1. McGraw-Hill/Irwin © 2002 The McGraw-Hill Companies, Inc., All Rights Reserved. 4-1 Chapter Four Organizational Context: Design and Culture

2. McGraw-Hill/Irwin © 2002 The McGraw-Hill Companies, Inc., All Rights Reserved. 4-2 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

3. McGraw-Hill/Irwin © 2002 The McGraw-Hill Companies, Inc., All Rights Reserved. 4-3 Learning Organization Culture Facilitating Learning Suggestions Teamwork Empowerment Empathy Systems Thinking Shared vision Holistic thinking Openness Presence of Tension Gap between vision and reality Questioning/inquiry Challenging status quo Critical reflection Characteristics of Learning Organizations

4. McGraw-Hill/Irwin © 2002 The McGraw-Hill Companies, Inc., All Rights Reserved. 4-4 The Contrast Between The Hierarchical And Network Organization

5. McGraw-Hill/Irwin © 2002 The McGraw-Hill Companies, Inc., All Rights Reserved. 4-5 An External Alliance Principal Customer Joint Venture Partner An Internal Alliance A typical TCG firm of 5-10 professionals A TCG Project Leader An Example Of A Virtual Organization

6. McGraw-Hill/Irwin © 2002 The McGraw-Hill Companies, Inc., All Rights Reserved. 4-6 Steps Of Organizational Culture Socialization Consistent role models Reinforcing folklore Rewards and control systems are meticulously refined to reinforce behavior that is deemed pivotal to success in the marketplace Humility inducing experiences promote openness toward accepting organization’s norms and values In-the-trenches training leads to mastery of a core discipline Adherence to values enables the reconciliation of personal sacrifices Careful selection of entry-level candidates START DESELECT

7. McGraw-Hill/Irwin © 2002 The McGraw-Hill Companies, Inc., All Rights Reserved. 4-7 Sources Of Conflict During Mergers Organization A Organization B Structure Politics Emotions