Organizational Structure and Culture
Organizational Structure and Culture
Organizational Structure and Culture
Organizational
Structure
and Culture
Michael A. Hitt
C. Chet Miller
Adrienne Colella
Slides by Ralph R. Braithwaite
13-1
13-2
FedEx Organization
FedEx
Freight
FedEx
Express
FedEx
Kinkos
Services
FedEx
Supply
Chain
FedEx
Custom
Critical
FedEx
Corp.
FedEx
Trade
Network
FedEx
Ground
13-3
Organizational
Culture
Knowledge Objectives
1. Define key elements of organizational structure,
including both structural and structuring dimensions.
5. Discuss socialization.
6. Describe cultural audits and subcultures.
7. Explain the importance of a fit between individual
values and organizational culture.
13-5
Fundamental Elements of
Organizational Structure
Structural
Characteristics
Hierarchy
Structuring
Characteristics
13-6
Structural Characteristics
Departmentation
Height
Span of Control
13-7
Span of Control
Organizational Level
Highest
4
17
63
10
100
1000
250
Associates
1000
Associates
Lowest
13-8
Adapted from Exhibit 13-1: Average Span of Control: Effects on Height of the Hierarchy
Functional Organization
CEO
VP
Research and
Development
VP
Operations
VP
Finance
VP
Human
Resources
VP
Marketing
13-9
Divisional Organization
CEO
V.P.
Product/Service
Area 1
Head of
R&D
Head of
Operations
Head of
Finance
Head of
Human
Resources
Head of
Marketing
V.P.
Product/Service
Area 1
Head of
R&D
Head of
Operations
Head of
Finance
Head of
Human
Resources
Head of
Marketing
V.P.
Product/Service
Area 1
Head of
R&D
Head of
Operations
Head of
Finance
Head of
Human
Resources
Head of
Marketing
13-10
Centralization
Standardization
Structuring Characteristics
Formalization
Specialization
13-11
Mechanistic
Learning
Non-Learning
Boundaryless
Traditional
13-12
Freedom
Substantial freedom may exist, but
1. Freedom is not unlimited
2. Alternative mechanisms are used to ensure that
individuals are working for the good of the
organization
3. Values are shared
4. Reward systems are used to promote appropriate
behavior
13-13
Growth
Diversification
13-14
Structure
Single product
Functional
Functional
Divisional
Related product
Divisional
Unrelated product
Divisional
Unrelated product
Holding Company
Adapted from Exhibit 13-4: Matches between Diversification Strategy and Structure
13-15
Business Strategy
How a firm competes for success against other
organizations in a particular market.
13-16
Experiencing
Strategic OB
13-17
13-18
Lateral
Relations
Information
Technology
Self-Contained
Tasks
Slack
Resources
13-19
Liaison Roles
Taskforces
Matrix Designs
Managerial
Linking Roles
Lateral
Processes
Teams
Integrating Roles
13-20
Technology and
Structure
Mass Production
Technology
Small-Batch
Technology
Manufacturing
Process
Production
Technology
Mass
Customization
Joan Woodward
13-21
Four categories
of technology
Charles Perrow
Task Analyzability
Routine
Craft
Engineering
Nonroutine
13-22
Task Variability
High
Low
Engineering
Non-Routine
Specialized
Engineering
Consulting Firm
Research and
Development
Firm
Routine
Craft
Mass-Production
Firm
Public School
13-23
Experiencing
Strategic OB
13-24
Reinforcing
Outcomes
Organizational
Culture
Norms
Individual and
Group Behavior
13-25
Stability/Control
Flexibility/
Discretion
Organizational Culture
Clan
Adhocracy
Leadership
Mentors and Coaches
Leadership
Entrepreneurs and
Innovators
Effectiveness
Cohesion and Morale
Effectiveness
Creativity and Innovation
Hierarchy
Market
Leadership
Monitors and Organizers
Leadership
Hard Drivers and
Competitors
Effectiveness
Efficiency and Order
Effectiveness
Goal Achievement and
Winning
Internal Focus/Integration
External Focus/
Differentiation
13-26
Cultural Socialization
A process through which an organization imparts its
values to newcomers
Content
Context
Social
Dynamics
13-27
Cultural Audit
Analyze
responses
to critical
incidents
Analyze
values
and
beliefs of
culture
creators
Explore
anomalies
or
puzzling
features
Examine
linkage
culture
with
goals
Managerial
Advice
Finding a Fit at
Home Depot
Do you agree that an individuals management
style and values should agree with the
organizations culture? Why or why not?
Do you think Nardelli is what Home Depot
needed at the time?
Robert Nardelli
13-29
Person-Organization Fit
Types of personal goals
that one ought to have
Values
Abstract ideals that
relate to proper life
goals and methods for
reaching those goals.
End-Means Dimension
End
(Goal)
Values
Means
(Behavior)
Values
13-31
Questions
13-33