Horizontal structures: Functional Divisional Matrix Teams Networks

Elements of organizational structure Organizational Structure Elements Department alization Formalization Span of Control Centralization

Functional organizational structure Organizes employees around specific knowledge or other resources (marketing, production )

CEO

Finance

Production

Marketing

Evaluating functional structures Benefits Support professional identity and career paths Permits greater specialization Easier supervision similar issues Creates an economy of scale common pool of talent

Limitations

More emphasis on subunit than organizational goals Higher dysfunctional conflict Poorer coordination requires more controls

Evaluating divisional structures Benefits Building block structure accommodates growth Better coordination in diverse markets Limitations Duplication , inefficient use of resources Specializations are dispersed , creating silos of knowledge

Evaluating matrix structures Benefits Uses resources and expertise effectively Improves communication , flexibility , innovation Focuses specialists on clients and products Allows interaction within specialty across groups Limitations More coordination required within group Two bosses dilutes accountability More conflict , organizational politics , and stress Team based structure features Self directed work teams Teams organized around work processes Very flat span of control Very little formalization Usually found within divisionalized structure Organizational structures Structures follows strategy Differentiation strategy Cost leadership strategy

What is Organizational Culture? Organizational Culture: the set of share values and norms that controls organizational members interactions with each other and with people outside the organization Can be a source of competitive advantage Can be used to increase organizational effectiveness Can be used to control decisions making and activities / behaviors What is Organizational Values? Values : general criteria , standard , or guiding principles that people use to determine which types of behaviors , events , situations , and outcomes are desirable or undesirable Terminal value : a desired end state or outcome that people seek to achieve Instrumental value : a desired mode of behavior Norms : standards or styles of behavior that are considered acceptable or typical for a group of people Organizational Culture Based on enduring values embodied in organizational norms , rules , standard operating procedures , and goals People draw on these cultural values to guide their actions and decision when faced with uncertainty and ambiguity Important influence on members behavior and response to situations A countrys culture can affect the values and norms of a company or a companys culture Organizational Subcultures Located throughout the Organization Can enhance or oppose (countercultures) firms dominant culture Two functions of countercultures: Provide surveillance and critique , ethics Source of emerging values

Artifacts: Stories and Legends

Social prescriptions of desired (undesired) behavior Provides a realistic human side to expectations Most effective stories and legends: Describe real people Assumed to be true Known throughout the organization Are prescriptive

Artifacts: Rituals and Ceremonies Rituals Programmed routines Ceremonies Planned activities for an audience

Artifacts: Organizational Language Words used to address people , describe customers , etc Leaders use phrases and special vocabulary as cultural symbols Language also found in subcultures Artifacts: Physical Structures / Symbols Building structure may shape and reflect culture Office design conveys cultural meaning Furniture , office size , wall hangings