Organizational Structure and Culture Case Study

8/20/2019 Organizational Structure and Culture Case Study

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13-1

Michael A. Hitt

C. Chet Miller

Adrienne Colella

Chapter 13

OrganizationalOrganizationalStructureStructure

and Cultureand Culture

Slides by Ralph R. Braithwaite


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ntegrated !ort"olio at #ed$%ntegrated !ort"olio at #ed$%

$%ploring Beha&ior in Action

'ith all the ac(uisitions by #ed$%) there was a need to

change their structure. t adopted a *ulti+di&isionalstructure. Corporate pro&ides strategic direction and

consolidated "inancial reporting. Signi"icant authority has

been delegated to the di&isions. $ach di&ision *anages

its own specialized networ, o" ser&ices.-o you ,now o" other co*panies that operate in a si*ilar

"ashion

s this a good *odel "or organizations to "ollow as they

grow and de&elop


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13-3

#ed$%

#reight

#ed$%

SupplyChain

#ed$%

/in,o0s

Ser&ices

#ed$%

$%press#ed$%#ed$%

Corp.Corp.

#ed$%

Custo*

Critical

#ed$%

rade

2etwor,

#ed$%

round

#ed$% Organization#ed$% Organization


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Organizational Structure andOrganizational Structure and

CultureCulture

Organizational

Structure

Organizational

Culture

he "or*al syste* o" wor, roles and

authority relationships that go&ern

how associates and *anagers

interact with one another.

n&ol&es the &alues and nor*s

shared by *anagers and associates

that in"luence beha&ior. t is a

power"ul "orce in organizations.


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13-5

/nowledge Ob4ecti&es/nowledge Ob4ecti&es1. -e"ine ,ey ele*ents o" organizational structure)

including both structural and structuring di*ensions.

5. $%plain how corporate and business strategies relateto structure.

3. $%plain how en&iron*ent) technology) and size relateto structure.

6. -e"ine organizational culture) and discuss theco*peting+&alues cultural "ra*ewor,.

7. -iscuss socialization.

8. -escribe cultural audits and subcultures.

9. $%plain the i*portance o" a "it between indi&idual&alues and organizational culture.


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13-6

#unda*ental $le*ents o"#unda*ental $le*ents o"

Organizational StructureOrganizational Structure

Structural

Characteristics

Structuring

Characteristics

Hierarchy


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13-7

Structural CharacteristicsStructural Characteristics

Span o" Control

Height-epart*entation


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13-8

Span o" ControlSpan o" Control

Adapted "ro* $%hibit 13+1: A&erage Span o" Control: $""ects on Height o" the Hierarchy

A&erage span o" #our A&erage span o" enHighest

;owest

O r g a n i z a t i o n

a l ; e & e l

1


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13-9

#unctional Organization#unctional Organization

Adapted "ro* $%hibit 13+5: Si*pli"ied #unctionalOrganization

=!

Research and

-e&elop*ent

=!

Research and

-e&elop*ent

=!

Operations

=!

Hu*an

Resources

=!

#inance

=!

Mar,eting

C$O


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13-10

-i&isional Organization-i&isional Organization

Adapted "ro* $%hibit 13+3: Si*pli"ied -i&isional Organization

C$O

Head o"

Operations

Head o"

R>-

Head o"

Hu*an

Resources

Head o"

#inance

Head o"

Mar,eting

=.!.!roduct?Ser&ice

Area 1

Head o"

Operations

Head o"

R>-

Head o"

Hu*an

Resources

Head o"

#inance

Head o"

Mar,eting

=.!.!roduct?Ser&ice

Area 1

Head o"

Operations

Head o"

R>-

Head o"

Hu*an

Resources

Head o"

#inance

Head o"

Mar,eting

=.!.!roduct?Ser&ice

Area 1


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Structuring CharacteristicsStructuring Characteristics

Centralization Standardization

#or*alization Specialization


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he Modern Organizationhe Modern Organization#le%ible e*powering type o" structure

Organic

;earning

Boundaryless

Mechanistic

2on+;earning

raditional

#ewer *anage*ent le&els) broader spans o" control) less

centralization) standardization) "or*alization and

specialization.


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#reedo*#reedo*Substantial "reedo* *ay e%ist) but

1. #reedo* is not unli*ited

5. Alternati&e *echanis*s are used to ensure that

indi&iduals are wor,ing "or the good o" the

organization3. =alues are shared

6. Reward syste*s are used to pro*ote appropriate

beha&ior


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13-14

#actors A""ecting Structure#actors A""ecting Structure

Corporate

Strategyrowth

-i&ersi"ication


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-i&ersi"ication Strategy and-i&ersi"ication Strategy and

StructureStructure

Adapted "ro* $%hibit 13+6: Matches between -i&ersi"ication Strategy and Structure

Holding Co*pany@nrelated product

-i&isional@nrelated product

-i&isionalRelated product

-i&isional-o*inant product se&eral products

#unctional-o*inant product "ew products

#unctionalSingle product

Structure-i&ersi"ication


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Business StrategyBusiness Strategy

• ;ow cost?low price

• !roduct?ser&ice di""erentiation

• Supporting structure including strategic

business units SB@s

How a "ir* co*petes "or success against other

organizations in a particular *ar,et.


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13-17$%periencingStrategic OB

-$O and -i""erentiation Strategy-$O and -i""erentiation Strategy-$O de*onstrates a di""erentiation strategy) highlights

that occasionally organizations supple*ent their hu*an

capital) and they &alue tea*s with di&erse *e*bers.

s this an e""ecti&e approach to business

How can this approach help other businesses and

organizations

'hat are your thoughts about -$O0s approaches:

• #or* a di&erse tea*

• ea* *e*bers brainstor*• ea* *e*bers engage in rapid prototyping

• ea* *e*bers i*ple*ent the "ruits o" their

labors


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$n&iron*ent and Basic$n&iron*ent and Basic

StructureStructure

• $""ecti&e organizations e%periencing high

en&iron*ental uncertainty tend to be *ore

organic.• $""ecti&e organizations e%periencing low

en&iron*ental uncertainty tend to be less

organic.

$n&iron*ental uncertainty the degree to which

an en&iron*ent is co*ple% and changingD

uncertain en&iron*ents are di""icult to *onitor

and understand.

Eay '. ;orsch

!aul R. ;awrence


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13-19

$n&iron*ent and ntegration$n&iron*ent and ntegration

Adapted "ro* $%hibit 13+7: ntegration in Organizations

Slac,

Resources

Sel"+Contained

as,s

n"or*ation

echnology

;ateral

Relations

ncreasing *ple*entation Co*ple%ity

n c r e a s i n g R i c h n e s s o "

n " o r * a t i o n !

r o c e s s i n g


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Alternati&e ;ateral !rocessesAlternati&e ;ateral !rocesses

;iaison Roles-irect Contact

Matri% -esigns

Managerial

;in,ing Roles

ntegrating Roles

ea*s

as,"orces

;ateral

!rocesses


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echnology andechnology and

StructureStructure

S*all+Batchechnology

Mass !roduction

echnology

!rocess

!roductionechnology

Mass

Custo*ization

Manu"acturing

Eoan 'oodward


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echnology and Structureechnology and Structure

Charles !errow

as, =ariabilityas, =ariability as, Analyzabilityas, Analyzability

#our categories

o" technology

Routine Cra"t

$ngineering 2onroutine


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Organizations and echnologyOrganizations and echnology

Adapted "ro* $%hibit 13+8: Organizations and echnology

High ;owas, Analyzability

High

;ow 1 a s , = a r i a b i l i t y

Specialized

$ngineering

Consulting #ir*

$ngineering

!ublic School

Cra"t

Research and

-e&elop*ent

#ir*

2on+Routine

Mass+!roduction

#ir*

Routine


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13-24$%periencingStrategic OB

oogle Culture Attractsoogle Culture Attracts

High+Fuality AssociatesHigh+Fuality Associates

;arry !age and Sergy Brin

-o you thin, oogle would ha&e en4oyed its success had

a di""erent type o" structure and culture been introduced

'hat types o" organizations could bene"it with a si*ilar

structure and culture 'hat types o" organizations *ight

ha&e di""iculty

As oogle continues to grow) will the culture sur&i&e or

will it possibly be replaced by a *ore traditional culture


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-e&eloping Organizational Culture-e&eloping Organizational Culture

Adapted "ro* $%hibit 13+9: !rocess o" -e&eloping Organizational Culture

OrganizationalCulture

2or*sRein"orcingOutco*es

Shared=alues

ndi&idual and

roup Beha&ior


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Organizational CultureOrganizational Culture

Adapted "ro* $%hibit 13+G: Co*peting =alues Model o" Organizational Culture

EffectivenessCohesion and Morale

LeadershipMentors and Coaches

Clan

EffectivenessCreati&ity and nno&ation

Leadership$ntrepreneurs and

nno&ators

Adhocracy

Effectivenessoal Achie&e*ent and

'inning

LeadershipHard -ri&ers and

Co*petitors

Mar,et

Effectiveness$""iciency and Order

LeadershipMonitors and Organizers

Hierarchy

nternal #ocus?ntegration $%ternal #ocus?

-i""erentiation

S t a b i l i t y ? C o n t r o l

# l e % i b i l i t y

?

- i s c r e t i o n


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Cultural SocializationCultural SocializationA process through which an organization i*parts its

&alues to newco*ers

Conte%t Content

Social

-yna*ics


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Cultural AuditCultural AuditA tool "or assessing and understanding the culture

o" an organization. @se these "i&e steps "orconducting the cultural audit:

Analyze

process

andcontent

Analyze

responses

to criticalincidents

Analyze

&alues

andbelie"s o"

culture

creators

$%plore

ano*alies

orpuzzling

"eatures

$%a*ine

lin,age

culturewith

goals

Subcultures groups that share &alues

that di""er "ro* the *ain &alues o" the

organization.


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ManagerialAd&ice

#inding a #it at#inding a #it at

Ho*e -epotHo*e -epot

Robert 2ardelli

-o you agree that an indi&idual0s *anage*ent

style and &alues should agree with the

organization0s culture 'hy or why not

-o you thin, 2ardelli is what Ho*e -epot

needed at the ti*e

Ha&e you wor,ed with a leader whose style

was &ery di""erent than the culture o" the

organization 'hat was that li,e

Can so*e organizations bene"it "ro* a *a4or

change in leadership philosophy


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!erson+Organization #it!erson+Organization #it

Abstract ideals thatrelate to proper li"e

goals and *ethods "or

reaching those goals.

=alues

ypes o" personal goalsypes o" personal goals

that one ought to ha&ethat one ought to ha&e

ypes o" beha&iors thatypes o" beha&iors that

one ought to use inone ought to use inreaching those goalsreaching those goals

$nd+Means -i*ension


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ypes o" !ersonal =aluesypes o" !ersonal =alues

Means

Beha&ior=alues

$nd

oal=alues

Adapted "ro* $%hibit 13+: ypes o" !ersonal =alues


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he Strategic ;enshe Strategic ;ens

1. Consider an organization o" which you are a *e*ber

or an associate. 'hat is the structure in this

organization s it centralized or decentralized s it

organic and "le%ible How would you change the

structure in this organization to *a,e it *oree""ecti&e

5. How would you describe the culture in the organization

discussed in (uestion I1 How does the culture a""ect

*e*bers0 beha&ior in the organization3. 'hen you beco*e a *anager) what type o" culture will

you establish in your unit 'hat &alues do you want to

e*phasize 'hy


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Organizational Structure and Culture Case Study