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8.1 What Kind Of Organizational Culture Will You Be Operating In? WHAT IS AN ORGANIZATIONAL CULTURE?
Organizational culture (also called corporate culture) is a system of shared beliefs and values that develops within an organization and guides the behavior of its members It is the organizations personality There are two levels of corporate culture: The invisible level The visible level
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Kinicki/Williams, Management: A Practical Introduction 3e 2008, McGraw-Hill/Irwin 2006 The McGraw-Hill Companies, Inc. All rights reserved. 4
Visible Level:
Observable culture Manifestations of culture:
Symbols Stories Heroes Rites and rituals
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convey meaning to others -stories are narratives based on true events which are repeated and sometimes embellished to emphasize a particular value -heroes are people whose accomplishments embody the values of the organization -rites and rituals are the activities and ceremonies, planned and unplanned, that celebrate important occasions and accomplishments in the organizations life
8.1 What Kind Of Organizational Culture Will You Be Operating In? WHY IS CULTURE IMPORTANT? 1. Culture provides an opportunity to reinforce the
companys message 2. Culture helps to get everyone on board 3. Culture helps companies manage conflict and change effectively 4. Culture helps employees understand why the company does what it does and how it will achieve its long term goals
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It gives members an organizational identity It facilitates collective commitment It promotes social-system stability It shapes behavior by helping employees make sense of their surroundings
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9. Measurable & Controllable Activities - companies can measure and control certain activities to foster a certain culture 10. Organizational Structure - how an organization is structured can send a clear message about its organizational culture 11. Procedures For Self-Development - procedures can be established to help employees develop according to organizational goals
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Mutual-benefit organizations
Voluntary collectives whose purpose is to advance member interests (unions, trade associations)
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Kinicki/Williams, Management: A Practical Introduction 3e 2008, McGraw-Hill/Irwin 2006 The McGraw-Hill Companies, Inc. All rights reserved. 16
Director of Accounting
Director of Surgery
Kinicki/Williams, Management: A Practical Introduction 3e 2008, McGraw-Hill/Irwin 2006 The McGraw-Hill Companies, Inc. All rights reserved. 19
CEO
T
M F F M F F F F M F F
T
M F F F F M F
Wide
M F F M F F M F M F F
CEO
M F M F F M F M F F M F
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Kinicki/Williams, Management: A Practical Introduction 3e 2008, McGraw-Hill/Irwin 2006 The McGraw-Hill Companies, Inc. All rights reserved. 23
Kinicki/Williams, Management: A Practical Introduction 3e 2008, McGraw-Hill/Irwin 2006 The McGraw-Hill Companies, Inc. All rights reserved. 26
Divisional Structure
Product Divisional Structure
Motion Pictures & TV Division Music Division President
Business Loans
Agriculture Loans
President
Northern Region
Southern Region
Eastern Region
Kinicki/Williams, Management: A Practical Introduction 3e 2008, McGraw-Hill/Irwin 2006 The McGraw-Hill Companies, Inc. All rights reserved. 33
Conglomerate Structure
This resembles the structure of Tyco International
President
Electronics
Healthcare
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5. A hybrid structure uses functional and divisional structures in different parts of the same organization
Hybrid Structure
Product Divisional Structure President Cadillac President President Buick President Pontiac VicePresident, Human Resources President Chevrolet
VicePresident, Production
VicePresident, Marketing
VicePresident, Finance
Manager Region I
Manager Region II
Manager Region IV
Kinicki/Williams, Management: A Practical Introduction 3e 2008, McGraw-Hill/Irwin 2006 The McGraw-Hill Companies, Inc. All rights reserved. 38
Network Structure
Design Studio
Sweden
Components Assembly
Mexico, Asia
Distribution Company
Canada
Kinicki/Williams, Management: A Practical Introduction 3e 2008, McGraw-Hill/Irwin 2006 The McGraw-Hill Companies, Inc. All rights reserved. 47
USA
Mechanistic organizations:
authority is centralized, tasks and rules are clearly specified, and employees are closely supervised.
When rigidity and uniformity work best McDonald's
Organic organizations:
authority is decentralized, there are fewer rules and procedures, and networks of employees are encouraged to cooperate and respond quickly to unexpected tasks.
When looseness and flexibility work best Information and Technology adhocracies
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8.6 Contingency Design: Factors In Creating The Best Structure 2. The Environment (differentiation versus integration) Differentiation is the tendency of the parts of an organization to disperse and fragment Integration is the tendency to come together to achieve a common purpose 3. Size Organizational size is usually measured by the number of full-time employees
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8.6 Contingency Design: Factors In Creating The Best Structure 4. Technology Technology (the tools and ideas for transforming materials, data, or labor into goods and services) influences organizational design 5. Organizational life cycle The organizational life cycle involves birth, youth, midlife, and maturity
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Kinicki/Williams, Management: A Practical Introduction 3e 2008, McGraw-Hill/Irwin 2006 The McGraw-Hill Companies, Inc. All rights reserved. 57
Kinicki/Williams, Management: A Practical Introduction 3e 2008, McGraw-Hill/Irwin 2006 The McGraw-Hill Companies, Inc. All rights reserved. 58
Kinicki/Williams, Management: A Practical Introduction 3e 2008, McGraw-Hill/Irwin 2006 The McGraw-Hill Companies, Inc. All rights reserved. 59
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Kinicki/Williams, Management: A Practical Introduction 3e 2008, McGraw-Hill/Irwin 2006 The McGraw-Hill Companies, Inc. All rights reserved. 60
Holding on to the prebureaucratic way of life for too long hinders the organizations ability to deliver goods and services efficiently
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A Learning Organization is an: Organization that actively creates, acquires, and transfers knowledge within itself and is able to modify its behavior to reflect new knowledge
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Organizations must continually learn new things or face obsolescence A key challenge for managers is to establish a culture that will enhance their employees ability to learn But, there may be resistance, and some firms unconsciously resist learning because:
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Paradigms are generally accepted ways of viewing the world The paradigm underlying American business today is that competition is superior to collaboration Many established paradigms have outlived their usefulness
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One challenge is to create a climate in which managers and employees stop thinking in terms of us versus them and start thinking of themselves as mutual stakeholders
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