5. Class Slides - Organizational Structure and Culture

5. Class Slides - Organizational Structure and Culture -...

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Unformatted text preview: Organizational Structure and Culture N. S. Hill, Ph.D. Department of Management Why Is This Important? Course Roadmap ORGANIZATIONAL FACTORS •  rganizational Structure O •  rganizational Culture O •  rganizational Change O GROUP FACTORS •  roup and Team Characteristics & G Team Processes (Decision Making, Conflict & Negotiation) •  eadership, Power and Influence L INDIVIDUAL FACTORS • ndividual Characteristics I •  erception and Decision Making P •  otivation M •  mployee Job Attitudes E •  mployee Performance E Organization Structure   Organizational Structure   Defines how job tasks are formally divided, grouped, and coordinated   Organizational chart   A drawing that represents every job in the organization and the formal reporting relationships between those jobs The George Washington University Organizational Chart President Treasurer VP Academic and Student Support Services General Counsel VP Human Resources VP Academic Affairs VP Development And Alumni Relations Provost and VP Health Affairs Club Ed…In The Beginning   Determined never to shovel snow again, you decide to establish a new resort business on a South Pacific island accessible to air travelers. The resort is under construction and is scheduled to open one year from now. You decide it is time to draw up an organizational chart for this new venture, called Club Ed. Club Ed…Seven Years Later   It is now seven years later. Your resort has been wildly successful. Through profits and investment from a silent partner, Club Ed now owns 10 resorts – three in the South Pacific, three in South East Asia, and four in the Caribbean. Club Ed…Other Departmentalization Options   You and your partners have expanded beyond resorts to also run cruise lines, and theme-parks distributed throughout the 3 regions .   A customer profile shows that almost 45% of your customers are repeat business and are older than 40 years old with families. There is also a 55% segment of younger singles and newly weds. Product/Service Divisional Departmentalization President Resorts Cruise Lines Theme Parks Customer Divisional Departmentalization President Families Singles and Newly Weds Process Departmentalization President New Product Development Process Order Fulfilment Process Customer and Account Management Process New Product Development Teams Order Fulfilment Teams Customer and Account Management Teams Mechanistic versus Organic Structures Mechanistic versus Organic Structures Mechanistic Organic   Higher levels of creativity and innovation   Quicker to detect changes in the environment   Quicker to respond to changes in the environment Contingency Organizational Design: Burns and Stalker Model   Mechanistic organizations tend to be more successful in relatively stable and certain environments.   Minimal social, political, and economic pressures on the organization   Infrequent technological breakthroughs in the industry   Reliable source of resources and supplies   Highly stable demand for the organization’s product or service   Organic organizations tend to be more successful in unstable and uncertain environments. Organizational Culture   Shared knowledge within an organization regarding the rules, norms, and values that shape the attitudes and behaviors of its employees.   Key characteristics that the organization values   Develops over many years and not readily altered Key Dimensions of Culture               Results orientation   Management focuses on results/outcomes vs. techniques and processes used to achieve them People orientation   Management decisions take into account the effects of outcomes on people in the organization Team orientation   Activities are organized around teams and collaboration in teams is a critical component of how work gets done Aggressiveness   Employees are aggressive and competitive Attention to detail   Employees are expected to exhibit precision, analysis, and attention to detail Innovation and risk taking   Employees are encouraged to be innovative and take risks Stability   Activities emphasize maintaining the status quo in contrast to growth and change The Iceberg Model of Culture Maintaining Organizational Cultures: Socialization   The process through which newcomers are adapted to the organization’s culture   Three stages:   Prearrival – Learning that occurs before joining the organization   Encounter – Newcomer sees what the organization is really like. Reality shock is a mismatch of information that occurs when an employee finds that aspects of working at a company are not what the employee expected it to be.   Metamorphisis - Newcomers come to learn the content areas of socialization and internalize the norms and expected behaviors of the organization.   The more quickly and effectively a newcomer is socialized, the sooner that individual becomes productive in the organization. Maintaining Organizational Cultures: Attraction-Selection-Attrition Theory   Organizations attract, select, and retain people with values and personality characteristics consistent with the organization’s character, resulting in a more homogeneous organization and a stronger culture   Attraction   Applicants select companies based on compatible values   Selection   Applicants selected based on values congruent with organization’s culture   Attrition   Employee quit or are forced out when their values oppose company values Is A Strong Culture a Good Thing? Reminders   Discussion sections this week   No lecture next week - next lecture is 11/30   Extra credit opportunity ...
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