- 4 1 McGraw-Hill © 2005 The McGraw-Hill Companies, Inc. All rights reserved.

4 Organizational Context: Design and Culture

- 4 3 McGraw-Hill © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Learning Objectives  Explain the modern organization theories of open systems, information processing, contingency, ecology, and learning.  Present the emerging horizontal, network, and virtual designs of organizations.  Define organizational culture and its characteristics.  Relate how an organizational culture is created.  Describe how an organizational culture is maintained.  Explain some ways of changing organizational culture.

- 4 4 McGraw-Hill © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Starting with Best-Practice Leader’s Advice  Harvard’s Michael Porter’s New Thinking on the Relation between Strategy and Structure  Youngest ever tenured professor in the Harvard Business School  Effective strategists  Expand emphasis to organizational considerations  Nonstrategy  Effectiveness in 21st century

- 4 5 McGraw-Hill © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Organization Theory  Historical Roots  The Organization as an Open System  Information Processing View of Organizations  Contingency and Ecological Organization Theories

- 4 6 McGraw-Hill © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Organization Theory  What Is Meant by a Learning Organization?  Organizational Behavior in the Learning Organization  Learning Organizations in Action (Continued)

- 4 7 McGraw-Hill © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Organization Theory (Continued)

- 4 8 McGraw-Hill © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Modern Organization Designs  Horizontal Organizations  Network Designs  The Virtual Organization

- 4 9 McGraw-Hill © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Modern Organization Designs (Continued)

McGraw-Hill © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Modern Organization Designs (Continued)

McGraw-Hill © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Modern Organization Designs (Continued)

McGraw-Hill © 2005 The McGraw-Hill Companies, Inc. All rights reserved. The Organizational Culture Context  Definition and Characteristics  Uniformity of Culture

McGraw-Hill © 2005 The McGraw-Hill Companies, Inc. All rights reserved. The Organizational Culture Context (Continued)

McGraw-Hill © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Creating and Maintaining a Culture  How Organizational Cultures Start  Maintaining Cultures through Steps of Socialization  Selection of Entry-Level Personnel  Placement on the Job  Job Mastery

McGraw-Hill © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Creating and Maintaining a Culture (Continued)

McGraw-Hill © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Creating and Maintaining a Culture  Maintaining Cultures through Steps of Socialization (continued)  Measuring and Rewarding Performance  Adherence to Important Values  Reinforcing the Stories and Folklore  Recognition and Promotion (Continued)

McGraw-Hill © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Creating and Maintaining a Culture  Changing Organizational Culture  The Case of Mergers and Acquisitions  The Case of Emerging Relationship Enterprises  Guidelines for Change (Continued)

McGraw-Hill © 2005 The McGraw-Hill Companies, Inc. All rights reserved. Questions