Post on 07-Jan-2016
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Thismodule willfocusesonunderstandingtheoriginsofOrganizationalCulture.Ourgoalistounderstandthetradeoffsmadewhenorganizationschooseastructure,andanalyzetherelationshipbetweenstructureandculture.
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Organizationalcultureisthesetofshared,takenforgrantedimplicitassumptionsthatagroupholdsandthatdetermineshowitperceives,thinksabout,andreactstoitsvariousenvironments.Observableartifacts
Consistofthephysicalmanifestationofanorganizationsculture.AttheDuPontexperimentstationplaqueshangonthecafeteriawalldescribingtheachievementsoffamousDuPontinventors.
Valuesconceptsorbeliefsthatpertaintodesirableendstates whichguidetheselectionofbehaviorandareorderedbyrelativeimportance
Espousedvaluesrepresenttheexplicitlystatedvaluesandnormsthatarepreferredbyanorganization
Enactedvaluesrepresentthevaluesandnormsthatareactuallyexhibitedorconvertedintoemployeebehavior
BasicassumptionsConstituteorganizationalvaluesthathavebecomesotakenforgrantedovertimethattheybecomeassumptionsthatguideorganizationalbehavior
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3TheCompetingValuesFrameworkisaframeworkforcategorizingorganizationalculture.Asyoucansee,thisframeworkisbasedontwocontinuumsoforganizationaleffectiveness.Oneaxispertainsto
whetheranorganizationfocusesitsattentionandeffortsoninternaldynamicsandemployeeoroutwardtowarditsexternalenvironmentanditscustomersandshareholders.
Thesecondaxesshowsanorganizationspreferenceforflexibilityorcontrolandstability.Theseaxescreatefourtypesoforganizationalculturesthatarebasedondifferentcorevaluesandcriteriaforassessingorganizationaleffectiveness.
Thefirstistheclanculture.Thiscultureischaracterizedhashavinganinternalfocusandvaluingflexibility.Thistypeoforganizationencouragescollaborationbetweenemployeesandiscommittedtohavingacohesiveworkgroupandhighjobsatisfaction.
Theadhocracyculturehasanexternalfocusandvaluesflexibility.Thistypeofculturefosterscreationofinnovativeproductsandservicesbybeingadaptable,creative,andfasttorespondtochangesinthemarketplace.Centralizedpowerandauthoritywouldnotbeeffectivestructuresinanadhocracy.Theseorganizationspromotecreativity,innovation,andknowledgesharing.
Themarketculture hasastrongexternalfocusandvaluesstabilityandcontrol.Thistypeofculturefocusesonthecustomeroveremployeedevelopmentandsatisfactionbecausethegoalofmanagersistodrivetowardsproductivity,profits,andcustomersatisfaction.Thisculturerewardsemployeeswhodeliverresults.
Thehierarchyculturehasaninternalfocusandaformalized,structuredworkenvironment.Itwilltendtohavereliableinternalprocessesandcontrolmechanisms(e.g.,Dellwhosefocusisoncostcuttingandefficiency.)
Thiscategorizationshowshowanorganizationscorevaluesaffectitsculture.Manycompaniesstrugglewithattemptingtoembodyconflictingvalues(e.g.,RitzCarltonvaluesbothemployeesandcustomersbyempoweringemployeesandprovidinghighqualitycustomerservice)
Cultures are stable over time because of a number of factors that perpetuate the culture.
1. Organizational members teach each other about the organizations preferred values, beliefs, expectations, and behaviors
2. Formalstatementsoforganizationalphilosophy,mission,vision,values,andmaterialsusedforrecruiting,selectionandsocialization
3. Thedesignofphysicalspace,workenvironments,andbuildings4. Slogans,language,acronyms,andsayings5. Deliberaterolemodeling,trainingprograms,teachingandcoachingbymanagersand
supervisors6. Explicitrewards,statussymbols(e.g.,titles),andpromotioncriteriaIntentionally alteringtheseelementsofculturemayenableculturalchange.
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Toseehowculturesfitwithin organizationalstructureswemustfirstdefineorganizationsandtypicalstructures.AnOrganizationisasystemofconsciouslycoordinatedactivitiesamongtwoormorepeople.
Therearefourcommon elementsthatmakeupthestructureofanorganizationCoordinationCommongoalsDivisionoflaborHierarchyofauthority.mostorganizationsabidebytheprincipleofunityofcommandwhichstatesthateachemployeeshouldreporttoasinglemanager.
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Organizationaldesignis definedbythestructuresofaccountabilityandresponsibilityusedtodevelopandimplementstrategies,andbythehumanresourcepractices,informationandbusinessprocessesthatactivatethosestructuresThispartialorganizationchartrevealsfourbasicdimensionsoforganizationalstructure:(1) hierarchyofauthority(whoreportstowhom),onthevertical(2)divisionoflabor,Whoisresponsibleforwhat,onthehorizontal(3)spansofcontrolthenumberofpeoplereportingdirectlytoagivenmanager.Generally,thenarrowerthespanofcontrol(fewerpeople),thecloserthesupervisionandthehighertheadministrativecostsasaresultofahighermanagertoworkerratio.(4)lineandstaffpositions. Staffpersonneldobackgroundresearchandprovidetechnicaladvice,andrecommendationstolinemanagers.LineManagershaveauthoritytomakeorganizationaldecisions.
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Traditionalorganizational designsinclude..Functionalstructure
groupspeopleaccordingtothebusinessfunctionstheyperform,forexample,manufacturing,marketing,andfinance
Divisionalstructuregroupstogetheractivitiesrelatedtooutputs,suchastypeofproductorcustomer
Matrixstructurecombinesfunctionalanddivisionalchainsofcommandtoformagridwithtwocommandstructures thisviolatestheunityofcommandprinciple anrequiresadvancedmanagementcoordination.
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IntheexampleshowninFigure173,Fordmightsetupvicepresidentsforeachfunctionalgroupandprojectmanagersforeachmakeofcar.Employeeswouldreporttotwomanagers:oneinchargeofthefunctiontheyperformandtheotherinchargeoftheprojecttheyareworkingon.
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Horizontalorganizations.OrganizearoundcompleteworkflowprocessesThey FlattenhierarchyanduseteamstomanageeverythingTheAppointprocessteamleaderstomanageinternalteamprocessesHorizontal organizationsLetsupplierandcustomercontactdriveperformanceAndProviderequiredexpertisefromoutsidetheteamasrequired
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While traditionalstructuresaredesignedtobuffertheorganizationfromitsenvironment,moderndesignsarespecificallyintendedtoopentheboundariesbetweenorganizationsthuscreatingmoreinterorganizational collaborations..HollowstructureorganizationidentifiescorecompetenciesandoutsourcesnoncoreprocessestovendorswhocandothemcheaperorfasterModularstructures outsourcepartsofaproductinsteadofprocessesVirtualorganizations identifypartnerswiththeneededtalentsandnegotiatesanagreementinwhichtheparticipantstypicallyworkinseparatefacilities,linkedbytechnology
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Contingencyapproachtoorganizationdesignassumesthatorganizationstendtobemoreeffectivewhentheyarestructuredtofitthedemandsofthesituation
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Structures anddecisionmakinggohandinhand.Mechanisticorganizations
Rigidbureaucracieswithstrictrules,narrowlydefinedtasks,andtopdowncommunication.
OrganicorganizationsFlexiblenetworksofmultitalentedindividualswhoperformavarietyoftasks
Centralizeddecisionmakingkeydecisionsaremadebytopmanagement
Decentralizeddecisionmakingimportantdecisionsaremadebymiddle andlowerlevelmanagers
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AsillustratedinTable172,eachofthemechanisticorganiccharacteristicsisamatterofdegree.Organizationstendtoberelativelymechanisticorrelativelyorganic.
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Afunctional structurecansavemoneybygroupingtogetherpeoplewhoneedsimilarmaterialsandequipmentDivisional structuresincreaseemployeesfocusoncustomersandproductsAsuccessfulmatrix structurerequiressuperiormanagerswhocommunicateextensively,fostercommitmentandcollaboration,manageconflictandnegotiateeffectivelytoestablishgoalsandprioritiesconsistentwiththeorganizationsstrategyHorizontal designsimprovecoordinationandcommunicationOrganizationsthatbecomehollow,modular,or virtual cangeneratesuperiorreturnsbyfocusingonwhattheydobest,butmaylosesomedegreeofcontrolover internalprocessesthatcaninfluenceculture.Asyouconsidertheinterplaybetweenstructureandculture,considerwhatconstituteseffectivestructuresforagivenbusinesssituation.Forexample,inacommoditybusinesswherepricesarecontrolledbystiffcompetitionamongfirms,thereareverysmallprofitmargins.Inthesesituationsitisimperativetocontrolcosts.Functionalstructuresaremoreeconomicalandthusmaybeneeded.Incontrast,inindustriesthataredifferentiatedbythereresponsivenesstocustomers,greatercustomerfocusisneededandthusadivisionalstructuredividedbymarketsegmentationmaybemoreeffective.Itisimportanttounderstandhowanappropriatecultureisdevelopedandmaintainedthroughtheactionsofmanagersandleaders.
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