August 6, 2022

Reflection and Discussion Forum Week 7Assigned Readings:Chapter 15. Foundations of Organization StructureChapter 16. Organizational CultureChapter 17. Organizational Change and Stre

Reflection and Discussion Forum Week 7Assigned Readings:Chapter 15. Foundations of Organization StructureChapter 16. Organizational CultureChapter 17. Organizational Change and Stress ManagementInitial Postings: Read and reflect on the assigned readings for the week. Then post what you thought was the most important concept(s), method(s), term(s), and/or any other thing that you felt was worthy of your understanding in each assigned textbook chapter.Your initial post should be based upon the assigned reading for the week, so the textbook should be a source listed in your reference section and cited within the body of the text. Other sources are not required but feel free to use them if they aid in your discussion.Also, provide a graduate-level response to each of the following questions:

One of the main ways that culture is created and maintained within an organization is for the founder to only hire and keep employees who think and feel the same as he/she does. Discuss both the pros and cons of this idea and offer an opinion as to why this system can be effective?

[Your post must be substantive and demonstrate insight gained from the course material. Postings must be in the student's own words – do not provide quotes!] [Your initial post should be at least 450+ words and in APA format (including Times New Roman with font size 12 and double spaced). Post the actual body of your paper in the discussion thread then attach a Word version of the paper for APA review]

Research Project – Group Submission

Attached Files:

CourseBADM532 – Organizational Behavior

Purpose of AssignmentThe purpose of this project is to give your team an opportunity to apply what has been learned about organizational behavior (through course lectures, readings, research, and discussions) and expand research skills to analyze the problems of an organization. Since organizational work involves working and communicating with others, you are asked to participate in a group project. You will be randomly assigned to work in groups.

The aim of the group project is two-fold: 1) the project allows you to research and explore organizational behavior concepts in depth and 2) the project allows you to evaluate a current concept within organizational behavior within multiple organizations using the OB concepts we have learned and the analytical skills you have developed in the course. Your team will select a current concept in OB and identify at least four organizations in which this concept is applied to, research and present on.

What to DoGroups should:

Identify three (3) organizations known to successfully apply the chosen organizational behavior concept to their organizational structure. *At least one of these organizations should come from Forbes 100 Best Places to Work list for this year.
Identify one (1) organization known to unsuccessfully apply the chosen organizational behavior concept to their organizational structure.
Be prepared to discuss how this organizational concept is applied in your own workplace – or could be applied.

*While the main focus of your research should focus on the OB concept chosen, you may incorporate other OB concepts/theories that strengthen your research. Be sure to aim for depth rather than breadth regarding the use of additional OB concepts. Any additional concepts should NOT change the focus of your research but strengthen.

Don’t forget to include:

Description of the OB concept. The history and theories behind the use of this concept, as well as any negative opinions or theories against the concept.
What benefits do you see with the use of this OB concept?
Identify three (3) organizational known to successfully apply the chosen organizational behavior concept to their organizational structure. *At least one of these organizations should come from Forbes 100 Best Places to Work list for this year. Please provide a description of the organizations chosen, their background, and how/why this OB concept was applied. Be sure to include examples of concept applied within each organization (answers may vary based on the organization)
How has this concept impacted the organizations? (answers may vary based on the organization)
Describe how the organizations are viewed as leaders in their industry because of the use of the OB concepts? (answers may vary based on the organization)
Identify one (1) organization known to unsuccessfully apply the chosen organizational behavior concept to their organizational structure. Please provide a description of the organizations chosen, their background, and how/why this OB concept was applied and unsuccessful.
Compare and contrast the organizations’ use of the OB concept.

Deliverables

Written Component:

Prepare a report to address all aspects of the assignment.
This report should be no less than 10 pages and no more than 15 pages of content. Imaged (graphs, charts, & images should not count towards your 15 pages of content – Title page and Reference does not count towards your 15 pages of content.
You must have at least 10 references (5 must be scholarly peer-reviewed articles). All outside sources should be referenced and properly cited in-text and on your reference page.
In addition to the 15 pages of content, you will want a title page and references.
This report MUST be in proper APA format.

Essentials of Organizational Behavior

Fifteenth Edition

Chapter 15

Foundations of

Organization Structure

Learning Objectives

15.1 Identify seven elements of an organization’s structure.

15.2 Identify the characteristics of the simple structure, bureaucracy, and the matrix structure.

15.3 Identify the characteristics of the virtual structure, the team structure, and the circular structure.

15.4 Describe the effects of downsizing on organizational structures and employees.

15.5 Contrast the reasons for mechanistic and organic structural models.

15.6 Analyze the behavioral implications of different organizational designs.

What Is Organization Structure? Learning Objective 15.1

Organizational Structure: defines how job tasks are formally divided, grouped, and coordinated

Key elements:

Work specialization

Departmentalization

Chain of command

Span of control

Centralization and decentralization

Formalization

Boundary spanning

Organizational structure depicts how job tasks are formally divided, grouped, and coordinated. The key elements of organizational structure include work specialization, departmentalization, chain of command, span of control, centralization and decentralization, formalization, and boundary spanning.

Key Design Questions and Answers for Designing the Proper Organizational Structure (Exhibit 15-1)

This exhibit presents each element as an answer to an important structural question.

The details are as follows:

Question 1: To what degree are activities subdivided into separate jobs?

Answer: Work specialization.

Question 2: On what basis will jobs be grouped together?

Answer: Departmentalization.

Question 3: To whom do individuals and groups report?

Answer: Chain of command.

Question 4: How many individuals can a manager efficiently and effectively direct?

Answer: Span of control.

Question 5: Where does decision-making authority lie?

Answer: Centralization and decentralization

Question 7: To what degree will there be rules and regulations to direct employees and managers?

Answer: Formalization.

Question 8: Do individuals from different areas need to regularly interact?

Answer: Boundary spanning.

Work Specialization

Work specialization: describes the degree to which activities in the organization are subdivided into separate jobs

Also known as division of labor

Benefits

Greater efficiency and lower costs

Costs

Human costs when carried too far

Job enlargement as a solution

A key part of organizational structure is understanding the degree to which tasks are divided into separate jobs or work specialization. The division of labor is helpful in creating the most efficient way to utilize employee skills, increase their skills, and maximize their input.

Work specialization can cause greater economies, but in some cases it can cause diminishing returns due to repetition that can lead to boredom. Job enlargement can be more effective at creating greater efficiencies than work specialization.

Economies and Diseconomies of Work Specialization (Exhibit 15-2)

This exhibit shows economies and diseconomies of work specialization.

Departmentalization

Departmentalization: basis by which jobs are grouped together so that common tasks can be coordinated

Common bases:

Functional

Product or service

Geography

Process and customer

Departmentalization defines how jobs are grouped together. When jobs are grouped, departments are formed. There are a number of options to choose from when grouping jobs; you could organize around function performed, product or service produced, location, or process and customer.

Chain of Command

Chain of command: unbroken line of authority that extends from the top of the organization to the lowest echelon and clarifies who reports to whom

Authority: positional rights

Unity of command: one boss

Fewer organizations find this is relevant

The chain of command represents the line of authority present in decision making. Embedded in the chain of command is the inherent right of a manager to give orders and expect the orders to be followed. Unity of command is the idea that a subordinate should have only one superior to report to so that directions and the chain of command are clear.

As organizations change, this concept is becoming less and less important.

Span of Control

Span of control: the number of employees a manager is expected to effectively and efficiently direct

Determines the number of levels and managers an organization has

Trend is toward wider spans of control

Wider span depends on knowledgeable employees

Affects speed of communication and decision making

Span of control looks at how many workers a manager can effectively direct towards organizational goals. Wider span allows for more efficiency because you need fewer managers. However, it can also limit the amount of time and direction managers can give to their employees. A narrow span can allow for more direction but can add layers of management, increase the complexity of the vertical communication, and encourage overly tight supervision, limiting employee autonomy.

Contrasting Spans of Control (Exhibit 15-3)

The exhibit illustrates that wider spans of control have fewer levels and fewer managers.

The trend in recent years has been toward wider spans of control.

Long Description:

Organizational level’s ranging from 1 to 7 is shown on a continuum next to the pyramids that depict members at each level based on assumed span of 4 and 8. In the continuum 1 is the highest level and 7 is the lowest level.

The details of the members at each level are as follows:

Organizational level 1 (Highest): Assuming Span of 4, 1; Assuming Span of 8, 1.

Organizational level 2: Assuming Span of 4, 4; Assuming Span of 8, 8.

Organizational level 3: Assuming Span of 4, 16; Assuming Span of 8, 64.

Organizational level 4: Assuming Span of 4, 64; Assuming Span of 8, 512.

Organizational level 5: Assuming Span of 4, 256; Assuming Span of 8, 4096.

Organizational level 6: Assuming Span of 4, 1024; Assuming Span of 8, NA.

Organizational level 7 (Lowest): Assuming Span of 4, 4096; Assuming Span of 8, NA.

Text below the pyramids reads:

Span of 4: Operatives is 4,096; Managers from level 1 to 6 is 1,365.

Span of 8: Operatives is 4,096; Managers from level 1 to 4 is 585.

Centralization and Decentralization

Centralization: degree to which decision making is concentrated at a single point in the organization

Only includes formal authority: positional rights

Highly centralized when top managers make all the decisions

Decentralized when front line employees and supervisors make decisions

The fifth aspect of structure deals with centralization and decentralization. Centralization is the degree to which decision making is concentrated at a single point in the organization, typically at the top. Decentralization represents an organization that spreads decision making throughout the organization.

Formalization

Formalization: degree to which jobs within the organization are standardized

High formalization: minimum discretion over what is to be done, when it is done, and how

Low formalization: freedom to act is necessary

Formalization is the degree to which jobs within the organization are standardized. When there is high formalization, workers have very little control over how they do their work, and they will be required to follow a number of rules and procedures. Lower formalization will tend to allow for different job behaviors to get the job done, giving workers more control over their work.

Boundary Spanning

Boundary spanning: when individuals form relationships outside their formally assigned groups

Liaison roles

Development activities

Job rotations

Organizational goals and shared identity

Organizations can use formal mechanisms to facilitate boundary-spanning activities through their structures.

One method is to assign formal liaison roles or develop committees of individuals from different areas of the organization.

Development activities can also facilitate boundary spanning. Employees with experience in multiple functions, such as accounting and marketing, are more likely to engage in boundary spanning.

Many organizations try to set the stage for these sorts of positive relationships by creating job rotation programs so new hires get a better sense of different areas of the organization.

A final method to encourage boundary spanning is to bring attention to overall organizational goals and shared identity concepts.

Common Organizational Frameworks and Structures Learning Objective 15.2

Three common organizational frameworks:

Simple structure

Bureaucracy

Matrix structure

There are a number of organizational structures available to companies. We will look at a number of options over the next several slides.

Simple Structure

Low degree of departmentalization

Wide spans of control

Authority centralized in a single person

Little formalization

Difficult to maintain in anything other than small organizations

The first and most basic structure is the simple structure. This structure has a low degree of departmentalization, wide spans of control, and centralized decision making with little formalization in job design.

This structure is difficult to utilize in anything other than small organizations.

Bureaucracy

Highly routine operating tasks achieved through specialization

Formal rules and regulations

Centralized authority

Narrow spans of control

Decision making follows the chain of command

Another type of organizational design is bureaucracy. In a bureaucratic organization, there will be a great deal of structure. The tasks will be completed through specialization, and they tend to be formalized through rules and regulations. Departments will be highly defined by function, and authority is centralized. Decision making will follow a strict chain of command and there will be narrow spans of control. The bureaucratic organization will be one that is highly defined and very controlled.

Bureaucratic structures may result in diminished autonomy and motivation for employees within these systems, making it difficult to develop and maintain motivation.

Matrix Structure for a College of Business Administration (Exhibit 15-4)

This slide shows an example of a matrix structure within a college.

The matrix structure is another common organizational design. This structure creates dual lines of authority and combines functional and product departments in a way to effectively meet organizational goals.

The key elements of the matrix structure is that it gains the interactions between the functional and product departments by coordinating complex and interdependent activities to help reach the goals set forth in an efficient manner, opening up avenues for new ideas to achieve the company’s mission. The matrix structure also breaks down the unity-of-command concept as the lines of authority are blurred.

Alternate Design Options Learning Objective 15.3

Virtual Structure: a small core organization that outsources its major business functions

Highly centralized with little or no departmentalization

Provides maximum flexibility while concentrating on what the organization does best

Reduced control over key parts of the business

Virtual organizations (network, or modular structure) are developing as acceptable organizational structures. This structure offers a small core organization that outsources many of its major functions to competent suppliers. Virtual organizations are highly centralized with virtually no departmentalization to provide maximum flexibility, focusing on what the organization does best. This type of organization reduces control over some of the key parts of the business.

A Virtual Organization (Exhibit 15-5)

This exhibit shows a virtual organization in which management outsources all the primary functions of the business.

The Team Structure

Team structure:

Eliminates the chain of command

Has limitless spans of control

Replaces departments with empowered teams

Breaks down geographical barriers

Boundaryless organizations are set up to reduce the structure and tight control over work. They organize in a way to try to empower teams. They eliminate vertical and horizontal boundaries, as well as geographic boundaries. Boundaryless organizations also try to break down external barriers to customers and suppliers through their structure and style of communication. These organizations also break down geographical barriers.

The Circular Structure

Circular structure: top management is at the center of the organization with its vision spreading outward in rings grouped by function

May be confusing for employees

May be used to spread CSR initiatives

Picture the concentric rings of an archery target. In the center are the executives; radiating outward in rings grouped by function are the managers, then the specialists, then the workers. This is the circular structure.

The Leaner Organization: Downsizing Learning Objective 15.4

Downsizing: a systematic effort to make an organization leaner by selling off business units, closing locations, or reducing staff

Controversial because of the negative impact on employees

Impact on organizational performance has been very controversial

In the midst of tough economic times and the need for companies to be leaner, downsizing has been on the rise. Downsizing is a systematic effort to make an organization leaner by ridding itself of business units, excessive locations, and staff. It has been very controversial because of the strong negative impact on employees. Because of this negative impact, the link to performance enhancement has been questioned.

Mechanistic versus Organic Models (Exhibit 15-6) Learning Objective 15.5

This slide show two extreme models of organizational design – the mechanistic model and the organic model. Several factors, discussed next, influence which type of structure is best for an organization.

The mechanistic model is a structure characterized by extensive departmentalization, high formalization, a limited network, and centralization.

The organic model is flat, uses cross-hierarchical and cross-functional teams, has low formalization, processes a comprehensive information network, and relies on participative decision-making.

Long Description:

The details of the schematic are as below:

In the schematic, the mechanistic model is shown as a hierarchical tree structure. The features listed at the bottom read as follows: High specialization, rigid departmentalization, clear chain of command, narrow spans of control, centralization, and high formalization.

In the schematic, the organic model is represented as a series of four interconnected teams. The features listed at the bottom read as follows: Cross-functional teams, cross-hierarchical teams, free flow of information, wide spans of control, decentralization, and low formalization.

The Strategy-Structure Relationship (Exhibit 15-7)

Exhibit 15-7 describes the structural option that best matches each strategy.

Structures differ for a number of reasons. The first is that structure is set up to facilitate the strategy of the organization. If your organization is focusing on innovation as a key value, then it may be best served by an organic structure. Whereas, if the strategy emphasizes minimizing costs, a mechanistic structure will work better. Strategy should always dictate structure instead of structure dictating strategy.

Long Description:

The details are as below:

Innovation: Organic; A loose structure; low specialization, low formalization, decentralized.

Cost minimization: Mechanistic; Tight control; extensive work specialization, high formalization, high centralization.

Imitation: Mechanistic and organic; Mix of loose with tight properties; tight controls over current activities and looser controls for new undertakings.

More Determinants of Structure

Organization Size – move toward mechanistic structure as size increases

Technology – routine activities prefer mechanistic structures, non-routine prefer organic structures

Environment

Capacity

Volatility

Complexity

Institutions – guidelines for appropriate behavior

Structures differ for a number of reasons.

Structures will also differ by organization size; the larger the organization, the more likely it will be mechanistic. Technology also influences structure. The more routine the activities, the more mechanistic the structure should be.

Structures will also differ based on the environment in which they exist. The more dynamic the environment, the more organic the structure will need to be to facilitate quick decisions and fast turnaround. Finally, institutions play a role in organizational design by acting as guidelines for appropriate behavior.

The Environment (Exhibit 15-8)

Exhibit 15-8 summarizes our definition of the environment along its three dimensions.

Organizational Designs and Employee Behavior Learning Objective 15.6

Cannot generalize any link between structure and performance

Consider employee preferences for:

Span of control

Centralization

Predictability versus autonomy

National culture

High power distance cultures accept mechanistic structures

You cannot generalize. The effect of organizational design on employee behavior must address individual differences.

Organizational designs are not a good predictor of employee behavior. Span of control has mixed results depending on individual differences in employees and organizational factors. There is a strong link between centralization and job satisfaction. In general, less centralized organizations have a greater amount of autonomy and that appears positively related to job satisfaction. People are attracted to, are selected by, and stay with organizations that suit their personal characteristics.

Research suggests that national culture may influence organizational structure. In particular, organizations with people from high-power distance cultures typically find that employees are more accepting of mechanistic structures than employees from low power-distance countries.

Various factors will influence workers in their job satisfaction and their willingness to stay with an organization.

Implications for Managers

Your structure should be purpose driven.

Consider the design features that relate to specialization, departmentalization, authority, formalization, and boundary spanning to implement your strategy.

Match your structure decision to your strategy.

Downsize only if necessary.

Aim for an organic structure if your strategy prioritizes innovation, a mechanistic structure if your strategy prioritizes cost minimization, and a combination of the two if your strategy prioritizes imitation.

Structure does have an impact on both the attitudes and behaviors of the people within the organization, so it is important that managers effectively select and utilize structure within their organizations.

Discussion Questions

Discuss your organizational structure preferences. Why did you make these choices?

What has been the impact on many organizations forced to downsize during the COVID-19 pandemic?

Why do you think empowerment and transformational leadership tend to be more effective in organic structures?

This work is protected by United States copyright laws and is provided solely for the use of instructors in teaching their courses and assessing student learning. Dissemination or sale of any part of this work (including on the World Wide Web) will destroy the integrity of the work and is not permitted. The work and materials from it should never be made available to students except by instructors using the accompanying text in their classes. All recipients of this work are expected to abide by these restrictions and to honor the intended pedagogical purposes and the needs of other instructors who rely on these materials.

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Essentials of Organizational Behavior

Fifteenth Edition

Chapter 16

Organizational Culture

Learning Objectives

16.1 Describe the common characteristics of organizational culture.

16.2 Show how culture is transmitted to employees.

16.3 Identify the factors that create and sustain an organization’s culture.

16.4 Compare the functional and dysfunctional effects of organizational culture on people and the organization.

16.5 Describe the similarities and differences in creating an ethical culture, a positive culture, and a spiritual culture.

16.6 Show how national culture can affect the way organizational culture is interpreted in another country.

Organizational Culture Learning Objective 16.1

Organizational culture: a system of shared meaning held by members that distinguishes the organization from other organizations

Organizational culture is an important concept in studying how organizations behave. Culture is defined as a common perception held by the members of the organization or a sense of shared meaning. This system is characterized by values, beliefs, and underlying assumptions that serve several purposes.

The Effect of Culture on Organizational Outcomes (Exhibit 16-2)

Culture	Employee Attitudes & Performance	Innovation	High Quality Products/Services & Operational Efficiency	Customer Satisfaction & Market Share	Profitability & Revenue Growth
Clan	+*	+*	0	+*	–
Adhocracy	+*	+	+*	–	0
Market	0	+	+*	+*	0
Hierarchy	+*	–	+*	0	+*

Note: + corresponds with a positive effect on the outcome, – corresponds with a negative effect on the outcome, 0 corresponds with a zero, or null, effect on the outcome, * suggests the culture is strongly related to the outcome.

Sources: Based on findings from C. A. Hartnell, A. Y. Ou, A. J. Kinicki, D. Choi, and E. P. Karam, “A meta-analytic test of organizational culture’s association with elements of an organization’s system and its relative predictive validity on organizational outcomes,” Journal of Applied Psychology 104, no. 6 (2019): 832–850.

One of the most common frameworks describes organizational cultures as possessing several competing values.

The Clan is a culture based on human affiliation. Employees value attachment, collaboration, trust, and support.

The Adhocracy is a culture based on change. Employees value growth, variety, attention to detail, stimulation, and autonomy.

The Market is a culture based on achievement. Employees value communication, competence, and competition.

And the Hierarchy is a culture based on stability. Employees value communication, formalization, and routine.

Another widely used framework is the Organizational Culture Profile (OCP).

Do Organizations Have Uniform Cultures?

The dominant culture expresses the core values that are shared by a majority of the organization’s members

Subcultures tend to develop in large organizations to reflect common problems, situations, or experiences of members

Subcultures mirror the dominant culture but may add to or modify the core values

Most large organizations have both a dominant culture and several subcultures. The dominant culture reflects the core values that are shared by the majority of employees in the organization. Subcultures reflect common problems or experiences shared by employees in the same department or location.

Strong versus Weak Cultures

In a strong culture, the organization’s core values are both intensely held and widely shared

Strong cultures will:

Have great influence on the behavior of members

Increase cohesiveness

Result in lower employee turnover

A strong culture is one in which the core values are intensely held and shared by most.

Strong cultures will have a great influence on the behavior of members and increase cohesiveness, which should result in lower employee turnover.

How Employees Learn Culture Learning Objective 16.2

Culture is transmitted to employees through:

Stories: provide explanations

Rituals: reinforce key values

Symbols: convey importance, degree of egalitarianism desired, and appropriate behaviors

Language: identify and segregate members

Employees learn the organizational culture through a number of avenues. They can gain an understanding of culture by hearing stories that present the past and provide explanations for current practices. Rituals, or repetitive sequences of activities, can reinforce the key values of the organization and provide insight into the culture. Material symbols such as dress codes, formal or informal, office size or style, and perks for key employees can denote who is important in an organization.

Language is another way to learn about organizational culture, as employees will express themselves in certain ways to indicate membership in the organization.

How a Culture Begins Learning Objective 16.3

Ultimate source of an organization’s culture is its founders

Founders create culture in three ways

Hiring and keeping those who think and feel the same way they do

Indoctrinating and socializing those employees to their way of thinking and feeling

Acting as a role model and encouraging employees to identify with them

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Reflection and Discussion Forum Week 7Assigned Readings:Chapter 15. Foundations of Organization StructureChapter 16. Organizational CultureChapter 17. Organizational Change and Stre

Research Project – Group Submission

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