1. Chapter 9 Organizational Culture and Design
Planning Ahead
What is organizational culture?
What are current directions in organizational cultures?
What is organizational design?
What are current directions in subsystems and work process design?
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2. The Nature of Organizational Culture
Organizational Culture is a systems of shared beliefs and values that develop within an organization and guides the behavior of its members
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3. Organizational Culture
What Strong Cultures Can Do
Strong cultures are
clear, well defined
widely shared among members
encourage positive or negative work behaviors
performance oriented versus hinder performance
emphasize teamwork
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4. Organizational Culture
Elements of Organizational Culture
Observable culture
stories
heroes
rites and rituals
symbols
Can you name 5 more items that are observable characteristics of culture in businesses? Such as office sizes.
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5. Organizational Culture
Core Culture
Consists of core values that influence the behavior of organizational members
Values are publicized in formal statements of mission and purpose
Core values can be negative – for example, take every minute of leave time.
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6. Directions in Organizational Cultures
Leadership and Organizational Culture
Criteria of core values
relevance
Pervasiveness(This is called integration in org. culture literature.)
Strength (This is called intensity in org. literature.)
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7. Directions in Organizational Cultures
Symbolic Managers
someone who uses symbols well to establish and maintain desired organizational culture
use language metaphors
tell key stories and encourage others to tell them
tell about organizational heroes
use symbolic rites and rituals
There are many theories of management. People in management are unlikely to talk about Symbolic Managers.
When managing think about cultural aspects to manage your organization. Some workers may work very hard all year to get a plaque.
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8. Directions in Organizational Cultures
Characteristics of multicultural organizations:
Pluralism
Structural integration
Information network integration
Absence of prejudice and discrimination
Minimum inter-group conflict
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9. Directions in Organizational Culture
Ethical Organizational Cultures
Ethical Climate
shared set of understandings about what is considered ethically correct behavior
establish clear guidelines to employee
management and policies stand behind expectations of ethical behavior
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10. Organizational Design
Organization Design
Process of aligning structures and culture to best serve mission and objectives
shift from
vertical to horizontal structure --throw in diagonal as we are also pulling people from different levels of org. at same time.
authority driven to task driven
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11. Organizational Design
Bureaucratic Designs
Bureaucracies
based on
logic
order
legitimate use of formal authority
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12. Organizational Design
Bureaucracies
feature
clear-cut division of labor
strict hierarchy of authority
formal rules and procedures
promotion based on competency
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13. Schermerhorn - Chapter 9
THE BURNS AND STALKER MODEL Suggest that there are two ends to a structural continuum. One end is mechanistic the other organic.
Mechanistic organizations: rigid in design and have strong bureaucratic qualities.
Organic organizations: flexible in
structure and adaptive to change.
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14. Organizational Design
Mechanistic Designs
highly bureaucratic
more centralized authority
many rules and procedures
precise division of labor
narrow spans of control
formal means of coordination
Note bureaucratic is pretty synonymous with mechanistic.
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15. Organizational Design
Adaptive/Organic Designs
operate with minimum of bureaucratic features
encourage worker empowerment
based on team and network structures
Willing to adapt as needed organic designs
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16. Contingencies in Organizational Design
Strategy
“structure follows strategy”
stable strategy is supported by
bureaucratic organizations using mechanistic designs
growth oriented strategy is supported by
adaptive organizations using organic designs (for instance international growth requires new international branches, departments.)
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17. Contingencies in Organizational Design
Size
Larger organizations tend to be more bureaucratic
Most larger organizations also combine some mechanistic and organic features.
For instance, on campus – custodial staff and payroll departments are mechanistic but teaching departments are very organic—constant change in ed needs requires it.
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18. Schermerhorn - Chapter 9
Each part of an organization is a subsystem which must be designed around work processes.
Subsystem
department or work unit headed by a manager
operates as smaller part of larger organization
serves the needs of larger organization
ideally each subsystem supports other subsystems
Problems arise as tasks get complicated, there is a tendency for departments to be highly differentiated. For example, as a marketing department grows, advertising specialists develop, then advertising specialists who become specialists in just tv or radio.
Integrating the whole marketing department becomes necessary.
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19. Practical Conclusions
“These findings suggest that organizational failure in the face of environmental complexity probably results from a combination of high differentiation and inadequate integration.”
Needed organizational integration (coordination) can be achieved through formal hierarchy, standard policies and rules, departmentalization, computer networks, cross-functional teams, human relations training, and liaison individuals.
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20. Subsystems Design and Work Process
Integration
level of internal coordination
becomes harder to achieve with increased differentiation
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21. Schermerhorn - Chapter 9
Work Processes
Work Process
related group of tasks that create value for the customer
Process reengineering
systematic, complete analysis of work processes and
design of new and better processes
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22. Schermerhorn - Chapter 9
Work Processes
Reengineering core processes
Process value analysis
identify core processes
map core processes in respect to workflows
evaluate all tasks for core processes
search for ways to eliminate unnecessary tasks
search for ways to eliminate delays, errors, misunderstandings
search for efficiencies in how work is shared and transferred
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