes a large firm Copyright © Cengage Learning. All rights reserved.

Types of Corporate Cultures Networked culture Trust and friendship among employees Strong commitment and loyalty to the organization Relaxed, informal environment Mercenary culture Passion, energy, sense of purpose, excitement for work Intense, focused, determined to win Fragmented culture Employees not friends; work “at” (not “for”) organization Employees have autonomy, flexibility, equality Communal culture Friendship, commitment, focus on performance, high energy Lives revolve around the product; success is celebrated by all Copyright © Cengage Learning. All rights reserved.

Additional Factors That Influence an Organization (cont’d) Intrapreneurship Intrapreneur—an employee who pushes an innovative idea, product, or process through the organization while using the organization’s resources for idea development Copyright © Cengage Learning. All rights reserved.

Additional Factors That Influence an Organization (cont’d) Committees Types Ad hoc—created for a specific short-term purpose Standing—relatively permanent; charged with performing some recurring task Task force—established to investigate a major problem or pending decision Positive aspects Members bring more information and knowledge; more accurate decisions; results communicated more effectively Negative aspects Decisions making takes longer; may reach unnecessary compromises; one person may dominate Copyright © Cengage Learning. All rights reserved.

Additional Factors That Influence an Organization (cont’d) Coordination techniques Managerial hierarchy The arrangement that provides for increasing authority at higher levels of management Rules and procedures Liaison to coordinate the activities of groups Committee to integrate complex coordination Copyright © Cengage Learning. All rights reserved.

Additional Factors That Influence an Organization (cont’d) Informal organization Patterns of behavior and interactions that stem from personal, rather than official, relationships in the organization Informal groups Formed by the members themselves to accomplish goals that may or may not be relevant to the organization Reasons for joining: the need for affiliation; agreement with the goals of the group; desire to be accepted The grapevine Informal communication network within an organization that is completely separate from—and sometimes faster than—the organization’s formal communication channels May be accurate or distorted; managers should be aware and use appropriately Copyright © Cengage Learning. All rights reserved.