Core Concepts of Management Schermerhorn

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Core Concepts of ManagementSchermerhorn

• 25 Oct 2004
• Principles of Management
• CMSU
• Ms. Long

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Chapter 9Organizational Culture and Design

• Planning Ahead
• What is organizational culture?
• What are current directions in organizational
  cultures?
• What is organizational design?
• What are current directions in subsystems and
  work process design?

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The Nature of Organizational Culture

• What is Organizational Culture?

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The Nature of Organizational Culture

• Organizational Culture is a systems of shared
  beliefs and values that develop within an
  organization and guides the behavior of its
  members

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Organizational Culture

• What Strong Cultures Can Do
• The culture of an organization has the
  potential to __________.
• A. Shape attitudes and reinforce common beliefs.
• B. Direct behavior.
• C. Establish performance expectations and the
  motivation to fulfill them.
• D. All of the above.
• E. None of the above

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Organizational Culture

• What Strong Cultures Can Do
• Strong cultures are
• 1. clear, well defined
• 2. widely shared among members
• encourage positive work behaviors
• performance oriented
• emphasize teamwork

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Organizational Culture

• Elements of Organizational Culture
• What are four forms of Observable culture?
• 1.
• 2.
• 3.
• 4.

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Organizational Culture

• Elements of Organizational Culture
• Observable culture
• 1. stories- Oral histories and tales, told and
  retold among members, about dramatic sagas and
  incidents in the life of the organization
• 2. heroes- People singled out for special
  attention and whose accomplishments are
  recognized with praisethey include founders and
  role models
• 3. rites and rituals- Ceremonies and meetings,
  planned and spontaneous that celebrate important
  occasions and performance accomplishments
• 4. Symbols- The special use of language and
  other nonverbal expressions to communicate
  important themes of organizational life
• In Class Project

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Organizational Culture

• Successful companies typically emphasize which
  core values?
• 1.
• 2.
• 3.
• 4.
• 5.
• 6.
• 7.

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Organizational Culture

• Successful companies typically emphasize which
  core values?
• 1. Performance Excellence
• 2. Innovation
• 3. Social Responsibility
• 4. Integrity
• 5. Worker Involvement
• 6. Customer Service
• 7. Teamwork

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Organizational Culture

• Core Culture
• Consists of core values that influence the
  behavior of organizational members
• Values are publicized in formal statements of
  mission and purpose

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Directions in Organizational Cultures

• Leadership and Organizational Culture
• What are three criteria of core values?
• 1.
• 2.
• 3.

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Directions in Organizational Cultures

• Leadership and Organizational Culture
• Criteria of core values
• 1. relevance
• 2. pervasiveness
• 3. Strength

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Directions in Organizational Cultures

• Symbolic Managers
• someone who uses symbols well to establish and
  maintain desired organizational culture.

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Directions in Organizational Cultures

• Good __________ highlight the observable culture
  by repeatedly telling key stories and frequently
  using rites and rituals to glorify the
  performance of the organization and its members.
• A. Team leaders.
• B. Chief executive officers.
• C. Managers.
• D. Symbolic leaders.
• E. Chief operating officers

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Directions in Organizational Cultures

• What are five characteristics of multicultural
  organizations
• 1.
• 2.
• 3.
• 4.
• 5.

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Directions in Organizational Cultures

• Characteristics of multicultural organizations
• 1. Pluralism-Members of both minority and
  majority cultures have influence in setting key
  values and policies
• 2. Structural integration-Minority culture
  members are well represented in jobs at all
  levels and in all functional responsibilities
• 3. Information network integration-Various forms
  of mentoring and support groups assist in the
  career development of minority culture members
• 4. Absence of prejudice and discrimination-a
  variety of training and task force activities
  continually address the need to eliminate culture
  group biases
• 5. Minimum intergroup conflict-Diversity does
  not lead to destructive conflicts between members
  of majority and minority cultures

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_______________ _______

• __________ is the process of aligning
  organizational structures and cultures to best
  serve the organizations mission, strategy, and
  objectives.
• A. Cultural management.
• B. Structural strategizing.
• C. Organization design.
• D. Mechanizing the organization.
• E. Cultural adaptation.

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Organizational Design

• Organization Design
• Process of aligning structures and culture to
  best serve mission and objectives
• shift from
• vertical to horizontal structure
• authority driven to task driven

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Organizational Design

• Bureaucratic Designs
• What three things are bureaucracies based on?

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Organizational Design

• Bureaucratic Designs
• Bureaucracies
• based on
• 1. logic
• 2. order
• 3. legitimate use of formal authority

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Organizational Design

• Bureaucracies
• Which of the following are negative
  characteristics of bureaucracies?
• A. Bureaucracies tend to be rigid and formal.
• B. Bureaucracies may become unwieldy by relying
  too heavily on rules and procedures.
• C. Bureaucracies are slow to respond to change.
• D. A and B.
• E. A, B, and C.

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Organizational Design

• Mechanistic Designs are.
• 1.
• 2.
• 3.
• 4.
• 5.
• 6.

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Organizational Design

• Mechanistic Designs
• 1. highly bureaucratic
• 2. more centralized authority
• 3. many rules and procedures
• 4. precise division of labor
• 5. narrow spans of control
• 6. formal means of coordination

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Contingencies in Organizational Design

• Organizations that operate with a minimum of
  bureaucratic features and encourage employee
  participation and empowerment are called
  __________.
• A. Organic organizations.
• B. Networks.
• C. New bureaucracies.
• D. Adaptive organizations.
• E. Mechanistic organizations

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Contingencies in Organizational Design

• Strategy
• structure follows strategy
• stable strategy is supported by
• bureaucratic organizations using mechanistic
  designs
• growth oriented strategy is supported by
• adaptive organizations using organic designs

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Contingencies in Organizational Design

• Size
• Larger organizations tend to be more bureaucratic
• Simultaneous structures
• combined mechanistic and organic designs

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Contingencies in Organizational Design

• Size
• Good organizational design decisions should
  __________ and __________.
• A. Satisfy situational demands allow only
  financial resources to be used to the best
  advantage.
• B. Satisfy environmental demands allow
  financial resources to be used to the best
  advantage.
• C. Satisfy bureaucratic demands allow
  resources to be used reasonably and
  appropriately.
• D. Not exceed resource requirements allow
  structural flexibility.
• E. Satisfy situational demands allow all
  resources to be used to the best advantage.

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Subsystems Design and Work Process

• Subsystem
• department or work unit headed by a manager
• operates as smaller part of larger organization
• serves the needs of larger organization
• ideally each subsystem supports other subsystems

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Subsystems Design and Work Process

• Differentiation
• degree of difference between internal components
  of the organization
• sources of differences
• time orientation
• objectives
• interpersonal orientation
• formal structure

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Subsystems Design and Work Process

• Integration
• level of internal coordination
• becomes harder to achieve with increased
  differentiation

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Work Processes

• Work Process
• related group of tasks that create value for the
  customer
• Process reengineering
• systematic, complete analysis of work processes
  and
• design of new and better processes

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Work Processes

• Reengineering core processes
• Process value analysis
• identify core processes
• map core processes in respect to workflows
• evaluate all tasks for core processes
• search for ways to eliminate unnecessary tasks
• search for ways to eliminate delays, errors,
  misunderstandings
• search for efficiencies in how work is shared and
  transferred