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13 Developing Organizational Cultures and Structures

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1 13 Developing Organizational Cultures and Structures
Neubert & Dyck’s Organizational Behaviour

2 Learning Objectives 1. Creating an Organizational Culture
Discuss how an organizational culture is created 2. Prioritizing a Form of Organizational Culture Describe the key assumptions and values associated with four basic organizational cultures 3. Aligning Culture with Structure, Technology and Strategy Explain how to align organizational culture with structure, technology and strategy 4. Combining the Pieces to Make Four Organizational Types Identify the four basic organizational types and how they should fit together to form a coherent whole Copyright © 2016 John Wiley & Sons, Inc.

3 Chapter Navigator Creating an Organizational Culture
Prioritizing a Form of Organizational Culture Aligning Culture With Structure, Technology and Strategy Combining The Pieces To Make Four Organizational Types – Instructors can start by giving an overview of what the chapter will cover. The four topics that will be covered could be outlined and instructors could review briefly how each topic will be covered. The four topics center overall on developing organizational culture and organizational structure. Copyright © 2016 John Wiley & Sons, Inc.

4 Copyright © 2016 John Wiley & Sons, Inc.
This diagram introduces that four parts that the chapter will cover. Copyright © 2016 John Wiley & Sons, Inc.

5 Creating an Organizational Culture
Culture Creation By Leaders Socialization Organizational Culture’s Contribution to Uniformity Strong versus Weak Culture LO1 – Start this slide by giving students a background on the differences of organizations as it relates to the behaviour of organizational members. Discuss how these differences can occur with organizations of the same size, in the same industry or in the same geographic region. Discuss further what is an organizational type and have students provide an example of what encompasses an organizational type? Talk with students about how an organizational culture is created and the importance of the creation and maintenance of an organizational culture to its survival. In the discussion of the creation of an organizational culture, discuss with students two other related areas. First, take a look at socialization, which discusses how organizational members are introduced and acclimated to the organization’s culture. In a related vein, discuss the importance of the socialization process to the organization’s effectiveness. Second, have students distinguish between a strong versus a weak culture and discuss how each is created (from a conventional and a sustainable perspective) and what the implications are of having one type versus another for the organization. Copyright © 2016 John Wiley & Sons, Inc.

6 Prioritizing a Form of Organizational Culture
What an Organizational Culture Does Clan Organizational Culture Hierarchy Organizational Culture Adhocracy Organizational Culture Market Organizational Culture LO2 – This slide provides an overview of the areas that will be covered in looking at prioritizing the different forms of organizational cultures, which includes what an organizational culture does and the different types of organizational cultures. The font at the beginning of each section is indicated in a different color (in this case, blue). It allows Instructors to introduce a topic area and allows students to start thinking about the sub-topics in that area. Copyright © 2016 John Wiley & Sons, Inc.

7 Clan and Hierarchy Organizational Cultures
What is Clan Culture? Examples of Clan Culture Conventional versus Sustainable Clan Culture What is Hierarchy Culture? Examples of Hierarchy Culture Conventional versus Sustainable Hierarchy Culture LO2 – Start this slide by defining clan culture and describing what takes place in an organization that exhibits a clan culture. Have students provide examples (if they have them) of organizations that they themselves have worked in that exhibited a clan culture. End this part of the discussion by discussing clan culture from a conventional and then a sustainable perspective. Continue by defining hierarchy culture and describing what takes place in an organization that exhibits a hierarchy culture. Have students provide examples (if they have them) of organizations that they themselves have worked in that exhibited a hierarchy culture. End this part of the discussion by discussing hierarchy culture from a conventional and then a sustainable perspective. Copyright © 2016 John Wiley & Sons, Inc.

8 Copyright © 2016 John Wiley & Sons, Inc.
LO2 Copyright © 2016 John Wiley & Sons, Inc.

9 Adhocracy and Market Organizational Culture
What is Adhocracy Culture? Examples of Adhocracy Culture Conventional versus Sustainable Adhocracy Culture What is Market Culture? Examples of Market Culture Conventional versus Sustainable Market Culture LO2 – Start this slide by defining adhocracy culture and describing what takes place in an organization that exhibits a adhocracy culture. Have students provide examples (if they have them) of organizations that they themselves have worked in that exhibited a adhocracy culture. End this part of the discussion by discussing adhocracy culture from a conventional and then a sustainable perspective. Continue by defining market culture and describing what takes place in an organization that exhibits a market culture. Have students provide examples (if they have them) of organizations that they themselves have worked in that exhibited a market culture. End this part of the discussion by discussing market culture from a conventional and then a sustainable perspective. In the follow-up slide, look again at the four cultures based on the four dimensions – internal focus, external focus, flexibility and variety and predictability and control. Copyright © 2016 John Wiley & Sons, Inc.

10 Copyright © 2016 John Wiley & Sons, Inc.
LO2 Copyright © 2016 John Wiley & Sons, Inc.

11 Aligning Culture With Structure, Technology and Strategy
Organizational Structure Technology Strategy Conventional and Sustainable OB Approaches: Structure, Technology and Strategy LO3 – This slide provides an overview of the areas that will be covered in looking at the alignment of organizational culture with structure, technology and strategy. Copyright © 2016 John Wiley & Sons, Inc.

12 Aligning Culture With Structure
Mechanistic Structure Organic Structure Inward-Facing Structures Outward-Facing Structures Conventional Organizational Structure and Their Characteristics LO3 – In looking at the alignment of culture and structure, this slide begins with a look at the conventional mechanistic-organic structure and continues with the sustainable inward-outward facing structure. First, have students define what is meant by a mechanistic structure. Many students in the class might be familiar with this type of structure and will be able to discuss the advantages and disadvantages. Next, have students define what is meant by an organic structure. Many students in the class might be familiar with this type of structure and will be able to discuss the advantages and disadvantages. Discuss further these structures in a compare and contrast perspective along the four fundamental conventional elements of organizing. This can be done by using the follow-up slide. Have students point out the limitations of this type of interpretation for organizations today. Repeat much of what was done previously by looking at sustainable OB and the two different types of organizational structures offered there, namely inward-facing and outward-facing structures. First, have students define what is meant by an inward-facing structure. Some students in the class might be familiar with this type of structure and will be able to discuss the advantages and disadvantages. Next, have students define what is meant by an outward-facing structure. Some students in the class might be familiar with this type of structure and will be able to discuss the advantages and disadvantages. Discuss further these structures in a compare and contrast perspective along the four fundamental elements of organizing. This can be done by using the follow-up slide. Have students point out why these organizational structures are more applicable for organizations today. Finally, have students look at the class exercise OB in Action on page 278 and read and discuss the answers. Copyright © 2016 John Wiley & Sons, Inc.

13 Copyright © 2016 John Wiley & Sons, Inc.
LO3 Copyright © 2016 John Wiley & Sons, Inc.

14 Copyright © 2016 John Wiley & Sons, Inc.
LO3 Copyright © 2016 John Wiley & Sons, Inc.

15 Aligning Culture With Technology
Task Analyzability Task Variety Routine and Engineering Technologies Nonroutine and Craft Technologies LO3 – Start this slide by having students define technology, task analyzability and task variety. Have the students discuss the comparisons between a routine versus an engineering technology and the implications of both to today’s organizations. Have students do the same with a non-routine and a craft technology. Again, have them discuss the implications of these latter two types of technology for organizations today. Copyright © 2016 John Wiley & Sons, Inc.

16 Aligning Culture With Strategy
Cost Leadership Differentiation Focus Minimizer Transformer Strategy: Conventional and Sustainable OB Approaches LO3 – Have students define and provide examples of cost leadership, differentiation and focus strategies. Continue the discussion of this slide by having students define both minimizer and transformer strategies. When looking at the latter strategies, combine the discussion with the relations of these strategies to sustainable OB of inward-facing and outward-facing structures. Copyright © 2016 John Wiley & Sons, Inc.

17 Combining The Pieces to Make Four Organizational Types
The Simple Type The Defender Type The Prospector Type The Analyzer Type LO4 – This slide provides an overview of the areas that will be covered in combining all the elements we have looked at to make four organizational types. Copyright © 2016 John Wiley & Sons, Inc.

18 The Simple and Defender Types
What is Organizational Type? Conventional Simple Type Voluntary Simplicity Type Conventional Defender Type Sustainable Defender Type LO4 – Begin this slide by returning to the original question and discussing with students why are there different types of organizations? Students may have different initial answers. Prepare students for the discussion that follows, namely that each type of organization will be presented in a format where the conventional type is compared and contrasted to the sustainable type. The first type is the Conventional Simple type. Have students define and compare and contrast this to the Voluntary Simplicity type. Next, do the same for the Conventional Defender type and the Sustainable Defender type. When discussing each type, have students provide examples of each type of organization that has been discussed. These examples could come from their own work experiences or from their readings. Instructors can also consider using the OB in Action exercise on page 283 to incorporate into this discussion. Copyright © 2016 John Wiley & Sons, Inc.

19 The Prospector and Analyzer Types
Conventional Prospector Type Sustainable Prospector Types Conventional Analyzer Type Sustainable Analyzer Type LO4 – This slide continues in the same vein as the previous slide. First have students define the Conventional Prospector type. Then have students compare and contrast it to the Sustainable Prospector type. Next have students define, compare and contrast the Conventional Analyzer type to the Sustainable Analyzer type. In doing this latter slide, also have students incorporate their examples. Copyright © 2016 John Wiley & Sons, Inc.

20 Copyright © 2016 John Wiley & Sons, Inc.
LO4 Copyright © 2016 John Wiley & Sons, Inc.

21 Copyright Copyright © 2016 John Wiley & Sons Canada, Ltd. All rights reserved. Reproduction or translation of this work beyond that permitted by Access Copyright (The Canadian Copyright Licensing Agency) is unlawful. Requests for further information should be addressed to the Permissions Department, John Wiley & Sons Canada, Ltd. The purchaser may make back-up copies for his or her own use only and not for distribution or resale. The author and the publisher assume no responsibility for errors, omissions, or damages caused by the use of these programs or from the use of the information contained herein.


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