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THE ORGANIZATIONAL CULTURE
& STRUCTURE
CHAMARA DE ZOYSA
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Organizational Culture Defined
The basic pattern of shared assumptions,
values, and beliefs considered to be the
correct way of thinking about and acting on
problems and opportunities facing the
organization.
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When people join an organization, they bring
with them the values and beliefs they have
been taught. However, these values and
beliefs are insufficient for helping the
individual succeed in the organization. The
person need to learn how the particular
enterprise does things.
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Characteristics of Organizational
Culture
1. Innovation and risk taking
2. Attention to detail
3. Outcome orientation4. People orientation
5. Team orientation
6. Aggressiveness7. Stability
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Physical Structures
Rituals/ Ceremonies
Stories
Language
Beliefs
Values
Assumptions
Artifacts of
Organizational
Culture
Organizational
Culture
Elements of Organizational Culture
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Culture is a Descriptive Term
Organizational culture is concerned with how
employees perceive the seven characteristics
of an organizations culture, not whether or
not they like them
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Do Organizations Have Uniform
Cultures?
A dominant culture expresses the core values
that are shared by a majority of the
organizations members
Subcultures tend to develop in large
organizations to reflect common problems,
situations, or experiences that members face
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Strong vs. Weak Cultures
In a strong culture, the organizations core
values are both intensely held and widely
shared
Strong cultures will:
Have great influence on the
behavior of its members
Result in lower employeeturnover
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Benefits of Strong Corporate Cultures
Strong
Organizational
Culture
Social
Control
Aids
Sense-Making
Social
Glue
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Problems with Strong Cultures
Culture content might be incompatible with the
organizations environment.
Strong cultures focus attention on one mental
model.
Strong cultures suppress dissenting values from
subcultures.
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Cultures Functions
Boundary-defining role
Conveys a sense of identity
Facilitates the generation of commitment Enhances social system stability
Sense-making and control mechanism
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Keeping a Culture Alive
Selectionseek out those who would fit in
Top ManagementSenior executives establish
norms of behavior through what they say and
do
Socializationhelp new employees adapt to
the culture
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A Socialization Model
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How Organization Cultures Form
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Creating an Ethical
Organizational Culture
Be a visible role model
Communicate ethical expectations
Provide ethical training Visibly reward ethical acts and punish
unethical ones
Provide protective mechanisms
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Merging Organizational Cultures
Assimilation
Deculturation
Acquired company embracesacquiring firms culture
Acquiring firm imposes its culture on
unwilling acquired firm
IntegrationBoth cultures combined into a newcomposite culture
SeparationMerging companies remainseparate with their own culture
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StrengtheningOrganizational
Culture
Foundersand leaders
Culturallyconsistentrewards
Stableworkforce
Selectionandsocialization
Managing theculturalnetwork
Strengthening Organizational Culture
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Changing organizational culture
The case of Mergers and Acquisitions
Organization
A
Structure
Politics
Emotions
Organization
B
Structure ( two cultures size, age, and history of two firms)
Politics ( Where does the power and managerial decision making really reside)
Emotions ( personal feelings such as thoughts, habits, attitudes, commitment.
These emotions will be a major input into the clash of two cultures)
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Modern Organizational Designs
Modern organizational designs need for flexibility, adaptability
to change, creativity, innovation, knowledge, ability to
overcome environmental uncertainty.
Horizontal
Network
Virtual organization designs
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Modern Organizational Designs
Horizontal Organizations
Horizontal design replace the traditional vertical, hierarchical
organization. The advanced information technology and
globalization environment suggests to use of horizontal
structure to facilitate cooperation, teamwork, and a customer.
Guidelines for horizontal organizational design:
1. Organization revolves around the process, not the task
2. The hierarchy is flattened
3. Teams are used to manage everything
4. Customers drive performance5. Team performance is rewarded
6. Supplier and customer contact is maximized
7. All employees need to be fully informed and trained
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Modern Organizational DesignsThe Contrast Between The Hierarchical And Network
Organization
21
Network designs cannot
readily be drawn.Hierarchical structures can be drawn
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Modern Organizational Designs
Virtual OrganizationVirtual organizing requires a strong information technologyplatform.
The virtual organization is a temporary network of companies thatcome together quickly to exploit fast- changing opportunities.
The partners in the virtual organization share costs, skills, andaccess to international markets.
Virtual organizations what is best is core capabilities
1. Technology ( e.g. electronic contacts)
2. Opportunism ( Partnership will be less permanent, less
formal and more opportunistic )
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An
External
Alliance
Principal
Customer
Joint
Venture
Partner
An
Internal
Alliance
A typical TCG firm of5-10 professionals
A TCG Project
Leader
An Example Of A Virtual OrganizationTCG (Technical and Computer Graphics )an Australian based multinational firm
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AUTHORITY AND POWER
With authority comes power. Power is the
ability to influence people toward
organizational objectives.
However, you have limits on your authority
and power.
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Concept of Power
Power -the ability to influence another person
Influence -the process of affecting the thoughts,
behavior, & feelings of another person
Authority -the right to influence another person
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Power
In conjunction with your authority, you use
power to influence others toward the
accomplishment of command goals.
You can use power for personal gain or for the
good of the organization.
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REWARD POWER
Reward power stems from your use of positive
and negative rewards to influence
subordinates. Positive rewards range from a
smile or kind word to recommendations forawards. Negative rewards range from corre
ctive
type counseling to placing a person on report
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COERCIVE POWER
Coercive power results from the expectation
of a negative reward
if your wishes are not obeyed. For exa
mple, suppose you have counseled asubordinate twice for minor infractions of
regulations
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INFORMATIONAL POWER
Informational power depends on your giving
or withholding of information or having
knowledge that others do not have. Use
informational power when giving orders tosubordinates.
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REFERENT POWER
Referent power derives from your
subordinates identification or association
with you.
You have this power by simply being "the
chief." People identify with the ideals you
stand for. The chief has a pre-established
image. You can enhance that image byexhibiting charisma, courage, and charm
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EXPERT POWER
Expert power comes
from your knowledge in a specific area throug
h which you influence others. You have expert
power because your subordinates regard you asan expert in your rating. Subordinates may also
have this type of power.
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Commitment
Consequences of Power
RewardPower
LegitimatePower
CoercivePower
ExpertPower
ReferentPower
Resistance
Compliance
Sourcesof Power
Consequencesof Power
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Two Faces of Power
Personal Power
Social Power35
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Two Faces of Power
Personal Power
used for personal gain
Social Power
used to create motivation
used to accomplish group goals
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Successful Power Users
Have high need for socialpower
Approach relationships with a communalorientation
Focus on needs and interests of others
belief in justice unselfishness
belief in the
authority system
preference for
work & discipline
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Using Power Ethically
Does the behavior produce a good
outcome for people both inside
and outside the organization?
Does the behavior respect the
rights of all parties?
Does the behavior treat all parties
equitably and fairly?
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EMPOWERMENT
Authority to make decisions without having tofirst get approval.
Giving Power and Authority Away
Carries Risk and Reward
How does it enhance innovation and why does itwork?
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Political Behavior in Organizations
Organizational Politics -the use of power and
influence in organizations
Political Behavior -actions not officially
sanctioned (authorized) by an organization
that are taken to influence others in orderto meet ones personal goals
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Organizational Areas That Are More
Political Than Rational
Areas
Goals
DecisionsResources
Change
Technology and
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Political Implications of Power
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Political Implications of Power
A Final Word on Power and Politics-
To help overcome the negative impact the
organizational politics can have on the ethics of an
organization, use following guide lines Keeps lines of communication open
Role-model ethical and nonpolitical behaviors
Be ware of game players acting only in their own self-
interests. Protect individual privacy interests.
Always use the value judgment Is this fair
(Continued)
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Political Implications of Power
A Final Word on Power and Politics-
authenticity (genuineness)
(Continued)
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Advice to Managers
Recognize that power and politics influence all behaviorin organizations and that it is necessary to develop theskills to be able to understand and manage them.
Analyze the sources of power in the function, division,and organization in which you work to identify powerfulpeople and the organizations power structure.
To influence organizational decision making and yourchances of promotion, try to develop a personal powerbase to increase your visibility and individual power.
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Questions
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THANK YOU..
