1. Organizational Structure, Leadership and CultureMT
Unit 8
Sunday, July 29th 2012
Nate Boyer

2. Learning Objectives
Identify five traditional organizational structures and the pros and cons of each
Describe the product-team structure and explain why it is a prototype for a more open, agile organizational structure
Explain five ways improvements have been sought in traditional organizational structures
Describe what is meant by agile, virtual organizations
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3. Learning Objectives (contd.)
Explain how outsourcing can create agile, virtual organizations, along with its pros and cons
Describe boundaryless organizations and why they are important
Explain why organizations of the future need to be ambidextrous learning organizations
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4. Organizational Structure
Organizational structure refers to the formalized arrangement of interaction between and responsibility for the tasks, people, and resources in an organization
It is most often seen as a chart, often a pyramidal chart, with positions or titles and roles in cascading fashion
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5. Simple Organizational Structure
A simple organizational structure is one where there is an owner and a few employees and where the arrangement of tasks, responsibilities, and communication is highly informal and accomplished through direct supervision
This type of structure can be very demanding on the owner-manager
Most businesses in this country and around the world are of this type
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6. Functional Organizational Structure
A functional organizational structure is one on which the tasks, people, and technologies necessary to do the work of the business are divided into separate “functional” groups (such as marketing, operations, and finance) with increasingly formal procedures for coordinating and integrating their activities to provide the business’s products and services
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7. Ex. 11.2 Functional Organization Structures
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8. Divisional Structure
A divisional organizational structure is one in which a set of relatively autonomous units, or divisions, are governed by a central corporate office but where each operating division has its own functional specialists who provide products or services different from those of other divisions
This expedites decision making in response to varied competitive environments
The division usually is given profit responsibility
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9. Ex. 11.3 Divisional Organization Structure
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10. Strategic Business Unit
The strategic business unit (SBU) is an adaptation of the divisional structure whereby various divisions or parts of divisions are grouped together based on some common strategic elements, usually linked to distinct product/market differences
The advantages and disadvantages of the SBU form are very similar to those identified for divisional structures
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11. Holding Company Structure
A final form of the divisional organization is the holding company structure, where the corporate entity is a broad collection of often unrelated businesses and divisions such that it (the corporate entity) acts as financial overseer “holding” the ownership interest in the various parts of the company but has little direct managerial involvement
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12. Matrix Organizational Structure
The matrix organizational structure is one in which functional and staff personnel are assigned to both a basic functional area and to a project or product manager
The matrix form is intended to make the best use of talented people within a firm by combining the advantages of functional specialization and product-project specialization
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13. Ex. 11.5 Matrix Organizational Structure
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14. Product-Team Structure
The product-team structure seeks to simplify and amplify the focus of resources on a narrow but strategically important product, project, market, customer, or innovation
The product-team structure assigns functional managers and specialists to a new product,
project, or process team that is empowered to make major decisions about their product
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15. Ex. 11.6 The Product-Team Structure
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16. Trends Affecting Organizations in the 21st Century
Globalization
The Internet
Speed
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17. Efforts to Improve Traditional Structures
Redefine the role of corporate headquarters from control to support and coordination
Balance the demands for control/differentiation with the need for coordination/integration
Restructure to emphasize and support strategically critical activities
Reengineer strategic business processes
Downsize and self-manage
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18. Creating Agile, Virtual Organizations
Virtual organization: a temporary network of independent companies—suppliers, customers, subcontractors, even competitors—linked primarily by information technology to share skills, access to markets, and costs
An agile organization is one that identifies
a set of business capabilities central to high-profitability operations and then builds a virtual organization around those capabilities
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19. Outsourcing—Creating a Modular Organization
Outsourcing is simply obtaining work previously done by employees inside the companies from sources outside the company
A modular organization provides products or services using different, self-contained specialists or companies brought together—outsourced—to contribute their primary or support activity to result in a successful outcome
Business process outsourcing (BPO) is the most rapidly growing segment of the outsourcing services industry worldwide
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20. Types of Boundaries
Horizontal boundaries—between different departments or functions in a firm.
Vertical boundaries—between operations and management, and levels of management, between “corporate” and “division”
Geographic boundaries—between different physical locations; between different countries or regions of the world and between cultures
External interface boundaries—between a company and its customers, suppliers, partners, regulators, and competitors
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21. Becoming Boundaryless
Jack Welch coined the term “boundaryless” to illustrate his vision for GE
Outsourcing, strategic alliances, product-team structures, reengineering, restructuring—all are ways to move toward boundaryless organization
Technology, particularly driven by the Internet, has and will be a major driver of the boundaryless organization
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22. Ex. 11.12 From Traditional Structure to B-Web Structure
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23. Ambidextrous Learning Organization
The evolution of the virtual organizational structure as an integral mechanism managers use has brought with it recognition of the central role knowledge plays in implementation
The shift from exploitation to exploration (Rangan) indicates the growing importance of organizational structures that enable a learning organization to allow global companies the chance to build competitive advantage
An ambidextrous organization emphasizes coordination over control as well as flexibility
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24. Leadership and Culture
McGraw-Hill/Irwin
Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved.

25. Learning Objectives
Describe what good organizational leadership involves
Explain how vision and performance help leaders clarify strategic intent
Explain the value of passion and selection/development of new leaders in shaping an organization’s culture
Briefly explain seven sources of power and influence available to every manager
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26. Learning Objectives (contd.)
Define and explain what is meant by organizational culture, and how it is created, influenced, and changed
Describe four ways leaders influence culture
Explain four strategy-culture situations
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27. Strategic Leadership: Embracing Change
Telecommunications, computers, the Internet, and one global marketplace have increased the pace of change exponentially during the past 10 years
The leadership challenge is to galvanize commitment among people within an organization as well as stakeholders outside the organization to embrace change and implement strategies intended to position the organization to succeed in a vastly different future
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28. Clarifying Strategic Intent
Leaders help their company embrace change by setting for their strategic intent—a clear sense of where they want to lead the company and what results they expect to achieve
Leader’s vision—an articulation of a simple criterion or characterization of what the leader sees the company must become to establish and sustain global leadership
Make clear the performance expectations a leader has for the organization, and managers in it, as they seek to move toward that vision
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29. Building an Organization
Education and leadership development is the effort to familiarize future leaders with the skills important to the company and to develop exceptional leaders among the managers you employ
Perseverance is the capacity to see a commitment through to completion long after most people would have stopped trying
Principles are your fundamental personal standards that guide your sense of honesty, integrity, and ethical behavior
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30. Shaping Organizational Culture
Passion, in a leadership sense, is a highly motivated sense of commitment to what you do and want to do
Leaders also use reward systems, symbols, and structure among other means to shape the organization’s culture
Leaders look to managers they need to execute strategy as another source of leadership to accept risk and cope with the complexity that change brings about
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31. Recruiting and Developing Talented Operational Leadership
New leaders will each be global managers, change agents, strategists, motivators, strategic decision makers, innovators, and collaborators if the business is to survive and prosper
Today’s need for fluid, learning organizations capable of rapid response, sharing, and cross-cultural synergy place incredible demands on young managers to bring important competencies to the organization
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32. Ex. 12.5 What Competencies Should Managers Possess?
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33. Sources of Power and Influence
Organizational Power
Position power
Reward power
Information power
Punitive power
Personal Influence
Expert influence
Referent influence
Peer influence
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34. Ex. 12.6 Management Processes and Levels of Management
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35. Organizational Culture
Organizational culture is the set of important assumptions (often unstated) that members of an organization share in common
Every organization has its own culture
Assumptions become shared assumptions through internalization among an organization’s individual members
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36. The Role of the Organizational Leader
The leader is the standard bearer, the personification, the ongoing embodiment of the culture, or the new example of what it should become
How the leader behaves and emphasizes those aspects of being a leader become what all the organization sees are “the important things to do and value.”
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37. Build Time in the Organization
Some leaders have been with the organization for a long time
Many leaders in recent years, and inevitably in any organization, are new to the top post of the organization
In the other situation, a new leader who is not an “initiated” member of the culture faces a much more challenging task
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38. Ethics
Ethical standards are a person’s basis for differentiating right from wrong
The culture of an organization, and particularly the link between the leader and the culture’s very nature, is inextricably tied to the ethical standards of behavior, actions, decisions, and norms that leader personifies
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39. Shaping Organizational Culture
Emphasize key themes or dominant values
Encourage dissemination of stories and legends about core values
Institutionalize practices that systematically reinforce desired beliefs and values
Adapt some very common themes in their own unique ways
Manage organizational culture in a global organization:
Social norms
Values and attitudes
Religion
Education
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40. Ex. 12.9 Managing the Strategy-Culture Relationship
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41. Manage the Strategy-Culture Relationship
Link to mission
Maximize synergy
Manage around the culture
Reformulate strategy or culture
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42. Final Project Guidelines
MT460: Management Policy and Strategy
Unit 1: Introductions and Your SWOT Analysis
Final Project Guidelines: Strategic Plan
A strategic plan is designed to be in use for three (3) to five (5) years or more. For your individual Final Project, you will write a strategic plan using the following information.
Background:
Identify the organization that you have chosen for your strategic plan. Provide a brief background of this organization including its products, services and customers. Include the organization’s strategic planning model (including the history of successes and failures associated with the process).
Mission Statement & Vision Statement:
How does the mission, vision and values aid to the organization in reaching its desired end state? Include the mission statement and vision statement and refer to it in your analysis.

43. Internal Analysis & External Analysis:
Create an assessment of the organization including their ability to accomplish goals and objectives as set in their previous strategic plan(s) and, their ability to respond to internal and external changes and challenges.
Long Term Objectives:
Designate the long term objectives in your strategic plan.
Strategy Analysis and Choice:
Choose the generic strategy and grand strategy. Discuss why you have chosen each and how they will fit within the framework of the organization

44. Plan Goals and Implementation:
Discuss the goals and implementation for the business strategy. Include in this discussion the organizational structure and the leadership and culture.
Critical Success Factors:
Describe the critical success factors.
Controls and Evaluation:
List and describe controls and evaluation methods.

45. Include a short Introduction and Conclusion in this final project PowerPoint presentation assignment. Utilize APA citation, format, and style. The paper should be ten (10) to twelve (12) slides; if more, feel free to include them. Indent all paragraphs and utilize titles / subtitles in the Notes portion of the slides i.e. information sections provided above. Use a formal title and References page per APA. When completed with the Final Project, submit your paper to the Dropbox under Unit 9 Final Project in a PowerPoint .ppt or pptx document.