1. 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
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2. 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
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3. 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
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4. 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
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5. 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
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6. 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
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