3. Organizational Culture
Corporate culture
Shared values
Beliefs
Traditions
Philosophies
Rules
Role models for behavior
Did You Know?
Southwest Airlines employees are continually encouraged to have fun and make flying exciting for their passengers. New employees watch videotapes and attend training sessions on the company’s philosophies, policies, and culture.

4. How is Corporate Culture Expressed?
Formally
Mission statement
Codes of ethics
Memos, manuals
Ceremonies
Informally
Dress codes (or the lack thereof)
Work habits
Extracurricular activities
Stories

5. Developing Organizational Structure
Structure is the arrangement or relationship of positions within an organization, and developed by:
Assigning work tasks and activities to specific individuals or work groups
Coordinating the diverse activities required to reach the firm’s objectives
Organizational structure is depicted through organizational charts.

6. The Evolution of a Clothing Store
Stages of Growth
The Evolution of a Clothing Store
Phases 1, 2, and 3

7. Two Aspects of Assigning Tasks
Specialization
Departmentalization

8. Specialization
The division of labor into small, specialized tasks and the assignment of single tasks to employees
Efficiency

9. Departmentalization
Departmentalization is the grouping of jobs into working units usually called departments, units, groups, or divisions.
Functional departmentalization
Product departmentalization
Geographical departmentalization
Customer departmentalization

10. Functional Departmentalization

11. Product Departmentalization

12. Geographical Departmentalization

13. Customer Departmentalization

14. Assigning Responsibility and Delegating Authority
Delegation of authority
Assigning responsibility
Employee accountability

15. Degree of Centralization
Centralized organizations
Authority is concentrated at the top level.
Decentralized organizations
Decision-making authority is delegated as far down the chain of command as possible.

16. Span of Management
The number of subordinates who report to a particular manager
A wide span of management exists when a manager directly supervises a very large number of employees.
A narrow span of management exists when a manager directly supervises only a few subordinates.

17. Span of Management: Wide Span and Narrow Span

18. Organizational layers
Organizational layers are the levels of management in an organization.
Flat organizations have few layers and have wide spans of management.
Tall organizations have many layers and have narrow spans of management.

19. Forms of Organizational Structure
Line
Line-and-staff
Multidivisional
Matrix

20. Line Structure

21. Line-and-Staff Structure

22. An Example of Multidivisional Structure: The Walt Disney Company
Walt Disney Attractions
Motion Pictures TV
Animation
Disney Channel
Disney Stores
Software and Education
Catalog Marketing
Magic Kingdom FL
Disney- MGM Studios
Walt Disney Studios
Magic Kingdom CA
Tokyo Disneyland
Euro- Disney
Walt Disney World
Consumer Products
Licensing
Publishing
Disney Music
Epcot Center
CEO
Source: The Walt Disney Company Annual Report

23. The Matrix Structure

24. The Role of Groups and Teams in Organizations
A group
Two or more individuals who communicate with one another, share a common identity, and have a common goal.
A team
A small group whose members have complementary skills; a common purpose, goals, and approach; and who hold themselves mutually accountable.

25. Differences Between Groups and Teams

26. Types of Groups Committee Task force Project team
Product-development team
Quality assurance team
Self-directed work team (SDWT)

27. Virtual Teams Employees’ Reactions To Virtual Work
91% enjoyed the experience.
73% would like to engage in virtual work more frequently.
35% felt it enhanced their relationships with other employees.
Source: Darryl Haralson and Adrienne Lewis, “USA Today Snapshots,” USA Today, April 26, 2001, p. B1.

28. The Flow of Communication in an Organizational Hierarchy

29. Formal Communication Communication flow Upward Downward Horizontal
Diagonal

30. Informal Communication
The informal organization
Friendships and other non-work social relationships
The most significant informal communication occurs through the grapevine.
May relate to the job or organization
May be gossip and rumors unrelated to either

31. Monitoring Communications
Monitoring the use of electronic communications in the workplace have become necessary for most companies.
70 percent of attacks on corporate computer systems are conducted from inside the firm.
Failing to monitor employee’s use of and the Internet can be costly.

32. Disciplinary Action for Misuse of Personal Use of Telecom Equipment

33. Solve the Dilemma
What techniques or skills should an employee have to assume a leadership role within a work group?
If each work group has a team representative, what problems will be faced in supervising these representatives?
Evaluate the pros and cons of the system developed by QS.

34. Explore Your Career Options
What is the main quality of employees who will be successful in their job?
Explain how this quality is helpful in a small business and in a large company.

35. Additional Discussion Questions and Exercises
Which organizational structure would be best in the following situations? Draw an organizational chart that would be appropriate for each of the situations.
The owner of a real estate agency has opened an office with three real estate agents. The owner directs the agency.
The real estate agency above has grown in the last five years. The business has grown in two different directions: residential and commercial. The owner still directs the real estate agency. He now has five agents handling commercial real estate details and 15 agents handling residential real estate details. He would like to appoint one of the agents to be manager of a commercial division and another agent to be manager of the residential division.

36. Additional Discussion Questions and Exercises
Another five years has elapsed. The same real estate agency has grown. Most of the business is still centered in two divisions: residential and commercial. The owner has now added a vice president to oversee the residential and commercial divisions. Also, the agency has added advertising and office management departments; the purpose of these staff departments is to provide advice and support to the residential and commercial divisions

37. Chapter 8 Quiz
Which of the following is most similar to the matrix structure?
line structure
functional structure
line-and-staff structure
ad hoc committee
Which of the following is commonly considered an example of informal organizational structure?
Grapevine
organizational culture
organizational chart
employee handbook

38. Chapter 8 Quiz
Compared with flat organizations, which of the following is most typical of tall organizations?
The span of management is wide.
The communication is faster.
Administrative costs are usually higher.
Fewer layers of management are needed to carry out operations.
The division of labor into small, specialized tasks and the assignment of single tasks to employees is called
centralization.
specialization.
departmentalization.
accountability.

39. Multiple Choice Questions about the Video
New Belgium Brewing encourages its employees by offering all of the following EXCEPT:
A free massage
A free bicycle
A free car
A free trip to Belgium
New Belgium Brewing employees own ___ of the company.
One third
Half
One fifth
One eighth