OrganizationAL Structure and Culture Modular Learning Outcomes Upon successful completion of this module, the student will be able to satisfy the following outcomes:

Module 4 – Home

OrganizationAL Structure and Culture

Modular Learning Outcomes

Upon successful completion of this module, the student will be able to satisfy the following outcomes:

· Case

· Evaluate the effect of organizational structure on member behavior.

· SLP

· Assess your organization’s structure and compare different approaches to categorizing culture.

· Discussion

· Evaluate the importance of sociopolitical skills to successful management.

Module Overview

The purpose of Module 4 is to consider behavior in organizations beyond the individual or group level—that is, the organization in its entirety. At this level, we examine the shared norms and values of corporate culture, along with the question of how to design an organization’s structure to achieve maximum effectiveness. This is a critical module with respect to your success in future courses that deal with strategic planning, human resources as strategic partners, and leading organizational strategy.

Some people argue that organizational structure doesn’t matter anymore—that the internet and virtual organizations have made traditional ideas about organizational structure obsolete. Dr. Jeffrey Pfeffer, a world-renowned scholar of organizations, couldn’t disagree more. He argues that the old rules of power and authority are still relevant, and that to be successful in an organization, you need to learn those rules. Read the following article by Dr. Pfeffer:

Pfeffer, J. (2014). Do workplace hierarchies still matter? Retrieved from http://www.gsb.stanford.edu/insights/jeffrey-pfeffer-do-workplace-hierarchies-still-matter

Module 4 – Background

Organizational Structure and Culture

Required Sources

Organizational Culture

Have you ever observed how some organizations just seem to be shining stars in their fields, even if the product or service they produce is not that much different from their competitors? Have you noticed that it seems that they are the ones who are the most successful? Did you ever wonder why? Read the following material on organizational culture for some insights into what culture is, what it does, how it is formed, and how it is taught to newcomers in the organization. This reading is available in the Trident University Library.

Flamholtz, E. & Randle, Y. (2011). Corporate Culture: The Invisible Asset. Corporate Culture: The Ultimate Strategic Asset. (pp. 3-25), Stanford, CA: Stanford Business Books.

This material on organizational culture type may be particularly helpful as you prepare your Module 4 SLP assignment.

McNamara, C. (2000) Organizational Culture. Adapted from the Fieldguide to Organizational Leadership and Supervision. Free Management Library. http://managementhelp.org/organizations/culture.htm

Organizational Structure and Design

The way an organization is designed and structured can have significant effects on its members and its ability to execute its strategy. In this module we will try to understand those effects and analyze the behavioral implications of different organizational designs.

An organizational structure defines how job tasks are formally divided, grouped, and coordinated. According to Robbins and Judge (2014), managers need to address six key elements when they design their organization’s structure:

Work specialization – the extent to which activities are subdivided into separate jobs.

Departmentalization – the basis on which jobs will be grouped together.

Chain of command – the people who individuals and groups report to.

Span of control – the number of individuals that a manager can direct efficiently and effectively.

Centralization and de-centralization – the locus of decision-making authority.

Formalization – the extent to which there will be rules and regulations to direct employees and managers.

One way to gain insight into the complexity of organizations and how organizations are structured or designed is through metaphors. For example, using metaphors, an organization can be talked about as if it were a machine or as if it were an organism. The organization that is like a machine is characterized by extensive departmentalization, high formalization, and limited by low formalization, flat hierarchy and the use of cross-hierarchical and cross-functional teams, free flow of information, and decentralization. Each design has advantages and disadvantages. For example, organizations that are like machines are often good at keeping the costs of standardized products or services down, but could inhibit innovation and creativity. Read the excerpt (pp. 98-108) for insight into organizational design and how metaphors can be used to understand how organizations work:

Cameron, E. & Green, M. (2009) How Organizations Really Work. Making Sense of Change Management: A Complete Guide to the Models, Tools, & Techniques of Organizational Change 2nd Ed. (pp. 98-108). London and Philadelphia: Kogan Page. http://www.bms.lk/download/GDM_Tutorials/e-books/Making_Sense_of_Change_Management.pdf

Organizational structures are also considered in how they fit or align with an organization’s strategy, mission, and objectives. Traditional structures were divisional structures, functional structures, team-based or process structures, and flexible structures. More recently, organizations have needed to take on more “open boundary” designs. Models of hollow, modular, and virtual organizations describe these “open boundary” organizations. Overall, the key learning here is that the structure selected should match the organization’s strategy – or it will be very difficult for the organization to be successful.

The following reading considers organization design in an era of newer strategic considerations such as globalization and changing market dynamics:

Narasimhan, A., Yu, H. H., & Lane, N. (2012). Organization design: Inviting the outside in. Retrieved from https://www.imd.org/research-knowledge/articles/organizational-design-inviting-the-outside-in/

Aligning culture and structure

Designing an organization’s structure involves more than just shifting boxes and lines on an organizational chart. Mootee (2012) offers several critical tests when considering the adequately designing an organization’s structure:

a. The Future Test: Does the design reflect the needs for how a company plans to compete in the future?

b. The People/Culture Test: Does the design adequately reflect the motivations, strengths, and weaknesses of employees?

c. The Competitive Advantage Test: Does the design allocate sufficient management emphasis to the strategic priorities?

d. The Power Test: Does the design provide the desired allocated power to groups/individuals that is linked to the strategic value of the unit or functions?

e. The Agility Test: Is the design adaptable and swift to respond to future changes? (p. 1)

It makes intuitive sense that organizational culture and organizational structure should affect each other. Indeed, the way work is coordinated, the way hierarchies are designed, and the way communications are channeled should align with the norms and values of the people who work there. If they do not, there will be tension and conflict between the way people feel comfortable working and the structures that force work to be done in a different way. The following article is an excellent and compelling analysis of why management should consciously insure that culture and structure support each other so that the organization can function as smoothly and effectively as possible.

Janicijevic, N. (2013). The mutual Impact of organizational culture and structure. Economic Annals 58(198). Retrieved from http://www.doiserbia.nb.rs/img/doi/0013-3264/2013/0013-32641398035J.pdf

Optional Sources

Organizational Culture

Denison, D., Hooijberg, R., & Lane, N. (2012). Building a high-performance Business Culture. Leading Culture Change in Global Organizations: Aligning Culture and Strategy. (pp. 1-23), Hoboken, NJ, USA: John Wiley & Sons. Retrieved from http://media.wiley.com/product_data/excerpt/4X/04709088/047090884X-373.pdf

A classic source for an overview of organizational culture is:

Schein, E. H. (2010) Organizational Culture & Leadership. 4th ed. San Francisco: Jossey-Bass. Available in the Trident University Library.

Organizational Structure and Design

 “Guidelines for Organizational Design” assembled by Carter McNamara, PhD, provides library links to several readings on the topic.

McNamara, C. (n.d.) Guidelines for organization design. In Free Management Library. Retrieved from http://managementhelp.org/organizations/design.htm

Mechanistic vs. Organic Organizational Structure: Contingency Theory (2014) BusinessMate.Org http://www.businessmate.org/Article.php?ArtikelId=44

Mootee, I. (2012). What is the right organizational design for your corporation? And what test to use to know if you’ve got the right one? Innovation Playground. Retrieved from https://www.futurelab.net/blog/2012/06/what-right-organization-design-your-corporation-and-what-test-use-know-if-youve-got

Robbins, S.P. & Judge, T.A. (2014). Essentials of Organizational Behavior (12th Edition). Pearson.

$$$$$$$$ Module 4 – Case Assignment

Organizational Structure and Culture

Assignment Overview

https://tlc.trident.edu/content/enforced/141691-MGT501-2019APR29FT-2/levels.png?_&d2lSessionVal=AQq8fEAJIgGiPkywq3RxcH1jX&ou=141691The format of this case differs from the previous three modules and resembles more closely the format of assignments you will see in many of your courses going forward. This is not to say that you should abandon what you have learned about the analytical process of alternating between the abstract and the concrete, the reflective and the active, but this paper will not follow the format of a section on concrete experience, reflective observation, abstract conceptualization, and active experimentation. Each of these aspects of analysis should be present, but integrated into the paper as a whole, rather than broken out into distinct sections.

The topic of this case is organizational design. To complete this assignment, we will begin as before, and you should identify an organization you know very well. Then conduct your analysis by addressing the topics below. Do not line up the questions and address them one at a time as in a short-answer test, but rather integrate them into a single coherent commentary and analysis of the organization. A critical part of successful completion of this assignment is for you to demonstrate your ability to employ the concepts introduced in the background material in describing and evaluating the effectiveness of the organizational design. To do this, you will need to draw on the concepts from at least three readings/videos. This paper should be 4-6 pages long.

Case Questions:

1. Diagram the formal structure of your organization. Identify the various management positions or titles on the chart and indicate the positions/jobs that would report to each. Identify the various management positions or titles on the chart and indicate the positions/jobs that would report to each. SmartDraw.com ( https://cloud.smartdraw.com/ ) provides free examples, though others are also available via Google. PowerPoint also has templates for organizational charts you can use.

2. Describe how work is divided (specialization and departmentalization), coordinated (chain of command and span of control), and controlled (centralization and formalization). Is the structure more mechanistic or organic?

3. Describe the informal structure of the organization. How does work actually get done?

4. How does the organization deal with the differentiation-integration issue?

5. Having completed this analysis, identify three strengths and three weaknesses of the organizational design.

6. If you could suggest one major improvement to the organizational design, what would it be?

Assignment Expectations

Your Case paper will be evaluated using the criteria on the assignment rubric (see the rubric for more detail): Assignment-Driven, Critical Thinking, Business Writing, Effective Use of Information, Citing Sources, and Timeliness.

$$$$$$$$$$ Module 4 – SLP Assignment

Organizational Structure and Culture

For the SLP 4 assignment, you will explore some aspects of an organization’s culture, at least as you see it. (Select an organization you have worked with, if possible.) Since the concept of organizational culture is open to many interpretations and classifications, this assessment offers a slightly different approach from your background reading on organizational culture.

Required Reading

The People Group, Based on Gallup Research: What Makes a Great Workplace? Retrieved from  https://thepeoplegroup.com/wp-content/uploads/2008/04/article-gallup-research-what-makes-a-great-workplace1.pdf

McNamara, C. (2000) Organizational Culture. Adapted from the Field guide to Organizational Leadership and Supervision. Free Management Library. http://managementhelp.org/organizations/culture.htm

Assignment

Think about the results from the Gallup Survey for a minute, and how it compares to the Academy, Baseball Team, Fortress, and Club cultures described by McNamara in the Background reading.

Then prepare a 2- to 3-page paper addressing:

· In your opinion, do the Gallup results fit your general expectations or constitute a surprise in some ways? Interpret the results of the Gallup survey in terms of your own experience, either to confirm or to question the results. Compare the Gallup results and your opinions with the McNamara categories.

· The degree to which the Gallup results and the McNamara information tell you similar or dissimilar things about your organization.

· Does the Gallup survey and the McNamara categories help improve your managerial understanding and/or skills? What can you infer from the results about how your organization’s culture fits or doesn’t fit with you? What (if anything) can you do to make your interaction with the culture more effective?

· Provide your opinion on whether or not the above two sources in this SLP 4 help you understand the organization and how you cope with it. Do they accurately depict what is needed to analyze a company’s culture?

SLP Assignment Expectations

Your paper will be evaluated using the criteria on the SLP rubric (see the rubric for more detail): Assignment-Driven, Critical Thinking, Business Writing, Effective Use of Information, Citing Sources, and Timeliness.

Module 4 – Outcomes

Organizational Structure and Culture

· Module

· Examine the ways that organizational culture and structural design can maximize organizational effectiveness.

· Case

· Evaluate the effect of organizational structure on member behavior.

· SLP

· Assess your organization’s structure and compare different approaches to categorizing culture.

· Discussion

· Evaluate the importance of sociopolitical skills to successful management.

 

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