Management a practical introduction 3rd kinicky chapter 08

Management A Practical Introduction Third Edition Angelo Kinicki & Brian K Williams Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin Chapter 8: Organizational Culture, Structure, & Design Building Blocks of the Organization What Kind of Organizational Culture Do We Have? Developing High Performance Cultures What is an Organization? Elements of an Organization Types of Organizational Cultures Creating the Best Structure Building a Learning Organization Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin 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 organization’s personality There are two levels of corporate culture: The invisible level The visible level Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin Layers of Organizational Culture  Invisible Level: Core Culture  Not seen by the naked eye  Consists of values, beliefs, and assumptions  Core culture might be associated with “it’s the way we things around here”  Often has two sources: 1) Visions, assumptions, and biases of founders 2) Outlook that initial employees learned from their own experiences McGraw-Hill/Irwin Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc All rights rese Layers of Organizational Culture Visible Level: Observable culture Manifestations of culture: Symbols Stories Heroes Rites and rituals McGraw-Hill/Irwin Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc All rights rese 8.1 What Kind Of Organizational Culture Will You Be Operating In? -symbols are objects, acts, qualities, or events that 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 organization’s life Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin 8.1 What Kind Of Organizational Culture Will You Be Operating In? WHY IS CULTURE IMPORTANT? Culture provides an opportunity to reinforce the company’s message Culture helps to get everyone on board Culture helps companies manage conflict and change effectively Culture helps employees understand why the company does what it does and how it will achieve its long term goals Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin Four Functions of Organizational Culture  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 McGraw-Hill/Irwin Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc All rights rese 8.1 What Kind Of Organizational Culture Will You Be Operating In? Figure 8.1: Four Functions Of Organizational Culture Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin 8.2 Developing High-Performance Cultures WHAT ORGANIZATIONAL CULTURE ENHANCES ECONOMIC PERFORMANCE? There are three perspectives of how culture can enhance performance: The strength perspective assumes that the strength of a corporate culture is related to a firm’s long-term financial success The fit perspective assumes that an organization’s culture must align or fit with its business or strategic context The adaptive perspective assumes that the most effective cultures help organizations anticipate and adapt to environmental changes Studies show that in the long-term, financial performance is highest for firms with an adaptive culture Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin 8.6 Contingency Design: Factors In Creating The Best Structure 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 Size Organizational size is usually measured by the number of full-time employees Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin 8.6 Contingency Design: Factors In Creating The Best Structure Technology Technology (the tools and ideas for transforming materials, data, or labor into goods and services) influences organizational design Organizational life cycle The organizational life cycle involves birth, youth, midlife, and maturity Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin Life Cycle: Four Stages in the Life of an Organization  The organizational life cycle has a natural sequence of stages: McGraw-Hill/Irwin Birth Youth Midlife Maturity Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc All rights rese Life Cycle: Four Stages in the Life of an Organization  As organization moves through the stages, it becomes not only larger, but more mechanistic, specialized, decentralizes, and bureaucratic  There are different managerial challenges and different organizational design issues in each stage McGraw-Hill/Irwin Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc All rights rese Life Cycle: Four Stages in the Life of an Organization  Stage 1: The Birth Stage  – nonbureaucratic  Stage which organization is created  No written rules and little supporting staff  Founder may be a lone entrepreneur or two friends who have gotten together  Text: Apple Computer’s early development McGraw-Hill/Irwin Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc All rights rese Life Cycle: Four Stages in the Life of an Organization  Stage 2: The Youth Stage – prebureaucratic  Stage of growth and expansion  People are added to the payroll, and some division of labor and setting of rules is instituted  Text: Apple Computer from 1978 to 1981 with Apple II product line McGraw-Hill/Irwin Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc All rights rese Life Cycle: Four Stages in the Life of an Organization  Stage 3: The Midlife Stage – bureaucratic  Period of growth evolving into stability  Organization has formalized bureaucratic structure, staff of specialists, decentralization of functional divisions, and many rules  Text: Apple Computer in the 1980s under John Scully McGraw-Hill/Irwin Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc All rights rese Life Cycle: Four Stages in the Life of an Organization  Stage 4: The Maturity Stage – very bureaucratic  Organization large and mechanistic  Danger at this point is lack of flexibility and innovation  Text: Apple Computer floundered in the late 1980s until Steve Jobs returned McGraw-Hill/Irwin Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc All rights rese Life Cycle: Four Stages in the Life of an Organization  Holding on to the prebureaucratic way of life for too long hinders the organization’s ability to deliver goods and services efficiently McGraw-Hill/Irwin Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc All rights rese Building Learning Organizations 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 McGraw-Hill/Irwin Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc All rights rese Building Learning Organizations  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: McGraw-Hill/Irwin Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc All rights rese 8.7 Toward Building A Learning Organization WHY DO ORGANIZATIONS RESIST LEARNING? -people believe that competition is always better than collaboration -fragmentation leads to specialized fiefdoms that resist learning -unless encouraged, people won’t take risks, the basis for learning Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin The New Paradigm: “We’re All Stakeholders”  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 McGraw-Hill/Irwin Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc All rights rese 8.7 Toward Building A Learning Organization WHAT IS THE NEW PARADIGM? A new paradigm suggests that everyone in an organization is business together- and everyone has a responsibility for working toward common goals Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin The New Paradigm: “We’re All Stakeholders”  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 McGraw-Hill/Irwin Kinicki/Williams, Management: A Practical Introduction 3e ©2008, McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc All rights rese ... Management: A Practical Introduction 3e ©2 008, McGraw-Hill/Irwin 8.3 What Is An Organization? Figure 8.2: Organization Chart Kinicki/Williams, Management: A Practical Introduction 3e ©2 008, McGraw-Hill/Irwin... hierarchical level of management beneath the owner Kinicki/Williams, Management: A Practical Introduction 3e ©2 008, McGraw-Hill/Irwin 8.5 Basic Types Of Organizational Structures WHAT ARE THE BASIC... specialization of an organization Kinicki/Williams, Management: A Practical Introduction 3e ©2 008, McGraw-Hill/Irwin 8.4 The Major Elements Of An Organization WHAT ARE THE COMMON ELEMENTS OF AN